F

Summit Hotel Properties, Inc. — Earnings Quality Grade F

INN · Real Estate

Major red flags

Revenue
$729M
2025
Net Income
-$5M
2025
Gross Margin
33.4%
Free Cash Flow
$149M
01

Screening Summary

14
Passed
1
Watch
2
Failed
-2.79
M-Score

Management Signals

No recent CEO, CFO, board, or accounting leadership signals found in SEC 8-K filings.
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

DSO 9 days, change -1 days YoY

A2AR vs Revenue Growth

AR growth -6.9% vs revenue growth -0.3%

A3Revenue vs CFFO

Revenue -0.3%, CFFO -10.4%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

No material inventory

B2CapEx vs Revenue

Insufficient data

B3SG&A Ratio

SG&A/Gross Profit = 13.5%, excellent (<30%)

B4Gross Margin

Gross margin 33.4%, change -2.1pp. Stable

03

Cash Flow Quality

!
C1CFFO vs Net Income

CFFO/NI = -29.41. Below 1.0

C2Free Cash Flow

FCF $0.1B, FCF/NI = -29.41

C3Accruals Ratio

Accruals ratio = -5.6%. Low accruals

C4Cash vs Debt

Cash $0.0B covers only 3% of debt $1.4B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $0.0B = 4% of equity. Manageable

D2Leverage

Debt/EBITDA = 6.5x (>4x). Interest coverage = 0.8x (<2x). Financial stress

D3Soft Asset Growth

Other assets -16.6% vs revenue -0.3%. Normal

D4Asset Impairment

Write-offs normal

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

Goodwill+Intangibles change 0% YoY. Normal

06

Manipulation Score

F1Beneish M-Score

M-Score = -2.79 (< -2.22). Unlikely manipulator

Portfolio monitoring

Monitor INN continuously

The full checks and model details are free to read. Use Watchlist to track your holdings; Pro adds automatic quarterly rescoring, risk-event email alerts, scans up to 50 tickers, and export workflows.

04

Beneish M-Score

Manipulation Probability-2.79
-4.0 Clean-2.22 Grey-1.78 Danger0
0.934
DSRI
AR growing faster than revenue?
1.063
GMI
Gross margin declining?
0.999
AQI
Asset quality deteriorating?
0.997
SGI
Revenue growth rate
0.989
DEPI
Depreciation slowing?
1.032
SGAI
SG&A ratio changing?
-0.0555
TATA
Accruals level
1.037
LVGI
Leverage increasing?

Altman Z-Score — Not Applicable

Summit Hotel Properties, Inc. is a financial company. Z-Score is designed for non-financial companies.

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25