WYNDHAM HOTELS & RESORTS INC (WH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WH - US98311A1051 - Common Stock
72.91 USD
-0.29 (-0.4%)
72.91 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. WH scores excellent on profitability, but 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 better Return On Assets (7.78%) than 76.52% of its industry peers.
WH's Return On Equity of 57.98% is amongst the best of 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.
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 10.42%.
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's Profit Margin of 23.54% is amongst the best of the industry. WH outperforms 95.45% of its industry peers.
In the last couple of years the Profit Margin of WH has grown nicely.
WH's Operating Margin of 41.30% is amongst the best of the industry. WH outperforms 99.24% 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 74.24% 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
WH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
WH has less shares outstanding than it did 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
WH has an Altman-Z score of 1.94. 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's Altman-Z score of 1.94 is in line compared to the rest of the industry. WH outperforms 56.06% of its industry peers.
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 64.39% 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 (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 | 1.94 |
ROIC/WACC1.48
WACC7.77%
2.3 Liquidity
A Current Ratio of 1.16 indicates that WH should not have too much problems paying 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.
With a decent Quick ratio value of 1.16, WH is doing good in the industry, outperforming 65.15% 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.
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.
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
The Earnings Per Share is expected to grow by 12.79% on average over the next years. This is quite good.
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
Based on the Price/Earnings ratio of 15.55, 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 78.03% 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 26.31.
WH is valuated correctly with a Price/Forward Earnings ratio of 13.83.
WH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WH is cheaper than 75.76% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.56, WH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.55 | ||
| Fwd PE | 13.83 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as WH.
72.73% 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 | 18.74 | ||
| EV/EBITDA | 12.33 |
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%. Purely for dividend investing, there may be better candidates out there.
WH's Dividend Yield is a higher than the industry average which is at 7.72.
WH's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| 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%
72.91
-0.29 (-0.4%)
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 Cap5.51B
Revenue(TTM)1.44B
Net Income(TTM)338.00M
Analysts85.22
Price Target98.89 (35.63%)
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)0%
PT rev (3m)-7.97%
EPS NQ rev (1m)-7.05%
EPS NQ rev (3m)-19.48%
EPS NY rev (1m)-3.02%
EPS NY rev (3m)-3.45%
Revenue NQ rev (1m)-1.11%
Revenue NQ rev (3m)-3.48%
Revenue NY rev (1m)-2.05%
Revenue NY rev (3m)-2.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.55 | ||
| Fwd PE | 13.83 | ||
| P/S | 3.84 | ||
| P/FCF | 18.74 | ||
| P/OCF | 15.78 | ||
| P/B | 9.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.33 |
EPS(TTM)4.69
EY6.43%
EPS(NY)5.27
Fwd EY7.23%
FCF(TTM)3.89
FCFY5.34%
OCF(TTM)4.62
OCFY6.34%
SpS19.01
BVpS7.72
TBVpS-32.77
PEG (NY)1.81
PEG (5Y)2.67
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 | 1.94 |
F-Score7
WACC7.77%
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 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.