WYNDHAM HOTELS & RESORTS INC (WH)

US98311A1051 - Common Stock

69.92  +0.61 (+0.88%)

After market: 69.92 0 (0%)

Fundamental Rating

5

Taking everything into account, WH scores 5 out of 10 in our fundamental rating. WH was compared to 135 industry peers in the Hotels, Restaurants & Leisure industry. WH scores excellent on profitability, but there are concerns on its financial health. WH is not valued too expensively and it also shows a decent growth rate.



8

1. Profitability

1.1 Basic Checks

WH had positive earnings in the past year.
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.

1.2 Ratios

WH's Return On Assets of 7.17% is fine compared to the rest of the industry. WH outperforms 79.85% of its industry peers.
WH's Return On Equity of 38.74% is amongst the best of the industry. WH outperforms 88.06% of its industry peers.
WH has a better Return On Invested Capital (10.61%) than 73.88% of its industry peers.
WH had an Average Return On Invested Capital over the past 3 years of 9.88%. This is in line with the industry average of 10.31%.
The 3 year average ROIC (9.88%) for WH is below the current ROIC(10.61%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 7.17%
ROE 38.74%
ROIC 10.61%
ROA(3y)7.16%
ROA(5y)4.42%
ROE(3y)32.68%
ROE(5y)19.46%
ROIC(3y)9.88%
ROIC(5y)8.32%

1.3 Margins

The Profit Margin of WH (20.67%) is better than 95.52% of its industry peers.
In the last couple of years the Profit Margin of WH has grown nicely.
WH's Operating Margin of 36.84% is amongst the best of the industry. WH outperforms 97.76% of its industry peers.
WH's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 58.44%, WH is in the better half of the industry, outperforming 66.42% of the companies in the same industry.
In the last couple of years the Gross Margin of WH has grown nicely.
Industry RankSector Rank
OM 36.84%
PM (TTM) 20.67%
GM 58.44%
OM growth 3Y32.08%
OM growth 5Y11.7%
PM growth 3YN/A
PM growth 5Y18.99%
GM growth 3Y14.24%
GM growth 5Y7.24%

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.
Compared to 5 years ago, WH has less shares outstanding
Compared to 1 year ago, WH has a worse debt to assets ratio.

2.2 Solvency

An Altman-Z score of 1.95 indicates that WH is not a great score, but indicates only limited risk for bankruptcy at the moment.
WH has a Altman-Z score (1.95) which is in line with its industry peers.
The Debt to FCF ratio of WH is 6.49, which is on the high side as it means it would take WH, 6.49 years of fcf income to pay off all of its debts.
WH has a Debt to FCF ratio of 6.49. This is in the better half of the industry: WH outperforms 69.40% of its industry peers.
A Debt/Equity ratio of 2.90 is on the high side and indicates that WH has dependencies on debt financing.
WH's Debt to Equity ratio of 2.90 is in line compared to the rest of the industry. WH outperforms 47.76% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.9
Debt/FCF 6.49
Altman-Z 1.95
ROIC/WACC1.28
WACC8.27%

2.3 Liquidity

A Current Ratio of 0.81 indicates that WH may have some problems paying its short term obligations.
WH's Current ratio of 0.81 is in line compared to the rest of the industry. WH outperforms 44.03% of its industry peers.
A Quick Ratio of 0.81 indicates that WH may have some problems paying its short term obligations.
WH has a Quick ratio of 0.81. This is comparable to the rest of the industry: WH outperforms 46.27% of its industry peers.
Industry RankSector Rank
Current Ratio 0.81
Quick Ratio 0.81

4

3. Growth

3.1 Past

WH shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.52%.
The Earnings Per Share has been growing by 16.01% on average over the past years. This is quite good.
Looking at the last year, WH shows a decrease in Revenue. The Revenue has decreased by -6.68% in the last year.
The Revenue has been decreasing by -5.65% on average over the past years.
EPS 1Y (TTM)1.52%
EPS 3Y57.31%
EPS 5Y16.01%
EPS growth Q2Q26.39%
Revenue 1Y (TTM)-6.68%
Revenue growth 3Y2.43%
Revenue growth 5Y-5.65%
Revenue growth Q2Q-3.89%

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 15.06% on average per year.
Based on estimates for the next years, WH will show a small growth in Revenue. The Revenue will grow by 7.13% on average per year.
EPS Next Y8.79%
EPS Next 2Y9.51%
EPS Next 3Y10.9%
EPS Next 5Y15.06%
Revenue Next Year4.51%
Revenue Next 2Y4.85%
Revenue Next 3Y4.81%
Revenue Next 5Y7.13%

3.3 Evolution

The EPS growth rate is stable: in the next years the growth will be about the same 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.

5

4. Valuation

4.1 Price/Earnings Ratio

WH is valuated rather expensively with a Price/Earnings ratio of 17.44.
73.13% of the companies in the same industry are more expensive than WH, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of WH to the average of the S&P500 Index (24.75), we can say WH is valued slightly cheaper.
With a Price/Forward Earnings ratio of 16.03, WH is valued correctly.
Based on the Price/Forward Earnings ratio, WH is valued a bit cheaper than the industry average as 73.13% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.23, WH is valued a bit cheaper.
Industry RankSector Rank
PE 17.44
Fwd PE 16.03

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as WH.
74.63% of the companies in the same industry are more expensive than WH, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 16.71
EV/EBITDA 13.2

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WH does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of WH may justify a higher PE ratio.
PEG (NY)1.98
PEG (5Y)1.09
EPS Next 2Y9.51%
EPS Next 3Y10.9%

5

5. Dividend

5.1 Amount

WH has a Yearly Dividend Yield of 2.19%. Purely for dividend investing, there may be better candidates out there.
WH's Dividend Yield is rather good when compared to the industry average which is at 2.63. WH pays more dividend than 82.09% of the companies in the same industry.
WH's Dividend Yield is comparable with the S&P500 average which is at 2.45.
Industry RankSector Rank
Dividend Yield 2.19%

5.2 History

The dividend of WH is nicely growing with an annual growth rate of 12.58%!
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)12.58%
Div Incr Years3
Div Non Decr Years3

5.3 Sustainability

40.83% of the earnings are spent on dividend by WH. This is a bit on the high side, but may be sustainable.
WH's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP40.83%
EPS Next 2Y9.51%
EPS Next 3Y10.9%

WYNDHAM HOTELS & RESORTS INC

NYSE:WH (4/19/2024, 7:24:15 PM)

After market: 69.92 0 (0%)

69.92

+0.61 (+0.88%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.66B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.19%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 17.44
Fwd PE 16.03
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.98
PEG (5Y)1.09
Profitability
Industry RankSector Rank
ROA 7.17%
ROE 38.74%
ROCE
ROIC
ROICexc
ROICexgc
OM 36.84%
PM (TTM) 20.67%
GM 58.44%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.35
Health
Industry RankSector Rank
Debt/Equity 2.9
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.81
Quick Ratio 0.81
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)1.52%
EPS 3Y57.31%
EPS 5Y
EPS growth Q2Q
EPS Next Y8.79%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-6.68%
Revenue growth 3Y2.43%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y