PARK HOTELS & RESORTS INC (PK) Stock Fundamental Analysis
USA - NYSE:PK - US7005171050 - REIT
11.05 USD
-0.11 (-0.99%)
11.06 USD
+0.01 (+0.09%)
We assign a fundamental rating of 3 out of 10 to PK. PK was compared to 127 industry peers in the Diversified REITs industry. PK may be in some trouble as it scores bad on both profitability and health. PK has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
In multiple years PK reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: PK reported negative operating cash flow in multiple years.
1.2 Ratios
PK has a Return On Assets (0.64%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 1.66%, PK is in line with its industry, outperforming 50.39% of the companies in the same industry.
PK's Return On Invested Capital of 2.26% is in line compared to the rest of the industry. PK outperforms 43.31% 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 3.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.64% | ||
| ROE | 1.66% | ||
| ROIC | 2.26% |
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
PK has a Profit Margin (2.21%) which is in line with its industry peers.
PK's Profit Margin has declined in the last couple of years.
PK's Operating Margin of 9.67% is on the low side compared to the rest of the industry. PK is outperformed by 76.38% of its industry peers.
PK's Operating Margin has declined in the last couple of years.
PK has a Gross Margin of 65.37%. This is comparable to the rest of the industry: PK outperforms 43.31% of its industry peers.
PK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.67% | ||
| PM (TTM) | 2.21% | ||
| GM | 65.37% |
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
PK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
PK has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, PK has less shares outstanding
The debt/assets ratio for PK is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.49, we must say that PK is in the distress zone and has some risk of bankruptcy.
PK has a Altman-Z score (0.49) which is in line with its industry peers.
PK has a debt to FCF ratio of 24.28. This is a negative value and a sign of low solvency as PK would need 24.28 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 24.28, PK is doing good in the industry, outperforming 72.44% of the companies in the same industry.
PK has a Debt/Equity ratio of 1.33. This is a high value indicating a heavy dependency on external financing.
PK has a Debt to Equity ratio (1.33) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 24.28 | ||
| Altman-Z | 0.49 |
ROIC/WACC0.39
WACC5.75%
2.3 Liquidity
A Current Ratio of 0.60 indicates that PK may have some problems paying its short term obligations.
PK has a worse Current ratio (0.60) than 74.02% of its industry peers.
PK has a Quick Ratio of 0.60. This is a bad value and indicates that PK is not financially healthy enough and could expect problems in meeting its short term obligations.
PK has a Quick ratio of 0.60. This is in the lower half of the industry: PK underperforms 74.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
The earnings per share for PK have decreased strongly by -81.38% in the last year.
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 -3.19%.
PK shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.79% yearly.
EPS 1Y (TTM)-81.38%
EPS 3YN/A
EPS 5Y-6.46%
EPS Q2Q%-106.67%
Revenue 1Y (TTM)-3.19%
Revenue growth 3Y24.03%
Revenue growth 5Y-1.79%
Sales Q2Q%-2.04%
3.2 Future
PK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.66% yearly.
PK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.57% yearly.
EPS Next Y-127.53%
EPS Next 2Y-36.47%
EPS Next 3Y-18.37%
EPS Next 5Y13.66%
Revenue Next Year-1.39%
Revenue Next 2Y0.36%
Revenue Next 3Y1.37%
Revenue Next 5Y3.57%
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
The Price/Earnings ratio is 40.93, which means the current valuation is very expensive for PK.
The rest of the industry has a similar Price/Earnings ratio as PK.
PK's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.89.
With a Price/Forward Earnings ratio of 27.11, PK can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, PK is valued cheaply inside the industry as 80.31% of the companies are valued more expensively.
PK's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.93 | ||
| Fwd PE | 27.11 |
4.2 Price Multiples
75.59% 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 cheaply inside the industry as 88.19% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.75 | ||
| EV/EBITDA | 11.36 |
4.3 Compensation for Growth
A cheap valuation may be justified as PK's earnings are expected to decrease with -18.37% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-36.47%
EPS Next 3Y-18.37%
5. Dividend
5.1 Amount
PK has a Yearly Dividend Yield of 8.96%, which is a nice return.
PK's Dividend Yield is rather good when compared to the industry average which is at 6.15. PK pays more dividend than 85.83% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, PK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.96% |
5.2 History
The dividend of PK has a limited annual growth rate of 2.02%.
PK has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)2.02%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
501.75% of the earnings are spent on dividend by PK. This is not a sustainable payout ratio.
The dividend of PK is growing, but earnings are growing more, so the dividend growth is sustainable.
DP501.75%
EPS Next 2Y-36.47%
EPS Next 3Y-18.37%
11.05
-0.11 (-0.99%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners107.17%
Inst Owner Change-0.09%
Ins Owners1.99%
Ins Owner Change0.55%
Market Cap2.21B
Revenue(TTM)2.58B
Net Income(TTM)57.00M
Analysts70
Price Target12.24 (10.77%)
Short Float %17.09%
Short Ratio10.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.96% |
Yearly Dividend2.48
Dividend Growth(5Y)2.02%
DP501.75%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-323.47%
Min EPS beat(2)-538.56%
Max EPS beat(2)-108.38%
EPS beat(4)2
Avg EPS beat(4)-32.33%
Min EPS beat(4)-538.56%
Max EPS beat(4)443.72%
EPS beat(8)6
Avg EPS beat(8)47.64%
EPS beat(12)9
Avg EPS beat(12)19.02%
EPS beat(16)11
Avg EPS beat(16)37.16%
Revenue beat(2)0
Avg Revenue beat(2)-1.23%
Min Revenue beat(2)-2.25%
Max Revenue beat(2)-0.2%
Revenue beat(4)1
Avg Revenue beat(4)-1.28%
Min Revenue beat(4)-2.68%
Max Revenue beat(4)0.03%
Revenue beat(8)1
Avg Revenue beat(8)-1.59%
Revenue beat(12)2
Avg Revenue beat(12)-1.38%
Revenue beat(16)4
Avg Revenue beat(16)-0.33%
PT rev (1m)0%
PT rev (3m)-3.7%
EPS NQ rev (1m)-22.85%
EPS NQ rev (3m)-51.78%
EPS NY rev (1m)-181.25%
EPS NY rev (3m)-411.78%
Revenue NQ rev (1m)-2.23%
Revenue NQ rev (3m)-5.02%
Revenue NY rev (1m)-0.68%
Revenue NY rev (3m)-1.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.93 | ||
| Fwd PE | 27.11 | ||
| P/S | 0.86 | ||
| P/FCF | 11.75 | ||
| P/OCF | 5.34 | ||
| P/B | 0.64 | ||
| P/tB | 0.65 | ||
| EV/EBITDA | 11.36 |
EPS(TTM)0.27
EY2.44%
EPS(NY)0.41
Fwd EY3.69%
FCF(TTM)0.94
FCFY8.51%
OCF(TTM)2.07
OCFY18.74%
SpS12.89
BVpS17.23
TBVpS17.02
PEG (NY)N/A
PEG (5Y)N/A
Graham Number10.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.64% | ||
| ROE | 1.66% | ||
| ROCE | 3.07% | ||
| ROIC | 2.26% | ||
| ROICexc | 2.35% | ||
| ROICexgc | 2.38% | ||
| OM | 9.67% | ||
| PM (TTM) | 2.21% | ||
| GM | 65.37% | ||
| 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
ROICexgc growth 3YN/A
ROICexgc 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 | 1.33 | ||
| Debt/FCF | 24.28 | ||
| Debt/EBITDA | 8.04 | ||
| Cap/Depr | 70.85% | ||
| Cap/Sales | 8.77% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.89% | ||
| Profit Quality | 329.83% | ||
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 0.49 |
F-Score6
WACC5.75%
ROIC/WACC0.39
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)-81.38%
EPS 3YN/A
EPS 5Y-6.46%
EPS Q2Q%-106.67%
EPS Next Y-127.53%
EPS Next 2Y-36.47%
EPS Next 3Y-18.37%
EPS Next 5Y13.66%
Revenue 1Y (TTM)-3.19%
Revenue growth 3Y24.03%
Revenue growth 5Y-1.79%
Sales Q2Q%-2.04%
Revenue Next Year-1.39%
Revenue Next 2Y0.36%
Revenue Next 3Y1.37%
Revenue Next 5Y3.57%
EBIT growth 1Y-26.11%
EBIT growth 3YN/A
EBIT growth 5Y-5.99%
EBIT Next Year64.63%
EBIT Next 3Y20.94%
EBIT Next 5YN/A
FCF growth 1Y-17.54%
FCF growth 3YN/A
FCF growth 5Y-4.85%
OCF growth 1Y-11.54%
OCF growth 3YN/A
OCF growth 5Y-2.98%
PARK HOTELS & RESORTS INC / PK FAQ
Can you provide the ChartMill fundamental rating for PARK HOTELS & RESORTS INC?
ChartMill assigns a fundamental rating of 3 / 10 to PK.
Can you provide the valuation status for PARK HOTELS & RESORTS INC?
ChartMill assigns a valuation rating of 4 / 10 to PARK HOTELS & RESORTS INC (PK). This can be considered as Fairly Valued.
How profitable is PARK HOTELS & RESORTS INC (PK) stock?
PARK HOTELS & RESORTS INC (PK) has a profitability rating of 3 / 10.
Can you provide the PE and PB ratios for PK stock?
The Price/Earnings (PE) ratio for PARK HOTELS & RESORTS INC (PK) is 40.93 and the Price/Book (PB) ratio is 0.64.
What is the expected EPS growth for PARK HOTELS & RESORTS INC (PK) stock?
The Earnings per Share (EPS) of PARK HOTELS & RESORTS INC (PK) is expected to decline by -127.53% in the next year.