Logo image of WH

WYNDHAM HOTELS & RESORTS INC (WH) Stock Fundamental Analysis

NYSE:WH - New York Stock Exchange, Inc. - US98311A1051 - Common Stock - Currency: USD

84.47  -0.61 (-0.72%)

After market: 85.04 +0.57 (+0.67%)

Fundamental Rating

5

WH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 135 industry peers in the Hotels, Restaurants & Leisure industry. WH scores excellent on profitability, but there are concerns on its financial health. WH has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

In the past year WH was profitable.
In the past year WH had a positive cash flow from operations.
Of the past 5 years WH 4 years were profitable.
WH had a positive operating cash flow in each of the past 5 years.
WH Yearly Net Income VS EBIT VS OCF VS FCFWH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M

1.2 Ratios

WH has a Return On Assets of 7.86%. This is in the better half of the industry: WH outperforms 78.52% of its industry peers.
With an excellent Return On Equity value of 57.69%, WH belongs to the best of the industry, outperforming 95.56% of the companies in the same industry.
WH has a better Return On Invested Capital (11.31%) than 77.04% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WH is below the industry average of 14.12%.
The last Return On Invested Capital (11.31%) for WH is above the 3 year average (10.92%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 7.86%
ROE 57.69%
ROIC 11.31%
ROA(3y)7.54%
ROA(5y)5.1%
ROE(3y)40.03%
ROE(5y)25.76%
ROIC(3y)10.92%
ROIC(5y)9.06%
WH Yearly ROA, ROE, ROICWH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 30 40

1.3 Margins

WH has a Profit Margin of 23.52%. This is amongst the best in the industry. WH outperforms 96.30% of its industry peers.
WH's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 40.00%, WH belongs to the top of the industry, outperforming 99.26% of the companies in the same industry.
WH's Operating Margin has improved in the last couple of years.
WH's Gross Margin of 59.58% is fine compared to the rest of the industry. WH outperforms 71.11% of its industry peers.
WH's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 40%
PM (TTM) 23.52%
GM 59.58%
OM growth 3Y10.88%
OM growth 5Y11.89%
PM growth 3Y9.6%
PM growth 5Y21.83%
GM growth 3Y6.26%
GM growth 5Y7.12%
WH Yearly Profit, Operating, Gross MarginsWH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60

3

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.
WH has less shares outstanding than it did 1 year ago.
WH has less shares outstanding than it did 5 years ago.
The debt/assets ratio for WH is higher compared to a year ago.
WH Yearly Shares OutstandingWH Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M
WH Yearly Total Debt VS Total AssetsWH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

2.2 Solvency

An Altman-Z score of 2.07 indicates that WH is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.07, WH is doing good in the industry, outperforming 62.96% of the companies in the same industry.
The Debt to FCF ratio of WH is 11.19, which is on the high side as it means it would take WH, 11.19 years of fcf income to pay off all of its debts.
WH has a Debt to FCF ratio (11.19) which is in line with its industry peers.
A Debt/Equity ratio of 4.29 is on the high side and indicates that WH has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 4.29, WH is in line with its industry, outperforming 42.22% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 4.29
Debt/FCF 11.19
Altman-Z 2.07
ROIC/WACC1.31
WACC8.65%
WH Yearly LT Debt VS Equity VS FCFWH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

WH has a Current Ratio of 0.96. This is a bad value and indicates that WH is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of WH (0.96) is comparable to the rest of the industry.
WH has a Quick Ratio of 0.96. This is a bad value and indicates that WH is not financially healthy enough and could expect problems in meeting its short term obligations.
WH has a Quick ratio of 0.96. This is comparable to the rest of the industry: WH outperforms 57.04% of its industry peers.
Industry RankSector Rank
Current Ratio 0.96
Quick Ratio 0.96
WH Yearly Current Assets VS Current LiabilitesWH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

4

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 12.47% over the past year.
The Earnings Per Share has been growing slightly by 5.83% on average over the past years.
The Revenue has been growing slightly by 2.16% in the past year.
Measured over the past years, WH shows a decrease in Revenue. The Revenue has been decreasing by -7.27% on average per year.
EPS 1Y (TTM)12.47%
EPS 3Y11.16%
EPS 5Y5.83%
EPS Q2Q%10.26%
Revenue 1Y (TTM)2.16%
Revenue growth 3Y-3.46%
Revenue growth 5Y-7.27%
Sales Q2Q%3.95%

3.2 Future

Based on estimates for the next years, WH will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.90% on average per year.
The Revenue is expected to grow by 7.77% on average over the next years.
EPS Next Y11.64%
EPS Next 2Y12.48%
EPS Next 3Y13.26%
EPS Next 5Y14.9%
Revenue Next Year3.71%
Revenue Next 2Y5.02%
Revenue Next 3Y5.89%
Revenue Next 5Y7.77%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
WH Yearly Revenue VS EstimatesWH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 500M 1B 1.5B 2B
WH Yearly EPS VS EstimatesWH Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2 4 6 8 10

5

4. Valuation

4.1 Price/Earnings Ratio

WH is valuated rather expensively with a Price/Earnings ratio of 19.11.
68.89% of the companies in the same industry are more expensive than WH, based on the Price/Earnings ratio.
WH is valuated rather cheaply when we compare the Price/Earnings ratio to 25.91, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 15.38, WH is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WH indicates a somewhat cheap valuation: WH is cheaper than 71.11% of the companies listed in the same industry.
WH's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.85.
Industry RankSector Rank
PE 19.11
Fwd PE 15.38
WH Price Earnings VS Forward Price EarningsWH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as WH.
The rest of the industry has a similar Price/Free Cash Flow ratio as WH.
Industry RankSector Rank
P/FCF 28.96
EV/EBITDA 14.31
WH Per share dataWH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 -20 -30

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of WH may justify a higher PE ratio.
WH's earnings are expected to grow with 13.26% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.64
PEG (5Y)3.28
EPS Next 2Y12.48%
EPS Next 3Y13.26%

5

5. Dividend

5.1 Amount

WH has a Yearly Dividend Yield of 1.91%.
The stock price of WH dropped by -22.38% 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.
Compared to an average industry Dividend Yield of 3.57, WH pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, WH has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.91%

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 Years3
Div Non Decr Years3
WH Yearly Dividends per shareWH Yearly Dividends per shareYearly Dividends per share 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5

5.3 Sustainability

36.83% 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.
DP36.83%
EPS Next 2Y12.48%
EPS Next 3Y13.26%
WH Yearly Income VS Free CF VS DividendWH Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M -100M 200M 300M
WH Dividend Payout.WH Dividend Payout, showing the Payout Ratio.WH Dividend Payout.PayoutRetained Earnings

WYNDHAM HOTELS & RESORTS INC

NYSE:WH (5/23/2025, 5:05:00 PM)

After market: 85.04 +0.57 (+0.67%)

84.47

-0.61 (-0.72%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)04-30 2025-04-30/amc
Earnings (Next)07-22 2025-07-22/amc
Inst Owners98.77%
Inst Owner Change-4.53%
Ins Owners2.13%
Ins Owner Change20.88%
Market Cap6.54B
Analysts85.22
Price Target107.7 (27.5%)
Short Float %3.05%
Short Ratio2.07
Dividend
Industry RankSector Rank
Dividend Yield 1.91%
Yearly Dividend1.53
Dividend Growth(5Y)5.55%
DP36.83%
Div Incr Years3
Div Non Decr Years3
Ex-Date03-17 2025-03-17 (0.41)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.2%
Min EPS beat(2)1.91%
Max EPS beat(2)2.49%
EPS beat(4)3
Avg EPS beat(4)2.11%
Min EPS beat(4)-2.03%
Max EPS beat(4)6.05%
EPS beat(8)5
Avg EPS beat(8)1.11%
EPS beat(12)9
Avg EPS beat(12)4.11%
EPS beat(16)13
Avg EPS beat(16)11.26%
Revenue beat(2)0
Avg Revenue beat(2)-3.7%
Min Revenue beat(2)-3.89%
Max Revenue beat(2)-3.51%
Revenue beat(4)0
Avg Revenue beat(4)-4.69%
Min Revenue beat(4)-7.52%
Max Revenue beat(4)-3.51%
Revenue beat(8)0
Avg Revenue beat(8)-3.95%
Revenue beat(12)3
Avg Revenue beat(12)-2.47%
Revenue beat(16)4
Avg Revenue beat(16)-2.07%
PT rev (1m)-9.8%
PT rev (3m)-2.23%
EPS NQ rev (1m)-3.7%
EPS NQ rev (3m)-6.77%
EPS NY rev (1m)-1.8%
EPS NY rev (3m)-1.5%
Revenue NQ rev (1m)-2.81%
Revenue NQ rev (3m)-1.93%
Revenue NY rev (1m)-2.01%
Revenue NY rev (3m)-2.2%
Valuation
Industry RankSector Rank
PE 19.11
Fwd PE 15.38
P/S 4.61
P/FCF 28.96
P/OCF 23.97
P/B 11.3
P/tB N/A
EV/EBITDA 14.31
EPS(TTM)4.42
EY5.23%
EPS(NY)5.49
Fwd EY6.5%
FCF(TTM)2.92
FCFY3.45%
OCF(TTM)3.52
OCFY4.17%
SpS18.33
BVpS7.47
TBVpS-32.14
PEG (NY)1.64
PEG (5Y)3.28
Profitability
Industry RankSector Rank
ROA 7.86%
ROE 57.69%
ROCE 14.96%
ROIC 11.31%
ROICexc 11.45%
ROICexgc 63.22%
OM 40%
PM (TTM) 23.52%
GM 59.58%
FCFM 15.92%
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-Score6
Asset Turnover0.33
Health
Industry RankSector Rank
Debt/Equity 4.29
Debt/FCF 11.19
Debt/EBITDA 3.92
Cap/Depr 71.21%
Cap/Sales 3.31%
Interest Coverage 4.34
Cash Conversion 43.06%
Profit Quality 67.66%
Current Ratio 0.96
Quick Ratio 0.96
Altman-Z 2.07
F-Score6
WACC8.65%
ROIC/WACC1.31
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)12.47%
EPS 3Y11.16%
EPS 5Y5.83%
EPS Q2Q%10.26%
EPS Next Y11.64%
EPS Next 2Y12.48%
EPS Next 3Y13.26%
EPS Next 5Y14.9%
Revenue 1Y (TTM)2.16%
Revenue growth 3Y-3.46%
Revenue growth 5Y-7.27%
Sales Q2Q%3.95%
Revenue Next Year3.71%
Revenue Next 2Y5.02%
Revenue Next 3Y5.89%
Revenue Next 5Y7.77%
EBIT growth 1Y12.25%
EBIT growth 3Y7.04%
EBIT growth 5Y3.76%
EBIT Next Year38.8%
EBIT Next 3Y17.64%
EBIT Next 5Y13.95%
FCF growth 1Y-29.15%
FCF growth 3Y-14.75%
FCF growth 5Y36.96%
OCF growth 1Y-23.53%
OCF growth 3Y-12.03%
OCF growth 5Y23.73%