Sotherly Hotels Current Valuation vs. Gross Profit

SOHON Preferred Stock  USD 17.36  0.01  0.06%   
Based on Sotherly Hotels' profitability indicators, Sotherly Hotels PR may not be well positioned to generate adequate gross income at the present time. It has a very high likelihood of underperforming in January. Profitability indicators assess Sotherly Hotels' ability to earn profits and add value for shareholders.
For Sotherly Hotels profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Sotherly Hotels to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Sotherly Hotels PR utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Sotherly Hotels's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Sotherly Hotels PR over time as well as its relative position and ranking within its peers.
  
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To learn how to invest in Sotherly Preferred Stock, please use our How to Invest in Sotherly Hotels guide.
Please note, there is a significant difference between Sotherly Hotels' value and its price as these two are different measures arrived at by different means. Investors typically determine if Sotherly Hotels is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Sotherly Hotels' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Sotherly Hotels PR Gross Profit vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Sotherly Hotels's current stock value. Our valuation model uses many indicators to compare Sotherly Hotels value to that of its competitors to determine the firm's financial worth.
Sotherly Hotels PR is rated fourth in current valuation category among its peers. It is rated fifth in gross profit category among its peers fabricating about  0.05  of Gross Profit per Current Valuation. The ratio of Current Valuation to Gross Profit for Sotherly Hotels PR is roughly  22.07 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Sotherly Hotels by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Sotherly Hotels' Preferred Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

Sotherly Current Valuation vs. Competition

Sotherly Hotels PR is rated fourth in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Real Estate industry is at this time estimated at about 10.34 Billion. Sotherly Hotels holds roughly 677.48 Million in current valuation claiming about 7% of equities listed under Real Estate industry.

Sotherly Gross Profit vs. Current Valuation

Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Sotherly Hotels

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
677.48 M
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Sotherly Hotels

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
30.69 M
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.

Sotherly Gross Profit Comparison

Sotherly Hotels is currently under evaluation in gross profit category among its peers.

Sotherly Hotels Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Sotherly Hotels, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Sotherly Hotels will eventually generate negative long term returns. The profitability progress is the general direction of Sotherly Hotels' change in net profit over the period of time. It can combine multiple indicators of Sotherly Hotels, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Sotherly Hotels Inc. is a self-managed and self-administered lodging REIT focused on the acquisition, renovation, upbranding and repositioning of upscale to upper-upscale full-service hotels in the Southern United States. Sotherly Hotels Inc. was organized in 2004 and is headquartered in Williamsburg, Virginia. Sotherly Hotels operates under REITHotel Motel classification in the United States and is traded on NASDAQ Exchange. It employs 10 people.

Sotherly Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Sotherly Hotels. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Sotherly Hotels position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Sotherly Hotels' important profitability drivers and their relationship over time.

Use Sotherly Hotels in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Sotherly Hotels position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Sotherly Hotels will appreciate offsetting losses from the drop in the long position's value.

Sotherly Hotels Pair Trading

Sotherly Hotels PR Pair Trading Analysis

The ability to find closely correlated positions to Sotherly Hotels could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Sotherly Hotels when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Sotherly Hotels - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Sotherly Hotels PR to buy it.
The correlation of Sotherly Hotels is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Sotherly Hotels moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Sotherly Hotels PR moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Sotherly Hotels can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Sotherly Hotels position

In addition to having Sotherly Hotels in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Absolute Returns ETFs Theme
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Other Information on Investing in Sotherly Preferred Stock

To fully project Sotherly Hotels' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Sotherly Hotels PR at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Sotherly Hotels' income statement, its balance sheet, and the statement of cash flows.
Potential Sotherly Hotels investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Sotherly Hotels investors may work on each financial statement separately, they are all related. The changes in Sotherly Hotels's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Sotherly Hotels's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.