PARK HOTELS & RESORTS INC (PK) Stock Fundamental Analysis
NYSE:PK - New York Stock Exchange, Inc. - US7005171050 - REIT - Currency: USD
Taking everything into account, PK scores 4 out of 10 in our fundamental rating. PK was compared to 129 industry peers in the Diversified REITs industry. PK has a medium profitability rating, but doesn't score so well on its financial health evaluation. PK is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
PK had positive earnings in the past year.
PK had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: PK reported negative net income in multiple years.
The reported operating cash flow has been mixed in the past 5 years: PK reported negative operating cash flow in multiple years.
1.2 Ratios
PK's Return On Assets of 3.63% is amongst the best of the industry. PK outperforms 86.51% of its industry peers.
Looking at the Return On Equity, with a value of 8.88%, PK belongs to the top of the industry, outperforming 84.92% of the companies in the same industry.
With a Return On Invested Capital value of 2.88%, PK perfoms like the industry average, outperforming 56.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.63% | ||
| ROE | 8.88% | ||
| ROIC | 2.88% |
ROA(3y)-0.67%
ROA(5y)-2.58%
ROE(3y)-1.34%
ROE(5y)-5.75%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
PK has a Profit Margin of 12.66%. This is in the better half of the industry: PK outperforms 64.29% of its industry peers.
In the last couple of years the Profit Margin of PK has declined.
PK has a Operating Margin of 12.62%. This is in the lower half of the industry: PK underperforms 73.02% of its industry peers.
PK's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 65.79%, PK perfoms like the industry average, outperforming 41.27% of the companies in the same industry.
In the last couple of years the Gross Margin of PK has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.62% | ||
| PM (TTM) | 12.66% | ||
| GM | 65.79% |
OM growth 3YN/A
OM growth 5Y-4.97%
PM growth 3YN/A
PM growth 5Y-26.86%
GM growth 3Y4.34%
GM growth 5Y-0.22%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PK is destroying value.
The number of shares outstanding for PK has been reduced compared to 1 year ago.
The number of shares outstanding for PK has been increased compared to 5 years ago.
PK has a worse debt/assets ratio than last year.
2.2 Solvency
PK has an Altman-Z score of 0.66. This is a bad value and indicates that PK is not financially healthy and even has some risk of bankruptcy.
PK has a Altman-Z score of 0.66. This is comparable to the rest of the industry: PK outperforms 52.38% of its industry peers.
The Debt to FCF ratio of PK is 20.72, which is on the high side as it means it would take PK, 20.72 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 20.72, PK is doing good in the industry, outperforming 75.40% of the companies in the same industry.
PK has a Debt/Equity ratio of 1.22. This is a high value indicating a heavy dependency on external financing.
PK has a Debt to Equity ratio (1.22) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 20.72 | ||
| Altman-Z | 0.66 |
ROIC/WACC0.5
WACC5.8%
2.3 Liquidity
A Current Ratio of 0.95 indicates that PK may have some problems paying its short term obligations.
The Current ratio of PK (0.95) is worse than 63.49% of its industry peers.
A Quick Ratio of 0.95 indicates that PK may have some problems paying its short term obligations.
PK's Quick ratio of 0.95 is on the low side compared to the rest of the industry. PK is outperformed by 60.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 685.19% over the past year.
PK shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -19.14% yearly.
The Revenue has decreased by -2.77% in the past year.
The Revenue has been decreasing by -0.29% on average over the past years.
EPS 1Y (TTM)685.19%
EPS 3YN/A
EPS 5Y-19.14%
EPS Q2Q%100%
Revenue 1Y (TTM)-2.77%
Revenue growth 3Y46.85%
Revenue growth 5Y-0.29%
Sales Q2Q%-4.42%
3.2 Future
The Earnings Per Share is expected to grow by 36.34% on average over the next years. This is a very strong growth
Based on estimates for the next years, PK will show a small growth in Revenue. The Revenue will grow by 3.27% on average per year.
EPS Next Y64.31%
EPS Next 2Y41.5%
EPS Next 3Y32.74%
EPS Next 5Y36.34%
Revenue Next Year-4.65%
Revenue Next 2Y-0.58%
Revenue Next 3Y0.7%
Revenue Next 5Y3.27%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.54, the valuation of PK can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of PK indicates a rather cheap valuation: PK is cheaper than 95.24% of the companies listed in the same industry.
PK's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.46.
PK is valuated correctly with a Price/Forward Earnings ratio of 14.33.
Based on the Price/Forward Earnings ratio, PK is valued cheaper than 96.83% of the companies in the same industry.
PK's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 92.56.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.54 | ||
| Fwd PE | 14.33 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PK indicates a somewhat cheap valuation: PK is cheaper than 78.57% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, PK is valued cheaper than 86.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.6 | ||
| EV/EBITDA | 11.14 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as PK's earnings are expected to grow with 32.74% in the coming years.
PEG (NY)0.13
PEG (5Y)N/A
EPS Next 2Y41.5%
EPS Next 3Y32.74%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.26%, PK is a good candidate for dividend investing.
PK's Dividend Yield is a higher than the industry average which is at 18.20.
Compared to an average S&P500 Dividend Yield of 2.27, PK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.26% |
5.2 History
The dividend of PK decreases each year by -20.68%.
PK has been paying a dividend for over 5 years, so it has already some track record.
PK has decreased its dividend recently.
Dividend Growth(5Y)-20.68%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
PK pays out 147.45% of its income as dividend. This is not a sustainable payout ratio.
DP147.45%
EPS Next 2Y41.5%
EPS Next 3Y32.74%
PARK HOTELS & RESORTS INC
NYSE:PK (1/31/2025, 8:04:00 PM)
After market: 13.49 0 (0%)13.49
+0.01 (+0.07%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners101.43%
Inst Owner Change-0.66%
Ins Owners1.62%
Ins Owner Change0.57%
Market Cap2.78B
Analysts76
Price Target17.67 (30.99%)
Short Float %10.01%
Short Ratio5.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.26% |
Yearly Dividend0.7
Dividend Growth(5Y)-20.68%
DP147.45%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)39.24%
Min EPS beat(2)4.56%
Max EPS beat(2)73.92%
EPS beat(4)4
Avg EPS beat(4)137.88%
Min EPS beat(4)4.56%
Max EPS beat(4)436.69%
EPS beat(8)7
Avg EPS beat(8)51.67%
EPS beat(12)10
Avg EPS beat(12)68.02%
EPS beat(16)13
Avg EPS beat(16)51.86%
Revenue beat(2)0
Avg Revenue beat(2)-3.18%
Min Revenue beat(2)-3.68%
Max Revenue beat(2)-2.68%
Revenue beat(4)0
Avg Revenue beat(4)-2.38%
Min Revenue beat(4)-3.68%
Max Revenue beat(4)-1.48%
Revenue beat(8)1
Avg Revenue beat(8)-1.54%
Revenue beat(12)3
Avg Revenue beat(12)-0.16%
Revenue beat(16)5
Avg Revenue beat(16)-0.12%
PT rev (1m)0.41%
PT rev (3m)-4.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-58.6%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.93%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.37%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-2.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.54 | ||
| Fwd PE | 14.33 | ||
| P/S | 1.06 | ||
| P/FCF | 12.6 | ||
| P/OCF | 5.86 | ||
| P/B | 0.74 | ||
| P/tB | 0.75 | ||
| EV/EBITDA | 11.14 |
EPS(TTM)1.58
EY11.71%
EPS(NY)0.94
Fwd EY6.98%
FCF(TTM)1.07
FCFY7.94%
OCF(TTM)2.3
OCFY17.06%
SpS12.75
BVpS18.18
TBVpS17.97
PEG (NY)0.13
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.63% | ||
| ROE | 8.88% | ||
| ROCE | 3.92% | ||
| ROIC | 2.88% | ||
| ROICexc | 3.06% | ||
| ROICexgc | 3.09% | ||
| OM | 12.62% | ||
| PM (TTM) | 12.66% | ||
| GM | 65.79% | ||
| FCFM | 8.4% |
ROA(3y)-0.67%
ROA(5y)-2.58%
ROE(3y)-1.34%
ROE(5y)-5.75%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-4.84%
ROICexc growth 3YN/A
ROICexc growth 5Y-3.45%
OM growth 3YN/A
OM growth 5Y-4.97%
PM growth 3YN/A
PM growth 5Y-26.86%
GM growth 3Y4.34%
GM growth 5Y-0.22%
F-Score6
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 20.72 | ||
| Debt/EBITDA | 7.41 | ||
| Cap/Depr | 88.81% | ||
| Cap/Sales | 9.65% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.86% | ||
| Profit Quality | 66.37% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 0.66 |
F-Score6
WACC5.8%
ROIC/WACC0.5
Cap/Depr(3y)60.32%
Cap/Depr(5y)60.15%
Cap/Sales(3y)7.08%
Cap/Sales(5y)7.96%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)685.19%
EPS 3YN/A
EPS 5Y-19.14%
EPS Q2Q%100%
EPS Next Y64.31%
EPS Next 2Y41.5%
EPS Next 3Y32.74%
EPS Next 5Y36.34%
Revenue 1Y (TTM)-2.77%
Revenue growth 3Y46.85%
Revenue growth 5Y-0.29%
Sales Q2Q%-4.42%
Revenue Next Year-4.65%
Revenue Next 2Y-0.58%
Revenue Next 3Y0.7%
Revenue Next 5Y3.27%
EBIT growth 1Y-2.92%
EBIT growth 3YN/A
EBIT growth 5Y-5.24%
EBIT Next Year268.9%
EBIT Next 3Y57.53%
EBIT Next 5YN/A
FCF growth 1Y32.34%
FCF growth 3YN/A
FCF growth 5Y-3.16%
OCF growth 1Y59.93%
OCF growth 3YN/A
OCF growth 5Y2.53%