SOHOB SOTHERLY HOTELS LP

Nasdaq Hotels & Motels DE CIK: 0001313536
AI RATING
STRONG_SELL
42% Confidence

Investment Thesis

Despite 37.6% revenue growth, the company remains unprofitable at the net level with -0.5% margin and cannot cover interest expenses (0.9x coverage). Severe leverage (91% of assets financed by liabilities) and data from 2014 make reliable fundamental analysis impossible.

Strengths

  • + Strong revenue growth of 37.6% year-over-year
  • + Positive operating margin of 10.2%
  • + Maintains cash position of 16.6M

Risks

  • ! Net unprofitable with -0.5% net margin and negative returns (ROE -2.5%, ROA -0.2%)
  • ! Interest coverage ratio of 0.9x indicates inability to service debt obligations
  • ! Extreme leverage with liabilities at 91% of total assets and equity only 7.8% of assets
  • ! Data freshness from 2014 (11+ years stale) renders analysis unreliable
  • ! Missing critical metrics: cash flow statements, current ratio, working capital data

Key Metrics to Watch

Financial Metrics

Revenue
122.9M
Net Income
-584.7K
EPS (Diluted)
$-0.05
Free Cash Flow
N/A
Total Assets
299.8M
Cash
16.6M

Profitability Ratios

Gross Margin N/A
Operating Margin 10.2%
Net Margin -0.5%
ROE -2.5%
ROA -0.2%
FCF Margin N/A

Balance Sheet & Liquidity

Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.00x
Debt/Assets
90.8%
Interest Coverage
0.85x
Long-term Debt
N/A
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: 2026-04-16T08:00:24.296478 | Data as of: 2014-12-31 | Powered by Claude AI