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. There are concerns on the financial health of PK while its profitability can be described as average. 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.
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
PK's Return On Assets of 1.42% is fine compared to the rest of the industry. PK outperforms 62.79% of its industry peers.
The Return On Equity of PK (3.61%) is better than 65.12% of its industry peers.
PK has a Return On Invested Capital of 2.82%. This is comparable to the rest of the industry: PK outperforms 55.04% 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 3.16%.
The 3 year average ROIC (2.67%) for PK is below the current ROIC(2.82%), indicating increased profibility in the last year.
| 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's Profit Margin of 4.86% is in line compared to the rest of the industry. PK outperforms 51.16% of its industry peers.
PK's Profit Margin has declined in the last couple of years.
PK's Operating Margin of 12.12% is on the low side compared to the rest of the industry. PK is outperformed by 71.32% of its industry peers.
In the last couple of years the Operating Margin of PK has declined.
PK's Gross Margin of 65.60% is in line compared 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
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.
Compared to 5 years ago, PK has less shares outstanding
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.
With a Altman-Z score value of 0.53, PK perfoms like the industry average, outperforming 48.84% of the companies in the same industry.
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.
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.
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 of 1.31. This is comparable to the rest of the industry: PK outperforms 47.29% of its industry peers.
| 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.
PK has a worse Current ratio (0.54) than 77.52% of its industry peers.
A Quick Ratio of 0.54 indicates that PK may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.54, PK is doing worse than 76.74% 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 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.
The Revenue has been decreasing by -1.79% on average over the past years.
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
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.
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.
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
The Price/Earnings ratio is 19.02, which indicates a rather expensive current valuation of PK.
Based on the Price/Earnings ratio, PK is valued cheaper than 82.95% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.04, PK is valued a bit cheaper.
PK is valuated rather expensively with a Price/Forward Earnings ratio of 17.88.
95.35% of the companies in the same industry are more expensive than PK, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 37.64. PK is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.02 | ||
| Fwd PE | 17.88 |
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 cheaply inside the industry as 89.92% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.87 | ||
| EV/EBITDA | 11.4 |
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 9.26%, PK is a good candidate for dividend investing.
PK's Dividend Yield is rather good when compared to the industry average which is at 6.65. PK pays more dividend than 88.37% of the companies in the same industry.
PK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| 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.
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%
11.22
+0.09 (+0.81%)
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 (13.28%)
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 | 19.02 | ||
| Fwd PE | 17.88 | ||
| P/S | 0.87 | ||
| P/FCF | 11.87 | ||
| P/OCF | 5.3 | ||
| P/B | 0.64 | ||
| P/tB | 0.65 | ||
| EV/EBITDA | 11.4 |
EPS(TTM)0.59
EY5.26%
EPS(NY)0.63
Fwd EY5.59%
FCF(TTM)0.95
FCFY8.43%
OCF(TTM)2.12
OCFY18.86%
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%