WYNDHAM HOTELS & RESORTS INC (WH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WH - US98311A1051 - Common Stock
76.75 USD
+1.06 (+1.4%)
75.6 USD
-1.15 (-1.5%)
Taking everything into account, WH scores 6 out of 10 in our fundamental rating. WH was compared to 132 industry peers in the Hotels, Restaurants & Leisure industry. WH has an excellent profitability rating, but there are some minor concerns on its financial health. WH has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
WH had positive earnings in the past year.
WH had a positive operating cash flow in the past year.
WH had positive earnings in 4 of the past 5 years.
In the past 5 years WH always reported a positive cash flow from operatings.
1.2 Ratios
WH has a better Return On Assets (7.78%) than 76.52% of its industry peers.
WH has a Return On Equity of 57.98%. This is amongst the best in the industry. WH outperforms 91.67% of its industry peers.
WH's Return On Invested Capital of 11.47% is fine compared to the rest of the industry. WH outperforms 76.52% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WH is in line with the industry average of 10.42%.
The 3 year average ROIC (10.92%) for WH is below the current ROIC(11.47%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.78% | ||
| ROE | 57.98% | ||
| ROIC | 11.47% |
ROA(3y)7.54%
ROA(5y)5.1%
ROE(3y)40.03%
ROE(5y)25.76%
ROIC(3y)10.92%
ROIC(5y)9.06%
1.3 Margins
The Profit Margin of WH (23.54%) is better than 95.45% of its industry peers.
In the last couple of years the Profit Margin of WH has grown nicely.
The Operating Margin of WH (41.30%) is better than 99.24% of its industry peers.
WH's Operating Margin has improved in the last couple of years.
WH has a Gross Margin of 61.00%. This is in the better half of the industry: WH outperforms 73.48% of its industry peers.
WH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 41.3% | ||
| PM (TTM) | 23.54% | ||
| GM | 61% |
OM growth 3Y10.88%
OM growth 5Y11.89%
PM growth 3Y9.6%
PM growth 5Y21.83%
GM growth 3Y6.26%
GM growth 5Y7.12%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WH is still creating some value.
WH has less shares outstanding than it did 1 year ago.
The number of shares outstanding for WH has been reduced compared to 5 years ago.
Compared to 1 year ago, WH has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.99 indicates that WH is not a great score, but indicates only limited risk for bankruptcy at the moment.
WH's Altman-Z score of 1.99 is in line compared to the rest of the industry. WH outperforms 55.30% of its industry peers.
WH has a debt to FCF ratio of 8.94. This is a slightly negative value and a sign of low solvency as WH would need 8.94 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.94, WH is in the better half of the industry, outperforming 64.39% of the companies in the same industry.
WH has a Debt/Equity ratio of 4.43. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 4.43, WH is in line with its industry, outperforming 41.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.43 | ||
| Debt/FCF | 8.94 | ||
| Altman-Z | 1.99 |
ROIC/WACC1.42
WACC8.09%
2.3 Liquidity
A Current Ratio of 1.16 indicates that WH should not have too much problems paying its short term obligations.
The Current ratio of WH (1.16) is better than 61.36% of its industry peers.
A Quick Ratio of 1.16 indicates that WH should not have too much problems paying its short term obligations.
WH has a Quick ratio of 1.16. This is in the better half of the industry: WH outperforms 64.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
WH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.40%, which is quite good.
Measured over the past 5 years, WH shows a small growth in Earnings Per Share. The EPS has been growing by 5.83% on average per year.
The Revenue has been growing slightly by 3.38% in the past year.
WH shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -7.27% yearly.
EPS 1Y (TTM)11.4%
EPS 3Y11.16%
EPS 5Y5.83%
EPS Q2Q%5.04%
Revenue 1Y (TTM)3.38%
Revenue growth 3Y-3.46%
Revenue growth 5Y-7.27%
Sales Q2Q%-3.05%
3.2 Future
Based on estimates for the next years, WH will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.79% on average per year.
Based on estimates for the next years, WH will show a small growth in Revenue. The Revenue will grow by 5.73% on average per year.
EPS Next Y7.93%
EPS Next 2Y9.66%
EPS Next 3Y10.8%
EPS Next 5Y12.79%
Revenue Next Year1.37%
Revenue Next 2Y3.54%
Revenue Next 3Y4.38%
Revenue Next 5Y5.73%
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.
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 16.36, WH is valued correctly.
Based on the Price/Earnings ratio, WH is valued a bit cheaper than 76.52% of the companies in the same industry.
WH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.56.
A Price/Forward Earnings ratio of 14.70 indicates a correct valuation of WH.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WH indicates a somewhat cheap valuation: WH is cheaper than 75.76% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.79. WH is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.36 | ||
| Fwd PE | 14.7 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WH is on the same level as its industry peers.
WH's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WH is cheaper than 71.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.72 | ||
| EV/EBITDA | 12.74 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of WH may justify a higher PE ratio.
PEG (NY)2.06
PEG (5Y)2.81
EPS Next 2Y9.66%
EPS Next 3Y10.8%
5. Dividend
5.1 Amount
WH has a Yearly Dividend Yield of 2.23%.
WH's Dividend Yield is rather good when compared to the industry average which is at 1.48. WH pays more dividend than 82.58% of the companies in the same industry.
WH's Dividend Yield is comparable with the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
5.2 History
The dividend of WH has a limited annual growth rate of 5.55%.
WH has been paying a dividend for over 5 years, so it has already some track record.
WH has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)5.55%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
37.28% of the earnings are spent on dividend by WH. This is a low number and sustainable payout ratio.
The dividend of WH is growing, but earnings are growing more, so the dividend growth is sustainable.
DP37.28%
EPS Next 2Y9.66%
EPS Next 3Y10.8%
76.75
+1.06 (+1.4%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners105.04%
Inst Owner Change2.79%
Ins Owners2.31%
Ins Owner Change-0.6%
Market Cap5.80B
Revenue(TTM)1.44B
Net Income(TTM)338.00M
Analysts84.17
Price Target96.44 (25.65%)
Short Float %7.58%
Short Ratio4.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
Yearly Dividend1.53
Dividend Growth(5Y)5.55%
DP37.28%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.63%
Min EPS beat(2)-1.51%
Max EPS beat(2)10.76%
EPS beat(4)3
Avg EPS beat(4)3.41%
Min EPS beat(4)-1.51%
Max EPS beat(4)10.76%
EPS beat(8)5
Avg EPS beat(8)2.21%
EPS beat(12)8
Avg EPS beat(12)2.9%
EPS beat(16)12
Avg EPS beat(16)7.91%
Revenue beat(2)1
Avg Revenue beat(2)-4.13%
Min Revenue beat(2)-8.32%
Max Revenue beat(2)0.06%
Revenue beat(4)1
Avg Revenue beat(4)-3.91%
Min Revenue beat(4)-8.32%
Max Revenue beat(4)0.06%
Revenue beat(8)1
Avg Revenue beat(8)-4.26%
Revenue beat(12)2
Avg Revenue beat(12)-3.87%
Revenue beat(16)5
Avg Revenue beat(16)-2.11%
PT rev (1m)-2.48%
PT rev (3m)-10.26%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)-19.52%
EPS NY rev (1m)-0.6%
EPS NY rev (3m)-4.04%
Revenue NQ rev (1m)-0.28%
Revenue NQ rev (3m)-3.45%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-2.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.36 | ||
| Fwd PE | 14.7 | ||
| P/S | 4.04 | ||
| P/FCF | 19.72 | ||
| P/OCF | 16.61 | ||
| P/B | 9.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.74 |
EPS(TTM)4.69
EY6.11%
EPS(NY)5.22
Fwd EY6.8%
FCF(TTM)3.89
FCFY5.07%
OCF(TTM)4.62
OCFY6.02%
SpS19.01
BVpS7.72
TBVpS-32.77
PEG (NY)2.06
PEG (5Y)2.81
Graham Number28.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.78% | ||
| ROE | 57.98% | ||
| ROCE | 15.18% | ||
| ROIC | 11.47% | ||
| ROICexc | 11.68% | ||
| ROICexgc | 57.6% | ||
| OM | 41.3% | ||
| PM (TTM) | 23.54% | ||
| GM | 61% | ||
| FCFM | 20.47% |
ROA(3y)7.54%
ROA(5y)5.1%
ROE(3y)40.03%
ROE(5y)25.76%
ROIC(3y)10.92%
ROIC(5y)9.06%
ROICexc(3y)11.26%
ROICexc(5y)9.44%
ROICexgc(3y)87.36%
ROICexgc(5y)71.71%
ROCE(3y)14.45%
ROCE(5y)11.99%
ROICexgc growth 3Y1.88%
ROICexgc growth 5Y0.36%
ROICexc growth 3Y7.5%
ROICexc growth 5Y5.53%
OM growth 3Y10.88%
OM growth 5Y11.89%
PM growth 3Y9.6%
PM growth 5Y21.83%
GM growth 3Y6.26%
GM growth 5Y7.12%
F-Score7
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.43 | ||
| Debt/FCF | 8.94 | ||
| Debt/EBITDA | 3.94 | ||
| Cap/Depr | 87.3% | ||
| Cap/Sales | 3.83% | ||
| Interest Coverage | 4.27 | ||
| Cash Conversion | 53.2% | ||
| Profit Quality | 86.98% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 1.99 |
F-Score7
WACC8.09%
ROIC/WACC1.42
Cap/Depr(3y)56.12%
Cap/Depr(5y)48.19%
Cap/Sales(3y)2.91%
Cap/Sales(5y)2.73%
Profit Quality(3y)100.7%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.4%
EPS 3Y11.16%
EPS 5Y5.83%
EPS Q2Q%5.04%
EPS Next Y7.93%
EPS Next 2Y9.66%
EPS Next 3Y10.8%
EPS Next 5Y12.79%
Revenue 1Y (TTM)3.38%
Revenue growth 3Y-3.46%
Revenue growth 5Y-7.27%
Sales Q2Q%-3.05%
Revenue Next Year1.37%
Revenue Next 2Y3.54%
Revenue Next 3Y4.38%
Revenue Next 5Y5.73%
EBIT growth 1Y10.43%
EBIT growth 3Y7.04%
EBIT growth 5Y3.76%
EBIT Next Year33.02%
EBIT Next 3Y15.4%
EBIT Next 5Y12.41%
FCF growth 1Y11.36%
FCF growth 3Y-14.75%
FCF growth 5Y36.96%
OCF growth 1Y15.18%
OCF growth 3Y-12.03%
OCF growth 5Y23.73%
WYNDHAM HOTELS & RESORTS INC / WH FAQ
Can you provide the ChartMill fundamental rating for WYNDHAM HOTELS & RESORTS INC?
ChartMill assigns a fundamental rating of 6 / 10 to WH.
What is the valuation status for WH stock?
ChartMill assigns a valuation rating of 5 / 10 to WYNDHAM HOTELS & RESORTS INC (WH). This can be considered as Fairly Valued.
Can you provide the profitability details for WYNDHAM HOTELS & RESORTS INC?
WYNDHAM HOTELS & RESORTS INC (WH) has a profitability rating of 8 / 10.
How financially healthy is WYNDHAM HOTELS & RESORTS INC?
The financial health rating of WYNDHAM HOTELS & RESORTS INC (WH) is 5 / 10.
Can you provide the expected EPS growth for WH stock?
The Earnings per Share (EPS) of WYNDHAM HOTELS & RESORTS INC (WH) is expected to grow by 7.93% in the next year.