PARK HOTELS & RESORTS INC (PK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PK - US7005171050 - REIT
11.37 USD
-0.22 (-1.9%)
11.31 USD
-0.06 (-0.53%)
Taking everything into account, PK scores 3 out of 10 in our fundamental rating. PK was compared to 125 industry peers in the Diversified REITs industry. PK has a bad profitability rating. Also its financial health evaluation is rather negative. PK does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
- In the past year PK has reported negative net income.
- PK had a positive operating cash flow in the past year.
- In multiple years PK reported negative net income over the last 5 years.
- In multiple years PK reported negative operating cash flow during the last 5 years.
1.2 Ratios
- PK's Return On Assets of -0.14% is on the low side compared to the rest of the industry. PK is outperformed by 60.80% of its industry peers.
- Looking at the Return On Equity, with a value of -0.35%, PK is doing worse than 60.80% of the companies in the same industry.
- The Return On Invested Capital of PK (1.93%) is worse than 66.40% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for PK is in line with the industry average of 3.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.14% | ||
| ROE | -0.35% | ||
| ROIC | 1.93% |
ROA(3y)1.67%
ROA(5y)-2.66%
ROE(3y)4.02%
ROE(5y)-5.53%
ROIC(3y)2.67%
ROIC(5y)N/A
1.3 Margins
- PK's Profit Margin has declined in the last couple of years.
- PK's Operating Margin of 8.36% is on the low side compared to the rest of the industry. PK is outperformed by 77.60% of its industry peers.
- PK's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 64.88%, PK is in line with its industry, outperforming 40.80% 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 | 8.36% | ||
| PM (TTM) | N/A | ||
| GM | 64.88% |
OM growth 3YN/A
OM growth 5Y-4.28%
PM growth 3YN/A
PM growth 5Y-5.48%
GM growth 3Y-0.22%
GM growth 5Y0.08%
2. Health
2.1 Basic Checks
- PK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, PK has less shares outstanding
- PK has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, PK has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.47, we must say that PK is in the distress zone and has some risk of bankruptcy.
- PK has a Altman-Z score (0.47) which is comparable to the rest of the industry.
- PK has a debt to FCF ratio of 37.41. This is a negative value and a sign of low solvency as PK would need 37.41 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 37.41, PK is doing good in the industry, outperforming 73.60% of the companies in the same industry.
- A Debt/Equity ratio of 1.35 is on the high side and indicates that PK has dependencies on debt financing.
- PK has a Debt to Equity ratio (1.35) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 37.41 | ||
| Altman-Z | 0.47 |
ROIC/WACC0.33
WACC5.86%
2.3 Liquidity
- PK has a Current Ratio of 0.53. This is a bad value and indicates that PK is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 0.53, PK is doing worse than 80.00% of the companies in the same industry.
- PK has a Quick Ratio of 0.53. This is a bad value and indicates that PK is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.53, PK is doing worse than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
- The earnings per share for PK have decreased strongly by -104.43% in the last year.
- Measured over the past years, PK shows a decrease in Earnings Per Share. The EPS has been decreasing by -6.46% on average per year.
- PK shows a decrease in Revenue. In the last year, the revenue decreased by -3.57%.
- Measured over the past years, PK shows a decrease in Revenue. The Revenue has been decreasing by -1.79% on average per year.
EPS 1Y (TTM)-104.43%
EPS 3YN/A
EPS 5Y-6.46%
EPS Q2Q%-130.77%
Revenue 1Y (TTM)-3.57%
Revenue growth 3Y24.03%
Revenue growth 5Y-1.79%
Sales Q2Q%-6.01%
3.2 Future
- Based on estimates for the next years, PK will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.66% on average per year.
- Based on estimates for the next years, PK will show a small growth in Revenue. The Revenue will grow by 3.57% on average per year.
EPS Next Y-138.75%
EPS Next 2Y-55.22%
EPS Next 3Y-30.27%
EPS Next 5Y13.66%
Revenue Next Year-1.91%
Revenue Next 2Y-0.79%
Revenue Next 3Y0.45%
Revenue Next 5Y3.57%
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
- The Price/Earnings Ratio is negative for PK. In the last year negative earnings were reported.
- A Price/Forward Earnings ratio of 56.13 indicates a quite expensive valuation of PK.
- PK's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PK is cheaper than 60.80% of the companies in the same industry.
- PK is valuated expensively when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 56.13 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, PK is valued a bit cheaper than the industry average as 73.60% of the companies are valued more expensively.
- 80.00% of the companies in the same industry are more expensive than PK, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.63 | ||
| EV/EBITDA | 12.01 |
4.3 Compensation for Growth
- A cheap valuation may be justified as PK's earnings are expected to decrease with -30.27% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-55.22%
EPS Next 3Y-30.27%
5. Dividend
5.1 Amount
- PK has a Yearly Dividend Yield of 8.63%, which is a nice return.
- PK's Dividend Yield is rather good when compared to the industry average which is at 6.71. PK pays more dividend than 86.40% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, PK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.63% |
5.2 History
- The dividend of PK has a limited annual growth rate of 2.02%.
- PK has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)2.02%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- The earnings of PK are negative and hence is the payout ratio. PK will probably not be able to sustain this dividend level.
- The dividend of PK is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-2358.33%
EPS Next 2Y-55.22%
EPS Next 3Y-30.27%
PARK HOTELS & RESORTS INC / PK FAQ
Can you provide the ChartMill fundamental rating for PARK HOTELS & RESORTS INC?
ChartMill assigns a fundamental rating of 3 / 10 to PK.
What is the valuation status for PK stock?
ChartMill assigns a valuation rating of 2 / 10 to PARK HOTELS & RESORTS INC (PK). This can be considered as Overvalued.
How profitable is PARK HOTELS & RESORTS INC (PK) stock?
PARK HOTELS & RESORTS INC (PK) has a profitability rating of 2 / 10.
What is the earnings growth outlook for PARK HOTELS & RESORTS INC?
The Earnings per Share (EPS) of PARK HOTELS & RESORTS INC (PK) is expected to decline by -138.75% in the next year.