WYNDHAM HOTELS & RESORTS INC (WH) Stock Fundamental Analysis
USA - NYSE:WH - US98311A1051 - Common Stock
73.02 USD
+3.71 (+5.35%)
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
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.
In the past 5 years WH always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.78%, WH is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
The Return On Equity of WH (57.98%) is better than 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 75.76% 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 10.61%.
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
Looking at the Profit Margin, with a value of 23.54%, WH belongs to the top of the industry, outperforming 95.45% of the companies in the same industry.
In the last couple of years the Profit Margin of WH has grown nicely.
WH has a Operating Margin of 41.30%. This is amongst the best in the industry. WH outperforms 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 61.00%, WH is doing good in the industry, outperforming 73.48% of the companies in the same industry.
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.
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.
Compared to 1 year ago, WH has a worse debt to assets ratio.
2.2 Solvency
WH has an Altman-Z score of 1.90. 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.
Looking at the Altman-Z score, with a value of 1.90, WH is in line with its industry, outperforming 56.82% of the companies in the same industry.
The Debt to FCF ratio of WH is 8.94, which is on the high side as it means it would take WH, 8.94 years of fcf income to pay off all of its debts.
WH has a Debt to FCF ratio of 8.94. This is in the better half of the industry: WH outperforms 63.64% 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 has a Debt to Equity ratio of 4.43. This is comparable to the rest of the industry: WH outperforms 42.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.43 | ||
| Debt/FCF | 8.94 | ||
| Altman-Z | 1.9 |
ROIC/WACC1.5
WACC7.63%
2.3 Liquidity
WH has a Current 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 Current ratio of 1.16. This is in the better half of the industry: WH outperforms 60.61% 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 64.39% 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.
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.
Looking at the last year, WH shows a small growth in Revenue. The Revenue has grown by 3.38% in the last 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
The Earnings Per Share is expected to grow by 12.79% on average over the next years. This is quite good.
WH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.73% yearly.
EPS Next Y8.58%
EPS Next 2Y10.2%
EPS Next 3Y11.43%
EPS Next 5Y12.79%
Revenue Next Year1.58%
Revenue Next 2Y3.71%
Revenue Next 3Y4.57%
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
Based on the Price/Earnings ratio of 15.57, 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 77.27% of the companies listed in the same industry.
WH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.07.
WH is valuated correctly with a Price/Forward Earnings ratio of 13.85.
75.76% of the companies in the same industry are more expensive than WH, based on the Price/Forward Earnings ratio.
WH is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.57 | ||
| Fwd PE | 13.85 |
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 74.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.97 | ||
| EV/EBITDA | 11.97 |
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)1.81
PEG (5Y)2.67
EPS Next 2Y10.2%
EPS Next 3Y11.43%
5. Dividend
5.1 Amount
WH has a Yearly Dividend Yield of 2.23%.
The stock price of WH dropped by -22.11% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 4.59, WH pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, 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
WH pays out 37.28% of its income as dividend. This is a sustainable payout ratio.
The dividend of WH is growing, but earnings are growing more, so the dividend growth is sustainable.
DP37.28%
EPS Next 2Y10.2%
EPS Next 3Y11.43%
NYSE:WH (11/21/2025, 1:03:03 PM)
73.02
+3.71 (+5.35%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners101.42%
Inst Owner Change1.89%
Ins Owners2.27%
Ins Owner Change0.84%
Market Cap5.58B
Revenue(TTM)1.44B
Net Income(TTM)338.00M
Analysts85.22
Price Target98.89 (35.43%)
Short Float %7.57%
Short Ratio4.99
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)-7.97%
PT rev (3m)-7.97%
EPS NQ rev (1m)-18.86%
EPS NQ rev (3m)-19.39%
EPS NY rev (1m)-3.44%
EPS NY rev (3m)-2.55%
Revenue NQ rev (1m)-3.12%
Revenue NQ rev (3m)-3.17%
Revenue NY rev (1m)-2.25%
Revenue NY rev (3m)-2.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.57 | ||
| Fwd PE | 13.85 | ||
| P/S | 3.88 | ||
| P/FCF | 18.97 | ||
| P/OCF | 15.98 | ||
| P/B | 9.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.97 |
EPS(TTM)4.69
EY6.42%
EPS(NY)5.27
Fwd EY7.22%
FCF(TTM)3.85
FCFY5.27%
OCF(TTM)4.57
OCFY6.26%
SpS18.81
BVpS7.63
TBVpS-32.43
PEG (NY)1.81
PEG (5Y)2.67
Graham Number28.38
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 | 1.9 |
F-Score7
WACC7.63%
ROIC/WACC1.5
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 Y8.58%
EPS Next 2Y10.2%
EPS Next 3Y11.43%
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 Year1.58%
Revenue Next 2Y3.71%
Revenue Next 3Y4.57%
Revenue Next 5Y5.73%
EBIT growth 1Y10.43%
EBIT growth 3Y7.04%
EBIT growth 5Y3.76%
EBIT Next Year35.92%
EBIT Next 3Y16.25%
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 8.58% in the next year.