WYNDHAM HOTELS & RESORTS INC (WH)
US98311A1051 - Common Stock
We assign a fundamental rating of 5 out of 10 to WH. WH was compared to 135 industry peers in the Hotels, Restaurants & Leisure industry. While WH has a great profitability rating, there are quite some concerns on its financial health. WH has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year WH was profitable.
WH had a positive operating cash flow in the past year.
WH had positive earnings in 4 of the past 5 years.
In the past 5 years WH always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.86%, WH is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
WH has a better Return On Equity (35.31%) than 85.71% of its industry peers.
WH has a Return On Invested Capital of 10.51%. This is in the better half of the industry: WH outperforms 72.18% of its industry peers.
WH had an Average Return On Invested Capital over the past 3 years of 9.88%. This is in line with the industry average of 10.05%.
The 3 year average ROIC (9.88%) for WH is below the current ROIC(10.51%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.86% | ||
| ROE | 35.31% | ||
| ROIC | 10.51% |
ROA(3y)7.16%
ROA(5y)4.42%
ROE(3y)32.68%
ROE(5y)19.46%
ROIC(3y)9.88%
ROIC(5y)8.32%
1.3 Margins
With an excellent Profit Margin value of 17.12%, WH belongs to the best of the industry, outperforming 90.98% of the companies in the same industry.
In the last couple of years the Profit Margin of WH has grown nicely.
WH has a better Operating Margin (36.40%) than 97.74% of its industry peers.
WH's Operating Margin has improved in the last couple of years.
The Gross Margin of WH (57.99%) is better than 64.66% of its industry peers.
WH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.4% | ||
| PM (TTM) | 17.12% | ||
| GM | 57.99% |
OM growth 3Y32.08%
OM growth 5Y11.7%
PM growth 3YN/A
PM growth 5Y18.99%
GM growth 3Y14.24%
GM growth 5Y7.24%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WH is still creating some value.
Compared to 1 year ago, WH has less shares outstanding
WH has less shares outstanding than it did 5 years ago.
WH has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.89 indicates that WH is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of WH (1.89) is comparable to the rest of the industry.
WH has a debt to FCF ratio of 6.96. This is a slightly negative value and a sign of low solvency as WH would need 6.96 years to pay back of all of its debts.
WH's Debt to FCF ratio of 6.96 is fine compared to the rest of the industry. WH outperforms 66.92% of its industry peers.
WH has a Debt/Equity ratio of 3.27. This is a high value indicating a heavy dependency on external financing.
WH has a Debt to Equity ratio (3.27) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.27 | ||
| Debt/FCF | 6.96 | ||
| Altman-Z | 1.89 |
ROIC/WACC1.31
WACC8.04%
2.3 Liquidity
WH has a Current Ratio of 0.70. This is a bad value and indicates that WH is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.70, WH is doing worse than 67.67% of the companies in the same industry.
A Quick Ratio of 0.70 indicates that WH may have some problems paying its short term obligations.
WH has a Quick ratio of 0.70. This is in the lower half of the industry: WH underperforms 60.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
WH shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.81%.
WH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.01% yearly.
The Revenue has decreased by -3.47% in the past year.
The Revenue has been decreasing by -5.65% on average over the past years.
EPS 1Y (TTM)1.81%
EPS 3Y57.31%
EPS 5Y16.01%
EPS growth Q2Q-9.3%
Revenue 1Y (TTM)-3.47%
Revenue growth 3Y2.43%
Revenue growth 5Y-5.65%
Revenue growth Q2Q-2.56%
3.2 Future
Based on estimates for the next years, WH will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.57% on average per year.
The Revenue is expected to grow by 6.21% on average over the next years.
EPS Next Y8.79%
EPS Next 2Y9.51%
EPS Next 3Y10.9%
EPS Next 5Y11.57%
Revenue Next Year4.51%
Revenue Next 2Y4.85%
Revenue Next 3Y4.81%
Revenue Next 5Y6.21%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
WH is valuated rather expensively with a Price/Earnings ratio of 18.06.
Based on the Price/Earnings ratio, WH is valued a bit cheaper than the industry average as 72.93% of the companies are valued more expensively.
WH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.15.
WH is valuated correctly with a Price/Forward Earnings ratio of 14.76.
70.68% of the companies in the same industry are more expensive than WH, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.20, WH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.06 | ||
| Fwd PE | 14.76 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WH is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WH indicates a somewhat cheap valuation: WH is cheaper than 75.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.77 | ||
| EV/EBITDA | 13.62 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WH does not grow enough to justify the current Price/Earnings ratio.
WH has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.06
PEG (5Y)1.13
EPS Next 2Y9.51%
EPS Next 3Y10.9%
5. Dividend
5.1 Amount
WH has a Yearly Dividend Yield of 2.13%.
WH's Dividend Yield is rather good when compared to the industry average which is at 2.76. WH pays more dividend than 81.95% of the companies in the same industry.
WH's Dividend Yield is comparable with the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
5.2 History
The dividend of WH is nicely growing with an annual growth rate of 12.58%!
WH has been paying a dividend for over 5 years, so it has already some track record.
WH has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)12.58%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
WH pays out 50.00% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of WH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP50%
EPS Next 2Y9.51%
EPS Next 3Y10.9%
WYNDHAM HOTELS & RESORTS INC
NYSE:WH (5/17/2024, 7:04:00 PM)
After market: 70.99 0 (0%)70.99
-0.39 (-0.55%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.72B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.06 | ||
| Fwd PE | 14.76 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.06
PEG (5Y)1.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.86% | ||
| ROE | 35.31% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 36.4% | ||
| PM (TTM) | 17.12% | ||
| GM | 57.99% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.27 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)1.81%
EPS 3Y57.31%
EPS 5Y
EPS growth Q2Q
EPS Next Y8.79%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.47%
Revenue growth 3Y2.43%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y