WYNDHAM HOTELS & RESORTS INC (WH) Stock Fundamental Analysis
USA - NYSE:WH - US98311A1051 - Common Stock
84.74 USD
+0.62 (+0.74%)
84.74 USD
0 (0%)
WH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 133 industry peers in the Hotels, Restaurants & Leisure industry. While WH has a great profitability rating, there are some minor concerns on its financial health. WH has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year WH was profitable.
WH had a positive operating cash flow in the past year.
Of the past 5 years WH 4 years were profitable.
WH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WH has a Return On Assets of 7.79%. This is in the better half of the industry: WH outperforms 78.20% of its industry peers.
The Return On Equity of WH (58.77%) is better than 94.74% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.56%, WH is in the better half of the industry, outperforming 76.69% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WH is below the industry average of 15.68%.
The 3 year average ROIC (10.92%) for WH is below the current ROIC(11.56%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.79% | ||
| ROE | 58.77% | ||
| ROIC | 11.56% |
ROA(3y)7.54%
ROA(5y)5.1%
ROE(3y)40.03%
ROE(5y)25.76%
ROIC(3y)10.92%
ROIC(5y)9.06%
1.3 Margins
The Profit Margin of WH (23.10%) is better than 96.99% of its industry peers.
In the last couple of years the Profit Margin of WH has grown nicely.
WH has a better Operating Margin (40.48%) than 99.25% of its industry peers.
WH's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 60.00%, WH is doing good in the industry, outperforming 71.43% of the companies in the same industry.
In the last couple of years the Gross Margin of WH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 40.48% | ||
| PM (TTM) | 23.1% | ||
| GM | 60% |
OM growth 3Y10.88%
OM growth 5Y11.89%
PM growth 3Y9.6%
PM growth 5Y21.83%
GM growth 3Y6.26%
GM growth 5Y7.12%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WH is still creating some value.
Compared to 1 year ago, WH has less shares outstanding
WH has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, WH has a worse debt to assets ratio.
2.2 Solvency
WH has an Altman-Z score of 2.07. This is not the best score and indicates that WH is in the grey zone with still only limited risk for bankruptcy at the moment.
WH has a Altman-Z score of 2.07. This is comparable to the rest of the industry: WH outperforms 54.14% of its industry peers.
WH has a debt to FCF ratio of 8.89. This is a slightly negative value and a sign of low solvency as WH would need 8.89 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 8.89, WH is doing good in the industry, outperforming 63.91% of the companies in the same industry.
A Debt/Equity ratio of 4.44 is on the high side and indicates that WH has dependencies on debt financing.
With a Debt to Equity ratio value of 4.44, WH perfoms like the industry average, outperforming 40.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.44 | ||
| Debt/FCF | 8.89 | ||
| Altman-Z | 2.07 |
ROIC/WACC1.35
WACC8.58%
2.3 Liquidity
WH has a Current Ratio of 1.03. This is a normal value and indicates that WH is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.03, WH is in line with its industry, outperforming 56.39% of the companies in the same industry.
A Quick Ratio of 1.03 indicates that WH should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.03, WH is in line with its industry, outperforming 59.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.86% over the past year.
Measured over the past 5 years, WH shows a small growth in Earnings Per Share. The EPS has been growing by 5.83% on average per year.
Looking at the last year, WH shows a small growth in Revenue. The Revenue has grown by 3.94% in the last year.
WH shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -7.27% yearly.
EPS 1Y (TTM)11.86%
EPS 3Y11.16%
EPS 5Y5.83%
EPS Q2Q%17.7%
Revenue 1Y (TTM)3.94%
Revenue growth 3Y-3.46%
Revenue growth 5Y-7.27%
Sales Q2Q%8.17%
3.2 Future
The Earnings Per Share is expected to grow by 13.77% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.70% on average over the next years.
EPS Next Y12.47%
EPS Next 2Y12.67%
EPS Next 3Y12.51%
EPS Next 5Y13.77%
Revenue Next Year3.91%
Revenue Next 2Y4.92%
Revenue Next 3Y5.52%
Revenue Next 5Y6.7%
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 18.34 indicates a rather expensive valuation of WH.
Compared to the rest of the industry, the Price/Earnings ratio of WH indicates a somewhat cheap valuation: WH is cheaper than 73.68% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.20. WH is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 15.38 indicates a correct valuation of WH.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WH indicates a somewhat cheap valuation: WH is cheaper than 72.93% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.71, WH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.34 | ||
| Fwd PE | 15.38 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as WH.
WH's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WH is cheaper than 74.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.31 | ||
| EV/EBITDA | 13.73 |
4.3 Compensation for Growth
WH's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
WH has an outstanding profitability rating, which may justify a higher PE ratio.
WH's earnings are expected to grow with 12.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.47
PEG (5Y)3.15
EPS Next 2Y12.67%
EPS Next 3Y12.51%
5. Dividend
5.1 Amount
WH has a Yearly Dividend Yield of 1.90%.
Compared to an average industry Dividend Yield of 3.93, WH pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.38, WH is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
5.2 History
The dividend of WH has a limited annual growth rate of 5.55%.
WH has been paying a dividend for over 5 years, so it has already some track record.
WH has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)5.55%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
37.01% of the earnings are spent on dividend by WH. This is a low number and sustainable payout ratio.
The dividend of WH is growing, but earnings are growing more, so the dividend growth is sustainable.
DP37.01%
EPS Next 2Y12.67%
EPS Next 3Y12.51%
84.74
+0.62 (+0.74%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners96.88%
Inst Owner Change2.05%
Ins Owners2.26%
Ins Owner Change2.22%
Market Cap6.47B
Analysts85.22
Price Target107.46 (26.81%)
Short Float %6.86%
Short Ratio4.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
Yearly Dividend1.53
Dividend Growth(5Y)5.55%
DP37.01%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.62%
Min EPS beat(2)2.49%
Max EPS beat(2)10.76%
EPS beat(4)3
Avg EPS beat(4)3.28%
Min EPS beat(4)-2.03%
Max EPS beat(4)10.76%
EPS beat(8)6
Avg EPS beat(8)2.63%
EPS beat(12)9
Avg EPS beat(12)4.13%
EPS beat(16)13
Avg EPS beat(16)9.49%
Revenue beat(2)1
Avg Revenue beat(2)-1.72%
Min Revenue beat(2)-3.51%
Max Revenue beat(2)0.06%
Revenue beat(4)1
Avg Revenue beat(4)-3.71%
Min Revenue beat(4)-7.52%
Max Revenue beat(4)0.06%
Revenue beat(8)1
Avg Revenue beat(8)-3.38%
Revenue beat(12)3
Avg Revenue beat(12)-2.83%
Revenue beat(16)5
Avg Revenue beat(16)-1.77%
PT rev (1m)0%
PT rev (3m)1.52%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)-8.06%
EPS NY rev (1m)0.93%
EPS NY rev (3m)0.74%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-3.69%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.34 | ||
| Fwd PE | 15.38 | ||
| P/S | 4.46 | ||
| P/FCF | 22.31 | ||
| P/OCF | 18.92 | ||
| P/B | 11.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.73 |
EPS(TTM)4.62
EY5.45%
EPS(NY)5.51
Fwd EY6.5%
FCF(TTM)3.8
FCFY4.48%
OCF(TTM)4.48
OCFY5.29%
SpS18.99
BVpS7.46
TBVpS-32.7
PEG (NY)1.47
PEG (5Y)3.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.79% | ||
| ROE | 58.77% | ||
| ROCE | 15.29% | ||
| ROIC | 11.56% | ||
| ROICexc | 11.71% | ||
| ROICexgc | 61.53% | ||
| OM | 40.48% | ||
| PM (TTM) | 23.1% | ||
| GM | 60% | ||
| FCFM | 20% |
ROA(3y)7.54%
ROA(5y)5.1%
ROE(3y)40.03%
ROE(5y)25.76%
ROIC(3y)10.92%
ROIC(5y)9.06%
ROICexc(3y)11.26%
ROICexc(5y)9.44%
ROICexgc(3y)87.36%
ROICexgc(5y)71.71%
ROCE(3y)14.45%
ROCE(5y)11.99%
ROICexcg growth 3Y1.88%
ROICexcg growth 5Y0.36%
ROICexc growth 3Y7.5%
ROICexc growth 5Y5.53%
OM growth 3Y10.88%
OM growth 5Y11.89%
PM growth 3Y9.6%
PM growth 5Y21.83%
GM growth 3Y6.26%
GM growth 5Y7.12%
F-Score8
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.44 | ||
| Debt/FCF | 8.89 | ||
| Debt/EBITDA | 3.88 | ||
| Cap/Depr | 80% | ||
| Cap/Sales | 3.59% | ||
| Interest Coverage | 4.25 | ||
| Cash Conversion | 52.45% | ||
| Profit Quality | 86.57% | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 2.07 |
F-Score8
WACC8.58%
ROIC/WACC1.35
Cap/Depr(3y)56.12%
Cap/Depr(5y)48.19%
Cap/Sales(3y)2.91%
Cap/Sales(5y)2.73%
Profit Quality(3y)100.7%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.86%
EPS 3Y11.16%
EPS 5Y5.83%
EPS Q2Q%17.7%
EPS Next Y12.47%
EPS Next 2Y12.67%
EPS Next 3Y12.51%
EPS Next 5Y13.77%
Revenue 1Y (TTM)3.94%
Revenue growth 3Y-3.46%
Revenue growth 5Y-7.27%
Sales Q2Q%8.17%
Revenue Next Year3.91%
Revenue Next 2Y4.92%
Revenue Next 3Y5.52%
Revenue Next 5Y6.7%
EBIT growth 1Y11.6%
EBIT growth 3Y7.04%
EBIT growth 5Y3.76%
EBIT Next Year36.65%
EBIT Next 3Y16.42%
EBIT Next 5Y13.17%
FCF growth 1Y-1.36%
FCF growth 3Y-14.75%
FCF growth 5Y36.96%
OCF growth 1Y2.7%
OCF growth 3Y-12.03%
OCF growth 5Y23.73%