PARK HOTELS & RESORTS INC (PK) Stock Fundamental Analysis
USA - NYSE:PK - US7005171050 - REIT
10.73 USD
-0.24 (-2.19%)
10.65 USD
-0.08 (-0.75%)
Overall PK gets a fundamental rating of 3 out of 10. We evaluated PK against 127 industry peers in the Diversified REITs industry. PK has a bad profitability rating. Also its financial health evaluation is rather negative. PK is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year PK was profitable.
In the past year PK had a positive cash flow from operations.
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 has a Return On Assets of 0.64%. This is comparable to the rest of the industry: PK outperforms 48.03% of its industry peers.
PK has a Return On Equity (1.66%) which is comparable to the rest of the industry.
With a Return On Invested Capital value of 2.26%, PK perfoms like the industry average, outperforming 42.52% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PK is in line with the industry average of 3.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.64% | ||
| ROE | 1.66% | ||
| ROIC | 2.26% |
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 has a Profit Margin (2.21%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of PK has declined.
Looking at the Operating Margin, with a value of 9.67%, PK is doing worse than 76.38% of the companies in the same industry.
PK's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 65.37%, PK is in line with its industry, outperforming 43.31% 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 | 9.67% | ||
| PM (TTM) | 2.21% | ||
| GM | 65.37% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PK is destroying value.
PK has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, PK has less shares outstanding
Compared to 1 year ago, PK has a worse debt to assets ratio.
2.2 Solvency
PK has an Altman-Z score of 0.49. This is a bad value and indicates that PK is not financially healthy and even has some risk of bankruptcy.
PK's Altman-Z score of 0.49 is in line compared to the rest of the industry. PK outperforms 48.03% of its industry peers.
PK has a debt to FCF ratio of 24.28. This is a negative value and a sign of low solvency as PK would need 24.28 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 24.28, PK is doing good in the industry, outperforming 72.44% of the companies in the same industry.
A Debt/Equity ratio of 1.33 is on the high side and indicates that PK has dependencies on debt financing.
PK has a Debt to Equity ratio (1.33) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 24.28 | ||
| Altman-Z | 0.49 |
ROIC/WACC0.39
WACC5.76%
2.3 Liquidity
A Current Ratio of 0.60 indicates that PK may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.60, PK is doing worse than 74.02% of the companies in the same industry.
PK has a Quick Ratio of 0.60. This is a bad value and indicates that PK is not financially healthy enough and could expect problems in meeting its short term obligations.
PK has a Quick ratio of 0.60. This is in the lower half of the industry: PK underperforms 74.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
PK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -77.22%.
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 -3.67%.
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)-77.22%
EPS 3YN/A
EPS 5Y-6.46%
EPS Q2Q%34.62%
Revenue 1Y (TTM)-3.67%
Revenue growth 3Y24.03%
Revenue growth 5Y-1.79%
Sales Q2Q%-6.01%
3.2 Future
PK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.66% yearly.
The Revenue is expected to grow by 3.57% on average over the next years.
EPS Next Y-127.53%
EPS Next 2Y-36.47%
EPS Next 3Y-18.37%
EPS Next 5Y13.66%
Revenue Next Year-1.39%
Revenue Next 2Y0.36%
Revenue Next 3Y1.37%
Revenue Next 5Y3.57%
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
A Price/Earnings ratio of 29.81 indicates a quite expensive valuation of PK.
PK's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.19. PK is around the same levels.
PK is valuated quite expensively with a Price/Forward Earnings ratio of 26.33.
80.31% of the companies in the same industry are more expensive than PK, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.50, PK is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.81 | ||
| Fwd PE | 26.33 |
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 74.80% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, PK is valued cheaper than 88.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.41 | ||
| EV/EBITDA | 11.25 |
4.3 Compensation for Growth
A cheap valuation may be justified as PK's earnings are expected to decrease with -18.37% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-36.47%
EPS Next 3Y-18.37%
5. Dividend
5.1 Amount
PK has a Yearly Dividend Yield of 9.12%, which is a nice return.
PK's Dividend Yield is rather good when compared to the industry average which is at 6.29. PK pays more dividend than 85.04% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, PK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.12% |
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
PK pays out 501.75% of its income as dividend. This is not a sustainable payout ratio.
PK's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP501.75%
EPS Next 2Y-36.47%
EPS Next 3Y-18.37%
10.73
-0.24 (-2.19%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners107.17%
Inst Owner Change-0.09%
Ins Owners1.99%
Ins Owner Change0.55%
Market Cap2.15B
Revenue(TTM)2.60B
Net Income(TTM)57.00M
Analysts70
Price Target12.24 (14.07%)
Short Float %18.02%
Short Ratio11.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.12% |
Yearly Dividend2.48
Dividend Growth(5Y)2.02%
DP501.75%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-323.47%
Min EPS beat(2)-538.56%
Max EPS beat(2)-108.38%
EPS beat(4)2
Avg EPS beat(4)-32.33%
Min EPS beat(4)-538.56%
Max EPS beat(4)443.72%
EPS beat(8)6
Avg EPS beat(8)47.64%
EPS beat(12)9
Avg EPS beat(12)19.02%
EPS beat(16)11
Avg EPS beat(16)37.16%
Revenue beat(2)0
Avg Revenue beat(2)-1.23%
Min Revenue beat(2)-2.25%
Max Revenue beat(2)-0.2%
Revenue beat(4)1
Avg Revenue beat(4)-1.28%
Min Revenue beat(4)-2.68%
Max Revenue beat(4)0.03%
Revenue beat(8)1
Avg Revenue beat(8)-1.59%
Revenue beat(12)2
Avg Revenue beat(12)-1.38%
Revenue beat(16)4
Avg Revenue beat(16)-0.33%
PT rev (1m)0%
PT rev (3m)-3.7%
EPS NQ rev (1m)-22.85%
EPS NQ rev (3m)-51.78%
EPS NY rev (1m)-181.25%
EPS NY rev (3m)-411.78%
Revenue NQ rev (1m)-2.23%
Revenue NQ rev (3m)-5.02%
Revenue NY rev (1m)-0.68%
Revenue NY rev (3m)-1.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.81 | ||
| Fwd PE | 26.33 | ||
| P/S | 0.83 | ||
| P/FCF | 11.41 | ||
| P/OCF | 5.18 | ||
| P/B | 0.62 | ||
| P/tB | 0.63 | ||
| EV/EBITDA | 11.25 |
EPS(TTM)0.36
EY3.36%
EPS(NY)0.41
Fwd EY3.8%
FCF(TTM)0.94
FCFY8.76%
OCF(TTM)2.07
OCFY19.3%
SpS12.89
BVpS17.23
TBVpS17.02
PEG (NY)N/A
PEG (5Y)N/A
Graham Number11.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.64% | ||
| ROE | 1.66% | ||
| ROCE | 3.07% | ||
| ROIC | 2.26% | ||
| ROICexc | 2.35% | ||
| ROICexgc | 2.38% | ||
| OM | 9.67% | ||
| PM (TTM) | 2.21% | ||
| GM | 65.37% | ||
| FCFM | 7.3% |
ROA(3y)1.67%
ROA(5y)-2.66%
ROE(3y)4.02%
ROE(5y)-5.53%
ROIC(3y)2.67%
ROIC(5y)N/A
ROICexc(3y)2.89%
ROICexc(5y)N/A
ROICexgc(3y)2.92%
ROICexgc(5y)N/A
ROCE(3y)3.63%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5Y-2.14%
ROICexc growth 3YN/A
ROICexc growth 5Y-0.95%
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%
F-Score6
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 24.28 | ||
| Debt/EBITDA | 8.04 | ||
| Cap/Depr | 70.85% | ||
| Cap/Sales | 8.77% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.89% | ||
| Profit Quality | 329.83% | ||
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 0.49 |
F-Score6
WACC5.76%
ROIC/WACC0.39
Cap/Depr(3y)83.36%
Cap/Depr(5y)59.63%
Cap/Sales(3y)8.67%
Cap/Sales(5y)8.01%
Profit Quality(3y)156.41%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-77.22%
EPS 3YN/A
EPS 5Y-6.46%
EPS Q2Q%34.62%
EPS Next Y-127.53%
EPS Next 2Y-36.47%
EPS Next 3Y-18.37%
EPS Next 5Y13.66%
Revenue 1Y (TTM)-3.67%
Revenue growth 3Y24.03%
Revenue growth 5Y-1.79%
Sales Q2Q%-6.01%
Revenue Next Year-1.39%
Revenue Next 2Y0.36%
Revenue Next 3Y1.37%
Revenue Next 5Y3.57%
EBIT growth 1Y-26.11%
EBIT growth 3YN/A
EBIT growth 5Y-5.99%
EBIT Next Year64.63%
EBIT Next 3Y20.94%
EBIT Next 5YN/A
FCF growth 1Y-17.54%
FCF growth 3YN/A
FCF growth 5Y-4.85%
OCF growth 1Y-11.54%
OCF growth 3YN/A
OCF growth 5Y-2.98%
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.
Can you provide the valuation status for PARK HOTELS & RESORTS INC?
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 3 / 10.
Can you provide the PE and PB ratios for PK stock?
The Price/Earnings (PE) ratio for PARK HOTELS & RESORTS INC (PK) is 29.81 and the Price/Book (PB) ratio is 0.62.
What is the expected EPS growth for PARK HOTELS & RESORTS INC (PK) stock?
The Earnings per Share (EPS) of PARK HOTELS & RESORTS INC (PK) is expected to decline by -127.53% in the next year.