WYNDHAM HOTELS & RESORTS INC (WH) Stock Fundamental Analysis
USA - NYSE:WH - US98311A1051 - Common Stock
70 USD
-2.08 (-2.89%)
69.99 USD
-0.01 (-0.01%)
WH gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 132 industry peers in the Hotels, Restaurants & Leisure industry. WH has an excellent profitability rating, 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.
WH had positive earnings in 4 of the past 5 years.
Each year in the past 5 years WH had a positive operating cash flow.
1.2 Ratios
The Return On Assets of WH (7.78%) is better than 78.79% of its industry peers.
WH has a better Return On Equity (57.98%) than 91.67% of its industry peers.
WH's Return On Invested Capital of 11.47% is fine compared to the rest of the industry. WH outperforms 75.76% 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 10.59%.
The 3 year average ROIC (10.92%) for WH is below the current ROIC(11.47%), indicating increased profibility in the last year.
| 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 95.45% of its industry peers.
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.
WH's Gross Margin of 61.00% is fine compared to the rest of the industry. WH outperforms 73.48% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WH is still creating some value.
WH has less shares outstanding than it did 1 year ago.
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 1.94 indicates that WH is not a great score, but indicates 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.
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.
Looking at the Debt to FCF ratio, with a value of 8.94, WH is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
WH has a Debt/Equity ratio of 4.43. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 4.43, WH is in line with its industry, outperforming 42.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.43 | ||
| Debt/FCF | 8.94 | ||
| Altman-Z | 1.94 |
ROIC/WACC1.5
WACC7.66%
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 60.61% of the companies in the same industry.
A Quick Ratio of 1.16 indicates that WH should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.16, WH is doing good in the industry, outperforming 64.39% 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
The Earnings Per Share is expected to grow by 12.79% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.73% on average over the next years.
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
A Price/Earnings ratio of 14.93 indicates a correct valuation of WH.
Based on the Price/Earnings ratio, WH is valued a bit cheaper than 78.03% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.56. WH is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 13.28, WH is valued correctly.
WH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WH is cheaper than 76.52% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of WH to the average of the S&P500 Index (34.62), we can say WH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.93 | ||
| Fwd PE | 13.28 |
4.2 Price Multiples
WH's Enterprise Value to EBITDA is on the same level as the industry average.
WH's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WH is cheaper than 73.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.18 | ||
| EV/EBITDA | 12.29 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
WH has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.74
PEG (5Y)2.56
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.
The stock price of WH dropped by -21.33% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 4.57, WH pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, 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
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%
70
-2.08 (-2.89%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners101.42%
Inst Owner Change1.89%
Ins Owners2.27%
Ins Owner Change0.84%
Market Cap5.35B
Revenue(TTM)1.44B
Net Income(TTM)338.00M
Analysts85.22
Price Target98.89 (41.27%)
Short Float %6.14%
Short Ratio4.76
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)-18.86%
EPS NQ rev (3m)-19.39%
EPS NY rev (1m)-3.44%
EPS NY rev (3m)-2.55%
Revenue NQ rev (1m)-3.12%
Revenue NQ rev (3m)-3.17%
Revenue NY rev (1m)-2.25%
Revenue NY rev (3m)-2.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.93 | ||
| Fwd PE | 13.28 | ||
| P/S | 3.72 | ||
| P/FCF | 18.18 | ||
| P/OCF | 15.32 | ||
| P/B | 9.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.29 |
EPS(TTM)4.69
EY6.7%
EPS(NY)5.27
Fwd EY7.53%
FCF(TTM)3.85
FCFY5.5%
OCF(TTM)4.57
OCFY6.53%
SpS18.81
BVpS7.63
TBVpS-32.43
PEG (NY)1.74
PEG (5Y)2.56
Graham Number28.38
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
WACC7.66%
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.