SOTHERLY HOTELS LP

SOHOB
About the company

Sotherly Hotels Inc. is a self-managed and self-administered lodging real estate investment trust, or REIT, to own, acquire, renovate and reposition full-service, primarily upscale and upper-upscale hotel properties located in primary markets in the mid-Atlantic and southern United States. Sotherly owns ten full-service, primarily upscale and upper-upscale hotels located in seven states with an aggregate of 2,786 hotel rooms, and interests in two condominium hotels and their associated rental programs.

Country: United StatesPrice: $3.65Market Cap: $39.1M

Investment snapshot

12%positive consensus
Scored 1d ago

Positive

2

BUY / PASS

Neutral / negative

2 / 12

NEUTRAL / FAIL

Median fair value

$12.93

+254.1% vs price

Models with upside

2 / 17

Positive margin of safety

Strongest signal

SOHOB undervalued: all 2 models price fair value above $3.65 (median $12.93)

Key risk

No clean pass — all 16 investors flag at least one profitability criterion

Framework analysis

VerdictMeaning
BUYPositive purchase signal: the framework's buy requirements are met.
PASSThe company clears the framework's checklist or screen, but the framework does not produce a buy signal. For valuation frameworks this often means margin of safety is missing, insufficient, or unavailable; some screen-only frameworks have no intrinsic-value BUY state.
NEUTRALNeither a positive nor negative conclusion. It does not mean to hold an existing position.
FAILThe company does not clear the framework's requirements.
RankedRanked strategies do not use PASS: selected cohort is BUY, outside the cohort is FAIL, and unranked is NEUTRAL.

Current investor scores use trailing 12-month flows and the latest balance sheet where supported. Multi-year and EPS tests retain annual history; each framework shows its financial basis below. Intrinsic values use annual financials.

MetricGraham

Defensive Value

Buffett

Quality Compounder

Lynch

GARP

Greenblatt

Magic Formula

Piotroski

F-Score

Dreman

Contrarian Value

Munger

Quality Focus

Pabrai

Dhandho Framework

Akre

Three-Legged Stool

Marks

Risk-Aware Value

Ackman

Activist Value

Templeton

Global Bargain Hunter

Sleep

Scale Economies Shared

Asness

Systematic Factors

Neff

Low-P/E Total Return

Schloss

Asset-Value Discipline

O'Shaughnessy

Systematic Factor Composite

VerdictFAILFAILFAILNot rankedPASSFAILPASSFAILFAILFAILFAILFAILFAILNEUTRALFAILFAILNEUTRAL
Score
AnalysisChecking access…Checking access…Checking access…Checking access…Checking access…Checking access…Checking access…Checking access…Checking access…Checking access…Checking access…Checking access…Checking access…Checking access…Checking access…Checking access…Checking access…
Intrinsic Value (annual)N/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/A
Margin of SafetyN/AN/AN/A+55.7%N/AN/AN/A+79.3%N/AN/AN/AN/AN/AN/AN/AN/AN/A
Financial Basis

Annual history · FY 2014

Latest source filing: 2015-04-14

Score computed: 2026-11-14

Annual history · FY 2014

Latest source filing: 2015-04-14

Score computed: 2026-11-14

Annual history · FY 2014

Latest source filing: 2015-04-14

Score computed: 2026-11-14

Annual history · FY 2014

Latest source filing: 2015-04-14

Score computed: 2026-11-14

Annual history · FY 2014

Latest source filing: 2015-04-14

Score computed: 2026-11-14

Annual history · FY 2014 · Market data at 2026-11-01

Latest source filing: 2015-04-14

Score computed: 2026-11-14

Qualitative assessment · Annual history · FY 2014

Latest source filing: 2015-04-14

Score computed: 2026-11-14

Qualitative assessment · Annual history · FY 2014

Latest source filing: 2015-04-14

Score computed: 2026-11-14

Annual history · FY 2014 · Qualitative assessment

Latest source filing: 2015-04-14

Score computed: 2026-11-14

Annual history · FY 2014 · Qualitative assessment

Latest source filing: 2015-04-14

Score computed: 2026-11-14

Annual history · FY 2014 · Market data at 2026-11-01

Latest source filing: 2015-04-14

Score computed: 2026-11-14

Annual history · FY 2014 · Price history 2025-01-01–2026-11-01

Latest source filing: 2015-04-14

Score computed: 2026-11-14

Annual history · FY 2014 · Qualitative assessment

Latest source filing: 2015-04-14

Score computed: 2026-11-14

Annual history · FY 2014 · Price history 2025-01-01–2026-11-01

Latest source filing: 2015-04-14

Score computed: 2026-11-14

Annual history · FY 2014

Latest source filing: 2015-04-14

Score computed: 2026-11-14

Annual history · FY 2014

Latest source filing: 2015-04-14

Score computed: 2026-11-14

Annual history · FY 2014 · Price history 2025-01-01–2026-11-01

Latest source filing: 2015-04-14

Score computed: 2026-11-14

Where It Passes

  • Valuation models100% pass✓ 2▾

    SOHOB undervalued: all 2 models price fair value above $3.65 (median $12.93)

    Greenblatt fair value$8.24
    ✓Greenblatt+55.7% margin vs $3.65
    Pabrai fair value$17.61
    ✓Pabrai+79.3% margin vs $3.65

Where It Falls Short

  • Profitability0% pass✓ 2✗ 33▾

    No clean pass — all 16 investors flag at least one profitability criterion

    Positive EPS (10 years)0/4 years positive
    ✗GrahamPositive EPS every year for 10 years
    EPS Growth (3-yr avg, 10-yr window)
    ✗Graham>= 33% growth
    Net Income Positive (10+ years)0/4 years positive
    ✗BuffettPositive every year for 10+ years
    ROE (up to 5-year arithmetic mean)-9.2%
    ✗Buffett> 15% arithmetic mean (app rule)
    Operating Margin (10-yr trend)
    ✗BuffettStable or rising over 10 years
    Free Cash Flow Proxy
    ✗BuffettPositive and growing
    Earnings Variance (10-yr CoV)
    ✗BuffettCoV < 0.3
    Retained Earnings Effectiveness
    ✗Buffett$1 retained -> > $1 market value created
    Basic earnings-growth PEG (dividends excluded)
    ✗Lynch< 1.0 (ideally < 0.5)
    3-5 Year EPS CAGR
    ✗Lynch15-30% (Fast Grower); > 0% to pass
    ROE-2.5%
    ✗Lynch> 15%
    EBIT / Enterprise Value5.5%
    ✗Greenblatt> 10%
    Earnings Yield + ROC AssessmentEY=5.5%, ROC=None
    ✗GreenblattBoth EY > 10% and ROC > 25%
    Net Income / Total Assets-0.20%
    ✗PiotroskiROA > 0
    ROA Change YoY-1.53% -> -0.20% (delta: +1.33%)
    ✓PiotroskiCurrent ROA > Prior ROA
    (CFO / Total Assets) vs ROACFO/Assets=4.95%, ROA=-0.20%
    ✓PiotroskiCFO/Assets > ROA
    Gross Margin Change YoY
    ✗PiotroskiImproved YoY
    Pre-Tax Income / Revenue-2.0%
    ✗Dreman>= 8%
    Net Income / Shareholders' Equity-2.5%
    ✗Dreman> 12%
    Margin of SafetyP/B=1.7x
    ✗PabraiP/B < 1.5 or P/E < 15
    Return on Equity-9.2% (3-yr avg)
    ✗AkreROE > 20% (3-year avg)
    Discount to Intrinsic ValueN/A (negative normalized EPS)
    ✗Marks>= 20% below intrinsic value
    Positive Net Income Frequency0/3 years positive
    ✗MarksPositive net income in >= 7 of last 10 years
    Operating Income / Revenue10.2%
    ✗Ackman>= 15%
    Net Income / Shareholders Equity-2.5%
    ✗Ackman>= 15%
    5-Year EPS CAGR
    ✗Templeton> 0% (5-year EPS CAGR)
    Operating Margin Trend11.6% (2012) -> 10.2% (2014)
    ✗TempletonNon-negative operating-margin trend over 3 years
    Revenue growth vs. gross and operating margin trendrevenue up, operating margin 11.6% -> 10.2%
    ✗SleepRevenue rising; gross margin flat or falling; operating margin holding
    Net income / market capitalization-1.50%; #3475/6340 (top 54.8%)
    ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section
    Gross profit / total assets
    ✗AsnessTop 30% of eligible cross-section
    Net income / positive book equity-2.50%; #3077/5226 (top 58.9%)
    ✗AsnessTop 30% of eligible cross-section
    Negative 5-year standard deviation of ROA
    ✗AsnessTop 30% of eligible cross-section
    3-5 Year Diluted EPS CAGR
    ✗Neff7%-20% annualized
    Positive Diluted-EPS Years
    ✗Schloss>= 70% positive over 5-10 observed years (app rule)
  • Growth0% pass✓ 2✗ 11▾

    No clean pass — all 8 investors flag at least one growth criterion

    EPS Growth (3-yr avg, 10-yr window)
    ✗Graham>= 33% growth
    Basic earnings-growth PEG (dividends excluded)
    ✗Lynch< 1.0 (ideally < 0.5)
    3-5 Year EPS CAGR
    ✗Lynch15-30% (Fast Grower); > 0% to pass
    Inventory Growth vs Revenue GrowthN/A (no inventory)
    ✓LynchInventory growth < Revenue growth
    EPS Growth Direction$-0.42 (2012) -> $-0.06 (2014)
    ✗DremanPositive over recent years
    EPS CAGR
    ✗Dreman> 5% annualized
    Positive Net Income Frequency0/3 years positive
    ✗MarksPositive net income in >= 7 of last 10 years
    3yr Median Revenue Growth19.9%
    ✓Ackman>= 5%
    Positive EPS Growth Frequency2/2 years with positive EPS growth
    ✗AckmanPositive EPS growth in >= 3 of last 5 years
    5-Year EPS CAGR
    ✗Templeton> 0% (5-year EPS CAGR)
    Revenue growth vs. gross and operating margin trendrevenue up, operating margin 11.6% -> 10.2%
    ✗SleepRevenue rising; gross margin flat or falling; operating margin holding
    5-year Revenue CAGR
    ✗SleepCAGR > 7%
    3-5 Year Diluted EPS CAGR
    ✗Neff7%-20% annualized
  • Efficiency0% pass✓ 1✗ 10▾

    No clean pass — all 8 investors flag at least one efficiency criterion

    Current Ratio
    ✗Graham>= 2.0
    ROIC (3-5 yr avg)4.7%
    ✗Buffett> 10%
    ROIC - WACC-5.3%
    ✗BuffettPositive (WACC = 10%)
    EBIT / (NWC + Net Fixed Assets)
    ✗Greenblatt> 25%
    Current Ratio Change YoY
    ✗PiotroskiIncreased YoY
    Revenue / Total Assets Change YoY0.39x -> 0.41x
    ✓PiotroskiImproved YoY
    Current Assets / Current Liabilities
    ✗Dreman> 1.5
    Return on Invested Capital4.3%
    ✗Munger> 15%
    ROIC (high and growing)FY2012: ROIC=unavailable; FY2013: ROIC=4.4%; FY2014: ROIC=4.3%
    ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each
    Reinvestment Rate x ROICN/A (non-positive net income)
    ✗AkreReinvestment Rate * ROIC > 10%
    ROIC (5-year)0/2 years above 12% (latest 4.3%)
    ✗SleepROIC > 12% in a majority of years
  • Debt & Leverage8% pass✓ 1✗ 14▾

    11 of 12 flag SOHOB's debt & leverage — Graham, Buffett, Lynch +8 more

    LT Debt vs Net Current Assets
    ✗GrahamLT Debt <= Net Current Assets
    Debt/Equity & Interest CoverageD/E: 8.78, IC: 0.9x
    ✗BuffettD/E < 0.5 AND Interest Coverage > 5x
    Total Debt / Equity8.78
    ✗Lynch< 0.33
    Cash - Long-term Debt
    ✗LynchPositive preferred
    LT Debt / Total Assets Change0.00% -> 0.00%
    ✓PiotroskiDecreased YoY
    Current Assets / Current Liabilities
    ✗Dreman> 1.5✗SchlossCurrent ratio >= 1.50x (app cutoff)
    Total Debt / Shareholders' Equity8.78
    ✗Dreman< 0.8✗Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✗SchlossD/E < 1.00x
    Debt Levels8.78
    ✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3
    Interest Coverage & Debt/EBITDAIC=0.9x, D/EBITDA=8.4x
    ✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x
    Total Debt / Shareholders Equity8.78
    ✗Ackman<= 1.0
    Negative debt-to-equity (higher means less debt)-8.7817; #4142/4210 (top 98.4%)
    ✗AsnessTop 30% of eligible cross-section
  • Valuation8% pass✓ 3✗ 25▾

    12 of 13 flag SOHOB's valuation — Graham, Lynch, Greenblatt +9 more

    Price / 3-yr avg EPS
    ✗Graham<= 15x
    Price-to-Book Ratio1.7x
    ✗Graham<= 1.5x
    P/E x P/B
    ✗Graham<= 22.5
    Basic earnings-growth PEG (dividends excluded)
    ✗Lynch< 1.0 (ideally < 0.5)
    EBIT / Enterprise Value5.5%
    ✗Greenblatt> 10%
    Earnings Yield + ROC AssessmentEY=5.5%, ROC=None
    ✗GreenblattBoth EY > 10% and ROC > 25%
    Price / EPS
    ✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)
    Price / (CFO / Shares)2.6x
    ✓Dreman< 8x
    Price / Book Value per Share1.7x
    ✗Dreman< 1.2x✗Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)
    Valuation ReasonablenessOE Yield=29.1%
    ✓MungerP/E < 25 or Owner Earnings Yield > 5%
    P/E or FCF Yield
    ✗PabraiP/E < 15 or FCF Yield > 10%
    P/B or P/E vs. Historical AverageP/B=1.7x
    ✓MarksP/E < 15 or P/B < 2.0
    Discount to Intrinsic ValueN/A (negative normalized EPS)
    ✗Marks>= 20% below intrinsic value
    Price / FCF per Share
    ✗Ackman<= 25
    Price vs. Trailing Low130% of trailing low ($2.80)
    ✗Templeton<= 120% of trailing low (certified split-adjusted live window)
    Net income / market capitalization-1.50%; #3475/6340 (top 54.8%)
    ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section
    Positive book equity / market capitalization+0.5982; #2527/6449 (top 39.2%)
    ✗AsnessTop 30% of eligible cross-section
    Price / Diluted EPS
    ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)
    (EPS CAGR % + Dividend Yield %) / P/E
    ✗Neff> 0.7 (Neff's published traditional edge)
    Price / Tangible Book Value per Share1.67x
    ✗SchlossP/TBV <= 1.00x (app cutoff)
    Book Value per Share Change
    ✗SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)
    Revenue / market capitalization+3.1458; #777/5247 (top 14.8%)
    ✗OshaughnessyTop 10% of eligible cross-section
    (Operating cash flow - capex) / market capitalization
    ✗OshaughnessyTop 10% of eligible cross-section
    Trailing six-month price return through the evaluation date-76.14%; #5770/6202 (top 93.0%)
    ✗OshaughnessyTop 10% of eligible cross-section
  • Verdicts14% pass✓ 2✗ 12▾

    Split decision: 12 FAIL · 2 PASS · 2 NEUTRAL

    Overall verdict
    ✗GrahamFAIL (1/9)✗BuffettFAIL (0/9)✗LynchFAIL (1/7)•GreenblattNot ranked✓PiotroskiPASS (F-Score 5)✗DremanFAIL (2/11)✓MungerPASS (2/4)✗PabraiFAIL (0/3)✗AkreFAIL (0/6)✗MarksFAIL (1/5)✗AckmanFAIL (1/9)✗TempletonFAIL (1/8)✗SleepFAIL (1/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (1/6)✗SchlossFAIL (1/7)•OshaughnessyNEUTRAL (Not ranked)
  • Cash Flow30% pass✓ 4✗ 8▾

    7 of 10 flag SOHOB's cash flow — Buffett, Lynch, Pabrai +4 more

    Free Cash Flow Proxy
    ✗BuffettPositive and growing
    FCF Positive and Growing
    ✗LynchPositive and growing
    Operating Cash Flow$14.9M
    ✓PiotroskiCFO > 0
    (CFO / Total Assets) vs ROACFO/Assets=4.95%, ROA=-0.20%
    ✓PiotroskiCFO/Assets > ROA
    Price / (CFO / Shares)2.6x
    ✓Dreman< 8x
    P/E or FCF Yield
    ✗PabraiP/E < 15 or FCF Yield > 10%
    FCF Positive
    ✗MarksPositive FCF in majority of recent years
    (OCF - CapEx) / Market Cap
    ✗Ackman>= 4%
    Price / FCF per Share
    ✗Ackman<= 25
    Positive Operating Cash Flow frequency3/3 years positive
    ✓SleepPositive OCF in >= 70% of available years
    Operating Cash Flow - Capital Expenditures
    ✗Neff> $0 (app proxy for a strong fundamental case)
    (Operating cash flow - capex) / market capitalization
    ✗OshaughnessyTop 10% of eligible cross-section

Business & financials

Financial snapshot: annual FY 2014. Current investor scores may use newer quarterly data.

Company Profile

Industry: Restaurants, Hotels, Motels
SIC Sector: Hotels & Lodging
Size: Micro Cap($39.1M)
Revenue: $122.9M+37.6% YoY
Net Income: $-584671.00+83.2% YoY

Financial Snapshot

Operating Margin10.2%
Return on Equity-2.5%
Debt / Equity8.78
Current Ratio--
EPS (Diluted)$-0.06
Shares Retired−4.9% / −7.1% 2y

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Shareholder Return

Fiscal 2014

Issued 4.9% of shares last year, 7.1% issued over two.

Buybacks
—
Dividends
$2.7M

Company Financials

Latest TTM and quarters alongside annual years

TTM sums four consecutive quarters and uses the latest quarter-end balances. Quarter columns show three-month results; annual columns show full-year totals. Growth compares the same period a year earlier. EPS is not added for TTM; full-year ratios are blank for quarters.

MetricFY 2014
Sources
  • 10-K · 2015-04-14
FY 2013
Sources
  • 10-K · 2015-04-14
FY 2012
Sources
  • 10-K · 2015-04-14
FY 2011
Sources
  • 10-K · 2015-04-14
Market Cap$39.1Mcurrent------
Revenue$122.9M↑38%$89.4M↑2%$87.3M--
Operating Income$12.5M↑20%$10.4M↑2%$10.2M--
Net Income-$584.7K↑83%-$3.5M↑16%-$4.2M--
EPS (Diluted)$-0.06↑82%$-0.34↑19%$-0.42--
Gross Margin————
Operating Margin10.2%↓13%11.6%11.6%—
ROE-2.5%↑82%-13.8%↓23%-11.2%—
Total Debt$205.3M↑28%$160.4M----
Shareholders' Equity$23.4M↓7%$25.2M↓32%$37.1M↓15%$43.7M
Current Ratio————
Debt / Equity8.78↑38%6.37——
Operating Cash Flow$14.9M↑55%$9.6M↑6%$9.0M--
Free Cash Flow--------

Score history

Historical Score Timeline

Industry peers

Industry Peers

Similar companies in Restaurants, Hotels, Motels

SOHOB vs Peers — Financial Grading

Revenue$122.9MBottom 25%
Net Income$-584671.00Bottom 25%
ROE-2.5%Median
D/E8.78Bottom 25%
Op. Margin10.2%Bottom 25%
Curr. Ratio—
CompanyMarket CapPriceRevenueNet IncomeROED/EOp. MarginCurr. RatioGrahamBuffettLynchGreenblattPiotroskiDreman
MCDONALDS CORPMCD$192.0B$271.97$26.9B$8.6B-478.1%-22.7246.1%0.952/96/92/71/3F-Score 54/11
STARBUCKS CORPSBUX$121.4B$106.44$37.2B$1.9B-22.9%-1.997.9%0.722/96/92/71/3F-Score 52/11
MARRIOTT INTERNATIONAL INC /MD/MAR$109.0B$423.16$26.2B$2.6B-69.0%-4.3015.8%0.432/94/94/71/3F-Score 72/11
YUM BRANDS INCYUM$43.3B$161.33$8.2B$1.6B-21.3%-1.6331.3%1.352/95/93/71/3F-Score 52/11
INTERCONTINENTAL HOTELS GROUP PLC /NEW/IHG$26.2B$179.93$5.2B$758.0M-27.7%-1.5323.1%0.981/92/92/71/3F-Score 72/11
DARDEN RESTAURANTS INCDRI$25.9B$228.74$13.2B$1.2B54.7%1.0912.0%0.313/95/93/71/3F-Score 75/11
Hyatt Hotels CorpH$17.5B$187.70$7.1B$52.0M-1.6%1.28—0.752/91/92/71/3F-Score 42/11
Yum China Holdings, Inc.YUMC$17.1B$50.86$11.8B$929.0M17.3%0.0210.9%1.052/94/94/71/3F-Score 76/11