PARK HOTELS & RESORTS INC (PK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PK - US7005171050 - REIT
10.8 USD
+0.07 (+0.65%)
PK gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 124 industry peers in the Diversified REITs industry. Both the profitability and financial health of PK have multiple concerns. PK has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
- PK had negative earnings in the past year.
- In the past year PK had a positive cash flow from operations.
- 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 has a Return On Assets of -0.14%. This is in the lower half of the industry: PK underperforms 60.48% of its industry peers.
- The Return On Equity of PK (-0.35%) is worse than 60.48% of its industry peers.
- The Return On Invested Capital of PK (1.93%) is worse than 66.13% of its industry peers.
- PK had an Average Return On Invested Capital over the past 3 years of 2.67%. This is in line with the industry average of 3.05%.
| 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
- In the last couple of years the Profit Margin of PK has declined.
- The Operating Margin of PK (8.36%) is worse than 77.42% of its industry peers.
- In the last couple of years the Operating Margin of PK has declined.
- Looking at the Gross Margin, with a value of 64.88%, PK is in line with its industry, outperforming 41.13% 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PK is destroying value.
- Compared to 1 year ago, PK has less shares outstanding
- Compared to 5 years ago, PK has less shares outstanding
- The debt/assets ratio for PK is higher compared to a year ago.
2.2 Solvency
- PK has an Altman-Z score of 0.45. This is a bad value and indicates that PK is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 0.45, PK perfoms like the industry average, outperforming 46.77% of the companies in the same industry.
- The Debt to FCF ratio of PK is 37.41, which is on the high side as it means it would take PK, 37.41 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 37.41, PK is doing good in the industry, outperforming 73.39% of the companies in the same industry.
- PK has a Debt/Equity ratio of 1.35. This is a high value indicating a heavy dependency on external financing.
- PK's Debt to Equity ratio of 1.35 is in line compared to the rest of the industry. PK outperforms 49.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 37.41 | ||
| Altman-Z | 0.45 |
ROIC/WACC0.33
WACC5.82%
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 79.84% 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.
- With a Quick ratio value of 0.53, PK is not doing good in the industry: 79.84% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
- PK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -104.43%.
- PK shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.46% yearly.
- 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.
- The Revenue is expected to grow by 3.57% on average over the next years.
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
- PK reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- A Price/Forward Earnings ratio of 53.31 indicates a quite expensive valuation of PK.
- Based on the Price/Forward Earnings ratio, PK is valued a bit cheaper than the industry average as 60.48% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of PK to the average of the S&P500 Index (25.83), we can say PK is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 53.31 |
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 75.81% of the companies listed in the same industry.
- 80.65% 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 | 17.7 | ||
| EV/EBITDA | 11.78 |
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
- With a Yearly Dividend Yield of 8.63%, PK is a good candidate for dividend investing.
- PK's Dividend Yield is rather good when compared to the industry average which is at 6.82. PK pays more dividend than 87.10% of the companies in the same industry.
- PK's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| 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 3 / 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.