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WYNDHAM HOTELS & RESORTS INC (WH) Stock Fundamental Analysis

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

79.33  -0.35 (-0.44%)

After market: 79.33 0 (0%)

Fundamental Rating

5

WH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 134 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.
WH had a positive operating cash flow in the past year.
WH had positive earnings in 4 of the past 5 years.
Each year in the past 5 years WH had a positive operating cash flow.
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

Looking at the Return On Assets, with a value of 7.86%, WH is in the better half of the industry, outperforming 78.36% of the companies in the same industry.
WH has a better Return On Equity (57.69%) than 95.52% of its industry peers.
WH has a better Return On Invested Capital (11.31%) than 76.12% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WH is below the industry average of 13.97%.
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

The Profit Margin of WH (23.52%) is better than 97.01% of its industry peers.
In the last couple of years the Profit Margin of WH has grown nicely.
WH has a better Operating Margin (40.00%) than 99.25% of its industry peers.
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 72.39% of its industry peers.
In the last couple of years the Gross Margin of WH has grown nicely.
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

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
The number of shares outstanding for WH has been reduced compared to 5 years ago.
Compared to 1 year ago, WH has a worse debt to assets ratio.
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

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 in line with its industry peers.
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.
The Debt to FCF ratio of WH (11.19) is comparable to the rest of the industry.
WH has a Debt/Equity ratio of 4.29. This is a high value indicating a heavy dependency on external financing.
WH has a Debt to Equity ratio (4.29) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 4.29
Debt/FCF 11.19
Altman-Z 1.99
ROIC/WACC1.48
WACC7.66%
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.
WH has a Current ratio (0.96) which 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.
Looking at the Quick ratio, with a value of 0.96, WH is in line with its industry, outperforming 55.97% of the companies in the same industry.
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

WH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.47%, which is quite good.
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.
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

WH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.22% yearly.
The Revenue is expected to grow by 7.37% on average over the next years.
EPS Next Y11.66%
EPS Next 2Y12.55%
EPS Next 3Y13.2%
EPS Next 5Y14.22%
Revenue Next Year3.77%
Revenue Next 2Y5.15%
Revenue Next 3Y5.99%
Revenue Next 5Y7.37%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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

With a Price/Earnings ratio of 17.95, WH is valued on the expensive side.
Based on the Price/Earnings ratio, WH is valued a bit cheaper than 73.13% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.35. WH is valued slightly cheaper when compared to this.
WH is valuated correctly with a Price/Forward Earnings ratio of 14.43.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WH indicates a somewhat cheap valuation: WH is cheaper than 71.64% of the companies listed in the same industry.
WH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 17.95
Fwd PE 14.43
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.
Based on the Price/Free Cash Flow ratio, WH is valued a bit cheaper than the industry average as 64.18% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 27.03
EV/EBITDA 13.55
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.
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 13.20% in the coming years.
PEG (NY)1.54
PEG (5Y)3.08
EPS Next 2Y12.55%
EPS Next 3Y13.2%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.06%, WH has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.56, WH pays a bit more dividend than its industry peers.
WH's Dividend Yield is comparable with the S&P500 average which is at 2.42.
Industry RankSector Rank
Dividend Yield 2.06%

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
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

WH pays out 36.83% 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.
DP36.83%
EPS Next 2Y12.55%
EPS Next 3Y13.2%
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 (6/20/2025, 8:05:05 PM)

After market: 79.33 0 (0%)

79.33

-0.35 (-0.44%)

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 Owners96.26%
Inst Owner Change-4.48%
Ins Owners2.23%
Ins Owner Change20.46%
Market Cap6.11B
Analysts86.67
Price Target106.07 (33.71%)
Short Float %3.08%
Short Ratio2.28
Dividend
Industry RankSector Rank
Dividend Yield 2.06%
Yearly Dividend1.53
Dividend Growth(5Y)5.55%
DP36.83%
Div Incr Years4
Div Non Decr Years4
Ex-Date06-13 2025-06-13 (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)-1.52%
PT rev (3m)-11.32%
EPS NQ rev (1m)0.29%
EPS NQ rev (3m)-4.71%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-2.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.45%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-2.14%
Valuation
Industry RankSector Rank
PE 17.95
Fwd PE 14.43
P/S 4.3
P/FCF 27.03
P/OCF 22.38
P/B 10.55
P/tB N/A
EV/EBITDA 13.55
EPS(TTM)4.42
EY5.57%
EPS(NY)5.5
Fwd EY6.93%
FCF(TTM)2.94
FCFY3.7%
OCF(TTM)3.55
OCFY4.47%
SpS18.44
BVpS7.52
TBVpS-32.34
PEG (NY)1.54
PEG (5Y)3.08
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 1.99
F-Score6
WACC7.66%
ROIC/WACC1.48
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 Y11.66%
EPS Next 2Y12.55%
EPS Next 3Y13.2%
EPS Next 5Y14.22%
Revenue 1Y (TTM)2.16%
Revenue growth 3Y-3.46%
Revenue growth 5Y-7.27%
Sales Q2Q%3.95%
Revenue Next Year3.77%
Revenue Next 2Y5.15%
Revenue Next 3Y5.99%
Revenue Next 5Y7.37%
EBIT growth 1Y12.25%
EBIT growth 3Y7.04%
EBIT growth 5Y3.76%
EBIT Next Year36.44%
EBIT Next 3Y16.57%
EBIT Next 5Y13.48%
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%