PARK HOTELS & RESORTS INC (PK) Stock Fundamental Analysis
NYSE:PK - New York Stock Exchange, Inc. - US7005171050 - REIT - Currency: USD
PK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 129 industry peers in the Diversified REITs industry. There are concerns on the financial health of PK while its profitability can be described as average. PK has a correct valuation and a medium growth rate.
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 better Return On Assets (1.42%) than 63.08% of its industry peers.
PK has a better Return On Equity (3.61%) than 65.38% of its industry peers.
PK's Return On Invested Capital of 2.82% is in line compared to the rest of the industry. PK outperforms 54.62% 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 3.15%.
The 3 year average ROIC (2.67%) for PK is below the current ROIC(2.82%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.42% | ||
| ROE | 3.61% | ||
| ROIC | 2.82% |
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
Looking at the Profit Margin, with a value of 4.86%, PK is in line with its industry, outperforming 51.54% of the companies in the same industry.
In the last couple of years the Profit Margin of PK has declined.
PK has a worse Operating Margin (12.12%) than 71.54% of its industry peers.
PK's Operating Margin has declined in the last couple of years.
PK has a Gross Margin (65.60%) which is in line with its industry peers.
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 | 12.12% | ||
| PM (TTM) | 4.86% | ||
| GM | 65.6% |
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.
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
PK has an Altman-Z score of 0.52. This is a bad value and indicates that PK is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of PK (0.52) is comparable to the rest of the industry.
The Debt to FCF ratio of PK is 24.16, which is on the high side as it means it would take PK, 24.16 years of fcf income to pay off all of its debts.
PK's Debt to FCF ratio of 24.16 is fine compared to the rest of the industry. PK outperforms 75.38% of its industry peers.
PK has a Debt/Equity ratio of 1.31. This is a high value indicating a heavy dependency on external financing.
PK has a Debt to Equity ratio (1.31) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 24.16 | ||
| Altman-Z | 0.52 |
ROIC/WACC0.47
WACC6.03%
2.3 Liquidity
PK has a Current Ratio of 0.54. This is a bad value and indicates that PK is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of PK (0.54) is worse than 77.69% of its industry peers.
PK has a Quick Ratio of 0.54. 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 0.54, PK is not doing good in the industry: 76.92% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 31.11% over the past year.
The Earnings Per Share has been decreasing by -6.46% on average over the past years.
Looking at the last year, PK shows a decrease in Revenue. The Revenue has decreased by -3.68% in the last year.
PK shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.79% yearly.
EPS 1Y (TTM)31.11%
EPS 3YN/A
EPS 5Y-6.46%
EPS Q2Q%-323.08%
Revenue 1Y (TTM)-3.68%
Revenue growth 3Y24.03%
Revenue growth 5Y-1.79%
Sales Q2Q%-1.41%
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 16.12% yearly.
The Revenue is expected to grow by 3.75% on average over the next years.
EPS Next Y-70.36%
EPS Next 2Y-15.39%
EPS Next 3Y3.27%
EPS Next 5Y16.12%
Revenue Next Year0.45%
Revenue Next 2Y1.84%
Revenue Next 3Y2.3%
Revenue Next 5Y3.75%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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
Based on the Price/Earnings ratio of 18.37, the valuation of PK can be described as rather expensive.
Based on the Price/Earnings ratio, PK is valued cheaper than 84.62% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.45, PK is valued a bit cheaper.
A Price/Forward Earnings ratio of 14.99 indicates a correct valuation of PK.
96.92% of the companies in the same industry are more expensive than PK, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.89. PK is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.37 | ||
| Fwd PE | 14.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PK is valued a bit cheaper than the industry average as 75.38% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, PK is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.46 | ||
| EV/EBITDA | 11.3 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-15.39%
EPS Next 3Y3.27%
5. Dividend
5.1 Amount
PK has a Yearly Dividend Yield of 9.23%, which is a nice return.
PK's Dividend Yield is rather good when compared to the industry average which is at 6.43. PK pays more dividend than 86.92% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, PK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.23% |
5.2 History
The dividend of PK has a limited annual growth rate of 2.00%.
PK has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)2%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
228.57% of the earnings are spent on dividend by PK. This is not a sustainable payout ratio.
PK's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP228.57%
EPS Next 2Y-15.39%
EPS Next 3Y3.27%
10.84
+0.04 (+0.37%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners102.22%
Inst Owner Change-53.81%
Ins Owners1.98%
Ins Owner Change15.16%
Market Cap2.17B
Analysts73.33
Price Target13.01 (20.02%)
Short Float %14.12%
Short Ratio6.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.23% |
Yearly Dividend2.48
Dividend Growth(5Y)2%
DP228.57%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-47.42%
Min EPS beat(2)-538.56%
Max EPS beat(2)443.72%
EPS beat(4)3
Avg EPS beat(4)-4.09%
Min EPS beat(4)-538.56%
Max EPS beat(4)443.72%
EPS beat(8)6
Avg EPS beat(8)18.57%
EPS beat(12)10
Avg EPS beat(12)59.66%
EPS beat(16)12
Avg EPS beat(16)45.38%
Revenue beat(2)1
Avg Revenue beat(2)-0.08%
Min Revenue beat(2)-0.2%
Max Revenue beat(2)0.03%
Revenue beat(4)1
Avg Revenue beat(4)-1.63%
Min Revenue beat(4)-3.68%
Max Revenue beat(4)0.03%
Revenue beat(8)1
Avg Revenue beat(8)-1.73%
Revenue beat(12)3
Avg Revenue beat(12)-0.96%
Revenue beat(16)5
Avg Revenue beat(16)0.72%
PT rev (1m)-4.74%
PT rev (3m)-18.86%
EPS NQ rev (1m)2.31%
EPS NQ rev (3m)-19.04%
EPS NY rev (1m)-55.82%
EPS NY rev (3m)-63.1%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-1.91%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.37 | ||
| Fwd PE | 14.99 | ||
| P/S | 0.84 | ||
| P/FCF | 11.46 | ||
| P/OCF | 5.12 | ||
| P/B | 0.62 | ||
| P/tB | 0.63 | ||
| EV/EBITDA | 11.3 |
EPS(TTM)0.59
EY5.44%
EPS(NY)0.72
Fwd EY6.67%
FCF(TTM)0.95
FCFY8.72%
OCF(TTM)2.12
OCFY19.52%
SpS12.96
BVpS17.48
TBVpS17.27
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.42% | ||
| ROE | 3.61% | ||
| ROCE | 3.83% | ||
| ROIC | 2.82% | ||
| ROICexc | 2.9% | ||
| ROICexgc | 2.95% | ||
| OM | 12.12% | ||
| PM (TTM) | 4.86% | ||
| GM | 65.6% | ||
| 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
ROICexcg growth 3YN/A
ROICexcg 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 | 1.31 | ||
| Debt/FCF | 24.16 | ||
| Debt/EBITDA | 7.94 | ||
| Cap/Depr | 89.66% | ||
| Cap/Sales | 9.03% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.57% | ||
| Profit Quality | 150% | ||
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 0.52 |
F-Score6
WACC6.03%
ROIC/WACC0.47
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)31.11%
EPS 3YN/A
EPS 5Y-6.46%
EPS Q2Q%-323.08%
EPS Next Y-70.36%
EPS Next 2Y-15.39%
EPS Next 3Y3.27%
EPS Next 5Y16.12%
Revenue 1Y (TTM)-3.68%
Revenue growth 3Y24.03%
Revenue growth 5Y-1.79%
Sales Q2Q%-1.41%
Revenue Next Year0.45%
Revenue Next 2Y1.84%
Revenue Next 3Y2.3%
Revenue Next 5Y3.75%
EBIT growth 1Y-4.56%
EBIT growth 3YN/A
EBIT growth 5Y-5.99%
EBIT Next Year68.27%
EBIT Next 3Y23.61%
EBIT Next 5YN/A
FCF growth 1Y-29.48%
FCF growth 3YN/A
FCF growth 5Y-4.85%
OCF growth 1Y-9.81%
OCF growth 3YN/A
OCF growth 5Y-2.98%