Company Overview
The InterGroup Corporation operates a single hospitality asset under the Hilton San Francisco Financial District name located in San Francisco, California, utilizing three distinct business segments that include hotel operations, real estate operations, and investment transactions. This entity functions within the consumer cyclical sector, specifically categorized under the lodging industry, where revenue generation is intrinsically linked to consumer travel spending patterns and economic cycles. The company's current market capitalization stands at $79.46M, supported by an annual revenue of $68.25M and a workforce of 217 employees. These valuation and operational metrics indicate a relatively small-scale enterprise with limited diversification, as the total market cap is only slightly larger than its trailing twelve-month revenue, suggesting a capitalization structure that relies heavily on asset value and operational leverage rather than broad market diversification or massive scale.
Financial Health
The company reported a trailing twelve-month revenue of $68.25M alongside a net income of $-1,245,000 and an EBITDA of $15.07M. The significant gap between the positive EBITDA and the negative net income reveals a substantial cost structure burdened by high interest expenses and depreciation, which erodes operating earnings before impacting the bottom line. Free cash flow stands at $-5,769,500, indicating that the company is currently burning cash, which limits its financial flexibility to pursue new acquisitions or significant capital expenditures without external financing. The gross margin is 26.6%, reflecting the pricing power and cost of goods sold for the hotel operations, while the operating margin of 11.6% shows that overhead costs are absorbing a significant portion of gross profits before interest and taxes. The profit margin is -1.8%, a negative figure that confirms the company is not generating a return on its sales revenue on an after-tax basis due to the aforementioned financial obligations. Total cash on hand is $7.51M, which is vastly outweighed by total debt of $194.93M, resulting in a debt-to-equity ratio that is not explicitly calculated in standard metrics but implies a highly leveraged balance sheet where equity is negative or negligible given the price-to-book ratio of -0.93. The current ratio is 1.01, which indicates that the company's current assets barely cover its current liabilities, signaling tight short-term liquidity conditions where any unexpected cash outflow could strain operational continuity. Return on equity is listed as N/A, making it impossible to calculate a traditional return metric due to the negative equity position, while return on assets sits at 5.0%, suggesting that the company's total assets are generating a positive return before the impact of financing costs.
Valuation Assessment
The trailing P/E ratio is N/A, and the forward P/E is also N/A, which implies that traditional earnings-based valuation multiples cannot be applied due to the company's recent lack of positive net income. The price-to-book ratio is -0.93, a negative figure that indicates the company's market capitalization is less than its book value, often suggesting that the market is pricing in significant distress or that the asset base is impaired. The price-to-sales ratio is 1.16, and the EV/EBITDA is 15.76, which serves as an alternative valuation metric to assess the company's enterprise value relative to its cash flow generation capabilities independent of its capital structure. The 52-week high is $42.50 and the 52-week low is $9.57, meaning the current trading price sits significantly below the recent peak but well above the bottom of the range. The beta value is 0.19, which indicates that the stock's price volatility is substantially lower than the broader market, suggesting the stock price moves independently of general market trends and is likely driven more by specific asset-level events or debt covenant compliance than systemic market shifts.
Growth & Income
The revenue growth rate year-over-year is 19.8%, whereas earnings growth is N/A due to the absence of positive net income in the trailing period. This disparity implies that while the top-line business is expanding rapidly, the bottom line has not yet benefited from this growth, likely due to the fixed costs and interest obligations inherent in the heavy debt load. The company does not pay dividends, as indicated by a dividend yield of N/A and a payout ratio of 0.0%, which means the company retains all earnings and reinvests capital back into the business or uses it to service its substantial debt obligations rather than distributing income to shareholders. Overall, the growth and income profile is characterized by strong top-line expansion that has not yet translated into profitability, combined with a lack of current income distributions for investors.