PARK HOTELS & RESORTS INC (PK)
US7005171050 - REIT
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 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.
In multiple years PK reported negative net income over the last 5 years.
In multiple years PK reported negative operating cash flow during the last 5 years.
1.2 Ratios
PK has a Return On Assets (1.01%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 2.43%, PK is in line with its industry, outperforming 55.20% of the companies in the same industry.
The Return On Invested Capital of PK (2.87%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.01% | ||
| ROE | 2.43% | ||
| ROIC | 2.87% |
ROA(3y)-0.67%
ROA(5y)-2.58%
ROE(3y)-1.34%
ROE(5y)-5.75%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
PK has a Profit Margin (3.42%) which is comparable to the rest of the industry.
PK's Profit Margin has declined in the last couple of years.
PK's Operating Margin of 12.24% is on the low side compared to the rest of the industry. PK is outperformed by 71.20% of its industry peers.
In the last couple of years the Operating Margin of PK has declined.
PK has a Gross Margin of 65.01%. This is in the lower half of the industry: PK underperforms 62.40% 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 | 12.24% | ||
| PM (TTM) | 3.42% | ||
| GM | 65.01% |
OM growth 3YN/A
OM growth 5Y-4.97%
PM growth 3YN/A
PM growth 5Y-26.86%
GM growth 3Y4.34%
GM growth 5Y-0.22%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PK is destroying value.
The number of shares outstanding for PK has been reduced compared to 1 year ago.
PK has more shares outstanding than it did 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 0.74, we must say that PK is in the distress zone and has some risk of bankruptcy.
PK has a Altman-Z score of 0.74. This is in the better half of the industry: PK outperforms 64.00% of its industry peers.
The Debt to FCF ratio of PK is 23.63, which is on the high side as it means it would take PK, 23.63 years of fcf income to pay off all of its debts.
PK has a better Debt to FCF ratio (23.63) than 64.80% of its industry peers.
A Debt/Equity ratio of 1.18 is on the high side and indicates that PK has dependencies on debt financing.
With a Debt to Equity ratio value of 1.18, PK perfoms like the industry average, outperforming 48.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 23.63 | ||
| Altman-Z | 0.74 |
ROIC/WACC0.42
WACC6.78%
2.3 Liquidity
A Current Ratio of 0.87 indicates that PK may have some problems paying its short term obligations.
With a Current ratio value of 0.87, PK is not doing good in the industry: 70.40% of the companies in the same industry are doing better.
A Quick Ratio of 0.87 indicates that PK may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.87, PK is doing worse than 68.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
The earnings per share for PK have decreased strongly by -59.46% in the last year.
Measured over the past years, PK shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -19.14% on average per year.
PK shows a small growth in Revenue. In the last year, the Revenue has grown by 0.71%.
Measured over the past years, PK shows a decrease in Revenue. The Revenue has been decreasing by -0.29% on average per year.
EPS 1Y (TTM)-59.46%
EPS 3YN/A
EPS 5Y-19.14%
EPS growth Q2Q-13.33%
Revenue 1Y (TTM)0.71%
Revenue growth 3Y46.85%
Revenue growth 5Y-0.29%
Revenue growth Q2Q-1.39%
3.2 Future
PK is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 40.97% yearly.
PK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.85% yearly.
EPS Next Y48.61%
EPS Next 2Y35.62%
EPS Next 3Y39.42%
EPS Next 5Y40.97%
Revenue Next Year-1.19%
Revenue Next 2Y1.04%
Revenue Next 3Y2.03%
Revenue Next 5Y4.85%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 36.09.
The rest of the industry has a similar Price/Earnings ratio as PK.
Compared to an average S&P500 Price/Earnings ratio of 28.67, PK is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 18.79, 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 92.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of PK to the average of the S&P500 Index (20.15), we can say PK is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.09 | ||
| Fwd PE | 18.79 |
4.2 Price Multiples
73.60% of the companies in the same industry are more expensive than PK, based on the Enterprise Value to EBITDA ratio.
78.40% of the companies in the same industry are more expensive than PK, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18 | ||
| EV/EBITDA | 12.21 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PK's earnings are expected to grow with 39.42% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.74
PEG (5Y)N/A
EPS Next 2Y35.62%
EPS Next 3Y39.42%
5. Dividend
5.1 Amount
PK has a Yearly Dividend Yield of 4.88%, which is a nice return.
Compared to an average industry Dividend Yield of 5.68, PK has a dividend in line with its industry peers.
PK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.88% |
5.2 History
The dividend of PK decreases each year by -20.68%.
PK has been paying a dividend for over 5 years, so it has already some track record.
The dividend of PK decreased recently.
Dividend Growth(5Y)-20.68%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
PK pays out 490.22% of its income as dividend. This is not a sustainable payout ratio.
DP490.22%
EPS Next 2Y35.62%
EPS Next 3Y39.42%
PARK HOTELS & RESORTS INC
NYSE:PK (5/20/2024, 7:04:00 PM)
After market: 16.24 0 (0%)16.24
-0.08 (-0.49%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.42B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.88% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.09 | ||
| Fwd PE | 18.79 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.74
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.01% | ||
| ROE | 2.43% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.24% | ||
| PM (TTM) | 3.42% | ||
| GM | 65.01% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-59.46%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y48.61%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.71%
Revenue growth 3Y46.85%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y