NEW YORK (
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- PEB's very impressive revenue growth greatly exceeded the industry average of 15.5%. Since the same quarter one year prior, revenues leaped by 157.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- PEB's debt-to-equity ratio is very low at 0.23 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
- PEBBLEBROOK HOTEL TRUST reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, PEBBLEBROOK HOTEL TRUST turned its bottom line around by earning $0.06 versus -$0.28 in the prior year. This year, the market expects an improvement in earnings ($0.51 versus $0.06).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 514.5% when compared to the same quarter one year prior, rising from -$1.92 million to $7.96 million.
- Net operating cash flow has significantly increased by 1048.62% to $19.65 million when compared to the same quarter last year. In addition, PEBBLEBROOK HOTEL TRUST has also vastly surpassed the industry average cash flow growth rate of -71.66%.
Pebblebrook Hotel Trust, through Pebblebrook Hotel, L.P., operates as a real estate investment trust. The company acquires and invests primarily in hotel properties located in the United States. The company has a P/E ratio of 280.2, above the S&P 500 P/E ratio of 17.7. Pebblebrook Hotel has a market cap of $1.1 billion and is part of the
industry. Shares are up 14.8% year to date as of the close of trading on Monday.
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-- Written by a member of TheStreet RatingsStaff