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Discover the top 3 undervalued Hotel & Resort REITs stocks for Thursday, July 09 based on AAII’s Stock Grades.Michael Rose
A+ Stock Grade Summary:
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COMPANY SUMMARY
Service Properties Trust is a real estate investment trust with over 10 billion dollars invested in two asset categories: service-focused retail net lease properties and hotels. As of March 31, 2026, SVC owned 761 service-focused retail net lease properties with over 13.6 million square feet throughout the United States, and 93 hotels with over 21,000 guest rooms throughout the United States, including Puerto Rico, and Canada. SVC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with over 37 billion dollars in assets under management as of March 31, 2026, and 40 years of institutional experience in buying, selling, financing and operating commercial real estate. Service Properties Trust is headquarters in Newton, MA. The firm was incorporated in 1995 in Maryland.
Commentary & Analysis
Does Service Properties Trust (SVC) Have Momentum?
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Financial Summary
| Share Statistics | SVC | Industry Median |
Percentile (All Stocks) |
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| Market Cap (Mil) | $1,040.1 | $1,898.4 | 46% |
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| Shares Out (Mil) | 33.3 | 105.7 | 39% |
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| Institutional Ownership | 99.1% | 97.5% | 85% |
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| Float (Mil) | 107.0 | 103.8 | 63% |
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| Beta | 1.63 | 1.15 | 85% |
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| Avg Daily Volume (000s) | 1,661 | 1,622 | 79% |
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| Price Change (52-week) |
(40.7%) | 96.0% | 19% |
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| Growth | SVC | Industry Median |
Percentile (All Stocks) |
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| Sales (5yr) | 7.5% | 25.1% | 48% |
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| Net Income (5yr) | 8.3% | 19.9% | 52% |
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| EPS (5yr) | 8.5% | 19.9% | 44 |
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| Dividends (5yr) | 0.0% | 10.4% | 60% |
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| Cash Flow (5yr) | 83.6% | 3.7% | 98% |
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| Estimates | Qtrly | Current Fiscal Year |
Next Fiscal Year |
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| # of Estimates | 1 | 1 | 1 | |
| Current EPS | ($0.150) | ($2.500) | ($1.150) | |
| Month Ago EPS | ($0.150) | ($2.500) | ($1.150) | |
| # Rev Up | 1 | 1 | 1 | |
| # Rev Down | 0 | 0 | 0 | |
| Three Months Ago EPS | ($0.150) | na | ($1.300) | |
| Year/Year Chg | (96.7%) | (59.0%) | na | |
| Financials | SVC | Industry Median |
Percentile (All Stocks) |
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| Sales (TTM) (Mil) | $1,744 | $1,136 | 59% |
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| Net Income (TTM) (Mil) | ($237) | $9 | 6% |
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| EPS (TTM) | ($7.134) | $0.000 | 6% |
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| Operating Cash Flow (TTM) (Mil) | $115 | $195 | 54% |
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| Net Cash Flow (TTM) (Mil) | ($55) | ($3) | 19% |
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| Long-Term Debt (Q1) (Mil) | $5,087 | $1,418 | 86% |
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| Enterprise Value (Q1) (Mil) | $6,215 | $3,736 | 66% |
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| Valuation | SVC | Industry Median |
Percentile (All Stocks) |
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| P/B | 0.55 | 1.16 | 10% |
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| P/E | na | 29.4 | na |
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| Dividend Yield | 2.5% | 3.0% | 80% |
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| PEG (5yr hist) | na | 1.5 | na |
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| Ratios | SVC | Industry Median |
Percentile (All Stocks) |
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| Gross Margin | 31.0% | 30.5% | 37% |
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| Net Margin | (13.6%) | (0.7%) | 19% |
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| ROA | (3.6%) | 0.5% | 32% |
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| ROE | (38.6%) | 1.4% | 18% |
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| Liabilities to Assets | 91.9% | 54.6% | 89% |
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| F-Score | 5 | 6 | 51% |
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Passing Stock Screens
As of 7/31/2026, from a list of 60 stock screening strategies,
FACTOR STRATEGY
Price-to-Free-Cash-Flow Screen
Factors: Value
An exploration of the basics of cash flow analysis and the implementation of a price-to-free-cash-flow screen.
| Performance Since Inception: | 16.7% |
| +/- S&P 500: | +9.2 |
