Service Properties Trust Common Stock (SVC)

FairStock Score: 59/100 — STEADY

Key Financials

AI Analysis

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

Mr. Market is offering Service Properties Trust at $5.93, the 2026-10-13 close, and FairStock says price-to-book is 0.95. That is not a bargain signal by itself. In fiscal Q2 2026, the quarter ended 2026-06-30, filed revenue was $320.1M and net income was -$223.8M, or diluted EPS -$1.75. Compare fiscal Q2 2025, the quarter ended 2025-06-30, when revenue was $404.4M and net loss was $38.2M. For FY2025, the year ended 2025-12-31, revenue was $1.4B and net income was -$202.3M; for FY2024, the year ended 2024-12-31, revenue was $1.5B and net income was -$275.5M. So the trend is shrinking revenue and recurring losses. FairStock's Lynch category is none because the company lost money in each of the last four years. FairStock's D/E is 5.68 and Altman Z-score is -0.89, signs of a leveraged, financially stretched REIT. The asset base—745 net lease retail properties and 93 hotels as of 2026-06-30—has value, and trailing free cash flow is $123.5M, a FairStock FCF yield of 16.1%, with a 3.07% dividend yield. But hotels are cyclical, retail net leases are competitive, and the external RMR management does not create a durable moat. FFO and AFFO, the right REIT measures, are not in the data, so I cannot properly judge recurring earnings. FairStock's EV/EBITDA of 24.27 and negative P/E suggest the market is not paying for current profits. A leveraged asset play can work if cash flow covers debt and assets are real, but here the numbers show distress before they show value.

In plain English: Service Properties Trust owns service-focused retail buildings and hotels. The business looks weak: it has reported losses for years, revenue has been falling, and it carries a lot of debt. At $5.93 on 2026-10-13, FairStock shows the stock near its accounting book value, so the price does not scream cheap versus its troubled numbers.

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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