Far East Hospitality Trust (Q5T) AI Stock Analysis

• Market Cap: S$1.26B
• Dividend Yield: 7.16%
• Average Volume (3M): 1.08M
• Price to Earnings (P/E): 34.9
• Beta (1Y): 0.62
• Revenue Growth: -3.65%
• EPS Growth: -69.86%
• Country: SG
• Employees: 9
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): <0.01
• Shares Outstanding: 2,051,141,600
• 10 Day Avg. Volume: 837,830
• 30 Day Avg. Volume: 1,079,476
• PEG Ratio: -0.41
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 11.31
• P/FCF Ratio: 13.63
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: S$0.70
• Price Target Upside: 12.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: S$0.50 ▼(-19.35% Downside)

The overall score reflects strong financial performance with robust revenue growth and efficient cost management. However, technical indicators suggest potential overbought conditions, and the high P/E ratio indicates possible overvaluation. The attractive dividend yield provides a positive offset.

Positive Factors

Revenue Growth

Strong revenue growth indicates a positive trajectory and suggests the company's ability to capitalize on market opportunities, enhancing its competitive position.

Cash Generation

Robust cash generation relative to net income demonstrates financial health, providing the company with the flexibility to invest in growth opportunities and manage liabilities.

Gross Profit Margin

A high gross profit margin indicates effective cost management, which supports sustained profitability and competitive pricing strategies.

Negative Factors

Net Profit Margin Decline

A decline in net profit margin suggests potential profitability challenges, which could impact the company's ability to generate returns for investors over time.

Free Cash Flow Decline

A decline in free cash flow growth may limit the company's ability to fund new investments or return capital to shareholders, impacting long-term growth prospects.

Low Return on Equity

Low return on equity indicates inefficiency in using shareholders' equity to generate profits, which could affect investor confidence and long-term value creation.

Far East Hospitality Trust Business Overview & Revenue Model

Company Description

Far East H-Trust is a Singapore-Focused Hotel and Serviced Residence Hospitality Trust listed on the Main Board of The Singapore Exchange Securities Trading Limited ("SGX-ST"). Comprising Far East Hospitality Real Estate Investment Trust ("Far East H-REIT") and Far East Hospitality Business Trust ("Far East H-BT"), Far East H-Trust was listed on the SGX-ST on 27 August 2012 and has a portfolio of 13 properties totaling 3,143 hotel rooms and serviced residence units valued at approximately S$2.65 billion as at 31 December 2019. Managed by FEO Hospitality Asset Management Pte. Ltd. and FEO Hospitality Trust Management Pte. Ltd. (collectively, the "Managers") and sponsored by members of Far East Organization Group (the "Sponsor"), Far East H-Trust seeks to provide Stapled Securityholders with regular, stable and growing distributions on a quarterly basis. Far East H-Trust is listed on the FTSE ST Mid Cap Index.

How the Company Makes Money

Far East Hospitality Trust generates revenue primarily through the rental income from its portfolio of hotels and serviced residences. The trust leases its properties to experienced operators who manage the day-to-day operations and guest services, allowing the trust to benefit from stable rental income while minimizing operational risks. Additionally, the trust may earn income through management fees and performance-related incentives based on the profitability of its leased properties. Key partnerships with reputable hotel operators enhance the trust's ability to attract guests and maintain high occupancy rates, further contributing to its revenue stream. The trust also benefits from the growing tourism sector in Singapore and surrounding regions, which drives demand for its hospitality services.

Far East Hospitality Trust Financial Statement Overview

Summary

Far East Hospitality Trust shows strong revenue growth and efficient cost management, with a high gross profit margin. However, challenges in net profit margin and limited profitability from equity suggest areas for improvement.

Income Statement

The income statement shows a strong revenue growth rate of 34.63% in the latest year, indicating a positive trajectory. Gross profit margin remains high at 81.34%, reflecting efficient cost management. However, the net profit margin has decreased significantly from the previous year, suggesting potential profitability challenges.

Balance Sheet

The balance sheet indicates a stable debt-to-equity ratio of 0.39, showing moderate leverage. Return on equity is relatively low at 2.52%, suggesting limited profitability from equity. The equity ratio is healthy, indicating a strong equity base relative to total assets.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 13.34%, which could be a concern. However, the operating cash flow to net income ratio is strong at 9.36, indicating robust cash generation relative to net income. Free cash flow to net income is also high, suggesting efficient cash utilization.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	106.46M	108.71M	106.81M	83.58M	83.25M	83.25M
Gross Profit	85.28M	88.43M	87.96M	67.59M	65.41M	62.41M
EBITDA	39.81M	77.32M	77.87M	221.67M	65.22M	56.07M
Net Income	35.50M	46.70M	130.31M	203.75M	131.01M	-93.40M
Balance Sheet
Total Assets	2.63B	2.59B	2.62B	2.56B	2.66B	2.58B
Cash, Cash Equivalents and Short-Term Investments	12.41M	19.66M	63.09M	49.77M	11.69M	10.92M
Total Debt	770.05M	716.49M	736.75M	737.82M	947.64M	989.20M
Total Liabilities	797.33M	734.72M	755.75M	755.30M	1.02B	1.02B
Stockholders Equity	1.83B	1.85B	1.87B	1.80B	1.65B	1.56B
Cash Flow
Free Cash Flow	87.65M	90.18M	92.88M	64.64M	68.33M	71.89M
Operating Cash Flow	87.65M	93.63M	97.26M	71.87M	69.28M	76.44M
Investing Cash Flow	-56.75M	-349.00K	15.58M	255.50M	42.98M	-4.55M
Financing Cash Flow	-46.87M	-136.71M	-99.52M	-289.30M	-111.48M	-66.81M

Far East Hospitality Trust Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:Q5T, the sentiment is Positive. The current price of 0.62 is above the 20-day moving average (MA) of 0.61, above the 50-day MA of 0.61, and above the 200-day MA of 0.58, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.12 is Neutral, neither overbought nor oversold. The STOCH value of 116.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:Q5T.

Far East Hospitality Trust Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
P40U	78 Outperform	S$1.38B	12.50	6.62%	6.29%	0.70%	71.84%
JYEU	70 Neutral	S$1.85B	28.80	2.88%	8.01%	-6.64%	-12.15%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
Q5T	65 Neutral	S$1.26B	34.94	1.92%	7.16%	-3.65%	-69.86%
AU8U	65 Neutral	S$1.38B	1,325.00	0.04%	6.66%	-8.59%	-93.48%
J85	54 Neutral	S$1.07B	-600.00	-0.10%	5.84%	-2.96%	-101.38%

Far East Hospitality Trust Corporate Events

Far East Hospitality Trust Secures S$101.4 Million Sustainability-Linked Facility

Far East Hospitality Trust has announced that its trustee, DBS Trustee Limited, has secured a S$101.4 million sustainability-linked facility agreement with an institutional bank. This agreement includes conditions related to shareholding interests and management changes, with potential implications for cross-defaults on other borrowings amounting to approximately S$747.1 million. As of the announcement date, there have been no breaches of these conditions.

The most recent analyst rating on (SG:Q5T) stock is a Hold with a S$0.50 price target. To see the full list of analyst forecasts on Far East Hospitality Trust stock, see the SG:Q5T Stock Forecast page.