WYNDHAM HOTELS & RESORTS INC (WH) Stock Fundamental Analysis
USA - NYSE:WH - US98311A1051 - Common Stock
74.78 USD
+0.02 (+0.03%)
74.78 USD
0 (0%)
WH gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 133 industry peers in the Hotels, Restaurants & Leisure industry. While WH has a great profitability rating, 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.
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 77.44% 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 93.98% of the companies in the same industry.
WH's Return On Invested Capital of 11.34% is fine compared to the rest of the industry. WH outperforms 75.94% 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 10.67%.
The last Return On Invested Capital (11.34%) 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 | 11.34% |
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
With an excellent Profit Margin value of 23.54%, WH belongs to the best of the industry, outperforming 96.99% of the companies in the same industry.
WH's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 41.30%, WH belongs to the top of the industry, outperforming 99.25% of the companies in the same industry.
In the last couple of years the Operating Margin of WH has grown nicely.
WH's Gross Margin of 61.00% is fine compared to the rest of the industry. WH outperforms 72.93% 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.
The number of shares outstanding for WH has been reduced compared to 1 year ago.
WH has less shares outstanding than it did 5 years ago.
WH has a worse debt/assets ratio than last year.
2.2 Solvency
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.
With a decent Debt to FCF ratio value of 8.94, WH is doing good in the industry, outperforming 63.16% of the companies in the same industry.
WH has a Debt/Equity ratio of 4.51. This is a high value indicating a heavy dependency on external financing.
WH has a Debt to Equity ratio (4.51) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.51 | ||
| Debt/FCF | 8.94 | ||
| Altman-Z | N/A |
ROIC/WACC1.48
WACC7.68%
2.3 Liquidity
A Current Ratio of 1.01 indicates that WH should not have too much problems paying its short term obligations.
WH's Current ratio of 1.01 is in line compared to the rest of the industry. WH outperforms 54.14% of its industry peers.
A Quick Ratio of 1.01 indicates that WH should not have too much problems paying its short term obligations.
WH has a Quick ratio (1.01) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 1.01 |
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.
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
Based on estimates for the next years, WH will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.77% on average per year.
The Revenue is expected to grow by 6.70% on average over the next years.
EPS Next Y11.96%
EPS Next 2Y12.6%
EPS Next 3Y12.52%
EPS Next 5Y13.77%
Revenue Next Year3.71%
Revenue Next 2Y4.79%
Revenue Next 3Y5.4%
Revenue Next 5Y6.7%
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
WH is valuated correctly with a Price/Earnings ratio of 15.94.
76.69% of the companies in the same industry are more expensive than WH, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.08. WH is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 13.59 indicates a correct valuation of WH.
Based on the Price/Forward Earnings ratio, WH is valued a bit cheaper than the industry average as 75.94% of the companies are valued more expensively.
WH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.09, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.94 | ||
| Fwd PE | 13.59 |
4.2 Price Multiples
WH's Enterprise Value to EBITDA is on the same level as the industry average.
75.94% 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 | 19.42 | ||
| EV/EBITDA | 12.6 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of WH may justify a higher PE ratio.
WH's earnings are expected to grow with 12.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.33
PEG (5Y)2.74
EPS Next 2Y12.6%
EPS Next 3Y12.52%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.19%, WH has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.90, WH pays a bit more dividend than its industry peers.
WH's Dividend Yield is comparable with the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.19% |
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 2Y12.6%
EPS Next 3Y12.52%
74.78
+0.02 (+0.03%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners101.42%
Inst Owner Change-0.38%
Ins Owners2.27%
Ins Owner Change2.16%
Market Cap5.71B
Revenue(TTM)1.44B
Net Income(TTM)338.00M
Analysts85.22
Price Target107.46 (43.7%)
Short Float %6.14%
Short Ratio4.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.19% |
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)4.72%
Min EPS beat(2)-1.31%
Max EPS beat(2)10.76%
EPS beat(4)3
Avg EPS beat(4)3.46%
Min EPS beat(4)-1.31%
Max EPS beat(4)10.76%
EPS beat(8)5
Avg EPS beat(8)2.24%
EPS beat(12)8
Avg EPS beat(12)2.92%
EPS beat(16)12
Avg EPS beat(16)7.92%
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)0%
PT rev (3m)0.32%
EPS NQ rev (1m)-1.72%
EPS NQ rev (3m)-7.1%
EPS NY rev (1m)-0.44%
EPS NY rev (3m)0.48%
Revenue NQ rev (1m)-0.32%
Revenue NQ rev (3m)-1.06%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.94 | ||
| Fwd PE | 13.59 | ||
| P/S | 3.98 | ||
| P/FCF | 19.42 | ||
| P/OCF | 16.36 | ||
| P/B | 9.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.6 |
EPS(TTM)4.69
EY6.27%
EPS(NY)5.5
Fwd EY7.36%
FCF(TTM)3.85
FCFY5.15%
OCF(TTM)4.57
OCFY6.11%
SpS18.81
BVpS7.63
TBVpS-32.43
PEG (NY)1.33
PEG (5Y)2.74
Graham Number28.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.78% | ||
| ROE | 57.98% | ||
| ROCE | 15.01% | ||
| ROIC | 11.34% | ||
| ROICexc | 11.54% | ||
| ROICexgc | 54.45% | ||
| 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 | 4.51 | ||
| Debt/FCF | 8.94 | ||
| Debt/EBITDA | 4 | ||
| Cap/Depr | 87.3% | ||
| Cap/Sales | 3.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 53.2% | ||
| Profit Quality | 86.98% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | N/A |
F-Score7
WACC7.68%
ROIC/WACC1.48
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 Y11.96%
EPS Next 2Y12.6%
EPS Next 3Y12.52%
EPS Next 5Y13.77%
Revenue 1Y (TTM)3.38%
Revenue growth 3Y-3.46%
Revenue growth 5Y-7.27%
Sales Q2Q%-3.05%
Revenue Next Year3.71%
Revenue Next 2Y4.79%
Revenue Next 3Y5.4%
Revenue Next 5Y6.7%
EBIT growth 1Y10.43%
EBIT growth 3Y7.04%
EBIT growth 5Y3.76%
EBIT Next Year35.92%
EBIT Next 3Y16.25%
EBIT Next 5Y13.17%
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 6 / 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 4 / 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 11.96% in the next year.