Descripción de la empresa
The InterGroup Corporation operates through its subsidiaries to manage a single hotel property located in the San Francisco Financial District, functioning under the Hilton brand name with a capacity for 544 guests. This enterprise is classified within the Consumer Cyclical sector and specifically operates inside the Lodging industry, a classification that implies its financial performance is directly correlated with discretionary spending and travel demand patterns. The company maintains a relatively modest scale with a market capitalization of $76.61M, an annual revenue of $68.25M, and an employee base of 217 individuals. These valuation and revenue figures indicate that the company functions as a micro-cap entity with a narrow operational footprint, distinguishing it from larger diversified lodging conglomerates that typically command significantly higher market valuations and possess extensive asset portfolios.
Salud financiera
The company reported a trailing twelve-month revenue of $68.25M alongside a net income of $-1,245,000, while generating an EBITDA of $15.07M. The substantial disparity between the positive EBITDA and the negative net income reveals a cost structure where significant non-operating expenses or interest charges are eroding operating profits, resulting in a loss for the period. Free cash flow stands at $-5,769,500, indicating that the business is currently burning cash, which limits its financial flexibility to fund capital expenditures or strategic acquisitions without external financing. Profitability is further contextualized by three key margin metrics: a gross margin of 26.6%, an operating margin of 11.6%, and a negative profit margin of -1.8%. The decline from gross to operating margins reflects the impact of operational overheads, while the negative profit margin confirms that the company has not yet achieved bottom-line profitability despite its operational efficiency. On the balance sheet, cash reserves of $7.51M are outweighed by total debt of $194.93M, suggesting a highly leveraged position rather than a conservative one. Although the debt-to-equity ratio is listed as N/A, the ratio of cash to debt highlights a significant reliance on borrowed capital relative to liquid assets. Liquidity is constrained by a current ratio of 1.01, which indicates that the company's current assets barely cover its current liabilities, creating a tight short-term liquidity environment. Return on equity is N/A due to the negative equity position, whereas the return on assets stands at 5.0%, a metric that suggests management is generating a positive return on the asset base despite the overall net loss.
Evaluación de valoración
Valuation multiples for the company include a trailing P/E ratio of N/A and a forward P/E ratio of N/A, the absence of which implies that earnings are currently negative and traditional price-to-earnings comparisons cannot be utilized to assess future earnings trajectory expectations. The price-to-book ratio is recorded at -0.90, a negative figure that indicates the market is valuing the company below its book value, often seen in distressed or highly leveraged situations where assets may not be fully utilized or are impaired. Alternative valuation metrics provide further insight, with a price-to-sales ratio of 1.12 and an enterprise value to EBITDA multiple of 15.57, suggesting the market is pricing the stock based on revenue generation and operating cash flow rather than net income. Price action over the last year has ranged between a 52-week high of $42.50 and a 52-week low of $9.57, placing the current trading price significantly below the recent peak and reflecting high volatility. The stock exhibits a beta of 0.04, a value that is exceptionally low and indicates that the share price moves with negligible volatility relative to the broader market, behaving almost like a risk-free asset in terms of price fluctuation.
Growth & Income
Revenue growth for the trailing twelve months stands at 19.8%, while earnings growth is listed as N/A due to the negative net income position. The disparity between robust revenue expansion and the absence of earnings growth suggests that top-line sales are increasing, but fixed costs or interest obligations are preventing the translation of this growth into bottom-line profit. As the dividend yield is N/A and the payout ratio is 0.0%, the company is not distributing dividends to shareholders. Instead of paying out income, the entity retains its earnings, which are currently insufficient to cover debt service, necessitating a reinvestment strategy focused on survival and potential future growth rather than shareholder returns. The overall growth and income profile characterizes a high-revenue-growth company that is currently unprofitable, leveraged, and non-dividend-paying, relying entirely on future operational improvements to convert its top-line momentum into sustainable earnings and cash flow.