WYNDHAM HOTELS & RESORTS INC (WH)
US98311A1051 - Common Stock
Overall WH gets a fundamental rating of 5 out of 10. We evaluated WH against 134 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
WH had positive earnings in the past year.
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's Return On Assets of 6.09% is fine compared to the rest of the industry. WH outperforms 75.37% of its industry peers.
With an excellent Return On Equity value of 43.40%, WH belongs to the best of the industry, outperforming 93.28% of the companies in the same industry.
WH has a better Return On Invested Capital (10.70%) than 74.63% of its industry peers.
WH had an Average Return On Invested Capital over the past 3 years of 9.88%. This is in line with the industry average of 10.50%.
The 3 year average ROIC (9.88%) for WH is below the current ROIC(10.70%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.09% | ||
| ROE | 43.4% | ||
| ROIC | 10.7% |
ROA(3y)7.16%
ROA(5y)4.42%
ROE(3y)32.68%
ROE(5y)19.46%
ROIC(3y)9.88%
ROIC(5y)8.32%
1.3 Margins
WH has a better Profit Margin (18.21%) than 93.28% of its industry peers.
WH's Profit Margin has improved in the last couple of years.
WH's Operating Margin of 38.66% is amongst the best of the industry. WH outperforms 99.25% of its industry peers.
WH's Operating Margin has improved in the last couple of years.
The Gross Margin of WH (59.47%) is better than 70.15% of its industry peers.
WH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.66% | ||
| PM (TTM) | 18.21% | ||
| GM | 59.47% |
OM growth 3Y32.08%
OM growth 5Y11.7%
PM growth 3YN/A
PM growth 5Y18.99%
GM growth 3Y14.24%
GM growth 5Y7.24%
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.
WH has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.26 indicates that WH is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of WH (2.26) is better than 63.43% of its industry peers.
WH has a debt to FCF ratio of 10.11. This is a negative value and a sign of low solvency as WH would need 10.11 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 10.11, WH is in the better half of the industry, outperforming 61.19% of the companies in the same industry.
A Debt/Equity ratio of 4.19 is on the high side and indicates that WH has dependencies on debt financing.
WH has a Debt to Equity ratio (4.19) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.19 | ||
| Debt/FCF | 10.11 | ||
| Altman-Z | 2.26 |
ROIC/WACC1.34
WACC7.99%
2.3 Liquidity
A Current Ratio of 0.97 indicates that WH may have some problems paying its short term obligations.
WH has a Current ratio of 0.97. This is comparable to the rest of the industry: WH outperforms 53.73% of its industry peers.
WH has a Quick Ratio of 0.97. This is a bad value and indicates that WH is not financially healthy enough and could expect problems in meeting its short term obligations.
WH's Quick ratio of 0.97 is in line compared to the rest of the industry. WH outperforms 58.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
WH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.21%, which is quite good.
The Earnings Per Share has been growing by 16.01% on average over the past years. This is quite good.
WH shows a decrease in Revenue. In the last year, the revenue decreased by -1.56%.
The Revenue has been decreasing by -5.65% on average over the past years.
EPS 1Y (TTM)10.21%
EPS 3Y57.31%
EPS 5Y16.01%
EPS Q2Q%6.11%
Revenue 1Y (TTM)-1.56%
Revenue growth 3Y2.43%
Revenue growth 5Y-5.65%
Sales Q2Q%-1.99%
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 13.64% on average per year.
The Revenue is expected to grow by 5.75% on average over the next years.
EPS Next Y10.16%
EPS Next 2Y10.43%
EPS Next 3Y11.76%
EPS Next 5Y13.64%
Revenue Next Year1.32%
Revenue Next 2Y3.48%
Revenue Next 3Y4.35%
Revenue Next 5Y5.75%
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 stable.
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 rather expensively with a Price/Earnings ratio of 23.82.
Based on the Price/Earnings ratio, WH is valued a bit cheaper than 63.43% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.73. WH is around the same levels.
Based on the Price/Forward Earnings ratio of 20.51, the valuation of WH can be described as rather expensive.
WH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WH is cheaper than 61.94% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of WH to the average of the S&P500 Index (22.83), we can say WH is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.82 | ||
| Fwd PE | 20.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WH is valued a bit more expensive than 61.19% of the companies in the same industry.
WH's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WH is cheaper than 61.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.71 | ||
| EV/EBITDA | 16.65 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of WH may justify a higher PE ratio.
PEG (NY)2.35
PEG (5Y)1.49
EPS Next 2Y10.43%
EPS Next 3Y11.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.46%, WH has a reasonable but not impressive dividend return.
WH's Dividend Yield is a higher than the industry average which is at 2.89.
WH's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
5.2 History
The dividend of WH is nicely growing with an annual growth rate of 12.58%!
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)12.58%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
47.43% of the earnings are spent on dividend by WH. This is a bit on the high side, but may be sustainable.
WH's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP47.43%
EPS Next 2Y10.43%
EPS Next 3Y11.76%
WYNDHAM HOTELS & RESORTS INC
NYSE:WH (12/20/2024, 8:04:00 PM)
After market: 100.29 0 (0%)100.29
+0.58 (+0.58%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners97.73%
Inst Owner Change-0.04%
Ins Owners1.67%
Ins Owner Change-0.51%
Market Cap7.80B
Analysts84.35
Price Target101.2 (0.91%)
Short Float %2.83%
Short Ratio2.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
Dividend Growth(5Y)12.58%
DP47.43%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.01%
Min EPS beat(2)-2.03%
Max EPS beat(2)6.05%
EPS beat(4)2
Avg EPS beat(4)1.01%
Min EPS beat(4)-2.03%
Max EPS beat(4)6.05%
EPS beat(8)5
Avg EPS beat(8)2.65%
EPS beat(12)9
Avg EPS beat(12)9.4%
EPS beat(16)13
Avg EPS beat(16)16.61%
Revenue beat(2)0
Avg Revenue beat(2)-5.69%
Min Revenue beat(2)-7.52%
Max Revenue beat(2)-3.85%
Revenue beat(4)0
Avg Revenue beat(4)-4.61%
Min Revenue beat(4)-7.52%
Max Revenue beat(4)-2.82%
Revenue beat(8)1
Avg Revenue beat(8)-3.86%
Revenue beat(12)4
Avg Revenue beat(12)-1.51%
Revenue beat(16)4
Avg Revenue beat(16)-2.51%
PT rev (1m)10.5%
PT rev (3m)12.25%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.9%
EPS NY rev (1m)0%
EPS NY rev (3m)0.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.93%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.82 | ||
| Fwd PE | 20.51 | ||
| P/S | 5.62 | ||
| P/FCF | 31.71 | ||
| P/OCF | 27.96 | ||
| P/B | 13.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.65 |
EPS(TTM)4.21
EY4.2%
EPS(NY)4.89
Fwd EY4.88%
FCF(TTM)3.16
FCFY3.15%
OCF(TTM)3.59
OCFY3.58%
SpS17.86
BVpS7.49
TBVpS-32.15
PEG (NY)2.35
PEG (5Y)1.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.09% | ||
| ROE | 43.4% | ||
| ROCE | 14.53% | ||
| ROIC | 10.7% | ||
| ROICexc | 10.91% | ||
| ROICexgc | 73.32% | ||
| OM | 38.66% | ||
| PM (TTM) | 18.21% | ||
| GM | 59.47% | ||
| FCFM | 17.71% |
ROA(3y)7.16%
ROA(5y)4.42%
ROE(3y)32.68%
ROE(5y)19.46%
ROIC(3y)9.88%
ROIC(5y)8.32%
ROICexc(3y)10.23%
ROICexc(5y)8.66%
ROICexgc(3y)83.8%
ROICexgc(5y)69.58%
ROCE(3y)13.42%
ROCE(5y)11.3%
ROICexcg growth 3Y51.29%
ROICexcg growth 5Y4.28%
ROICexc growth 3Y39%
ROICexc growth 5Y7.75%
OM growth 3Y32.08%
OM growth 5Y11.7%
PM growth 3YN/A
PM growth 5Y18.99%
GM growth 3Y14.24%
GM growth 5Y7.24%
F-Score5
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.19 | ||
| Debt/FCF | 10.11 | ||
| Debt/EBITDA | 3.99 | ||
| Cap/Depr | 44.59% | ||
| Cap/Sales | 2.38% | ||
| Interest Coverage | 4.4 | ||
| Cash Conversion | 45.66% | ||
| Profit Quality | 97.23% | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 2.26 |
F-Score5
WACC7.99%
ROIC/WACC1.34
Cap/Depr(3y)46.09%
Cap/Depr(5y)43.57%
Cap/Sales(3y)2.54%
Cap/Sales(5y)2.52%
Profit Quality(3y)126.05%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)10.21%
EPS 3Y57.31%
EPS 5Y16.01%
EPS Q2Q%6.11%
EPS Next Y10.16%
EPS Next 2Y10.43%
EPS Next 3Y11.76%
EPS Next 5Y13.64%
Revenue 1Y (TTM)-1.56%
Revenue growth 3Y2.43%
Revenue growth 5Y-5.65%
Sales Q2Q%-1.99%
Revenue Next Year1.32%
Revenue Next 2Y3.48%
Revenue Next 3Y4.35%
Revenue Next 5Y5.75%
EBIT growth 1Y7.83%
EBIT growth 3Y35.28%
EBIT growth 5Y5.4%
EBIT Next Year28.28%
EBIT Next 3Y12.96%
EBIT Next 5Y11.23%
FCF growth 1Y-39.41%
FCF growth 3Y115.23%
FCF growth 5Y16.5%
OCF growth 1Y-37.72%
OCF growth 3Y77.71%
OCF growth 5Y10.23%