PARK HOTELS & RESORTS INC (PK) Stock Fundamental Analysis
USA - NYSE:PK - US7005171050 - REIT
11.09 USD
+0.06 (+0.54%)
11.09 USD
0 (0%)
Taking everything into account, PK scores 3 out of 10 in our fundamental rating. PK was compared to 129 industry peers in the Diversified REITs industry. PK has a bad profitability rating. Also its financial health evaluation is rather negative. PK is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
PK had positive earnings in the past year.
PK had a positive operating cash flow in the past year.
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 in line with its industry peers.
Looking at the Return On Equity, with a value of 1.66%, PK is in line with its industry, outperforming 51.16% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 2.26%, PK is in line with its industry, outperforming 44.19% of the companies in the same industry.
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's Profit Margin of 2.21% is in line compared to the rest of the industry. PK outperforms 45.74% of its industry peers.
In the last couple of years the Profit Margin of PK has declined.
The Operating Margin of PK (9.67%) is worse than 77.52% of its industry peers.
In the last couple of years the Operating Margin of PK has declined.
PK has a Gross Margin (65.37%) which is in line with 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 | 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.
PK has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, PK has a worse debt to assets ratio.
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's Altman-Z score of 0.49 is in line compared to the rest of the industry. PK outperforms 48.84% of its industry peers.
The Debt to FCF ratio of PK is 24.28, which is on the high side as it means it would take PK, 24.28 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 24.28, PK is in the better half of the industry, outperforming 72.87% of the companies in the same industry.
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 | 0.49 |
ROIC/WACC0.38
WACC6.01%
2.3 Liquidity
A Current Ratio of 0.60 indicates that PK may have some problems paying its short term obligations.
The Current ratio of PK (0.60) is worse than 74.42% of its industry peers.
A Quick Ratio of 0.60 indicates that PK may have some problems paying its short term obligations.
With a Quick ratio value of 0.60, PK is not doing good in the industry: 74.42% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
PK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -81.38%.
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
The Earnings Per Share is expected to grow by 13.66% on average over the next years. This is quite good.
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-109.79%
EPS Next 2Y-24.72%
EPS Next 3Y-6.56%
EPS Next 5Y13.66%
Revenue Next Year-0.71%
Revenue Next 2Y0.79%
Revenue Next 3Y1.65%
Revenue Next 5Y4.13%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
PK is valuated quite expensively with a Price/Earnings ratio of 41.07.
Compared to the rest of the industry, the Price/Earnings ratio of PK is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.86, PK is valued a bit more expensive.
A Price/Forward Earnings ratio of 19.38 indicates a rather expensive valuation of PK.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PK indicates a rather cheap valuation: PK is cheaper than 93.80% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.29. PK is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.07 | ||
| Fwd PE | 19.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PK is valued a bit cheaper than 74.42% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PK is valued cheaply inside the industry as 88.37% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.79 | ||
| EV/EBITDA | 11.36 |
4.3 Compensation for Growth
A cheap valuation may be justified as PK's earnings are expected to decrease with -6.56% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-24.72%
EPS Next 3Y-6.56%
5. Dividend
5.1 Amount
PK has a Yearly Dividend Yield of 8.65%, which is a nice return.
PK's Dividend Yield is rather good when compared to the industry average which is at 6.41. PK pays more dividend than 84.50% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, PK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.65% |
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.
PK's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP501.75%
EPS Next 2Y-24.72%
EPS Next 3Y-6.56%
11.09
+0.06 (+0.54%)
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 Change5.95%
Ins Owners1.99%
Ins Owner Change3.42%
Market Cap2.22B
Analysts72.17
Price Target12.24 (10.37%)
Short Float %17.05%
Short Ratio9.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.65% |
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)-5.88%
EPS NQ rev (1m)0.57%
EPS NQ rev (3m)-42.63%
EPS NY rev (1m)-313.33%
EPS NY rev (3m)-133.03%
Revenue NQ rev (1m)-0.91%
Revenue NQ rev (3m)-3.3%
Revenue NY rev (1m)-0.56%
Revenue NY rev (3m)-1.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.07 | ||
| Fwd PE | 19.38 | ||
| P/S | 0.86 | ||
| P/FCF | 11.79 | ||
| P/OCF | 5.36 | ||
| P/B | 0.64 | ||
| P/tB | 0.65 | ||
| EV/EBITDA | 11.36 |
EPS(TTM)0.27
EY2.43%
EPS(NY)0.57
Fwd EY5.16%
FCF(TTM)0.94
FCFY8.48%
OCF(TTM)2.07
OCFY18.67%
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 | 0.49 |
F-Score6
WACC6.01%
ROIC/WACC0.38
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-109.79%
EPS Next 2Y-24.72%
EPS Next 3Y-6.56%
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-0.71%
Revenue Next 2Y0.79%
Revenue Next 3Y1.65%
Revenue Next 5Y4.13%
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%