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 has a correct valuation and a medium 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
PK has a Return On Assets of 2.30%. This is in the better half of the industry: PK outperforms 72.87% of its industry peers.
PK's Return On Equity of 5.79% is fine compared to the rest of the industry. PK outperforms 77.52% of its industry peers.
The Return On Invested Capital of PK (2.97%) is better than 60.47% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PK is in line with the industry average of 3.17%.
The 3 year average ROIC (2.67%) for PK is below the current ROIC(2.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.3% | ||
| ROE | 5.79% | ||
| ROIC | 2.97% |
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 8.12%, PK perfoms like the industry average, outperforming 59.69% of the companies in the same industry.
In the last couple of years the Profit Margin of PK has declined.
With a Operating Margin value of 12.97%, PK is not doing good in the industry: 70.54% of the companies in the same industry are doing better.
PK's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 65.64%, PK is not doing good in the industry: 61.24% of the companies in the same industry are doing better.
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 | 12.97% | ||
| PM (TTM) | 8.12% | ||
| GM | 65.64% |
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.
The number of shares outstanding for PK has been reduced compared to 1 year ago.
PK has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, PK has a worse debt to assets ratio.
2.2 Solvency
PK has an Altman-Z score of 0.53. This is a bad value and indicates that PK is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of PK (0.53) is comparable to the rest of the industry.
The Debt to FCF ratio of PK is 22.60, which is on the high side as it means it would take PK, 22.60 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PK (22.60) is better than 72.87% of its industry peers.
A Debt/Equity ratio of 1.25 is on the high side and indicates that PK has dependencies on debt financing.
PK has a Debt to Equity ratio of 1.25. This is comparable to the rest of the industry: PK outperforms 47.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 22.6 | ||
| Altman-Z | 0.53 |
ROIC/WACC0.49
WACC6.1%
2.3 Liquidity
PK has a Current Ratio of 0.65. 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 (0.65) than 65.12% of its industry peers.
PK has a Quick Ratio of 0.65. This is a bad value and indicates that PK is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of PK (0.65) is worse than 65.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
PK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 114.89%, which is quite impressive.
The Earnings Per Share has been decreasing by -6.46% on average over the past years.
The Revenue has decreased by -3.67% in the past year.
The Revenue has been decreasing by -1.79% on average over the past years.
EPS 1Y (TTM)114.89%
EPS 3YN/A
EPS 5Y-6.46%
EPS Q2Q%-64.04%
Revenue 1Y (TTM)-3.67%
Revenue growth 3Y24.03%
Revenue growth 5Y-1.79%
Sales Q2Q%-4.87%
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.
PK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.75% yearly.
EPS Next Y-28.24%
EPS Next 2Y-9.49%
EPS Next 3Y2.51%
EPS Next 5Y16.12%
Revenue Next Year0.71%
Revenue Next 2Y2.04%
Revenue Next 3Y2.88%
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.
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
Based on the Price/Earnings ratio of 10.05, the valuation of PK can be described as reasonable.
PK's Price/Earnings ratio is rather cheap when compared to the industry. PK is cheaper than 93.02% of the companies in the same industry.
PK's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.10.
With a Price/Forward Earnings ratio of 14.01, PK is valued correctly.
Based on the Price/Forward Earnings ratio, PK is valued cheaper than 96.12% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.74, PK is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.05 | ||
| Fwd PE | 14.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PK is valued a bit cheaper than 77.52% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PK is valued cheaply inside the industry as 88.37% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.14 | ||
| EV/EBITDA | 10.5 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-9.49%
EPS Next 3Y2.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.96%, PK is a good candidate for dividend investing.
The stock price of PK dropped by -23.05% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
PK's Dividend Yield is rather good when compared to the industry average which is at 6.64. PK pays more dividend than 84.50% of the companies in the same industry.
PK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.96% |
5.2 History
The dividend of PK has a limited annual growth rate of 2.02%.
PK has been paying a dividend for over 5 years, so it has already some track record.
PK has decreased its dividend recently.
Dividend Growth(5Y)2.02%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
242.65% 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.
DP242.65%
EPS Next 2Y-9.49%
EPS Next 3Y2.51%
10.15
-0.11 (-1.07%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners101.77%
Inst Owner Change-0.04%
Ins Owners1.75%
Ins Owner Change15.13%
Market Cap2.05B
Analysts74.17
Price Target14.16 (39.51%)
Short Float %13.26%
Short Ratio5.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.96% |
Yearly Dividend2.48
Dividend Growth(5Y)2.02%
DP242.65%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)258.82%
Min EPS beat(2)73.92%
Max EPS beat(2)443.72%
EPS beat(4)4
Avg EPS beat(4)139.63%
Min EPS beat(4)4.56%
Max EPS beat(4)443.72%
EPS beat(8)7
Avg EPS beat(8)100.03%
EPS beat(12)11
Avg EPS beat(12)105.91%
EPS beat(16)13
Avg EPS beat(16)79.53%
Revenue beat(2)1
Avg Revenue beat(2)-1.32%
Min Revenue beat(2)-2.68%
Max Revenue beat(2)0.03%
Revenue beat(4)1
Avg Revenue beat(4)-1.95%
Min Revenue beat(4)-3.68%
Max Revenue beat(4)0.03%
Revenue beat(8)2
Avg Revenue beat(8)-1.46%
Revenue beat(12)4
Avg Revenue beat(12)-0.11%
Revenue beat(16)6
Avg Revenue beat(16)1.55%
PT rev (1m)-13.99%
PT rev (3m)-19.34%
EPS NQ rev (1m)-43.68%
EPS NQ rev (3m)-63.31%
EPS NY rev (1m)-10.64%
EPS NY rev (3m)-22.36%
Revenue NQ rev (1m)-0.49%
Revenue NQ rev (3m)-1.87%
Revenue NY rev (1m)-0.45%
Revenue NY rev (3m)-2.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.05 | ||
| Fwd PE | 14.01 | ||
| P/S | 0.79 | ||
| P/FCF | 10.14 | ||
| P/OCF | 4.78 | ||
| P/B | 0.56 | ||
| P/tB | 0.57 | ||
| EV/EBITDA | 10.5 |
EPS(TTM)1.01
EY9.95%
EPS(NY)0.72
Fwd EY7.14%
FCF(TTM)1
FCFY9.86%
OCF(TTM)2.13
OCFY20.94%
SpS12.88
BVpS18.06
TBVpS17.85
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.3% | ||
| ROE | 5.79% | ||
| ROCE | 4.04% | ||
| ROIC | 2.97% | ||
| ROICexc | 3.13% | ||
| ROICexgc | 3.17% | ||
| OM | 12.97% | ||
| PM (TTM) | 8.12% | ||
| GM | 65.64% | ||
| FCFM | 7.77% |
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 Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 22.6 | ||
| Debt/EBITDA | 7.69 | ||
| Cap/Depr | 88.33% | ||
| Cap/Sales | 8.73% | ||
| Interest Coverage | 1.82 | ||
| Cash Conversion | 72.22% | ||
| Profit Quality | 95.73% | ||
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 0.53 |
F-Score6
WACC6.1%
ROIC/WACC0.49
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)114.89%
EPS 3YN/A
EPS 5Y-6.46%
EPS Q2Q%-64.04%
EPS Next Y-28.24%
EPS Next 2Y-9.49%
EPS Next 3Y2.51%
EPS Next 5Y16.12%
Revenue 1Y (TTM)-3.67%
Revenue growth 3Y24.03%
Revenue growth 5Y-1.79%
Sales Q2Q%-4.87%
Revenue Next Year0.71%
Revenue Next 2Y2.04%
Revenue Next 3Y2.88%
Revenue Next 5Y3.75%
EBIT growth 1Y8.36%
EBIT growth 3YN/A
EBIT growth 5Y-5.99%
EBIT Next Year73.41%
EBIT Next 3Y24.46%
EBIT Next 5YN/A
FCF growth 1Y-7.34%
FCF growth 3YN/A
FCF growth 5Y-4.85%
OCF growth 1Y-14.71%
OCF growth 3YN/A
OCF growth 5Y-2.98%