PARK HOTELS & RESORTS INC (PK) Stock Fundamental Analysis
NYSE:PK - New York Stock Exchange, Inc. - US7005171050 - REIT - Currency: USD
Taking everything into account, PK scores 4 out of 10 in our fundamental rating. PK was compared to 129 industry peers in the Diversified REITs industry. There are concerns on the financial health of PK while its profitability can be described as average. PK has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
PK had positive earnings in the past year.
In the past year PK had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: PK reported negative net income in multiple years.
In multiple years PK reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of PK (1.42%) is better than 62.79% of its industry peers.
PK has a better Return On Equity (3.61%) than 65.12% of its industry peers.
PK's Return On Invested Capital of 2.82% is in line compared to the rest of the industry. PK outperforms 55.04% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PK is in line with the industry average of 3.16%.
The last Return On Invested Capital (2.82%) for PK is above the 3 year average (2.67%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.42% | ||
| ROE | 3.61% | ||
| ROIC | 2.82% |
ROA(3y)1.67%
ROA(5y)-2.66%
ROE(3y)4.02%
ROE(5y)-5.53%
ROIC(3y)2.67%
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 4.86%, PK perfoms like the industry average, outperforming 51.16% of the companies in the same industry.
In the last couple of years the Profit Margin of PK has declined.
PK has a Operating Margin of 12.12%. This is in the lower half of the industry: PK underperforms 71.32% of its industry peers.
PK's Operating Margin has declined in the last couple of years.
PK's Gross Margin of 65.60% is in line compared to the rest of the industry. PK outperforms 42.64% of its industry peers.
In the last couple of years the Gross Margin of PK has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.12% | ||
| PM (TTM) | 4.86% | ||
| GM | 65.6% |
OM growth 3YN/A
OM growth 5Y-4.28%
PM growth 3YN/A
PM growth 5Y-5.48%
GM growth 3Y-0.22%
GM growth 5Y0.08%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PK is destroying value.
The number of shares outstanding for PK has been reduced compared to 1 year ago.
The number of shares outstanding for PK has been reduced compared to 5 years ago.
The debt/assets ratio for PK is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.53, we must say that PK is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.53, PK perfoms like the industry average, outperforming 48.06% of the companies in the same industry.
The Debt to FCF ratio of PK is 24.16, which is on the high side as it means it would take PK, 24.16 years of fcf income to pay off all of its debts.
PK has a Debt to FCF ratio of 24.16. This is in the better half of the industry: PK outperforms 75.19% of its industry peers.
A Debt/Equity ratio of 1.31 is on the high side and indicates that PK has dependencies on debt financing.
With a Debt to Equity ratio value of 1.31, PK perfoms like the industry average, outperforming 47.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 24.16 | ||
| Altman-Z | 0.53 |
ROIC/WACC0.46
WACC6.09%
2.3 Liquidity
A Current Ratio of 0.54 indicates that PK may have some problems paying its short term obligations.
PK has a worse Current ratio (0.54) than 77.52% of its industry peers.
A Quick Ratio of 0.54 indicates that PK may have some problems paying its short term obligations.
PK has a Quick ratio of 0.54. This is in the lower half of the industry: PK underperforms 76.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
PK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.11%, which is quite impressive.
The Earnings Per Share has been decreasing by -6.46% on average over the past years.
PK shows a decrease in Revenue. In the last year, the revenue decreased by -3.68%.
The Revenue has been decreasing by -1.79% on average over the past years.
EPS 1Y (TTM)31.11%
EPS 3YN/A
EPS 5Y-6.46%
EPS Q2Q%-323.08%
Revenue 1Y (TTM)-3.68%
Revenue growth 3Y24.03%
Revenue growth 5Y-1.79%
Sales Q2Q%-1.41%
3.2 Future
Based on estimates for the next years, PK will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.12% on average per year.
Based on estimates for the next years, PK will show a small growth in Revenue. The Revenue will grow by 3.75% on average per year.
EPS Next Y-91.17%
EPS Next 2Y-21.18%
EPS Next 3Y-2.28%
EPS Next 5Y16.12%
Revenue Next Year0.41%
Revenue Next 2Y1.66%
Revenue Next 3Y2.02%
Revenue Next 5Y3.75%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 19.27 indicates a rather expensive valuation of PK.
84.50% of the companies in the same industry are more expensive than PK, based on the Price/Earnings ratio.
PK's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.69.
Based on the Price/Forward Earnings ratio of 18.12, the valuation of PK can be described as rather expensive.
Based on the Price/Forward Earnings ratio, PK is valued cheaply inside the industry as 95.35% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 37.36, PK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.27 | ||
| Fwd PE | 18.12 |
4.2 Price Multiples
75.19% of the companies in the same industry are more expensive than PK, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, PK is valued cheaper than 89.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.03 | ||
| EV/EBITDA | 11.43 |
4.3 Compensation for Growth
A cheap valuation may be justified as PK's earnings are expected to decrease with -2.28% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-21.18%
EPS Next 3Y-2.28%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.26%, PK is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.66, PK pays a better dividend. On top of this PK pays more dividend than 88.37% of the companies listed in the same industry.
PK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.26% |
5.2 History
The dividend of PK has a limited annual growth rate of 2.00%.
PK has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)2%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
228.57% of the earnings are spent on dividend by PK. This is not a sustainable payout ratio.
PK's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP228.57%
EPS Next 2Y-21.18%
EPS Next 3Y-2.28%
11.37
+0.16 (+1.43%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners102.22%
Inst Owner Change0.05%
Ins Owners1.98%
Ins Owner Change15.16%
Market Cap2.27B
Analysts73.33
Price Target12.71 (11.79%)
Short Float %14.87%
Short Ratio6.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.26% |
Yearly Dividend2.48
Dividend Growth(5Y)2%
DP228.57%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-47.42%
Min EPS beat(2)-538.56%
Max EPS beat(2)443.72%
EPS beat(4)3
Avg EPS beat(4)-4.09%
Min EPS beat(4)-538.56%
Max EPS beat(4)443.72%
EPS beat(8)6
Avg EPS beat(8)18.57%
EPS beat(12)10
Avg EPS beat(12)59.66%
EPS beat(16)12
Avg EPS beat(16)45.38%
Revenue beat(2)1
Avg Revenue beat(2)-0.08%
Min Revenue beat(2)-0.2%
Max Revenue beat(2)0.03%
Revenue beat(4)1
Avg Revenue beat(4)-1.63%
Min Revenue beat(4)-3.68%
Max Revenue beat(4)0.03%
Revenue beat(8)1
Avg Revenue beat(8)-1.73%
Revenue beat(12)3
Avg Revenue beat(12)-0.96%
Revenue beat(16)5
Avg Revenue beat(16)0.72%
PT rev (1m)0%
PT rev (3m)-20.7%
EPS NQ rev (1m)5.38%
EPS NQ rev (3m)-10.95%
EPS NY rev (1m)-70.2%
EPS NY rev (3m)-87.69%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-1.63%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.27 | ||
| Fwd PE | 18.12 | ||
| P/S | 0.88 | ||
| P/FCF | 12.03 | ||
| P/OCF | 5.37 | ||
| P/B | 0.65 | ||
| P/tB | 0.66 | ||
| EV/EBITDA | 11.43 |
EPS(TTM)0.59
EY5.19%
EPS(NY)0.63
Fwd EY5.52%
FCF(TTM)0.95
FCFY8.32%
OCF(TTM)2.12
OCFY18.61%
SpS12.96
BVpS17.48
TBVpS17.27
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.42% | ||
| ROE | 3.61% | ||
| ROCE | 3.83% | ||
| ROIC | 2.82% | ||
| ROICexc | 2.9% | ||
| ROICexgc | 2.95% | ||
| OM | 12.12% | ||
| PM (TTM) | 4.86% | ||
| GM | 65.6% | ||
| FCFM | 7.3% |
ROA(3y)1.67%
ROA(5y)-2.66%
ROE(3y)4.02%
ROE(5y)-5.53%
ROIC(3y)2.67%
ROIC(5y)N/A
ROICexc(3y)2.89%
ROICexc(5y)N/A
ROICexgc(3y)2.92%
ROICexgc(5y)N/A
ROCE(3y)3.63%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-2.14%
ROICexc growth 3YN/A
ROICexc growth 5Y-0.95%
OM growth 3YN/A
OM growth 5Y-4.28%
PM growth 3YN/A
PM growth 5Y-5.48%
GM growth 3Y-0.22%
GM growth 5Y0.08%
F-Score6
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 24.16 | ||
| Debt/EBITDA | 7.94 | ||
| Cap/Depr | 89.66% | ||
| Cap/Sales | 9.03% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.57% | ||
| Profit Quality | 150% | ||
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 0.53 |
F-Score6
WACC6.09%
ROIC/WACC0.46
Cap/Depr(3y)83.36%
Cap/Depr(5y)59.63%
Cap/Sales(3y)8.67%
Cap/Sales(5y)8.01%
Profit Quality(3y)156.41%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)31.11%
EPS 3YN/A
EPS 5Y-6.46%
EPS Q2Q%-323.08%
EPS Next Y-91.17%
EPS Next 2Y-21.18%
EPS Next 3Y-2.28%
EPS Next 5Y16.12%
Revenue 1Y (TTM)-3.68%
Revenue growth 3Y24.03%
Revenue growth 5Y-1.79%
Sales Q2Q%-1.41%
Revenue Next Year0.41%
Revenue Next 2Y1.66%
Revenue Next 3Y2.02%
Revenue Next 5Y3.75%
EBIT growth 1Y-4.56%
EBIT growth 3YN/A
EBIT growth 5Y-5.99%
EBIT Next Year68.27%
EBIT Next 3Y23.61%
EBIT Next 5YN/A
FCF growth 1Y-29.48%
FCF growth 3YN/A
FCF growth 5Y-4.85%
OCF growth 1Y-9.81%
OCF growth 3YN/A
OCF growth 5Y-2.98%