RLJ Lodging Net Income vs. Book Value Per Share
| RLJ-PA Preferred Stock | USD 25.05 0.06 0.24% |
For RLJ Lodging profitability analysis, we use financial ratios and fundamental drivers that measure the ability of RLJ Lodging to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well RLJ Lodging Trust utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between RLJ Lodging's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of RLJ Lodging Trust over time as well as its relative position and ranking within its peers.
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RLJ Lodging Trust Book Value Per Share vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining RLJ Lodging's current stock value. Our valuation model uses many indicators to compare RLJ Lodging value to that of its competitors to determine the firm's financial worth. RLJ Lodging Trust is rated below average in net income category among its peers. It is currently regarded as top stock in book value per share category among its peers . Comparative valuation analysis is a catch-all model that can be used if you cannot value RLJ Lodging by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for RLJ Lodging's 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.RLJ Book Value Per Share vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
RLJ Lodging |
| = | (305.17 M) |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Book Value per Share (B/S) can be calculated by subtracting liabilities from assets, and then dividing it by the total number of currently outstanding shares. It indicates the level of safety associated with each common share after removing the effects of liabilities. In other words, a shareholder can use this ratio to see how much he or she can sell the stake in the company in the event of a liquidation.
RLJ Lodging |
| = | 12.83 X |
The naive approach to look at Book Value per Share is to compare it to current stock price. If Book Value per Share is higher than the currently traded stock price, the company can be considered undervalued. However, investors must be aware that conventional calculation of Book Value does not include intangible assets such as goodwill, intellectual property, trademarks or brands and may not be an appropriate measure for many firms.
RLJ Book Value Per Share Comparison
RLJ Lodging is currently under evaluation in book value per share category among its peers.
RLJ Lodging Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in RLJ Lodging, profitability is also one of the essential criteria for including it into their portfolios because, without profit, RLJ Lodging will eventually generate negative long term returns. The profitability progress is the general direction of RLJ Lodging's change in net profit over the period of time. It can combine multiple indicators of RLJ Lodging, 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.
RLJ Lodging Trust is a self-advised, publicly traded real estate investment trust that owns primarily premium-branded, high-margin, focused-service and compact full-service hotels. The Companys portfolio consists of 150 hotels with approximately 28,600 rooms located in 25 states and the District of Columbia and an ownership interest in one unconsolidated hotel with 171 rooms. RLJ Lodging operates under REIT - Hotel Motel classification in USA and is traded on New York Stock Exchange. It employs 84 people.
RLJ Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on RLJ Lodging. 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 RLJ Lodging 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 RLJ Lodging's important profitability drivers and their relationship over time.
Use RLJ Lodging 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 RLJ Lodging 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 RLJ Lodging will appreciate offsetting losses from the drop in the long position's value.RLJ Lodging Pair Trading
RLJ Lodging Trust Pair Trading Analysis
The ability to find closely correlated positions to RLJ Lodging could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace RLJ Lodging 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 RLJ Lodging - 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 RLJ Lodging Trust to buy it.
The correlation of RLJ Lodging 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 RLJ Lodging moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if RLJ Lodging Trust 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 RLJ Lodging 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.Use Investing Themes to Complement your RLJ Lodging position
In addition to having RLJ Lodging 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.Did You Try This Idea?
Run Automobiles and Trucks Thematic Idea Now
Automobiles and Trucks
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Automobiles and Trucks theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Automobiles and Trucks Theme or any other thematic opportunities.
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Other Information on Investing in RLJ Preferred Stock
To fully project RLJ Lodging's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of RLJ Lodging Trust 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 RLJ Lodging's income statement, its balance sheet, and the statement of cash flows.