WYNDHAM HOTELS & RESORTS INC (WH) Stock Fundamental Analysis
NYSE:WH - US98311A1051 - Common Stock
86.21 USD
+0.16 (+0.19%)
86.21 USD
0 (0%)
Taking everything into account, WH scores 5 out of 10 in our fundamental rating. WH was compared to 134 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.
In the past 5 years WH always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of WH (7.79%) is better than 78.36% of its industry peers.
Looking at the Return On Equity, with a value of 58.77%, WH belongs to the top of the industry, outperforming 94.03% of the companies in the same industry.
With a decent Return On Invested Capital value of 11.56%, WH is doing good in the industry, outperforming 76.87% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for WH is significantly below the industry average of 16.00%.
The last Return On Invested Capital (11.56%) for WH is above the 3 year average (10.92%), which is a sign of increasing profitability.
| 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 97.01% of its industry peers.
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 99.25% of the companies in the same industry.
In the last couple of years the Operating Margin of WH has grown nicely.
WH has a Gross Margin of 60.00%. This is in the better half of the industry: WH outperforms 71.64% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WH is still creating some value.
The number of shares outstanding for WH has been reduced compared to 1 year ago.
WH has less shares outstanding than it did 5 years ago.
WH has a worse debt/assets ratio than last year.
2.2 Solvency
WH has an Altman-Z score of 2.09. 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.
Looking at the Altman-Z score, with a value of 2.09, WH is in line with its industry, outperforming 54.48% of the companies in the same 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.
WH has a Debt to FCF ratio of 8.89. This is in the better half of the industry: WH outperforms 63.43% of its industry peers.
WH has a Debt/Equity ratio of 4.44. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 4.44, WH perfoms like the industry average, outperforming 40.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.44 | ||
| Debt/FCF | 8.89 | ||
| Altman-Z | 2.09 |
ROIC/WACC1.33
WACC8.66%
2.3 Liquidity
A Current Ratio of 1.03 indicates that WH should not have too much problems paying its short term obligations.
With a Current ratio value of 1.03, WH perfoms like the industry average, outperforming 56.72% 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.
WH has a Quick ratio (1.03) which is in line with its industry peers.
| 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.
The Earnings Per Share has been growing slightly by 5.83% on average over the past years.
The Revenue has been growing slightly by 3.94% in the past 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
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.
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 18.66, the valuation of WH can be described as rather expensive.
Based on the Price/Earnings ratio, WH is valued a bit cheaper than 70.90% of the companies in the same industry.
When comparing the Price/Earnings ratio of WH to the average of the S&P500 Index (27.03), we can say WH is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 15.65, the valuation of WH can be described as correct.
Based on the Price/Forward Earnings ratio, WH is valued a bit cheaper than 71.64% of the companies in the same industry.
WH's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.66 | ||
| Fwd PE | 15.65 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WH is on the same level as its industry peers.
72.39% of the companies in the same industry are more expensive than WH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.7 | ||
| EV/EBITDA | 13.95 |
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.
A more expensive valuation may be justified as WH's earnings are expected to grow with 12.51% in the coming years.
PEG (NY)1.5
PEG (5Y)3.2
EPS Next 2Y12.67%
EPS Next 3Y12.51%
5. Dividend
5.1 Amount
WH has a Yearly Dividend Yield of 1.93%.
WH's Dividend Yield is a higher than the industry average which is at 4.09.
Compared to an average S&P500 Dividend Yield of 2.32, WH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
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.
WH's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP37.01%
EPS Next 2Y12.67%
EPS Next 3Y12.51%
86.21
+0.16 (+0.19%)
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 Change20.46%
Market Cap6.58B
Analysts85.22
Price Target107.46 (24.65%)
Short Float %5.43%
Short Ratio3.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
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)0.32%
PT rev (3m)-0.23%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.01%
EPS NY rev (1m)0.93%
EPS NY rev (3m)0.74%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.62%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.66 | ||
| Fwd PE | 15.65 | ||
| P/S | 4.54 | ||
| P/FCF | 22.7 | ||
| P/OCF | 19.25 | ||
| P/B | 11.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.95 |
EPS(TTM)4.62
EY5.36%
EPS(NY)5.51
Fwd EY6.39%
FCF(TTM)3.8
FCFY4.41%
OCF(TTM)4.48
OCFY5.2%
SpS18.99
BVpS7.46
TBVpS-32.7
PEG (NY)1.5
PEG (5Y)3.2
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 | 2.09 |
F-Score8
WACC8.66%
ROIC/WACC1.33
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%