Pebblebrook Hotel Trust Common Shares of Beneficial Interest (PEB)

FairStock Score: 57/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Pebblebrook as an owner of 43 urban and resort hotels, not a typical apartment or industrial REIT. The business has not earned a profit over the last four years, which is why the given Lynch category is none; in fiscal 2025 it reported revenue of $1.5B and a net loss of $65.8M, or diluted EPS of -$0.90. Yet the latest filed quarter, fiscal Q2 2026, showed revenue of $407.1M and net income of $23.6M, or diluted EPS of $0.17, so operations can produce profits. The balance sheet is levered: debt-to-equity is 0.98, and FairStock's Altman Z-Score is 0.10, a warning. FairStock's Piotroski F-Score is 8/9 and trailing free cash flow is $279.2M, a 12.6% FCF yield, which is encouraging. For a REIT, I would normally use FFO/AFFO and dividend yield, but FFO/AFFO are not in this data, and the dividend yield is only 0.22%. I cannot use a Graham Number or margin of safety here because depreciation distorts REIT EPS. FairStock's price-to-book is 0.91 at the 2026-10-13 close, so Mr. Market prices the shares just below book value. FairStock's P/E is -28.91 at that close because EPS is -$0.68, and the 52-week range is $9.99-$19.93, with the price near the high. Revenue growth is -0.10%, and fiscal Q2 2026 revenue of $407.1M is slightly below fiscal Q2 2025 revenue of $407.5M. I see an asset-rich, cash-generating but cyclical and loss-prone hotel owner, priced nearer fair than clearly cheap.

In plain English: Pebblebrook owns 43 hotels in U.S. cities and resort areas. The company has lost money in recent years, but its latest spring quarter was profitable and it generates solid cash. At about $19.66, the stock is near the top of its yearly range and trades slightly below the value of its assets minus debts, so it looks roughly fairly priced rather than a clear bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer