Service Properties Trust (SVC) AI Stock Analysis
SVC AI stock analysis summary
AI ResearchService Properties Trust (SVC) is a real estate investment trust managing hotels and service-focused net lease retail properties. For the trailing twelve months, the company generated $1.66B in revenue but posted an eps_ttm of -$24.55. Balance sheet leverage remains significant, with total debt of $4.58B compared to cash and short-term investments of $5.5M as of June 30, 2026.
- Market cap
- $796.5M
- Revenue (TTM)
- $1.66B
- P/E
- — fwd 21.4x
- 1Y return
- -45.8% S&P 500 16.8%
- Avg. target
- $12.19 98.2% vs last close
Bull case
- The analyst consensus mean price target of $12.19 implies a 98.2% upside from the last closing price of $6.15.
- For the next fiscal year, analysts estimate revenue will rise 3.3% to $1.59B alongside a 70.8% improvement in EPS.
- Operating margin expanded to 11.6% in FY2025 from -4.7% in FY2021, showing improved operational efficiency.
Bear case
- Total debt reached $4.58B as of June 30, 2026, against cash and short-term investments of only $5.5M.
- Quarterly revenue fell 16.4% year-over-year in the quarter ended June 30, 2026, while quarterly earnings dropped 66.2%.
- Shareholder returns have lagged broad markets, with a 1-year return of -45.8% and a 5-year return of -86.5%.
What Service Properties does
Service Properties Trust operates as a real estate investment trust, managing a varied portfolio that includes hotels and net lease properties focused on service and necessity-based retail. Spanning the United States, Puerto Rico, and Canada, the company holds properties across 149 distinct brands within 23 diverse industries. These assets are predominantly operated under long-term management or lease agreements to provide operational continuity. The trust is overseen by the operational subsidiary of The RMR Group Inc., an alternative asset management firm based in Newton, Massachusetts.
Growth and profitability
Annual revenue grew from $1.50B in FY2021 to $1.90B in FY2024 before decreasing 4.3% to $1.81B in FY2025. Operating margins improved from -4.7% in FY2021 to 11.6% in FY2025, though net margins stayed negative throughout that span, finishing at -11.1% in FY2025 with net income of -$202.3M. In the latest quarter ended June 30, 2026, quarterly revenue growth declined 16.4% year-over-year, while quarterly earnings dropped 66.2% year-over-year. Free cash flow decreased from $485.5M in FY2023 to $117.8M in FY2025.
Balance sheet and cash flow
As of June 30, 2026, Service Properties Trust held $5.5M in cash and short-term investments against $4.58B in total debt, resulting in net debt of $4.57B. Shareholders' equity stood at $806.5M, yielding a debt_to_equity ratio of 5.68 and a current ratio of 0.01. During FY2025, cash capital deployment included $6.7M in dividends paid and $660,000 used for share buybacks.
Valuation and performance
SVC trades at a forward P/E of 21.4x, lower than the 23.5x median of its US-listed Real Estate peers. Its enterprise value of $5.42B implies an EV/EBITDA multiple of 26.9x, which stands above the peer median of 14.7x. The company's price-to-sales multiple is 0.5x compared to the peer median of 3.7x. Over the past year, the stock fell 45.8%, trailing the S&P 500 (SPY) return of 16.8%.
SVC dividend
Service Properties Trust pays a quarterly dividend with an annual forward payout of $0.20, representing a dividend yield of 3.25%. The payout ratio is 466.7%, and dividends have been paid for 32 consecutive years. However, the five-year annualized dividend growth rate is -41.2%, with the last ex-dividend date on October 19, 2026.
What analysts expect
Wall Street analysts hold 4 Strong Buy ratings and 1 Hold rating on the stock. The mean price target is $12.19, which is 98.2% above the last close of $6.15. For the current fiscal year ending December 31, 2026, consensus estimates project revenue of $1.54B and an EPS of -$5.63. Over the last four quarters, SVC beat EPS estimates 1 time. The next earnings date is November 4, 2026.
Key risks and what to watch
- The current ratio stood at 0.01 as of June 30, 2026, indicating very tight short-term liquidity.
- Debt is high relative to the balance sheet, reflected by a debt-to-equity ratio of 5.68.
- The forward dividend payout ratio is elevated at 466.7%, following a 5-year annualized dividend decline of 41.2%.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this SVC AI stock analysis
This page is an AI-written research summary of Service Properties Trust (SVC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: SVC income statement, SVC balance sheet, SVC key metrics, SVC analyst forecast, SVC chart. See the SVC stock overview for the latest quote and news.
SVC AI stock analysis FAQ
What is Service Properties Trust's dividend yield and schedule?
Service Properties Trust offers an annual forward dividend of $0.20, which equals a 3.25% yield. Dividends are distributed quarterly, and the company has paid dividends for 32 consecutive years.
How much debt does Service Properties Trust have?
As of June 30, 2026, the company carried $4.58B in total debt and $5.5M in cash and short-term investments, resulting in net debt of $4.57B and a debt-to-equity ratio of 5.68.
What are analysts forecasting for Service Properties Trust?
Analysts maintain 4 Strong Buy ratings and 1 Hold rating with a mean price target of $12.19. For the current fiscal year ending December 31, 2026, analysts estimate an EPS of -$5.63 on revenue of $1.54B.
When does Service Properties Trust report its next quarterly earnings?
The company's next earnings report is scheduled for November 4, 2026.