WYNDHAM HOTELS & RESORTS INC (WH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WH - US98311A1051 - Common Stock
75.56 USD
-1.03 (-1.34%)
75.5 USD
-0.06 (-0.08%)
Overall WH gets a fundamental rating of 6 out of 10. We evaluated WH against 133 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.
In the past year WH had a positive cash flow from operations.
WH had positive earnings in 4 of the past 5 years.
WH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WH has a Return On Assets of 7.78%. This is in the better half of the industry: WH outperforms 76.69% of its industry peers.
WH has a Return On Equity of 57.98%. This is amongst the best in the industry. WH outperforms 91.73% of its industry peers.
With a decent Return On Invested Capital value of 11.47%, WH is doing good in the industry, outperforming 76.69% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for WH is in line with the industry average of 10.39%.
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
The Profit Margin of WH (23.54%) is better than 95.49% of its industry peers.
WH's Profit Margin has improved in the last couple of years.
WH's Operating Margin of 41.30% is amongst the best of the industry. WH outperforms 99.25% of its industry peers.
In the last couple of years the Operating Margin of WH has grown nicely.
WH has a better Gross Margin (61.00%) than 74.44% of its industry peers.
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
Compared to 5 years ago, WH has less shares outstanding
WH has a worse debt/assets ratio than last year.
2.2 Solvency
WH has an Altman-Z score of 1.97. 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.
With a Altman-Z score value of 1.97, WH perfoms like the industry average, outperforming 58.65% of the companies in the same industry.
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.
The Debt to FCF ratio of WH (8.94) is better than 65.41% 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.
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 | 1.97 |
ROIC/WACC1.4
WACC8.19%
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.
Looking at the Current ratio, with a value of 1.16, WH is in the better half of the industry, outperforming 61.65% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 1.16, WH is in the better half of the industry, outperforming 64.66% of the companies in the same industry.
| 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.
WH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.83% yearly.
Looking at the last year, WH shows a small growth in Revenue. The Revenue has grown by 3.38% in the last 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 Y7.92%
EPS Next 2Y9.59%
EPS Next 3Y10.71%
EPS Next 5Y12.79%
Revenue Next Year1.37%
Revenue Next 2Y3.57%
Revenue Next 3Y4.4%
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.
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
With a Price/Earnings ratio of 16.11, WH is valued correctly.
78.20% of the companies in the same industry are more expensive than WH, based on the Price/Earnings ratio.
WH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.51.
WH is valuated correctly with a Price/Forward Earnings ratio of 14.50.
Based on the Price/Forward Earnings ratio, WH is valued a bit cheaper than the industry average as 78.20% of the companies are valued more expensively.
WH's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.11 | ||
| Fwd PE | 14.5 |
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.
Based on the Price/Free Cash Flow ratio, WH is valued a bit cheaper than 73.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.42 | ||
| EV/EBITDA | 12.6 |
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)2.03
PEG (5Y)2.77
EPS Next 2Y9.59%
EPS Next 3Y10.71%
5. Dividend
5.1 Amount
WH has a Yearly Dividend Yield of 2.14%. Purely for dividend investing, there may be better candidates out there.
WH's Dividend Yield is rather good when compared to the industry average which is at 1.66. WH pays more dividend than 81.95% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, WH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
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 2Y9.59%
EPS Next 3Y10.71%
75.56
-1.03 (-1.34%)
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-0.6%
Market Cap5.71B
Revenue(TTM)1.44B
Net Income(TTM)338.00M
Analysts84.17
Price Target95.66 (26.6%)
Short Float %9.21%
Short Ratio5.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
Yearly Dividend1.53
Dividend Growth(5Y)5.55%
DP37.28%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
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)-3.27%
PT rev (3m)-10.98%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)-19.46%
EPS NY rev (1m)-0.61%
EPS NY rev (3m)-4.03%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-3.41%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-2.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.11 | ||
| Fwd PE | 14.5 | ||
| 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
EY6.21%
EPS(NY)5.21
Fwd EY6.9%
FCF(TTM)3.89
FCFY5.15%
OCF(TTM)4.62
OCFY6.11%
SpS19.01
BVpS7.72
TBVpS-32.77
PEG (NY)2.03
PEG (5Y)2.77
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 | 1.97 |
F-Score7
WACC8.19%
ROIC/WACC1.4
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 Y7.92%
EPS Next 2Y9.59%
EPS Next 3Y10.71%
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 2Y3.57%
Revenue Next 3Y4.4%
Revenue Next 5Y5.73%
EBIT growth 1Y10.43%
EBIT growth 3Y7.04%
EBIT growth 5Y3.76%
EBIT Next Year33.05%
EBIT Next 3Y15.41%
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.
Can you provide the valuation status for WYNDHAM HOTELS & RESORTS INC?
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.
Can you provide the PE and PB ratios for WH stock?
The Price/Earnings (PE) ratio for WYNDHAM HOTELS & RESORTS INC (WH) is 16.11 and the Price/Book (PB) ratio is 9.79.
Is the dividend of WYNDHAM HOTELS & RESORTS INC sustainable?
The dividend rating of WYNDHAM HOTELS & RESORTS INC (WH) is 6 / 10 and the dividend payout ratio is 37.28%.