Chatham Lodging Trust (CLDT)
Valuation Overview•Is Chatham Lodging Trust Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
Fragile underlying quality score of 45/100; weak margins or elevated debt leverage warrant caution.
Analysts remain cautious, with consensus price targets indicating limited room for upside expansion.
Verdict: Average quality business weighed down by significant profitability concerns.
Wall Street is cautious, forecasting potential downside. However, capital return yields remain modest, driven predominantly by aggressive share repurchases.
Returns capital exclusively via buybacks — no active dividend
CLDT struggles with subpar profitability and pressured margins. However, the balance sheet carries elevated leverage, requiring careful monitoring of debt servicing capabilities.
The company exhibits steady, low-single-digit revenue growth paired with stable bottom-line earnings. Operating efficiency remains adequate with margins around 9.3%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $67.5M | -7.0% | +0.0% | +17.4% | +0.6% | |
| EBITDA | $16.3M | — | -3.4% | — | — | |
| Net Income | -$4.3M | +261.3% | +15.4% | — | -7.5% | |
| EPS (Diluted) | $-0.09 | +275.0% | — | — | -16.6% | |
| Free Cash Flow | $7.3M | -45.9% | -17.9% | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 27.5% | 24.7% | 28.2% | 32.6% |
| Operating Margin | 9.3% | 9.6% | 6.5% | 7.3% |
| Net Margin | 3.1% | 2.4% | 0.3% | -2.0% |
| FCF Margin | 19.7% | 20.3% | 18.9% | 7.4% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.16 | $0.20 | +25.0% | ||
| Q1'26 | $-0.12 | $0.05 | +141.7% | ||
| Q4'25 | $0.01 | $0.03 | +200.0% | ||
| Q3'25 | $0.34 | $0.36 | +5.9% | ||
| Q2'25 | $0.13 | $0.14 | +7.7% | ||
| Q1'25 | $-0.14 | $0.20 | +242.9% | ||
| Q4'24 | $0.35 | $0.35 | +0.0% | ||
| Q3'24 | $0.36 | $0.39 | +8.3% |
Total return is +94.5% (1Y), outperforming the benchmark by +69.5%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +97.9% | +88.6% | — |
| 1Y | +94.5% | +69.5% | +5.2% |
| 3YCAGR | +14.6% | -6.4% | +10.0% |
| 5YCAGR | +2.2% | -12.0% | +8.4% |
| 10YCAGR | -1.0% | -14.9% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Chatham Lodging Trust (CLDT) valuation, health, and returns.
Based on peer relative multiples, Chatham Lodging Trust appears Cheap versus peers compared to industry peers.
Chatham Lodging Trust has multiple valuation anchors: Peer Relative Fair Value: $20.98 | Wall Street Analyst Target: $12.33 (implying -7.7% upside). A convergence of these signals offers higher conviction.
Chatham Lodging Trust displays fair financial health with a composite quality score of 45/100, supported by a Piotroski F-Score of 6/9, Return on Invested Capital (ROIC) of 1.7%.
Chatham Lodging Trust returns capital via buybacks instead of dividends, carrying a 1.4% buyback yield and reducing outstanding shares by +2.2% in the last 12 months.
Chatham Lodging Trust's current growth trajectory is Decelerating. The company achieved -7.0% 1Y revenue growth and +275.0% 1Y EPS growth, compared to its 3Y revenue CAGR of +0.0%.
Wall Street consensus is Buy based on 13 analysts, beating EPS expectations in 92% of recent quarters with a 6-quarter streak. The consensus price target represents a -7.7% change from current levels.
Investment risks for Chatham Lodging Trust include: -19.8% 1-year max drawdown. Volatility risk is characterized by a beta of 0.78x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.