PARK HOTELS & RESORTS INC (PK) Stock Fundamental Analysis
NYSE:PK - US7005171050 - REIT
12 USD
-0.11 (-0.91%)
12 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to PK. PK was compared to 129 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 it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year PK was profitable.
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.
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's Return On Assets of 0.64% is in line compared to the rest of the industry. PK outperforms 49.61% of its industry peers.
With a Return On Equity value of 1.66%, PK perfoms like the industry average, outperforming 51.16% of the companies in the same industry.
PK has a Return On Invested Capital of 2.26%. This is comparable to the rest of the industry: PK outperforms 44.19% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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 comparable to the rest of the industry.
In the last couple of years the Profit Margin of PK has declined.
PK has a Operating Margin of 9.67%. This is in the lower half of the industry: PK underperforms 77.52% of its industry peers.
In the last couple of years the Operating Margin of PK has declined.
The Gross Margin of PK (65.37%) is comparable to the rest of the industry.
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 | 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.
The number of shares outstanding for PK has been reduced compared to 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 0.52, we must say that PK is in the distress zone and has some risk of bankruptcy.
PK's Altman-Z score of 0.52 is in line compared to the rest of the industry. PK outperforms 51.94% of 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.
PK's Debt to FCF ratio of 24.28 is fine compared to the rest of the industry. PK outperforms 72.87% of its industry peers.
A Debt/Equity ratio of 1.33 is on the high side and indicates that PK has dependencies on debt financing.
PK's Debt to Equity ratio of 1.33 is in line compared to the rest of the industry. PK outperforms 47.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 24.28 | ||
| Altman-Z | 0.52 |
ROIC/WACC0.37
WACC6.05%
2.3 Liquidity
PK has a Current 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.
Looking at the Current ratio, with a value of 0.60, PK is doing worse than 74.42% of the companies in the same industry.
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 worse Quick ratio (0.60) than 74.42% 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.
Measured over the past years, PK shows a decrease in Earnings Per Share. The EPS has been decreasing by -6.46% on average per year.
Looking at the last year, PK shows a decrease in Revenue. The Revenue has decreased by -3.19% in the last year.
Measured over the past years, PK shows a decrease in Revenue. The Revenue has been decreasing by -1.79% on average per year.
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
Based on estimates for the next years, PK will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.66% on average per year.
Based on estimates for the next years, PK will show a small growth in Revenue. The Revenue will grow by 4.13% on average per year.
EPS Next Y-95.41%
EPS Next 2Y-22.32%
EPS Next 3Y-2.64%
EPS Next 5Y13.66%
Revenue Next Year-0.15%
Revenue Next 2Y1.18%
Revenue Next 3Y1.88%
Revenue Next 5Y4.13%
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 44.44 indicates a quite expensive valuation of PK.
Compared to the rest of the industry, the Price/Earnings ratio of PK is on the same level as its industry peers.
When comparing the Price/Earnings ratio of PK to the average of the S&P500 Index (27.06), we can say PK is valued expensively.
With a Price/Forward Earnings ratio of 19.69, PK is valued on the expensive side.
PK's Price/Forward Earnings ratio is rather cheap when compared to the industry. PK is cheaper than 93.02% of the companies in the same industry.
PK is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.44 | ||
| Fwd PE | 19.69 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PK indicates a somewhat cheap valuation: PK is cheaper than 75.19% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, PK is valued cheaply inside the industry as 87.60% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.76 | ||
| EV/EBITDA | 11.7 |
4.3 Compensation for Growth
A cheap valuation may be justified as PK's earnings are expected to decrease with -2.64% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-22.32%
EPS Next 3Y-2.64%
5. Dividend
5.1 Amount
PK has a Yearly Dividend Yield of 8.26%, which is a nice return.
Compared to an average industry Dividend Yield of 6.60, PK pays a better dividend. On top of this PK pays more dividend than 80.62% 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 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.26% |
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-22.32%
EPS Next 3Y-2.64%
12
-0.11 (-0.91%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners101.51%
Inst Owner Change5.97%
Ins Owners1.99%
Ins Owner Change3.98%
Market Cap2.40B
Analysts72.17
Price Target12.24 (2%)
Short Float %15.51%
Short Ratio7.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.26% |
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)-0.69%
PT rev (3m)-10.34%
EPS NQ rev (1m)-38.78%
EPS NQ rev (3m)-65.12%
EPS NY rev (1m)-48.04%
EPS NY rev (3m)-93.16%
Revenue NQ rev (1m)-0.77%
Revenue NQ rev (3m)-4.53%
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)-0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.44 | ||
| Fwd PE | 19.69 | ||
| P/S | 0.93 | ||
| P/FCF | 12.76 | ||
| P/OCF | 5.79 | ||
| P/B | 0.7 | ||
| P/tB | 0.7 | ||
| EV/EBITDA | 11.7 |
EPS(TTM)0.27
EY2.25%
EPS(NY)0.61
Fwd EY5.08%
FCF(TTM)0.94
FCFY7.84%
OCF(TTM)2.07
OCFY17.26%
SpS12.89
BVpS17.23
TBVpS17.02
PEG (NY)N/A
PEG (5Y)N/A
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
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 | 1.33 | ||
| 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 | 0.52 |
F-Score6
WACC6.05%
ROIC/WACC0.37
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-95.41%
EPS Next 2Y-22.32%
EPS Next 3Y-2.64%
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-0.15%
Revenue Next 2Y1.18%
Revenue Next 3Y1.88%
Revenue Next 5Y4.13%
EBIT growth 1Y-26.11%
EBIT growth 3YN/A
EBIT growth 5Y-5.99%
EBIT Next Year64.99%
EBIT Next 3Y21.29%
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%