PARK HOTELS & RESORTS INC (PK) Stock Fundamental Analysis
NYSE:PK - New York Stock Exchange, Inc. - US7005171050 - REIT - Currency: USD
We assign a fundamental rating of 4 out of 10 to PK. PK was compared to 129 industry peers in the Diversified REITs industry. PK has a medium profitability rating, but doesn't score so well on its financial health evaluation. PK is not valued too expensively and it also shows a decent growth rate.
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 has a Return On Assets of 1.42%. This is in the better half of the industry: PK outperforms 62.79% of its industry peers.
PK's Return On Equity of 3.61% is fine compared to the rest of the industry. PK outperforms 65.12% of its industry peers.
PK has a Return On Invested Capital (2.82%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for PK is in line with the industry average of 3.15%.
The 3 year average ROIC (2.67%) for PK is below the current ROIC(2.82%), indicating increased profibility in the last year.
| 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
PK has a Profit Margin (4.86%) which is comparable to the rest of the industry.
PK's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 12.12%, PK is not doing good in the industry: 71.32% of the companies in the same industry are doing better.
PK's Operating Margin has declined in the last couple of years.
The Gross Margin of PK (65.60%) is comparable to the rest of the industry.
PK's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, PK has less shares outstanding
Compared to 5 years ago, PK has less shares outstanding
Compared to 1 year ago, PK has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.51, we must say that PK is in the distress zone and has some risk of bankruptcy.
PK has a Altman-Z score (0.51) which is in line with its industry peers.
PK has a debt to FCF ratio of 24.16. This is a negative value and a sign of low solvency as PK would need 24.16 years to pay back of all of its debts.
The Debt to FCF ratio of PK (24.16) is better than 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.
PK has a Debt to Equity ratio (1.31) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 24.16 | ||
| Altman-Z | 0.51 |
ROIC/WACC0.4
WACC7.04%
2.3 Liquidity
PK has a Current Ratio of 0.54. 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 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's Quick ratio of 0.54 is on the low side compared to the rest of the industry. PK is outperformed by 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.
PK shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.46% yearly.
PK shows a decrease in Revenue. In the last year, the revenue decreased by -3.68%.
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)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
The Earnings Per Share is expected to grow by 16.12% 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 3.75% on average per year.
EPS Next Y-32.93%
EPS Next 2Y-12.76%
EPS Next 3Y-2.36%
EPS Next 5Y16.12%
Revenue Next Year0.53%
Revenue Next 2Y1.91%
Revenue Next 3Y2.44%
Revenue Next 5Y3.75%
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.
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 17.27 indicates a rather expensive valuation of PK.
Based on the Price/Earnings ratio, PK is valued cheaply inside the industry as 86.82% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.34. PK is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 13.26, which indicates a correct 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 96.90% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, PK is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.27 | ||
| Fwd PE | 13.26 |
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 76.74% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, PK is valued cheaper than 90.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.78 | ||
| EV/EBITDA | 11.08 |
4.3 Compensation for Growth
PK's earnings are expected to decrease with -2.36% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-12.76%
EPS Next 3Y-2.36%
5. Dividend
5.1 Amount
PK has a Yearly Dividend Yield of 9.57%, which is a nice return.
Compared to an average industry Dividend Yield of 6.77, PK pays a better dividend. On top of this PK pays more dividend than 86.05% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, PK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.57% |
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-12.76%
EPS Next 3Y-2.36%
10.19
0 (0%)
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 Change-3.3%
Ins Owners1.98%
Ins Owner Change15.13%
Market Cap2.04B
Analysts74.17
Price Target12.71 (24.73%)
Short Float %13.79%
Short Ratio5.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.57% |
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)-6.9%
PT rev (3m)-24.15%
EPS NQ rev (1m)-8.35%
EPS NQ rev (3m)-29.61%
EPS NY rev (1m)0%
EPS NY rev (3m)-27.34%
Revenue NQ rev (1m)-0.58%
Revenue NQ rev (3m)-2.25%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-0.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.27 | ||
| Fwd PE | 13.26 | ||
| P/S | 0.79 | ||
| P/FCF | 10.78 | ||
| P/OCF | 4.82 | ||
| P/B | 0.58 | ||
| P/tB | 0.59 | ||
| EV/EBITDA | 11.08 |
EPS(TTM)0.59
EY5.79%
EPS(NY)0.77
Fwd EY7.54%
FCF(TTM)0.95
FCFY9.28%
OCF(TTM)2.12
OCFY20.77%
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 | 0.51 |
F-Score6
WACC7.04%
ROIC/WACC0.4
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-32.93%
EPS Next 2Y-12.76%
EPS Next 3Y-2.36%
EPS Next 5Y16.12%
Revenue 1Y (TTM)-3.68%
Revenue growth 3Y24.03%
Revenue growth 5Y-1.79%
Sales Q2Q%-1.41%
Revenue Next Year0.53%
Revenue Next 2Y1.91%
Revenue Next 3Y2.44%
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%