Sotherly Hotels Inc.

SOHON

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.

About the company

Country: United StatesPrice: $3.65Market Cap: $73.5M

Investment snapshot

0%positive consensus

Scored 1d ago

Positive

BUY / PASS

Neutral / negative

1 / 15

NEUTRAL / FAIL

Median fair value

$6.09

+66.8% vs price

Models with upside

3 / 17

Positive margin of safety

Strongest signal

Models split on SOHON at $3.65 — fair values range $1.46–$12.25

Key risk

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

Framework analysis

Verdict	Meaning
BUY	Positive purchase signal: the framework's buy requirements are met.
PASS	The 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.
NEUTRAL	Neither a positive nor negative conclusion. It does not mean to hold an existing position.
FAIL	The company does not clear the framework's requirements.
Ranked	Ranked 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.

Metric	Graham 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
Verdict	FAIL	FAIL	FAIL	Not ranked	FAIL	FAIL	FAIL	FAIL	FAIL	FAIL	FAIL	FAIL	FAIL	FAIL	FAIL	FAIL	NEUTRAL
Score
Analysis	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…	Checking access…
Intrinsic Value (annual)	N/A	N/A	N/A		N/A		N/A			N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Margin of Safety	N/A	N/A	N/A	+54.2%	N/A	+13.1%	N/A	+70.2%	-150.0%	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Financial Basis	Annual history · FY 2025 Latest source filing: 2026-04-15 Score computed: 2026-11-14	Annual history · FY 2025 Latest source filing: 2026-04-15 Score computed: 2026-11-14	Annual history · FY 2025 Latest source filing: 2026-04-15 Score computed: 2026-11-14	Annual history · FY 2025 Latest source filing: 2026-04-15 Score computed: 2026-11-14	Annual history · FY 2025 Latest source filing: 2026-04-15 Score computed: 2026-11-14	Annual history · FY 2025 · Market data at 2026-11-01 Latest source filing: 2026-04-15 Score computed: 2026-11-14	Qualitative assessment · Annual history · FY 2025 Latest source filing: 2026-04-15 Score computed: 2026-11-14	Qualitative assessment · Annual history · FY 2025 Latest source filing: 2026-04-15 Score computed: 2026-11-14	Annual history · FY 2025 · Qualitative assessment Latest source filing: 2026-04-15 Score computed: 2026-11-14	Annual history · FY 2025 · Qualitative assessment Latest source filing: 2026-04-15 Score computed: 2026-11-14	Annual history · FY 2025 · Market data at 2026-11-01 Latest source filing: 2026-04-15 Score computed: 2026-11-14	Annual history · FY 2025 · Price history 2025-01-01–2026-11-01 Latest source filing: 2026-04-15 Score computed: 2026-11-14	Annual history · FY 2025 · Qualitative assessment Latest source filing: 2026-04-15 Score computed: 2026-11-14	Annual history · FY 2025 · Price history 2025-01-01–2026-11-01 Latest source filing: 2026-04-15 Score computed: 2026-11-14	Annual history · FY 2025 Latest source filing: 2026-04-15 Score computed: 2026-11-14	Annual history · FY 2025 Latest source filing: 2026-04-15 Score computed: 2026-11-14	Annual history · FY 2025 · Price history 2025-01-01–2026-11-01 Latest source filing: 2026-04-15 Score computed: 2026-11-14

Where It Passes

Valuation models75% pass✓ 3✗ 1▾
Models split on SOHON at $3.65 — fair values range $1.46–$12.25
Greenblatt fair value$7.98
✓Greenblatt+54.2% margin vs $3.65
Dreman fair value$4.20
✓Dreman+13.1% margin vs $3.65
Pabrai fair value$12.25
✓Pabrai+70.2% margin vs $3.65
Akre fair value$1.46
✗Akre-150.0% 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)5/25 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)13/25 years positive
✗BuffettPositive every year for 10+ years
ROE (up to 5-year arithmetic mean)-15.4%
✗Buffett> 15% arithmetic mean (app rule)
Operating Margin (10-yr trend)7.2% (latest)
✗BuffettStable or rising over 10 years
Free Cash Flow Proxy$-3.5M
✗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-27.2%
✗Lynch> 15%
EBIT / Enterprise Value3.3%
✗Greenblatt> 10%
Earnings Yield + ROC AssessmentEY=3.3%, ROC=None
✗GreenblattBoth EY > 10% and ROC > 25%
Net Income / Total Assets-1.88%
✗PiotroskiROA > 0
ROA Change YoY0.31% -> -1.88% (delta: -2.20%)
✗PiotroskiCurrent ROA > Prior ROA
(CFO / Total Assets) vs ROACFO/Assets=2.53%, ROA=-1.88%
✓PiotroskiCFO/Assets > ROA
Gross Margin Change YoY25.7% -> 24.1%
✗PiotroskiImproved YoY
Pre-Tax Income / Revenue-4.4%
✗Dreman>= 8%
Net Income / Shareholders' Equity-27.2%
✗Dreman> 12%
Margin of Safety
✗PabraiP/FFO < 15
Return on Equity-5.4% (3-yr avg)
✗AkreROE > 20% (3-year avg)
Discount to Intrinsic ValueN/A (negative normalized EPS)
✗Marks>= 20% below intrinsic value
Positive Net Income Frequency13/22 years positive
✓MarksPositive net income in >= 7 of last 10 years
Operating Income / Revenue7.2%
✗Ackman>= 15%
Net Income / Shareholders Equity-27.2%
✗Ackman>= 15%
5-Year EPS CAGR
✗Templeton> 0% (5-year EPS CAGR)
Operating Margin Trend10.9% (2023) -> 7.2% (2025)
✗TempletonNon-negative operating-margin trend over 3 years
Revenue growth vs. gross and operating margin trendgross margin 25.8% -> 24.1%, operating margin 10.9% -> 7.2%
✗SleepRevenue rising; gross margin flat or falling; operating margin holding
Net income / market capitalization-10.46%; #4203/6340 (top 66.3%)
✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section
Gross profit / total assets+10.41%; #2773/3702 (top 74.9%)
✗AsnessTop 30% of eligible cross-section
Net income / positive book equity-27.20%; #3849/5226 (top 73.7%)
✗AsnessTop 30% of eligible cross-section
Negative 5-year standard deviation of ROA-0.0457; #2459/5884 (top 41.8%)
✗AsnessTop 30% of eligible cross-section
3-5 Year Diluted EPS CAGR
✗Neff7%-20% annualized
Positive Diluted-EPS Years1/8 years positive
✗Schloss>= 70% positive over 5-10 observed years (app rule)
Debt & Leverage0% pass✗ 15▾
All 12 investors flag SOHON's debt & leverage
LT Debt vs Net Current Assets
✗GrahamLT Debt <= Net Current Assets
Debt/Equity & Interest CoverageD/E: 11.15, IC: 0.5x
✗BuffettD/E < 0.5 AND Interest Coverage > 5x
Total Debt / Equity11.15
✗Lynch< 0.33
Cash - Long-term Debt$-308.2M
✗LynchPositive preferred
LT Debt / Total Assets Change76.38% -> 77.27%
✗PiotroskiDecreased YoY
Current Assets / Current Liabilities
✗Dreman> 1.5✗SchlossCurrent ratio >= 1.50x (app cutoff)
Total Debt / Shareholders' Equity11.15
✗Dreman< 0.8✗Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✗SchlossD/E < 1.00x
Debt Levels11.15
✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3
Interest Coverage & Debt/EBITDAIC=0.5x, D/EBITDA=9.7x
✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x
Total Debt / Shareholders Equity11.15
✗Ackman<= 1.0
Negative debt-to-equity (higher means less debt)-11.1531; #4157/4210 (top 98.7%)
✗AsnessTop 30% of eligible cross-section
Efficiency0% pass✗ 11▾
All 8 investors flag SOHON's efficiency
Current Ratio
✗Graham>= 2.0
ROIC (3-5 yr avg)3.0%
✗Buffett> 10%
ROIC - WACC-7.0%
✗BuffettPositive (WACC = 10%)
EBIT / (NWC + Net Fixed Assets)
✗Greenblatt> 25%
Current Ratio Change YoY
✗PiotroskiIncreased YoY
Revenue / Total Assets Change YoY0.44x -> 0.43x
✗PiotroskiImproved YoY
Current Assets / Current Liabilities
✗Dreman> 1.5
Return on Invested Capital2.9%
✗Munger> 15%
ROIC (high and growing)FY2023: ROIC=4.1%; FY2024: ROIC=4.5%; FY2025: ROIC=2.9%
✗AkreLatest 3 consecutive FYs: ROIC > 15% in each
Reinvestment Rate x ROICN/A (non-positive net income)
✗AkreReinvestment Rate * ROIC > 10%
ROIC (5-year)0/5 years above 12% (latest 2.9%)
✗SleepROIC > 12% in a majority of years
Verdicts0% pass✗ 15▾
Split decision: 15 FAIL · 1 NEUTRAL
Overall verdict
✗GrahamFAIL (1/7)✗BuffettFAIL (0/9)✗LynchFAIL (1/7)•GreenblattNot ranked✗PiotroskiFAIL (F-Score 2)✗DremanFAIL (0/10)✗MungerFAIL (1/4)✗PabraiFAIL (1/3)✗AkreFAIL (0/6)✗MarksFAIL (2/5)✗AckmanFAIL (1/9)✗TempletonFAIL (1/8)✗SleepFAIL (2/6)✗AsnessFAIL (Rank #2310/2370 (Top 97.5%))✗NeffFAIL (1/6)✗SchlossFAIL (0/7)•OshaughnessyNEUTRAL (Not ranked)
Valuation8% pass✓ 1✗ 24▾
12 of 13 flag SOHON's valuation — Graham, Lynch, Greenblatt +9 more
Price / FFO per Share
✗Graham<= 15x✗Dreman< 12x✗Ackman<= 25
Basic earnings-growth PEG (dividends excluded)
✗Lynch< 1.0 (ideally < 0.5)
EBIT / Enterprise Value3.3%
✗Greenblatt> 10%
Earnings Yield + ROC AssessmentEY=3.3%, ROC=None
✗GreenblattBoth EY > 10% and ROC > 25%
Price / (CFO / Shares)
✗Dreman< 8x
Valuation Reasonableness
✗MungerP/E < 25 or Owner Earnings Yield > 5%
P/FFO or FFO YieldFFO Yield=16.3%
✓PabraiP/FFO < 15 or FFO Yield > 10%
P/B or P/E vs. Historical Average
✗MarksP/E < 15 or P/B < 2.0
Discount to Intrinsic ValueN/A (negative normalized EPS)
✗Marks>= 20% below intrinsic value
Price / EPS
✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)
Price vs. Trailing Low122% of trailing low ($3.00)
✗Templeton<= 120% of trailing low (certified split-adjusted live window)
Price / Book Value per Share
✗Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)
Net income / market capitalization-10.46%; #4203/6340 (top 66.3%)
✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section
Positive book equity / market capitalization+0.3847; #3339/6449 (top 51.8%)
✗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 Share
✗SchlossP/TBV <= 1.00x (app cutoff)
Book Value per Share Change-34.5%
✗SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)
Revenue / market capitalization+2.4011; #953/5247 (top 18.2%)
✗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-76.24%; #5772/6202 (top 93.1%)
✗OshaughnessyTop 10% of eligible cross-section
Growth13% pass✓ 3✗ 10▾
7 of 8 flag SOHON's growth — Graham, Lynch, Dreman +4 more
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
✗DremanPositive over recent years
EPS CAGR
✗Dreman> 5% annualized
Positive Net Income Frequency13/22 years positive
✓MarksPositive net income in >= 7 of last 10 years
3yr Median Revenue Growth4.6%
✗Ackman>= 5%
Positive EPS Growth Frequency2/5 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 trendgross margin 25.8% -> 24.1%, operating margin 10.9% -> 7.2%
✗SleepRevenue rising; gross margin flat or falling; operating margin holding
5-year Revenue CAGR19.8%
✓SleepCAGR > 7%
3-5 Year Diluted EPS CAGR
✗Neff7%-20% annualized
Cash Flow33% pass✓ 3✗ 4▾
4 of 6 flag SOHON's cash flow — Buffett, Dreman, Neff +1 more
Free Cash Flow Proxy$-3.5M
✗BuffettPositive and growing
Operating Cash Flow$10.3M
✓PiotroskiCFO > 0
(CFO / Total Assets) vs ROACFO/Assets=2.53%, ROA=-1.88%
✓PiotroskiCFO/Assets > ROA
Price / (CFO / Shares)
✗Dreman< 8x
Positive Operating Cash Flow frequency19/20 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 2025. Current investor scores may use newer quarterly data.

Company Profile

Industry: Trading

SIC Sector: Holding & Investment Offices

Size: Micro Cap($73.5M)

Revenue: $176.4M-3.0% YoY

Net Income: $7.7M-690.2% YoY

Financial Snapshot

Operating Margin7.2%

Return on Equity-27.2%

Debt / Equity11.15

Current Ratio--

EPS (Diluted)$-0.77

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Sector-adjusted criteria: REIT

Depreciation distorts REIT earnings and book value, so FFO-based criteria replace P/E and free-cash-flow tests, and P/B tests are omitted.

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.

The latest annual period end is unavailable. Showing the latest fiscal cycle’s quarters; quarter and annual columns may overlap. Quarterly shows the full quarter history.

Metric	TTM · 2025-12-31 2025-01-01 – 2025-12-31 Sources · derived quarter values 10-Q · 2025-05-15 10-Q · 2025-08-14 10-Q · 2025-11-14 10-K · 2026-04-15 Derived from cumulative filings: operating cash flow, net income, pre tax income, interest expense, depreciation amortization.	Q4 FY 2025 2025-10-01 – 2025-12-31 Sources · derived quarter values 10-K · 2026-04-15 Derived from cumulative filings: net income, pre tax income, interest expense, operating cash flow, depreciation amortization.	Q3 FY 2025 2025-07-01 – 2025-09-30 Sources · derived quarter values 10-Q · 2025-11-14 Derived from cumulative filings: operating cash flow.	Q2 FY 2025 2025-04-01 – 2025-06-30 Sources · derived quarter values 10-Q · 2025-08-14 Derived from cumulative filings: operating cash flow.	Q1 FY 2025 2025-01-01 – 2025-03-31 Sources 10-Q · 2025-05-15	FY 2025 Sources 10-K · 2026-04-15	FY 2024 Sources 10-K · 2025-03-31	FY 2023 Sources 10-K · 2024-03-22	FY 2022 Sources 10-K · 2023-03-21	FY 2021 Sources 10-K · 2022-03-25
Market Cap	$73.5Mcurrent	--	--	--	--	--	$329.8Mest.	$326.7Mest.	$369.4Mest.	$259.5Mest.
Revenue	$176.4M	$41.3M↓6%	$38.0M↓7%	$48.8M↓4%	$48.3M	$176.4M↓3%	$181.9M↑5%	$173.8M↑5%	$166.1M↑30%	$127.6M
Operating Income	$12.7M	-$506.0K↓113%	$514.8K↓71%	$6.6M↓29%	$6.1M	$12.7M↓39%	$20.6M↑9%	$18.9M↓8%	$20.6M↑355%	-$8.1M
Net Income	-$7.7M	-$8.5M↓714%	-$5.5M↓52%	$1.6M↓66%	$4.7M	-$7.7M↓690%	$1.3M↓67%	$3.9M↓88%	$32.5M↑224%	-$26.2M
EPS (Diluted)	--	$-0.51↓240%	$-0.37↓28%	$-0.02↓115%	$0.13	$-0.77↓126%	$-0.34↓55%	$-0.22↓116%	$1.40↑165%	$-2.15
Gross Margin	—	—	—	—	—	24.1%↓6%	25.7%	25.8%↓8%	28.0%↑16%	24.2%
Operating Margin	7.2%	-1.2%↓114%	1.4%↓69%	13.5%↓27%	12.7%	7.2%↓37%	11.4%↑4%	10.9%↓12%	12.4%↑296%	-6.3%
ROE	-27.2%	—	—	—	—	-27.2%↓999%	3.0%↓62%	8.0%↓87%	62.3%↑150%	-123.3%
Total Debt	$315.2M	$315.2M	$320.5M↑1%	$313.9M↓2%	$315.3M	$315.2M	$316.5M	$316.0M↓1%	$320.5M↓9%	$351.2M
Shareholders' Equity	$28.3M	$28.3M↓34%	$36.8M↓20%	$44.3M↓14%	$46.1M	$28.3M↓34%	$43.1M↓13%	$49.2M↓6%	$52.3M↑146%	$21.3M
Current Ratio	—	—	—	—	—	—	—	—	—	—
Debt / Equity	11.15	11.15↑52%	8.72↑26%	7.09↑14%	6.84	11.15↑52%	7.35↑15%	6.42↑5%	6.13↓63%	16.52
Operating Cash Flow	$10.3M	$554.8K↓88%	-$373.9K↓108%	$1.9M↓77%	$8.2M	$10.3M↓60%	$25.9M↑21%	$21.4M↑221%	$6.7M↑187%	$2.3M
Free Cash Flow	--	--	--	--	--	--	--	--	--	--

Score history

Historical Score Timeline

Industry peers

Industry Peers

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SOHON vs Peers — Financial Grading

Revenue$176.4MBottom 25%

Net Income$7.7MBottom 25%

ROE-27.2%Bottom 25%

D/E11.15Bottom 25%

Op. Margin7.2%Median

Curr. Ratio—

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