Summit Hotel Properties, Inc. (INN)
Valuation Overview•Is Summit Hotel Properties, Inc. Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
Fragile underlying quality score of 21/100; weak margins or elevated debt leverage warrant caution.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Highly distressed profile flashing severe fundamental warning signs.
Wall Street sentiment is generally neutral. This is paired with healthy capital returns, driven predominantly by aggressive share repurchases.
Returns capital exclusively via buybacks — no active dividend
INN struggles with subpar profitability and pressured margins. However, this is severely offset by a highly leveraged balance sheet (Debt/EBITDA > 4.0x) and elevated financial risk.
The company exhibits steady, low-single-digit revenue growth paired with stable bottom-line earnings. Operating efficiency remains adequate with margins around 7.6%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $185.1M | -0.3% | +2.6% | +25.5% | +4.6% | |
| EBITDA | $50.9M | — | -1.1% | — | — | |
| Net Income | -$10.4M | -118.2% | — | — | — | |
| EPS (Diluted) | $-0.10 | -215.8% | — | — | — | |
| Free Cash Flow | $28.1M | -4.5% | -7.6% | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | -16.6% | 21.0% | 25.6% | 34.2% |
| Operating Margin | 7.6% | 10.2% | 6.3% | 6.2% |
| Net Margin | -2.2% | 1.2% | -2.9% | -0.2% |
| FCF Margin | 18.1% | 13.8% | 14.7% | 13.0% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.19 | $0.21 | +10.5% | ||
| Q1'26 | $0.17 | $0.18 | +5.9% | ||
| Q4'25 | $0.14 | $0.17 | +21.4% | ||
| Q3'25 | $0.26 | $0.27 | +3.8% | ||
| Q2'25 | $0.21 | $0.22 | +4.8% | ||
| Q1'25 | $-0.10 | $0.20 | +300.0% | ||
| Q4'24 | $0.20 | $0.22 | +10.0% | ||
| Q3'24 | $0.03 | $0.23 | +611.2% |
Total return is +43.6% (1Y), outperforming the benchmark by +18.6%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +39.4% | +30.1% | — |
| 1Y | +43.6% | +18.6% | +6.6% |
| 3YCAGR | +6.7% | -13.9% | +14.5% |
| 5YCAGR | -4.3% | -18.0% | +11.3% |
| 10YCAGR | -2.1% | -15.9% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Summit Hotel Properties, Inc. (INN) valuation, health, and returns.
Based on peer relative multiples, Summit Hotel Properties, Inc. appears Cheap versus peers compared to industry peers.
Summit Hotel Properties, Inc. has multiple valuation anchors: Peer Relative Fair Value: $12.21 | Wall Street Analyst Target: $6.50 (implying -2.0% upside). A convergence of these signals offers higher conviction.
Summit Hotel Properties, Inc. displays weak financial health with a composite quality score of 21/100, supported by a Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 1.7%.
Summit Hotel Properties, Inc. returns capital via buybacks instead of dividends, carrying a 2.4% buyback yield and reducing outstanding shares by -19.3% in the last 12 months.
Summit Hotel Properties, Inc.'s current growth trajectory is Decelerating. The company achieved -0.3% 1Y revenue growth and -215.8% 1Y EPS growth, compared to its 3Y revenue CAGR of +2.6%.
Wall Street consensus is Buy based on 14 analysts, beating EPS expectations in 100% of recent quarters with a 15-quarter streak. The consensus price target represents a -2.0% change from current levels.
Investment risks for Summit Hotel Properties, Inc. include: -32.6% 1-year max drawdown. Volatility risk is characterized by a beta of 1.15x.
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.