WYNDHAM HOTELS & RESORTS INC (WH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WH - US98311A1051 - Common Stock
73.52 USD
+1.15 (+1.59%)
73.52 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 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.
In the past year WH had a positive cash flow from operations.
Of the past 5 years WH 4 years were profitable.
Each year in the past 5 years WH had a positive operating cash flow.
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 76.34% of the companies in the same industry.
WH has a better Return On Equity (57.98%) than 91.60% of its industry peers.
WH has a Return On Invested Capital of 11.47%. This is in the better half of the industry: WH outperforms 76.34% 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 10.43%.
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 Profit Margin of 23.54%. This is amongst the best in the industry. WH outperforms 95.42% of its industry peers.
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 99.24% 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 73.28% 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
WH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, WH has less shares outstanding
The number of shares outstanding for WH has been reduced compared to 5 years ago.
The debt/assets ratio for WH is higher compared to a year ago.
2.2 Solvency
WH has an Altman-Z score of 1.93. 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.
WH has a Altman-Z score (1.93) which is in line with 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.
The Debt to FCF ratio of WH (8.94) is better than 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.
WH has a Debt to Equity ratio of 4.43. This is comparable to the rest of the industry: WH outperforms 41.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.43 | ||
| Debt/FCF | 8.94 | ||
| Altman-Z | 1.93 |
ROIC/WACC1.43
WACC8.04%
2.3 Liquidity
A Current Ratio of 1.16 indicates that WH should not have too much problems paying 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 61.07% 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 64.12% 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 Y7.93%
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
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 15.68, the valuation of WH can be described as correct.
Based on the Price/Earnings ratio, WH is valued a bit cheaper than the industry average as 77.10% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.59. WH is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 14.09, which indicates a correct valuation of WH.
77.86% of the companies in the same industry are more expensive than WH, based on the Price/Forward Earnings ratio.
WH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.80, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.68 | ||
| Fwd PE | 14.09 |
4.2 Price Multiples
WH's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WH indicates a somewhat cheap valuation: WH is cheaper than 72.52% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.89 | ||
| EV/EBITDA | 12.23 |
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)1.98
PEG (5Y)2.69
EPS Next 2Y9.66%
EPS Next 3Y10.8%
5. Dividend
5.1 Amount
WH has a Yearly Dividend Yield of 2.23%.
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%
73.52
+1.15 (+1.59%)
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 Cap5.55B
Revenue(TTM)1.44B
Net Income(TTM)338.00M
Analysts84.17
Price Target96.44 (31.18%)
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 | 15.68 | ||
| Fwd PE | 14.09 | ||
| P/S | 3.87 | ||
| P/FCF | 18.89 | ||
| P/OCF | 15.92 | ||
| P/B | 9.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.23 |
EPS(TTM)4.69
EY6.38%
EPS(NY)5.22
Fwd EY7.1%
FCF(TTM)3.89
FCFY5.29%
OCF(TTM)4.62
OCFY6.28%
SpS19.01
BVpS7.72
TBVpS-32.77
PEG (NY)1.98
PEG (5Y)2.69
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
WACC8.04%
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.