WYNDHAM HOTELS & RESORTS INC (WH) Stock Fundamental Analysis
USA - NYSE:WH - US98311A1051 - Common Stock
77.78 USD
-0.51 (-0.65%)
77.78 USD
0 (0%)
Overall WH gets a fundamental rating of 6 out of 10. We evaluated WH against 135 industry peers in the Hotels, Restaurants & Leisure industry. WH has an excellent profitability rating, but there are some minor concerns on its financial health. WH is not valued too expensively and it also shows a decent growth rate.
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
Looking at the Return On Assets, with a value of 7.79%, WH is in the better half of the industry, outperforming 78.52% of the companies in the same industry.
Looking at the Return On Equity, with a value of 58.77%, WH belongs to the top of the industry, outperforming 94.07% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.56%, WH is in the better half of the industry, outperforming 77.04% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for WH is in line with the industry average of 10.67%.
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
Looking at the Profit Margin, with a value of 23.10%, WH belongs to the top of the industry, outperforming 97.04% of the companies in the same industry.
In the last couple of years the Profit Margin of WH has grown nicely.
With an excellent Operating Margin value of 40.48%, WH belongs to the best 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 has a better Gross Margin (60.00%) than 72.59% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WH is creating some value.
Compared to 1 year ago, WH has less shares outstanding
WH has less shares outstanding than it did 5 years ago.
The debt/assets ratio for WH is higher compared to a year ago.
2.2 Solvency
WH has an Altman-Z score of 1.99. 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 (1.99) which is comparable to the rest of the industry.
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.
The Debt to FCF ratio of WH (8.89) is better than 62.96% of its industry peers.
A Debt/Equity ratio of 4.44 is on the high side and indicates that WH has dependencies on debt financing.
WH has a Debt to Equity ratio of 4.44. This is comparable to the rest of the industry: WH outperforms 41.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.44 | ||
| Debt/FCF | 8.89 | ||
| Altman-Z | 1.99 |
ROIC/WACC1.51
WACC7.65%
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.
WH has a Current ratio (1.03) which is in line with its industry peers.
WH has a Quick 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 Quick ratio, with a value of 1.03, WH is in line with its industry, outperforming 59.26% 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.
WH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.83% yearly.
WH shows a small growth in Revenue. In the last year, the Revenue has grown by 3.94%.
The Revenue has been decreasing by -7.27% on average over the past years.
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
Based on estimates for the next years, WH will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.77% on average per year.
WH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.70% yearly.
EPS Next Y12.45%
EPS Next 2Y12.66%
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
Based on the Price/Earnings ratio of 16.84, the valuation of WH can be described as correct.
Based on the Price/Earnings ratio, WH is valued a bit cheaper than 74.81% of the companies in the same industry.
WH is valuated rather cheaply when we compare the Price/Earnings ratio to 27.53, which is the current average of the S&P500 Index.
WH is valuated correctly with a Price/Forward Earnings ratio of 14.12.
Based on the Price/Forward Earnings ratio, WH is valued a bit cheaper than 74.07% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.04. WH is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.84 | ||
| Fwd PE | 14.12 |
4.2 Price Multiples
WH's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, WH is valued a bit cheaper than 74.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.48 | ||
| EV/EBITDA | 12.99 |
4.3 Compensation for Growth
The 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)1.35
PEG (5Y)2.89
EPS Next 2Y12.66%
EPS Next 3Y12.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.12%, WH has a reasonable but not impressive dividend return.
WH's Dividend Yield is a higher than the industry average which is at 6.99.
WH's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
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
WH pays out 37.01% of its income as dividend. This is a sustainable payout ratio.
The dividend of WH is growing, but earnings are growing more, so the dividend growth is sustainable.
DP37.01%
EPS Next 2Y12.66%
EPS Next 3Y12.51%
77.78
-0.51 (-0.65%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners101.42%
Inst Owner Change-0.01%
Ins Owners2.27%
Ins Owner Change2.22%
Market Cap5.94B
Analysts85.22
Price Target107.46 (38.16%)
Short Float %7.91%
Short Ratio6.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
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)1.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.49%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.84%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.84 | ||
| Fwd PE | 14.12 | ||
| P/S | 4.1 | ||
| P/FCF | 20.48 | ||
| P/OCF | 17.37 | ||
| P/B | 10.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.99 |
EPS(TTM)4.62
EY5.94%
EPS(NY)5.51
Fwd EY7.08%
FCF(TTM)3.8
FCFY4.88%
OCF(TTM)4.48
OCFY5.76%
SpS18.99
BVpS7.46
TBVpS-32.7
PEG (NY)1.35
PEG (5Y)2.89
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 | 1.99 |
F-Score8
WACC7.65%
ROIC/WACC1.51
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 Y12.45%
EPS Next 2Y12.66%
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 Year35.92%
EBIT Next 3Y16.25%
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%