WYNDHAM HOTELS & RESORTS INC (WH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WH - US98311A1051 - Common Stock
76.65 USD
+0.07 (+0.09%)
76.65 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to WH. WH was compared to 133 industry peers in the Hotels, Restaurants & Leisure industry. While WH belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. WH is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year WH was profitable.
WH had a positive operating cash flow in the past year.
Of the past 5 years WH 4 years were profitable.
Each year in the past 5 years WH had a positive operating cash flow.
1.2 Ratios
WH's Return On Assets of 7.78% is fine compared to the rest of the industry. WH outperforms 76.69% of its industry peers.
WH's Return On Equity of 57.98% is amongst the best of the industry. WH outperforms 91.73% of its industry peers.
WH has a better Return On Invested Capital (11.47%) than 76.69% of its industry peers.
WH had an Average Return On Invested Capital over the past 3 years of 10.92%. This is in line with the industry average of 10.41%.
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
WH's Profit Margin of 23.54% is amongst the best of the industry. WH outperforms 95.49% of its industry peers.
WH's Profit Margin has improved in the last couple of years.
The Operating Margin of WH (41.30%) is better than 99.25% of its industry peers.
WH's Operating Margin has improved in the last couple of years.
WH's Gross Margin of 61.00% is fine compared to the rest of the industry. WH outperforms 73.68% 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
WH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for WH has been reduced compared to 1 year ago.
Compared to 5 years ago, WH has less shares outstanding
The debt/assets ratio for WH is higher compared to a year ago.
2.2 Solvency
WH has an Altman-Z score of 1.98. This is not the best score and indicates that WH is in the grey zone with still only limited risk for bankruptcy at the moment.
WH has a Altman-Z score of 1.98. This is comparable to the rest of the industry: WH outperforms 56.39% 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.
The Debt to FCF ratio of WH (8.94) is better than 65.41% of its industry peers.
A Debt/Equity ratio of 4.43 is on the high side and indicates that WH has dependencies on debt financing.
WH's Debt to Equity ratio of 4.43 is in line compared to the rest of the industry. WH outperforms 42.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.43 | ||
| Debt/FCF | 8.94 | ||
| Altman-Z | 1.98 |
ROIC/WACC1.42
WACC8.05%
2.3 Liquidity
A Current Ratio of 1.16 indicates that WH should not have too much problems paying its short term obligations.
WH has a better Current ratio (1.16) than 61.65% 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 64.66% 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.
WH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.83% yearly.
The Revenue has been growing slightly by 3.38% in the past year.
Measured over the past years, WH shows a decrease in Revenue. The Revenue has been decreasing by -7.27% on average per year.
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
WH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.79% yearly.
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 Y7.92%
EPS Next 2Y9.59%
EPS Next 3Y10.71%
EPS Next 5Y12.79%
Revenue Next Year1.37%
Revenue Next 2Y3.57%
Revenue Next 3Y4.4%
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.
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
With a Price/Earnings ratio of 16.34, WH is valued correctly.
76.69% of the companies in the same industry are more expensive than WH, based on the Price/Earnings ratio.
WH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.57.
With a Price/Forward Earnings ratio of 14.71, WH is valued correctly.
Based on the Price/Forward Earnings ratio, WH is valued a bit cheaper than the industry average as 77.44% of the companies are valued more expensively.
WH's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.34 | ||
| Fwd PE | 14.71 |
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 72.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.7 | ||
| EV/EBITDA | 12.72 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WH does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of WH may justify a higher PE ratio.
PEG (NY)2.06
PEG (5Y)2.81
EPS Next 2Y9.59%
EPS Next 3Y10.71%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.23%, WH has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.52, WH pays a better dividend. On top of this WH pays more dividend than 82.71% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.88, WH has a dividend comparable with the average S&P500 company.
| 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.
WH's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP37.28%
EPS Next 2Y9.59%
EPS Next 3Y10.71%
76.65
+0.07 (+0.09%)
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 Cap5.79B
Revenue(TTM)1.44B
Net Income(TTM)338.00M
Analysts84.17
Price Target95.66 (24.8%)
Short Float %7.86%
Short Ratio4.65
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)-3.27%
PT rev (3m)-10.98%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)-19.46%
EPS NY rev (1m)-0.61%
EPS NY rev (3m)-4.03%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-3.41%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-2.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.34 | ||
| Fwd PE | 14.71 | ||
| P/S | 4.03 | ||
| P/FCF | 19.7 | ||
| P/OCF | 16.59 | ||
| P/B | 9.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.72 |
EPS(TTM)4.69
EY6.12%
EPS(NY)5.21
Fwd EY6.8%
FCF(TTM)3.89
FCFY5.08%
OCF(TTM)4.62
OCFY6.03%
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 | 1.98 |
F-Score7
WACC8.05%
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 Y7.92%
EPS Next 2Y9.59%
EPS Next 3Y10.71%
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 2Y3.57%
Revenue Next 3Y4.4%
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 7.92% in the next year.