WYNDHAM HOTELS & RESORTS INC (WH) Stock Fundamental Analysis
NYSE:WH - New York Stock Exchange, Inc. - US98311A1051 - Common Stock - Currency: USD
Overall WH gets a fundamental rating of 5 out of 10. We evaluated WH against 134 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 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.
In the past year WH had a positive cash flow from operations.
WH had positive earnings in 4 of the past 5 years.
Each year in the past 5 years WH had a positive operating cash flow.
1.2 Ratios
WH has a Return On Assets of 6.09%. This is in the better half of the industry: WH outperforms 75.57% of its industry peers.
Looking at the Return On Equity, with a value of 43.40%, WH belongs to the top of the industry, outperforming 93.13% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.70%, WH is in the better half of the industry, outperforming 74.05% of the companies in the same industry.
WH had an Average Return On Invested Capital over the past 3 years of 9.88%. This is in line with the industry average of 10.59%.
The last Return On Invested Capital (10.70%) for WH is above the 3 year average (9.88%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.09% | ||
| ROE | 43.4% | ||
| ROIC | 10.7% |
ROA(3y)7.16%
ROA(5y)4.42%
ROE(3y)32.68%
ROE(5y)19.46%
ROIC(3y)9.88%
ROIC(5y)8.32%
1.3 Margins
WH has a better Profit Margin (18.21%) than 93.13% of its industry peers.
In the last couple of years the Profit Margin of WH has grown nicely.
WH has a better Operating Margin (38.66%) than 99.24% of its industry peers.
WH's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 59.47%, WH is doing good in the industry, outperforming 71.76% of the companies in the same industry.
WH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.66% | ||
| PM (TTM) | 18.21% | ||
| GM | 59.47% |
OM growth 3Y32.08%
OM growth 5Y11.7%
PM growth 3YN/A
PM growth 5Y18.99%
GM growth 3Y14.24%
GM growth 5Y7.24%
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.
The number of shares outstanding for WH has been reduced compared to 5 years ago.
WH has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.34 indicates that WH is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.34, WH is in the better half of the industry, outperforming 64.89% of the companies in the same industry.
The Debt to FCF ratio of WH is 10.11, which is on the high side as it means it would take WH, 10.11 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 10.11, WH is doing good in the industry, outperforming 60.31% of the companies in the same industry.
A Debt/Equity ratio of 4.19 is on the high side and indicates that WH has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 4.19, WH is in line with its industry, outperforming 41.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.19 | ||
| Debt/FCF | 10.11 | ||
| Altman-Z | 2.34 |
ROIC/WACC1.33
WACC8.02%
2.3 Liquidity
A Current Ratio of 0.97 indicates that WH may have some problems paying its short term obligations.
WH has a Current ratio (0.97) which is comparable to the rest of the industry.
A Quick Ratio of 0.97 indicates that WH may have some problems paying its short term obligations.
WH has a Quick ratio (0.97) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.21% over the past year.
The Earnings Per Share has been growing by 16.01% on average over the past years. This is quite good.
Looking at the last year, WH shows a decrease in Revenue. The Revenue has decreased by -1.56% in the last year.
WH shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.65% yearly.
EPS 1Y (TTM)10.21%
EPS 3Y57.31%
EPS 5Y16.01%
EPS Q2Q%6.11%
Revenue 1Y (TTM)-1.56%
Revenue growth 3Y2.43%
Revenue growth 5Y-5.65%
Sales Q2Q%-1.99%
3.2 Future
The Earnings Per Share is expected to grow by 13.64% on average over the next years. This is quite good.
Based on estimates for the next years, WH will show a small growth in Revenue. The Revenue will grow by 5.75% on average per year.
EPS Next Y10.14%
EPS Next 2Y10.79%
EPS Next 3Y11.8%
EPS Next 5Y13.64%
Revenue Next Year1.18%
Revenue Next 2Y3.55%
Revenue Next 3Y4.47%
Revenue Next 5Y5.75%
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 stable.
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
A Price/Earnings ratio of 25.22 indicates a quite expensive valuation of WH.
Based on the Price/Earnings ratio, WH is valued a bit cheaper than the industry average as 61.83% of the companies are valued more expensively.
WH's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.47.
WH is valuated rather expensively with a Price/Forward Earnings ratio of 21.58.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WH indicates a somewhat cheap valuation: WH is cheaper than 63.36% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 92.74, WH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.22 | ||
| Fwd PE | 21.58 |
4.2 Price Multiples
61.83% of the companies in the same industry are cheaper than WH, based on the Enterprise Value to EBITDA ratio.
61.07% of the companies in the same industry are more expensive than WH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.58 | ||
| EV/EBITDA | 17.45 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
WH has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.49
PEG (5Y)1.58
EPS Next 2Y10.79%
EPS Next 3Y11.8%
5. Dividend
5.1 Amount
WH has a Yearly Dividend Yield of 1.46%.
WH's Dividend Yield is a higher than the industry average which is at 3.09.
Compared to the average S&P500 Dividend Yield of 2.28, WH is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
5.2 History
The dividend of WH is nicely growing with an annual growth rate of 12.58%!
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)12.58%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
WH pays out 47.43% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of WH is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP47.43%
EPS Next 2Y10.79%
EPS Next 3Y11.8%
WYNDHAM HOTELS & RESORTS INC
NYSE:WH (2/5/2025, 11:46:16 AM)
106.19
+0.16 (+0.15%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners97.03%
Inst Owner Change-0.15%
Ins Owners2.2%
Ins Owner Change0.89%
Market Cap8.26B
Analysts83.33
Price Target110.16 (3.74%)
Short Float %3.68%
Short Ratio4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
Yearly Dividend1.41
Dividend Growth(5Y)12.58%
DP47.43%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.01%
Min EPS beat(2)-2.03%
Max EPS beat(2)6.05%
EPS beat(4)2
Avg EPS beat(4)1.01%
Min EPS beat(4)-2.03%
Max EPS beat(4)6.05%
EPS beat(8)5
Avg EPS beat(8)2.65%
EPS beat(12)9
Avg EPS beat(12)9.4%
EPS beat(16)13
Avg EPS beat(16)16.61%
Revenue beat(2)0
Avg Revenue beat(2)-5.69%
Min Revenue beat(2)-7.52%
Max Revenue beat(2)-3.85%
Revenue beat(4)0
Avg Revenue beat(4)-4.61%
Min Revenue beat(4)-7.52%
Max Revenue beat(4)-2.82%
Revenue beat(8)1
Avg Revenue beat(8)-3.86%
Revenue beat(12)4
Avg Revenue beat(12)-1.51%
Revenue beat(16)4
Avg Revenue beat(16)-2.51%
PT rev (1m)1.95%
PT rev (3m)20.29%
EPS NQ rev (1m)-0.41%
EPS NQ rev (3m)-0.08%
EPS NY rev (1m)0.09%
EPS NY rev (3m)0.23%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.22 | ||
| Fwd PE | 21.58 | ||
| P/S | 5.95 | ||
| P/FCF | 33.58 | ||
| P/OCF | 29.61 | ||
| P/B | 14.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.45 |
EPS(TTM)4.21
EY3.96%
EPS(NY)4.92
Fwd EY4.63%
FCF(TTM)3.16
FCFY2.98%
OCF(TTM)3.59
OCFY3.38%
SpS17.86
BVpS7.49
TBVpS-32.15
PEG (NY)2.49
PEG (5Y)1.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.09% | ||
| ROE | 43.4% | ||
| ROCE | 14.53% | ||
| ROIC | 10.7% | ||
| ROICexc | 10.91% | ||
| ROICexgc | 73.32% | ||
| OM | 38.66% | ||
| PM (TTM) | 18.21% | ||
| GM | 59.47% | ||
| FCFM | 17.71% |
ROA(3y)7.16%
ROA(5y)4.42%
ROE(3y)32.68%
ROE(5y)19.46%
ROIC(3y)9.88%
ROIC(5y)8.32%
ROICexc(3y)10.23%
ROICexc(5y)8.66%
ROICexgc(3y)83.8%
ROICexgc(5y)69.58%
ROCE(3y)13.42%
ROCE(5y)11.3%
ROICexcg growth 3Y51.29%
ROICexcg growth 5Y4.28%
ROICexc growth 3Y39%
ROICexc growth 5Y7.75%
OM growth 3Y32.08%
OM growth 5Y11.7%
PM growth 3YN/A
PM growth 5Y18.99%
GM growth 3Y14.24%
GM growth 5Y7.24%
F-Score5
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.19 | ||
| Debt/FCF | 10.11 | ||
| Debt/EBITDA | 3.99 | ||
| Cap/Depr | 44.59% | ||
| Cap/Sales | 2.38% | ||
| Interest Coverage | 4.4 | ||
| Cash Conversion | 45.66% | ||
| Profit Quality | 97.23% | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 2.34 |
F-Score5
WACC8.02%
ROIC/WACC1.33
Cap/Depr(3y)46.09%
Cap/Depr(5y)43.57%
Cap/Sales(3y)2.54%
Cap/Sales(5y)2.52%
Profit Quality(3y)126.05%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)10.21%
EPS 3Y57.31%
EPS 5Y16.01%
EPS Q2Q%6.11%
EPS Next Y10.14%
EPS Next 2Y10.79%
EPS Next 3Y11.8%
EPS Next 5Y13.64%
Revenue 1Y (TTM)-1.56%
Revenue growth 3Y2.43%
Revenue growth 5Y-5.65%
Sales Q2Q%-1.99%
Revenue Next Year1.18%
Revenue Next 2Y3.55%
Revenue Next 3Y4.47%
Revenue Next 5Y5.75%
EBIT growth 1Y7.83%
EBIT growth 3Y35.28%
EBIT growth 5Y5.4%
EBIT Next Year28.28%
EBIT Next 3Y13.34%
EBIT Next 5Y11.23%
FCF growth 1Y-39.41%
FCF growth 3Y115.23%
FCF growth 5Y16.5%
OCF growth 1Y-37.72%
OCF growth 3Y77.71%
OCF growth 5Y10.23%