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.
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
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.
PK has a better Return On Equity (3.61%) than 65.12% of its industry peers.
With a Return On Invested Capital value of 2.82%, PK perfoms like the industry average, outperforming 55.04% of the companies in the same 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
With a Profit Margin value of 4.86%, PK perfoms like the industry average, outperforming 51.16% of the companies in the same 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.
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
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 0.53, 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.
The Debt to FCF ratio of PK is 24.16, which is on the high side as it means it would take PK, 24.16 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 24.16, PK is in the better half of the industry, outperforming 74.42% of the companies in the same industry.
A Debt/Equity ratio of 1.31 is on the high side and indicates that PK has dependencies on debt 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
WACC6.1%
2.3 Liquidity
A Current Ratio of 0.54 indicates that PK may have some problems paying 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.
PK has a Quick 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.
With a Quick ratio value of 0.54, PK is not doing good in the industry: 76.74% of the companies in the same industry are doing better.
| 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.
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.
The Revenue is expected to grow by 3.75% on average over the next years.
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
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
Based on the Price/Earnings ratio of 18.86, the valuation of PK can be described as rather expensive.
83.72% of the companies in the same industry are more expensive than PK, based on the Price/Earnings ratio.
PK's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.35.
With a Price/Forward Earnings ratio of 17.74, 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 94.57% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PK to the average of the S&P500 Index (37.54), we can say PK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.86 | ||
| Fwd PE | 17.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PK is valued a bit cheaper than the industry average as 75.19% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, PK is valued cheaper than 89.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.77 | ||
| 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 6.64, PK pays a better dividend. On top of this PK pays more dividend than 88.37% 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 2.36.
| 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
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-21.18%
EPS Next 3Y-2.28%
11.13
-0.24 (-2.11%)
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 Cap2.22B
Analysts73.33
Price Target12.71 (14.2%)
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 | 18.86 | ||
| Fwd PE | 17.74 | ||
| P/S | 0.86 | ||
| P/FCF | 11.77 | ||
| P/OCF | 5.26 | ||
| P/B | 0.64 | ||
| P/tB | 0.64 | ||
| EV/EBITDA | 11.49 |
EPS(TTM)0.59
EY5.3%
EPS(NY)0.63
Fwd EY5.64%
FCF(TTM)0.95
FCFY8.5%
OCF(TTM)2.12
OCFY19.01%
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
WACC6.1%
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%