PARK HOTELS & RESORTS INC (PK) Stock Fundamental Analysis
NYSE:PK - New York Stock Exchange, Inc. - US7005171050 - REIT - Currency: USD
Overall PK gets a fundamental rating of 4 out of 10. We evaluated PK against 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year PK was profitable.
PK had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 1.42%, PK is in the better half of the industry, outperforming 62.79% of the companies in the same industry.
Looking at the Return On Equity, with a value of 3.61%, PK is in the better half of the industry, outperforming 65.12% of the companies in the same industry.
The Return On Invested Capital of PK (2.82%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for PK is in line with the industry average of 3.16%.
The last Return On Invested Capital (2.82%) for PK is above the 3 year average (2.67%), which is a sign of increasing profitability.
| 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.
PK has a Gross Margin of 65.60%. This is comparable to the rest of the industry: PK outperforms 42.64% 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 | 12.12% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PK 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.
The debt/assets ratio for PK is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.53, we must say that PK is in the distress zone and has some risk of bankruptcy.
PK has a Altman-Z score of 0.53. This is comparable to the rest of the industry: PK outperforms 48.06% of 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.
PK's Debt to FCF ratio of 24.16 is fine compared to the rest of the industry. PK outperforms 74.42% of its industry peers.
PK has a Debt/Equity ratio of 1.31. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of PK (1.31) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 24.16 | ||
| Altman-Z | 0.53 |
ROIC/WACC0.46
WACC6.09%
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.
Looking at the Current ratio, with a value of 0.54, PK is doing worse than 77.52% of the companies in the same industry.
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.
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.
The Revenue has decreased by -3.68% in the past year.
PK shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.79% yearly.
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-91.17%
EPS Next 2Y-21.18%
EPS Next 3Y-2.28%
EPS Next 5Y16.12%
Revenue Next Year0.41%
Revenue Next 2Y1.66%
Revenue Next 3Y2.02%
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.
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
With a Price/Earnings ratio of 19.03, PK is valued on the expensive side.
PK's Price/Earnings ratio is rather cheap when compared to the industry. PK is cheaper than 83.72% of the companies in the same industry.
PK is valuated rather cheaply when we compare the Price/Earnings ratio to 27.69, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 17.90 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 94.57% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 37.36. PK is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.03 | ||
| Fwd PE | 17.9 |
4.2 Price Multiples
75.19% 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 89.15% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.88 | ||
| EV/EBITDA | 11.49 |
4.3 Compensation for Growth
PK's earnings are expected to decrease with -2.28% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-21.18%
EPS Next 3Y-2.28%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.26%, PK is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.66, PK pays a better dividend. On top of this PK pays more dividend than 88.37% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, PK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.26% |
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
PK pays out 228.57% of its income as dividend. 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-21.18%
EPS Next 3Y-2.28%
NYSE:PK (7/24/2025, 1:28:08 PM)
11.23
-0.14 (-1.23%)
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 Change0.05%
Ins Owners1.98%
Ins Owner Change15.16%
Market Cap2.24B
Analysts73.33
Price Target12.71 (13.18%)
Short Float %14.87%
Short Ratio6.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.26% |
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)0%
PT rev (3m)-20.7%
EPS NQ rev (1m)5.38%
EPS NQ rev (3m)-10.95%
EPS NY rev (1m)-70.2%
EPS NY rev (3m)-87.69%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-1.63%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.03 | ||
| Fwd PE | 17.9 | ||
| P/S | 0.87 | ||
| P/FCF | 11.88 | ||
| P/OCF | 5.31 | ||
| P/B | 0.64 | ||
| P/tB | 0.65 | ||
| EV/EBITDA | 11.49 |
EPS(TTM)0.59
EY5.25%
EPS(NY)0.63
Fwd EY5.59%
FCF(TTM)0.95
FCFY8.42%
OCF(TTM)2.12
OCFY18.84%
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 | 0.53 |
F-Score6
WACC6.09%
ROIC/WACC0.46
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-91.17%
EPS Next 2Y-21.18%
EPS Next 3Y-2.28%
EPS Next 5Y16.12%
Revenue 1Y (TTM)-3.68%
Revenue growth 3Y24.03%
Revenue growth 5Y-1.79%
Sales Q2Q%-1.41%
Revenue Next Year0.41%
Revenue Next 2Y1.66%
Revenue Next 3Y2.02%
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%