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 130 industry peers in the Diversified REITs industry. While PK is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
The reported net income has been mixed in the past 5 years: PK reported negative net income in multiple years.
In multiple years PK reported negative operating cash flow during the last 5 years.
1.2 Ratios
With a decent Return On Assets value of 1.42%, PK is doing good in the industry, outperforming 63.08% of the companies in the same industry.
With a decent Return On Equity value of 3.61%, PK is doing good in the industry, outperforming 65.38% of the companies in the same industry.
The Return On Invested Capital of PK (2.82%) 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 3.16%.
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 51.54% 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: 71.54% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of PK has declined.
PK has a Gross Margin (65.60%) which 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
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.
The number of shares outstanding for PK has been reduced compared to 5 years ago.
The debt/assets ratio for PK is higher compared to a year ago.
2.2 Solvency
PK has an Altman-Z score of 0.52. This is a bad value and indicates that PK is not financially healthy and even has some risk of bankruptcy.
PK has a Altman-Z score of 0.52. This is comparable to the rest of the industry: PK outperforms 49.23% 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.
With a decent Debt to FCF ratio value of 24.16, PK is doing good in the industry, outperforming 74.62% of the companies in the same industry.
PK has a Debt/Equity ratio of 1.31. This is a high value indicating a heavy dependency on external 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 | 0.52 |
ROIC/WACC0.47
WACC6.01%
2.3 Liquidity
A Current Ratio of 0.54 indicates that PK may have some problems paying its short term obligations.
PK's Current ratio of 0.54 is on the low side compared to the rest of the industry. PK is outperformed by 77.69% of its industry peers.
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.
Looking at the Quick ratio, with a value of 0.54, PK is doing worse than 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
PK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -35.86%.
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 -3.67%.
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)-35.86%
EPS 3YN/A
EPS 5Y-6.46%
EPS Q2Q%113.33%
Revenue 1Y (TTM)-3.67%
Revenue growth 3Y24.03%
Revenue growth 5Y-1.79%
Sales Q2Q%-2.04%
3.2 Future
PK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.12% yearly.
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 Year0.04%
Revenue Next 2Y1.29%
Revenue Next 3Y1.89%
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
A Price/Earnings ratio of 11.01 indicates a reasonable valuation of PK.
PK's Price/Earnings ratio is rather cheap when compared to the industry. PK is cheaper than 93.85% of the companies in the same industry.
When comparing the Price/Earnings ratio of PK to the average of the S&P500 Index (26.82), we can say PK is valued rather cheaply.
With a Price/Forward Earnings ratio of 16.32, PK is valued correctly.
Based on the Price/Forward Earnings ratio, PK is valued cheaply inside the industry as 95.38% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 36.21. PK is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.01 | ||
| Fwd PE | 16.32 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PK is valued a bit cheaper than 74.62% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PK is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.83 | ||
| EV/EBITDA | 11.24 |
4.3 Compensation for Growth
A cheap valuation may be justified as PK's earnings are expected to decrease with -2.28% in the coming years.
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 9.25%, PK is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.52, PK pays a better dividend. On top of this PK pays more dividend than 86.92% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, PK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.25% |
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.
The dividend of PK is growing, but earnings are growing more, so the dividend growth is sustainable.
DP228.57%
EPS Next 2Y-21.18%
EPS Next 3Y-2.28%
10.24
-0.42 (-3.94%)
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 Change0.09%
Ins Owners1.98%
Ins Owner Change10.33%
Market Cap2.05B
Analysts73.33
Price Target12.71 (24.12%)
Short Float %14.25%
Short Ratio7.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.25% |
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)-2.26%
PT rev (3m)-10.25%
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)-0.44%
Revenue NQ rev (3m)-1.91%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.01 | ||
| Fwd PE | 16.32 | ||
| P/S | 0.79 | ||
| P/FCF | 10.83 | ||
| P/OCF | 4.84 | ||
| P/B | 0.59 | ||
| P/tB | 0.59 | ||
| EV/EBITDA | 11.24 |
EPS(TTM)0.93
EY9.08%
EPS(NY)0.63
Fwd EY6.13%
FCF(TTM)0.95
FCFY9.23%
OCF(TTM)2.12
OCFY20.67%
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 | 0.52 |
F-Score6
WACC6.01%
ROIC/WACC0.47
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)-35.86%
EPS 3YN/A
EPS 5Y-6.46%
EPS Q2Q%113.33%
EPS Next Y-91.17%
EPS Next 2Y-21.18%
EPS Next 3Y-2.28%
EPS Next 5Y16.12%
Revenue 1Y (TTM)-3.67%
Revenue growth 3Y24.03%
Revenue growth 5Y-1.79%
Sales Q2Q%-2.04%
Revenue Next Year0.04%
Revenue Next 2Y1.29%
Revenue Next 3Y1.89%
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%