WYNDHAM HOTELS & RESORTS INC (WH)
US98311A1051 - Common Stock
Overall WH gets a fundamental rating of 5 out of 10. We evaluated WH against 136 industry peers in the Hotels, Restaurants & Leisure industry. WH has an excellent profitability rating, but there are concerns on its financial health. WH has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
WH had positive earnings in the past year.
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.
1.2 Ratios
The Return On Assets of WH (5.86%) is better than 74.81% of its industry peers.
WH's Return On Equity of 35.31% is amongst the best of the industry. WH outperforms 85.19% of its industry peers.
With a decent Return On Invested Capital value of 10.51%, WH is doing good in the industry, outperforming 73.33% of the companies in the same industry.
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 10.04%.
The last Return On Invested Capital (10.51%) for WH is above the 3 year average (9.88%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.86% | ||
| ROE | 35.31% | ||
| ROIC | 10.51% |
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
With an excellent Profit Margin value of 17.12%, WH belongs to the best of the industry, outperforming 90.37% of the companies in the same industry.
WH's Profit Margin has improved in the last couple of years.
WH's Operating Margin of 36.40% is amongst the best of the industry. WH outperforms 97.78% of its industry peers.
In the last couple of years the Operating Margin of WH has grown nicely.
WH has a better Gross Margin (57.99%) than 63.70% of its industry peers.
In the last couple of years the Gross Margin of WH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.4% | ||
| PM (TTM) | 17.12% | ||
| GM | 57.99% |
OM growth 3Y32.08%
OM growth 5Y11.7%
PM growth 3YN/A
PM growth 5Y18.99%
GM growth 3Y14.24%
GM growth 5Y7.24%
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.
2.2 Solvency
WH has an Altman-Z score of 1.96. 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 (1.96) which is comparable to the rest of the industry.
WH has a debt to FCF ratio of 6.96. This is a slightly negative value and a sign of low solvency as WH would need 6.96 years to pay back of all of its debts.
WH has a Debt to FCF ratio of 6.96. This is in the better half of the industry: WH outperforms 67.41% of its industry peers.
WH has a Debt/Equity ratio of 3.27. This is a high value indicating a heavy dependency on external financing.
WH has a Debt to Equity ratio (3.27) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.27 | ||
| Debt/FCF | 6.96 | ||
| Altman-Z | 1.96 |
ROIC/WACC1.33
WACC7.9%
2.3 Liquidity
WH has a Current Ratio of 0.70. 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 (0.70) is worse than 65.19% of its industry peers.
A Quick Ratio of 0.70 indicates that WH may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.70, WH is doing worse than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.02% over the past year.
The Earnings Per Share has been growing by 16.01% on average over the past years. This is quite good.
WH shows a decrease in Revenue. In the last year, the revenue decreased by -6.74%.
The Revenue has been decreasing by -5.65% on average over the past years.
EPS 1Y (TTM)11.02%
EPS 3Y57.31%
EPS 5Y16.01%
EPS Q2Q%21.51%
Revenue 1Y (TTM)-6.74%
Revenue growth 3Y2.43%
Revenue growth 5Y-5.65%
Sales Q2Q%2.51%
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 11.57% yearly.
The Revenue is expected to grow by 6.21% on average over the next years.
EPS Next Y8.82%
EPS Next 2Y9.67%
EPS Next 3Y11.28%
EPS Next 5Y11.57%
Revenue Next Year3.61%
Revenue Next 2Y4.48%
Revenue Next 3Y4.77%
Revenue Next 5Y6.21%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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
The Price/Earnings ratio is 18.54, which indicates a rather expensive current valuation of WH.
Based on the Price/Earnings ratio, WH is valued a bit cheaper than 69.63% of the companies in the same industry.
WH is valuated rather cheaply when we compare the Price/Earnings ratio to 24.41, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 15.88, which indicates a correct valuation of WH.
WH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WH is cheaper than 65.93% 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 20.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.54 | ||
| Fwd PE | 15.88 |
4.2 Price Multiples
WH's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, WH is valued a bit cheaper than the industry average as 68.15% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.16 | ||
| EV/EBITDA | 14.35 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of WH may justify a higher PE ratio.
PEG (NY)2.1
PEG (5Y)1.16
EPS Next 2Y9.67%
EPS Next 3Y11.28%
5. Dividend
5.1 Amount
WH has a Yearly Dividend Yield of 2.16%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.12, WH pays a better dividend. On top of this WH pays more dividend than 81.48% of the companies listed in the same industry.
WH's Dividend Yield is comparable with the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
5.2 History
On average, the dividend of WH grows each year by 12.58%, which is quite nice.
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
50.00% of the earnings are spent on dividend by WH. This is a bit on the high side, but may be sustainable.
The dividend of WH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP50%
EPS Next 2Y9.67%
EPS Next 3Y11.28%
WYNDHAM HOTELS & RESORTS INC
NYSE:WH (7/26/2024, 7:07:03 PM)
After market: 76.57 0 (0%)76.57
-0.03 (-0.04%)
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 Cap6.17B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
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)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
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)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.54 | ||
| Fwd PE | 15.88 | ||
| 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)2.1
PEG (5Y)1.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.86% | ||
| ROE | 35.31% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 36.4% | ||
| PM (TTM) | 17.12% | ||
| GM | 57.99% | ||
| 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 Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.27 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.7 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)11.02%
EPS 3Y57.31%
EPS 5Y
EPS Q2Q%
EPS Next Y8.82%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-6.74%
Revenue growth 3Y2.43%
Revenue growth 5Y
Sales 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