Sunstone Hotel Investors Inc. Sunstone Hotel Investors Inc. Common Shares (SHO)

FairStock Score: 49/100 — MIXED

Key Financials

AI Analysis

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

As a value investor, I begin with the business: Sunstone owns hotels and resorts and seeks value through acquisition, active ownership, and disposition. It lacks the wide moat of a branded hotel franchisor; its edge depends on asset selection and cycles. The filed record is uneven. Revenue was $986.5M in fiscal year 2023, the period ended 2023-12-31, $905.8M in fiscal year 2024, the period ended 2024-12-31, and $960.1M in fiscal year 2025, the period ended 2025-12-31. Net income fell from $206.7M to $43.3M to $24.6M over those same years. More recently, fiscal Q2 2026, the quarter ended 2026-06-30, produced $277.1M of revenue and $26.0M of net income, versus $259.8M and $10.8M in fiscal Q2 2025, the quarter ended 2025-06-30. That is a real rebound, but one quarter does not reverse a multiyear decline. The FairStock P/E of 52.95 on the 2026-10-13 close is distorted by depreciation, and FFO/AFFO, the right REIT measures, are not in the data. So I lean on the FairStock price-to-book of 1.32, a 3.26% dividend yield, and debt-to-equity of 0.52. The trailing FCF yield of 9.2% is attractive, but the FairStock Altman Z-Score of 1.12 signals fragility. Piotroski 8/9 is a positive accounting signal, yet the Lynch category is slow grower and shrinking over four years. At $11.65, the price looks fair to full for a leveraged, cyclical lodging REIT with recovering but unproven earnings.

In plain English: Sunstone owns hotels and resorts and tries to make money by buying, improving, and selling them. Recent quarterly profit rose from a year earlier, but annual profit has dropped sharply since 2023. At $11.65, the stock trades a little above the accounting value of its net assets and pays a modest dividend, so it looks roughly fair rather than clearly cheap.

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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