WYNDHAM HOTELS & RESORTS INC (WH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WH - US98311A1051 - Common Stock
73.84 USD
-0.06 (-0.08%)
73.84 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to WH. WH was compared to 132 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
In the past year WH was profitable.
In the past year WH had a positive cash flow from operations.
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
WH has a Return On Assets of 7.78%. This is in the better half of the industry: WH outperforms 76.52% of its industry peers.
WH has a Return On Equity of 57.98%. This is amongst the best in the industry. WH outperforms 91.67% of its industry peers.
The Return On Invested Capital of WH (11.47%) is better than 76.52% 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 10.41%.
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.
The Operating Margin of WH (41.30%) is better than 99.24% of its industry peers.
In the last couple of years the Operating Margin of WH has grown nicely.
With a decent Gross Margin value of 61.00%, WH is doing good in the industry, outperforming 74.24% of the companies in the same industry.
In the last couple of years the Gross Margin of WH has grown nicely.
| 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.
Compared to 1 year ago, WH has less shares outstanding
WH has less shares outstanding than it did 5 years ago.
WH has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.95 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 1.95. This is comparable to the rest of the industry: WH outperforms 56.06% 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.
With a decent Debt to FCF ratio value of 8.94, WH is doing good in the industry, outperforming 63.64% of the companies in the same industry.
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 (4.43) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.43 | ||
| Debt/FCF | 8.94 | ||
| Altman-Z | 1.95 |
ROIC/WACC1.5
WACC7.67%
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 61.36% 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 better Quick ratio (1.16) than 65.15% 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.
The Revenue has been growing slightly by 3.38% in the past year.
The Revenue has been decreasing by -7.27% on average over the past years.
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 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
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
With a Price/Earnings ratio of 15.74, WH is valued correctly.
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.
Compared to an average S&P500 Price/Earnings ratio of 26.15, WH is valued a bit cheaper.
A Price/Forward Earnings ratio of 14.01 indicates a correct valuation of WH.
Based on the Price/Forward Earnings ratio, WH is valued a bit cheaper than the industry average as 76.52% of the companies are valued more expensively.
WH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.74 | ||
| Fwd PE | 14.01 |
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.
71.97% 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 | 18.97 | ||
| EV/EBITDA | 12.4 |
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)1.83
PEG (5Y)2.7
EPS Next 2Y10.2%
EPS Next 3Y11.43%
5. Dividend
5.1 Amount
WH has a Yearly Dividend Yield of 2.23%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.38, WH pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, 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 2Y10.2%
EPS Next 3Y11.43%
73.84
-0.06 (-0.08%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners101.42%
Inst Owner Change2.78%
Ins Owners2.27%
Ins Owner Change0.72%
Market Cap5.58B
Revenue(TTM)1.44B
Net Income(TTM)338.00M
Analysts85.22
Price Target98.89 (33.92%)
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)-18.08%
EPS NQ rev (3m)-19.48%
EPS NY rev (1m)-3.02%
EPS NY rev (3m)-2.55%
Revenue NQ rev (1m)-3.17%
Revenue NQ rev (3m)-3.48%
Revenue NY rev (1m)-2.05%
Revenue NY rev (3m)-2.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.74 | ||
| Fwd PE | 14.01 | ||
| P/S | 3.88 | ||
| P/FCF | 18.97 | ||
| P/OCF | 15.98 | ||
| P/B | 9.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.4 |
EPS(TTM)4.69
EY6.35%
EPS(NY)5.27
Fwd EY7.14%
FCF(TTM)3.89
FCFY5.27%
OCF(TTM)4.62
OCFY6.26%
SpS19.01
BVpS7.72
TBVpS-32.77
PEG (NY)1.83
PEG (5Y)2.7
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 | 1.95 |
F-Score7
WACC7.67%
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.