WYNDHAM HOTELS & RESORTS INC (WH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WH - US98311A1051 - Common Stock
72.12 USD
-0.22 (-0.3%)
72.12 USD
0 (0%)
Taking everything into account, WH scores 6 out of 10 in our fundamental rating. WH was compared to 131 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 has a decent growth rate and is not valued too expensively.
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.
Of the past 5 years WH 4 years were profitable.
In the past 5 years WH always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of WH (7.78%) is better than 76.34% of its industry peers.
Looking at the Return On Equity, with a value of 57.98%, WH belongs to the top of the industry, outperforming 91.60% of the companies in the same industry.
With a decent Return On Invested Capital value of 11.47%, WH is doing good in the industry, outperforming 76.34% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WH is in line with the industry average of 10.43%.
The last Return On Invested Capital (11.47%) for WH is above the 3 year average (10.92%), which is a sign of increasing profitability.
| 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 has a better Profit Margin (23.54%) than 95.42% 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 99.24% 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 73.28% 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.
WH has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.93 indicates that WH is not a great score, but indicates only limited risk for bankruptcy at the moment.
WH has a Altman-Z score of 1.93. This is comparable to the rest of the industry: WH outperforms 55.73% 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.
WH's Debt to FCF ratio of 8.94 is fine compared to the rest of the industry. WH outperforms 64.12% of its industry peers.
WH has a Debt/Equity ratio of 4.43. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of WH (4.43) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.43 | ||
| Debt/FCF | 8.94 | ||
| Altman-Z | 1.93 |
ROIC/WACC1.43
WACC8.02%
2.3 Liquidity
A Current Ratio of 1.16 indicates that WH should not have too much problems paying its short term obligations.
WH's Current ratio of 1.16 is fine compared to the rest of the industry. WH outperforms 61.07% of its industry peers.
WH has a Quick Ratio of 1.16. This is a normal value and indicates that WH is financially healthy and should not expect problems in meeting its short term obligations.
WH has a Quick ratio of 1.16. This is in the better half of the industry: WH outperforms 64.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.40% over the past year.
The Earnings Per Share has been growing slightly by 5.83% on average over the past years.
WH shows a small growth in Revenue. In the last year, the Revenue has grown by 3.38%.
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
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
Based on the Price/Earnings ratio of 15.38, the valuation of WH can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of WH indicates a somewhat cheap valuation: WH is cheaper than 77.10% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.49. WH is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 13.82, the valuation of WH can be described as correct.
WH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WH is cheaper than 78.63% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.69. WH is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.38 | ||
| Fwd PE | 13.82 |
4.2 Price Multiples
WH's Enterprise Value to EBITDA ratio is in line with the industry average.
71.76% 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 | 18.53 | ||
| EV/EBITDA | 12.2 |
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.
WH has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.94
PEG (5Y)2.64
EPS Next 2Y9.66%
EPS Next 3Y10.8%
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 3.84, WH pays a better dividend. On top of this WH pays more dividend than 80.92% of the companies listed in the same industry.
WH's Dividend Yield is comparable with the S&P500 average which is at 2.31.
| 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
WH pays out 37.28% of its income as dividend. This is a sustainable payout ratio.
WH's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP37.28%
EPS Next 2Y9.66%
EPS Next 3Y10.8%
72.12
-0.22 (-0.3%)
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-0.41%
Market Cap5.45B
Revenue(TTM)1.44B
Net Income(TTM)338.00M
Analysts84.17
Price Target96.44 (33.72%)
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 | 15.38 | ||
| Fwd PE | 13.82 | ||
| P/S | 3.79 | ||
| P/FCF | 18.53 | ||
| P/OCF | 15.61 | ||
| P/B | 9.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.2 |
EPS(TTM)4.69
EY6.5%
EPS(NY)5.22
Fwd EY7.24%
FCF(TTM)3.89
FCFY5.4%
OCF(TTM)4.62
OCFY6.41%
SpS19.01
BVpS7.72
TBVpS-32.77
PEG (NY)1.94
PEG (5Y)2.64
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 | 1.93 |
F-Score7
WACC8.02%
ROIC/WACC1.43
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.