Stock analysis · Bull Rankings model

SHO analysis

Sunstone Hotel Investors, Inc.REIT - Hotel & Motel. Scored on the same transparent model behind the daily rankings.

SHO
Sunstone Hotel Investors, Inc. · REIT - Hotel & Motel
Yield3.2%B
Rev+7.3%B
D/E0.52A-
66.2REIT strength
$11.33$2.1B
1Y Target$11.79Analyst consensus · 12 analysts
5Y Target$17.26Compound horizon
10Y Target$25.61Long-dated conviction
Yield3.2%
B
Yield 3.2% — modest income · REITs are valued on FFO / AFFO, which our data source doesn't provide — we grade income, growth, and sector-relative leverage instead.
Rev+7.3%
B
Revenue +7.3% — at or above S&P median
D/E0.52
A-
D/E 0.52 — less debt than most Real Estate peers (≈25th pctile)

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Financial strength · 66.2 / 100
Profitability38.5
Value (P/B)79.1
Income71.3

A peer-relative read for reits on profitability (ROE, depreciation-adjusted), valuation, and covered income — the quality-growth (FCF/ROIC) screen doesn't apply to balance-sheet businesses. Not comparable to the 0–100 quality-growth score shown on other stocks.

Entry · Margin of safety
52-week rangeNear 52-week high
6% off the 12-month high
vs DCF fair value118% aboveest. fair value ~$5
What the price assumes: free cash flow compounding at ~18% a year for the next decade — vs the ~-5% a year our model projects from current growth and analyst estimates.
Quality signals · context only
ROIC-11.5% · Freturn on invested capital — not score-weighted

Model-generatedGenerated by the Bull Rankings model from this company's reported fundamentals, and checked against the figures shown above.

Why now
REIT - Hotel & Motel · market cap $2.1b. 6% off the 52-week high of $12.07. 12 sell-side analysts rate this a Buy with a mean 1-yr target of $11.79 (implying +4% upside).
Moat
FCF converts 148% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk
ROE 3% is below the long-run sustainable threshold of ~10% — capital efficiency would need to improve for the equity base to compound at the market rate.
Horizon
1-3 yr $11.79 (12-analyst consensus) — fundamentals + valuation re-rating. 5 yr $17.26 at ~9% CAGR — compounding case rests on the competitive position widening. 10 yr $25.61 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.

Not enough history yet — the model records SHO's score after each daily run, and the chart appears once a few days have accumulated.

SHO at a glance

FINANCIAL STRENGTH · REITPROFITABILITY39VALUE79COVERED INCOME7166.2/100 on our peer scale — not the quality-growth score.
PRICE vs OUR DCF FAIR VALUE$4.5$5.8FAIR-VALUE RANGE$11.3PRICEOur DCF fair value ~$5.2 · price $11.3 is 54% above it.
PRICE IN ITS 52-WEEK RANGE$11.3$8.7 LOWHIGH $12.1Trading at the 78th percentile of its 52-week range ($8.7–$12.1).
ONE-YEAR MOVE VS ITS BETAFLATThis stock+20%Trailing one-year price change. Price history is not an inputto the Bull Rankings score.

Every figure here comes from the same audited fundamentals behind the score. Charts drawn from data the score does not use say so on the card.

Analyst estimate revisions

30-day change-10.0%
90-day change-10.0%
Forward EPS estimate$0.14

Over the last 90 days, what analysts expect SHO to earn is materially lower (-10.0%). The estimate is derived from price and forward P/E captured at the same instant, so a moving share price does not move this number — only a changed forecast does.

A fiscal-year roll fell inside this window: the forward horizon moved on to the next financial year, which shifts the earnings figure without any analyst changing their view. That step is excluded, so the number above covers the rest of the window rather than all of it.

A rising estimate means expectations are improving, not that the price has failed to keep up — and estimates get cut as readily as they get raised. It is not part of the Bull Rankings score. Biggest movers across the market →

Shares to buy
176
Position size
$1,994
4.0% of portfolio
Stop price
$8.50
25% below $11.33
$ at risk if stopped
$498.52
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

Sunstone Hotel Investors, Inc. (SHO): score, valuation & FAQ

Sunstone Hotel Investors, Inc. (SHO) is a REIT - Hotel & Motel company. As a bank, insurer or REIT it runs on a different financial model from the rest of the market, so Bull Rankings grades it on a sector-appropriate card — price-to-book, dividend yield, payout ratio and cash-flow coverage — rather than the 0–100 quality-growth score used elsewhere. The read below is a transparent screen, not a buy recommendation.

Its strongest graded signals are D/E (A-). On valuation, SHO sits about 118% above our discounted-cash-flow fair value — the current price implies roughly 18% annual free-cash-flow growth over the next decade.

Is SHO a good stock to buy?

Bull Rankings grades SHO on a sector-appropriate card — price-to-book, dividend yield, payout and cash-flow coverage — rather than a single quality-growth score. That is driven by D/E (A-). A score is a quantitative screen of Sunstone Hotel Investors, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

How does Bull Rankings grade SHO?

As a bank, insurer or REIT, SHO isn't given a quality-growth score — signals like free cash flow, debt-to-equity and P/E don't translate cleanly to a balance-sheet business. Instead it's graded on a sector-appropriate card: price-to-book, dividend yield, payout ratio and operating-cash-flow coverage, where it rates strongest on D/E (A-).

Is SHO overvalued or undervalued?

Based on $11.33, SHO sits about 118% above our discounted-cash-flow fair value — the current price implies roughly 18% annual free-cash-flow growth over the next decade. Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in SHO?

ROE 3% is below the long-run sustainable threshold of ~10% — capital efficiency would need to improve for the equity base to compound at the market rate.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial advisor.

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