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SVCService Properties Trust
$8.71$289M
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  4. Financial Ratios

Service Properties Trust (SVC) Financial Ratios

Latest Ratios: P/E Ratio -1.4x · EV/EBITDA 10.3x · ROE -27.0%. (1996–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

SVC Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$289M$305M$420M$1.4B$1.2B$1.4B$1.9B$4.0B$3.9B$4.9B$5.0B
Enterprise Value$5.4B$5.4B$6.0B$6.7B$6.8B$7.6B$8.0B$10.0B$8.1B$8.9B$8.1B
P/E Ratio →-1.43——————15.4021.1324.0724.42
P/S Ratio0.160.170.220.750.640.971.491.731.712.262.42
P/B Ratio0.450.470.491.150.860.930.901.600.580.740.80
P/FCF2.462.593.012.904.9428.9950.246.476.578.849.30
P/OCF2.462.593.012.904.9428.9950.246.476.578.849.30

P/E links to full P/E history page with 30-year chart

SVC EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—3.003.163.603.665.116.344.333.524.093.96
EV / EBITDA10.3110.3410.6411.5011.7918.3915.857.863.494.093.96
EV / EBIT25.7034.3365.9124.0436.46—1090.4324.3521.1422.6021.29
EV / FCF—46.1842.9513.9028.04153.20213.3916.2413.5216.0215.22

SVC Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin31.2%31.2%31.8%33.7%33.4%31.4%46.0%39.0%39.3%41.1%41.3%
Operating Margin11.6%11.6%10.1%10.8%9.5%-4.7%—36.6%17.2%17.5%18.9%
Net Profit Margin-11.1%-11.1%-14.5%-1.7%-7.1%-36.4%-24.6%11.2%8.1%9.9%10.9%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE-27.0%-27.0%-26.5%-2.5%-9.0%-29.8%-13.5%5.6%2.8%3.3%4.9%
ROA-3.0%-3.0%-3.8%-0.4%-1.6%-6.1%-3.5%3.2%2.6%3.1%3.4%
ROIC2.6%2.6%2.2%2.2%1.8%-0.7%—6.5%2.7%2.9%3.8%
ROCE3.3%3.3%2.9%2.9%2.4%-0.9%—11.3%6.0%6.0%6.5%

SVC Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity8.488.486.704.504.074.592.952.420.620.600.51
Debt / EBITDA10.4210.4210.159.419.7817.1812.264.751.811.841.55
Net Debt / Equity—7.956.544.364.043.992.922.410.610.600.51
Net Debt / EBITDA9.769.769.899.109.7214.9112.124.721.791.831.54
Debt / FCF—43.5939.9411.0023.10124.22163.159.776.957.185.92
Interest Coverage0.430.430.260.830.55-0.550.021.831.952.162.48

SVC Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio21.1121.110.290.690.461.040.350.320.370.260.31
Quick Ratio21.1121.110.290.690.461.040.350.320.370.260.31
Cash Ratio21.1121.110.200.460.090.650.160.040.060.040.02
Asset Turnover—0.280.270.250.250.160.150.260.320.300.31
Inventory Turnover———————————
Days Sales Outstanding———————————

SVC Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield2.3%2.2%24.1%9.4%3.2%0.5%5.0%8.8%8.8%6.9%6.3%
Payout Ratio———————136.1%186.7%158.1%140.8%

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield———————6.5%4.7%4.2%4.1%
FCF Yield40.7%38.6%33.2%34.5%20.2%3.4%2.0%15.4%15.2%11.3%10.7%
Buyback Yield0.2%0.2%0.2%0.1%0.0%0.1%0.0%0.0%0.0%5.9%0.0%
Total Shareholder Yield2.5%2.4%24.3%9.5%3.2%0.5%5.0%8.9%8.9%12.9%6.4%
Shares Outstanding—$33M$33M$33M$33M$33M$33M$33M$33M$33M$31M

Key Metrics

Growth RegimeContracting
ProfitabilityNegative
Balance SheetVulnerable
Cash FlowDeteriorating
Top Statement Risk

Negative FFO and Leverage

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q1)

Valuation Compression Reflects Operational Distress

Based on reported financial data, SVC's P/FFO multiple has compressed to 2.97x in 2026Q1, a significant decline from the 7.40x observed in 2023Q4, suggesting that the market is heavily discounting the REIT's future earnings potential amid persistent operational volatility and negative cash flow generation.

The current valuation multiples appear to reflect a deep skepticism regarding the company's ability to stabilize its hotel portfolio performance. Investors should monitor whether this discount is a temporary reaction to cyclical lodging headwinds or a structural re-rating due to the external management fee structure.

NOI Margin Volatility Signals Instability

According to recent quarterly filings, the NOI margin collapsed to -10.6% in 2026Q1, representing a stark reversal from the 33.6% margin achieved in 2025Q2, which indicates that property-level operating expenses are currently outpacing revenue generation across the company's hotel and retail segments.

This margin erosion suggests that the fixed-cost nature of the hotel portfolio is becoming a significant liability during periods of revenue contraction. The inability to maintain positive property-level profitability warrants further investigation into whether current management agreements are adequately protecting the REIT from inflationary labor and utility costs.

Escalating Leverage Constrains Financial Flexibility

As reported in financial statements, the debt-to-equity ratio reached 8.48x by 2025Q4, a substantial increase from the 4.50x recorded in 2023Q4, which highlights a deteriorating balance sheet profile that limits the company's capacity to navigate high-interest-rate environments or fund necessary capital improvements.

The rising leverage profile appears to be a direct consequence of portfolio contraction and the need to bridge operational cash flow deficits. Investors should monitor the company's interest coverage ratio, which has struggled to remain positive, as it may indicate an increasing risk of covenant breaches or refinancing difficulties.

Misapplication of GAAP Earnings Metrics

The most commonly misapplied metric for SVC is the standard P/E ratio, which, as evidenced by the -1.40x TTM figure, fails to account for the heavy non-cash depreciation charges inherent in hotel real estate and obscures the REIT's actual cash-generating capacity.

Using P/E for a REIT like SVC is deeply misleading because it treats depreciation as a cash expense, thereby masking the underlying operational performance. Analysts should instead prioritize FFO and AFFO, which provide a more accurate representation of the cash available for distributions and capital reinvestment.

Download Financial Ratios Data

Includes 30+ ratios · 30 years · Updated daily

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SVC — Frequently Asked Questions

Quick answers to the most common questions about buying SVC stock.

What is Service Properties Trust's P/E ratio?

Service Properties Trust's current P/E ratio is -1.4x. The historical average is 18.9x.

What is Service Properties Trust's EV/EBITDA?

Service Properties Trust's current EV/EBITDA is 10.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 9.7x.

What is Service Properties Trust's ROE?

Service Properties Trust's return on equity (ROE) is -27.0%. The historical average is 2.0%.

Is SVC stock overvalued?

Based on historical data, Service Properties Trust is trading at a P/E of -1.4x. Compare with industry peers and growth rates for a complete picture.

What is Service Properties Trust's dividend yield?

Service Properties Trust's current dividend yield is 2.31%.

What are Service Properties Trust's profit margins?

Service Properties Trust has 31.2% gross margin and 11.6% operating margin. Operating margin between 10-20% is typical for established companies.

How much debt does Service Properties Trust have?

Service Properties Trust's Debt/EBITDA ratio is 10.4x, indicating high leverage. A ratio above 4x may signal elevated financial risk.