Sunstone Hotel Investors, Inc. (SHO) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Sunstone Hotel Investors, Inc.

NYSE•Real Estate•REIT - Hotel & Motel

$11.00-0.01(<0.01%)Pre-market

Market Cap

$2.05B

P/E

38.5x

P/S

2.0x

P/B

1.1x

Sunstone Hotel Investors, Inc. is a lodging real estate investment trust (REIT). Sunstone's strategy is to create long-term stakeholder value through the acquisition, active ownership, and disposition of well-located hotel and resort real estate. Sunstone Hotel Investors, Inc. was incorporated in 1995 and is based in Aliso Viejo, United States.

How this company scores

GoodMetricSide Score: 79/100

Strongest: Cash & Earnings Quality (24/25); weakest: Balance Sheet & Red Flags (15/25).

Profitability19/25

Growth21/25

Balance Sheet & Red Flags15/25

Cash & Earnings Quality24/25

Strengths

Rising free cash flowStrong marginsRising earningsCash-backed earnings

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 38.5x5y range 9.4x – 99.5x

Currently above its 19-quarter median.

P/S · 2.0x5y range 1.7x – 6.1x

Currently near its 20-quarter median.

P/B · 1.1x5y range 0.9x – 1.3x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

Operating margins dropped 28.7% over recent quarters — a sharp decline suggesting serious cost or pricing challenges.

Price & Volume

Market Cap $2.05B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $1.00B
Q. Revenue: $277.11M
TTM EBITDA: $399.48M
TTM Op. Income: $262.94M
Q. Op. Income: $80.16M
TTM Net Income: $53.12M
Q. Net Income: $26.02M
EPS: $0.14
Shares Out.: $185.33M

$1.00B in TTM revenue grew 7.3% YoY, reaching $277.11M last quarter. TTM EBITDA of $399.48M and TTM operating income of $262.94M show growth is flowing through to the bottom line. TTM net income of $53.12M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 6 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

EBITDA Margin: 41.3%
Op. Margin: 28.9%
Net Margin: 9.4%

Op. margin of 28.9% is down 0.3% YoY — costs are rising relative to revenue. Net margin at 9.4% Across the last 8 quarters, operating margin has risen for 3 consecutive quarters — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 38.5x
P/S Ratio: 2.0x
P/B Ratio: 1.1x

At 38.5x P/E, the stock trades above typical market levels — the market expects above-average growth. P/S of 2.0x and P/B of 1.1x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Across the last 8 quarters, P/E has fallen for 3 consecutive quarters — an improving trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $3.03B
Cash: $94.43M
Long-Term Debt: $968.37M
Book Value: $1.88B
D/E Ratio: 0.5
Debt/EBITDA: 8.5

With $3.03B in assets and $968.37M in long-term debt, D/E is 0.5and book value is $1.88B — a conservative capital structure with a cushion to weather downturns. Across the last 8 quarters, debt/equity has risen for 7 consecutive quarters — a weakening trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $62.00M
TTM Free Cash Flow: $98.07M
FCF Margin: 9.8%
FCF / Net Income: 1.8

TTM FCF of $98.07M on $62.00M in operating cash flow. The FCF / Net Income ratio of 1.8x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has risen for 5 consecutive quarters — an improving trend.