Can PEB's EPS growth in 2024 sustain into 2025?

**Pebblebrook Hotel's EPS growth in 2024 may not fully translate to 2025**, and here's why:

1. **Current Financial Performance**: The most recent data shows a negative EPS of -$0.39 for PEB as of December 31, 2024. This indicates that the company has been unprofitable recently, which is a red flag for EPS growth sustainability.

|code|Ticker|Name|Date|Diluted EPS YoY|market_code|
|---|---|---|---|---|---|
|PEB|PEB.N|Pebblebrook Hotel|2024 Q1|-18.518518518518512|169|
|PEB|PEB.N|Pebblebrook Hotel|2024 Q2|-33.33333333333333|169|
|PEB|PEB.N|Pebblebrook Hotel|2024 Q3|142.10526315789474|169|

2. **Insufficient Revenue Growth**: While the company has reported a revenue growth rate of 0.02% for 2024, this modest increase may not be enough to drive significant EPS growth, especially when combined with the negative EPS figure.

|code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code|
|---|---|---|---|---|---|---|
|PEB|PEB.N|Pebblebrook Hotel|2024 Q1|2.7312662935571557|3.14069E8|169|
|PEB|PEB.N|Pebblebrook Hotel|2024 Q2|3.3217724792698187|3.9711E8|169|
|PEB|PEB.N|Pebblebrook Hotel|2024 Q3|2.2059176501203894|4.0453E8|169|
|PEB|PEB.N|Pebblebrook Hotel|2024 Q4|1.051220037834343|3.376E8|169|

3. **Net Income Growth**: The net income growth rate for 2024 is 1%, which is a positive sign. However, this needs to be considered in the context of the overall financial performance and revenue growth.

|code|Ticker|Name|Date|Net Income YoY|market_code|
|---|---|---|---|---|---|
|PEB|PEB.N|Pebblebrook Hotel|2024 Q1|-24.835563619868452|169|
|PEB|PEB.N|Pebblebrook Hotel|2024 Q2|-30.192928133728863|169|
|PEB|PEB.N|Pebblebrook Hotel|2024 Q3|179.92528857729621|169|
|PEB|PEB.N|Pebblebrook Hotel|2024 Q4|-18.883854042451706|169|

4. **Return on Equity (ROE)**: An ROE of -1.71% as of December 31, 2024, suggests that the company is not generating profits relative to shareholders' equity, which is another indicator of potential challenges in sustaining EPS growth.

|code|Ticker|Name|Date|ROE(Average) YoY|ROE(Average)|market_code|
|---|---|---|---|---|---|---|
|PEB|PEB.N|Pebblebrook Hotel|2024 Q1|-23.786280833260694|-1.4202|169|
|PEB|PEB.N|Pebblebrook Hotel|2024 Q2|-11200|-0.678|169|
|PEB|PEB.N|Pebblebrook Hotel|2024 Q3|122.26358579375267|0.5203|169|
|PEB|PEB.N|Pebblebrook Hotel|2024 Q4|56.450546656496314|-1.7128|169|

5. **Debt Levels**: A debt-to-equity ratio of 0.81% indicates that the company has a relatively low level of debt, which is generally a positive aspect. However, it may not be enough to support EPS growth if revenue and profitability do not increase accordingly.

|code|Ticker|Name|Date|Debt-to-Equity Ratio|Debt-to-Equity Ratio YoY|market_code|
|---|---|---|---|---|---|---|
|PEB|PEB.N|Pebblebrook Hotel|2024 Q1|0.784305648213672|-1.3348219396753662|169|
|PEB|PEB.N|Pebblebrook Hotel|2024 Q2|0.7787093371342084|-2.0702146575506837|169|
|PEB|PEB.N|Pebblebrook Hotel|2024 Q3|0.7768449113937235|-3.5249759498135567|169|
|PEB|PEB.N|Pebblebrook Hotel|2024 Q4|0.8058943840360073|-0.9795655719989271|169|

6. **Insider Activity**: The CEO's recent purchase of additional shares could be seen as a positive signal, indicating confidence in the company's long-term prospects. However, without a turnaround in financial performance, this may not immediately impact EPS growth.
7. **Market Conditions**: The broader market conditions, including the hospitality sector's performance, will also play a role in PEB's financial outcomes. If the industry faces continued challenges, it may limit PEB's ability to sustain EPS growth.

In conclusion, while there are some positive aspects to PEB's financial profile, such as the net income growth and the recent insider buying, the current negative EPS and low revenue growth rate suggest that sustaining EPS growth into 2025 will be challenging. The company needs to demonstrate improved profitability and revenue growth to support a sustainable increase in EPS.