Chatham Lodging (CLDT) AI Stock Analysis

• Market Cap: $340.58M
• Dividend Yield: 5%
• Average Volume (3M): 244.62K
• Price to Earnings (P/E): 632.4
• Beta (1Y): 1.02
• Revenue Growth: -3.79%
• EPS Growth: N/A
• Country: US
• Employees: 17
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Hotel & Motel
• EPS (TTM): 0.03
• Shares Outstanding: 48,516,000
• 10 Day Avg. Volume: 272,829
• 30 Day Avg. Volume: 244,617
• PEG Ratio: -3.85
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 1.38
• P/FCF Ratio: 5.99
• Enterprise Value/Market Cap: 2.13
• Enterprise Value/Revenue: 2.40
• Enterprise Value/Gross Profit: 6.93
• Enterprise Value/Ebitda: 8.26
• 1Y Price Target: $8.33
• Price Target Upside: 19.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: $7.00 ▲(0.00% Upside)

Chatham Lodging's overall stock score is primarily influenced by its mixed financial performance and bearish technical indicators. The high P/E ratio raises valuation concerns, although the dividend yield provides some support. The company's financial flexibility, highlighted by the increased credit facility, is a positive factor, but challenges in RevPAR and profitability weigh on the score.

Positive Factors

Financial Flexibility

The increased credit facility enhances Chatham's financial flexibility, allowing it to manage obligations and invest in growth opportunities, strengthening its competitive position in the lodging REIT sector.

Operational Efficiency

Maintaining strong operating profit margins despite cost pressures indicates effective cost management, supporting long-term profitability and operational resilience.

Market Performance

Growth in key markets like Coastal Northeast and Greater New York demonstrates Chatham's ability to capitalize on regional demand, enhancing revenue stability and market position.

Negative Factors

Revenue Growth Challenges

Negative revenue growth indicates difficulties in expanding sales, which could hinder long-term profitability and market competitiveness if not addressed.

RevPAR Decline

Declining RevPAR, especially in key markets, suggests challenges in maintaining occupancy and pricing power, potentially impacting future revenue and profitability.

Free Cash Flow Concerns

Negative free cash flow growth raises concerns about cash generation, which may limit the company's ability to fund operations and growth initiatives sustainably.

Chatham Lodging Business Overview & Revenue Model

Company Description

Chatham Lodging Trust is a self-advised, publicly traded real estate investment trust focused primarily on investing in upscale, extended-stay hotels and premium-branded, select-service hotels. At September, 30, 2020, The company owns interests in 86 hotels totaling 12,040 rooms/suites, comprised of 40 properties it wholly owns with an aggregate of 6,092 rooms/suites in 15 states and the District of Columbia and a minority investment in the Innkeepers joint ventures that owns 46 hotels with an aggregate of 5,948 rooms/suites.

How the Company Makes Money

Chatham Lodging generates revenue primarily through the operation of its hotel properties, which provide lodging services to guests. The company earns income from room rentals, as well as ancillary services such as food and beverage sales, meeting room rentals, and other guest services. Chatham benefits from long-term leases with hotel management companies that operate its properties, allowing for stable cash flows. Additionally, the company may realize revenue from property sales or refinancing activities. Strategic partnerships with renowned hotel brands help drive occupancy rates, ensuring a steady stream of income, while the company's focus on the extended-stay segment caters to a growing market of travelers seeking longer-term accommodations.

Chatham Lodging Financial Statement Overview

Summary

Chatham Lodging's financial statements present a mixed picture. While there are strengths in operational efficiency and a reduction in leverage, challenges remain in revenue growth and profitability. The company needs to focus on strategic initiatives to boost revenue and improve profit margins. Cash flow management is crucial, given the negative growth in free cash flow. Overall, the company is on a stable footing but must address these challenges to enhance financial performance.

Income Statement

Chatham Lodging's income statement shows a mixed performance. The Gross Profit Margin for TTM is 28.44%, which is a decline from previous years, indicating pressure on cost management. The Net Profit Margin is low at 1.71%, reflecting challenges in achieving profitability. Revenue growth has been negative recently, with a -2.82% rate for TTM, suggesting a need for strategic initiatives to boost sales. However, the EBIT and EBITDA margins are relatively stable, indicating operational efficiency.

Balance Sheet

The balance sheet reflects a moderate financial position. The Debt-to-Equity Ratio has improved to 0.49 in TTM, showing a reduction in leverage, which is positive. Return on Equity is low at 0.68%, indicating limited returns to shareholders. The Equity Ratio is stable, suggesting a balanced capital structure. Overall, the company has managed to reduce debt levels, enhancing financial stability.

Cash Flow

Cash flow analysis reveals some concerns. Free Cash Flow Growth is negative at -29.05% for TTM, indicating potential issues in generating cash. However, the Operating Cash Flow to Net Income Ratio is strong at 2.01, suggesting efficient cash generation relative to net income. The Free Cash Flow to Net Income Ratio is also healthy at 1.15, indicating good cash conversion. Despite these strengths, declining free cash flow growth is a risk.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	302.45M	317.21M	311.11M	294.85M	203.97M	132.45M
Gross Profit	104.82M	111.22M	110.93M	111.56M	59.13M	37.52M
EBITDA	87.99M	94.25M	86.66M	95.67M	58.46M	-2.28M
Net Income	8.73M	4.17M	2.64M	9.80M	-18.41M	-76.02M
Balance Sheet
Total Assets	1.18B	1.25B	1.34B	1.34B	1.41B	1.37B
Cash, Cash Equivalents and Short-Term Investments	13.23M	20.20M	68.13M	26.27M	19.19M	21.12M
Total Debt	359.06M	427.48M	504.88M	491.99M	566.99M	767.30M
Total Liabilities	397.06M	462.68M	539.55M	525.74M	596.51M	677.80M
Stockholders Equity	749.44M	758.22M	776.06M	794.89M	797.50M	677.75M
Cash Flow
Free Cash Flow	55.42M	73.13M	76.44M	71.53M	19.27M	-34.45M
Operating Cash Flow	64.77M	73.83M	76.44M	71.53M	28.78M	-19.96M
Investing Cash Flow	55.37M	-29.17M	-28.11M	29.96M	-101.94M	26.81M
Financing Cash Flow	-127.61M	-100.56M	-7.73M	-86.21M	71.58M	4.43M

Chatham Lodging Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLDT, the sentiment is Positive. The current price of 7 is above the 20-day moving average (MA) of 6.93, above the 50-day MA of 6.75, and above the 200-day MA of 6.84, indicating a bullish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 53.20 is Neutral, neither overbought nor oversold. The STOCH value of 71.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CLDT.

Chatham Lodging Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
CLDT	59 Neutral	$340.58M	632.43	1.13%	5.00%	-3.79%	―
INN	59 Neutral	$581.04M	―	0.16%	6.61%	-1.20%	-328.23%
BHR	57 Neutral	$205.34M	-3.40	-1.09%	7.17%	-2.84%	-11.92%
SOHO	51 Neutral	$44.12M	-5.26	-0.68%	―	-0.57%	-24.28%
SVC	49 Neutral	$361.39M	-1.26	-35.25%	2.31%	-0.56%	-14.18%
AHT	46 Neutral	$27.63M	-0.09	―	―	-7.89%	-833.99%