WYNDHAM HOTELS & RESORTS INC (WH) Stock Fundamental Analysis
USA - NYSE:WH - US98311A1051 - Common Stock
83.665 USD
+0.07 (+0.08%)
WH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 133 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
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.
WH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 7.79%, WH is doing good in the industry, outperforming 78.20% of the companies in the same industry.
WH has a better Return On Equity (58.77%) than 94.74% of its industry peers.
With a decent Return On Invested Capital value of 11.56%, WH is doing good in the industry, outperforming 76.69% of the companies in the same industry.
WH had an Average Return On Invested Capital over the past 3 years of 10.92%. This is below the industry average of 15.68%.
The last Return On Invested Capital (11.56%) for WH is above the 3 year average (10.92%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.79% | ||
| ROE | 58.77% | ||
| ROIC | 11.56% |
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 (23.10%) is better than 96.99% of its industry peers.
WH's Profit Margin has improved in the last couple of years.
WH's Operating Margin of 40.48% 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's Gross Margin of 60.00% is fine compared to the rest of the industry. WH outperforms 71.43% of its industry peers.
WH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 40.48% | ||
| PM (TTM) | 23.1% | ||
| GM | 60% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WH is creating some value.
The number of shares outstanding for WH has been reduced compared to 1 year ago.
The number of shares outstanding for WH has been reduced compared to 5 years ago.
Compared to 1 year ago, WH has a worse debt to assets ratio.
2.2 Solvency
WH has an Altman-Z score of 2.06. 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.
The Altman-Z score of WH (2.06) is comparable to the rest of the industry.
WH has a debt to FCF ratio of 8.89. This is a slightly negative value and a sign of low solvency as WH would need 8.89 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.89, WH is in the better half of the industry, outperforming 63.91% of the companies in the same industry.
A Debt/Equity ratio of 4.44 is on the high side and indicates that WH has dependencies on debt financing.
WH's Debt to Equity ratio of 4.44 is in line compared to the rest of the industry. WH outperforms 40.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.44 | ||
| Debt/FCF | 8.89 | ||
| Altman-Z | 2.06 |
ROIC/WACC1.35
WACC8.56%
2.3 Liquidity
WH has a Current Ratio of 1.03. This is a normal value and indicates that WH is financially healthy and should not expect problems in meeting its short term obligations.
WH has a Current ratio (1.03) which is comparable to the rest of the industry.
WH has a Quick Ratio of 1.03. 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 1.03, WH is in line with its industry, outperforming 59.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
WH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.86%, which is quite good.
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.
The Revenue has been growing slightly by 3.94% in the past year.
WH shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -7.27% yearly.
EPS 1Y (TTM)11.86%
EPS 3Y11.16%
EPS 5Y5.83%
EPS Q2Q%17.7%
Revenue 1Y (TTM)3.94%
Revenue growth 3Y-3.46%
Revenue growth 5Y-7.27%
Sales Q2Q%8.17%
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 13.77% on average per year.
The Revenue is expected to grow by 6.70% on average over the next years.
EPS Next Y12.47%
EPS Next 2Y12.67%
EPS Next 3Y12.51%
EPS Next 5Y13.77%
Revenue Next Year3.91%
Revenue Next 2Y4.92%
Revenue Next 3Y5.52%
Revenue Next 5Y6.7%
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 18.11 indicates a rather expensive valuation of WH.
Based on the Price/Earnings ratio, WH is valued a bit cheaper than the industry average as 74.44% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.20. WH is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 15.19 indicates a correct valuation of WH.
WH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WH is cheaper than 72.18% of the companies in the same industry.
WH's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.11 | ||
| Fwd PE | 15.19 |
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 74.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.03 | ||
| EV/EBITDA | 13.67 |
4.3 Compensation for Growth
WH's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of WH may justify a higher PE ratio.
WH's earnings are expected to grow with 12.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.45
PEG (5Y)3.11
EPS Next 2Y12.67%
EPS Next 3Y12.51%
5. Dividend
5.1 Amount
WH has a Yearly Dividend Yield of 1.90%.
WH's Dividend Yield is a higher than the industry average which is at 3.93.
WH's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
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
37.01% of the earnings are spent on dividend by WH. This is a low number and sustainable payout ratio.
The dividend of WH is growing, but earnings are growing more, so the dividend growth is sustainable.
DP37.01%
EPS Next 2Y12.67%
EPS Next 3Y12.51%
NYSE:WH (9/18/2025, 12:42:53 PM)
83.665
+0.07 (+0.08%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners96.88%
Inst Owner Change2.05%
Ins Owners2.26%
Ins Owner Change2.22%
Market Cap6.39B
Analysts85.22
Price Target107.46 (28.44%)
Short Float %6.86%
Short Ratio4.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
Yearly Dividend1.53
Dividend Growth(5Y)5.55%
DP37.01%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.62%
Min EPS beat(2)2.49%
Max EPS beat(2)10.76%
EPS beat(4)3
Avg EPS beat(4)3.28%
Min EPS beat(4)-2.03%
Max EPS beat(4)10.76%
EPS beat(8)6
Avg EPS beat(8)2.63%
EPS beat(12)9
Avg EPS beat(12)4.13%
EPS beat(16)13
Avg EPS beat(16)9.49%
Revenue beat(2)1
Avg Revenue beat(2)-1.72%
Min Revenue beat(2)-3.51%
Max Revenue beat(2)0.06%
Revenue beat(4)1
Avg Revenue beat(4)-3.71%
Min Revenue beat(4)-7.52%
Max Revenue beat(4)0.06%
Revenue beat(8)1
Avg Revenue beat(8)-3.38%
Revenue beat(12)3
Avg Revenue beat(12)-2.83%
Revenue beat(16)5
Avg Revenue beat(16)-1.77%
PT rev (1m)0%
PT rev (3m)1.52%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)-8.06%
EPS NY rev (1m)0.93%
EPS NY rev (3m)0.74%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-3.69%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.11 | ||
| Fwd PE | 15.19 | ||
| P/S | 4.41 | ||
| P/FCF | 22.03 | ||
| P/OCF | 18.68 | ||
| P/B | 11.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.67 |
EPS(TTM)4.62
EY5.52%
EPS(NY)5.51
Fwd EY6.58%
FCF(TTM)3.8
FCFY4.54%
OCF(TTM)4.48
OCFY5.35%
SpS18.99
BVpS7.46
TBVpS-32.7
PEG (NY)1.45
PEG (5Y)3.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.79% | ||
| ROE | 58.77% | ||
| ROCE | 15.29% | ||
| ROIC | 11.56% | ||
| ROICexc | 11.71% | ||
| ROICexgc | 61.53% | ||
| OM | 40.48% | ||
| PM (TTM) | 23.1% | ||
| GM | 60% | ||
| FCFM | 20% |
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%
ROICexcg growth 3Y1.88%
ROICexcg 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-Score8
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.44 | ||
| Debt/FCF | 8.89 | ||
| Debt/EBITDA | 3.88 | ||
| Cap/Depr | 80% | ||
| Cap/Sales | 3.59% | ||
| Interest Coverage | 4.25 | ||
| Cash Conversion | 52.45% | ||
| Profit Quality | 86.57% | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 2.06 |
F-Score8
WACC8.56%
ROIC/WACC1.35
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)11.86%
EPS 3Y11.16%
EPS 5Y5.83%
EPS Q2Q%17.7%
EPS Next Y12.47%
EPS Next 2Y12.67%
EPS Next 3Y12.51%
EPS Next 5Y13.77%
Revenue 1Y (TTM)3.94%
Revenue growth 3Y-3.46%
Revenue growth 5Y-7.27%
Sales Q2Q%8.17%
Revenue Next Year3.91%
Revenue Next 2Y4.92%
Revenue Next 3Y5.52%
Revenue Next 5Y6.7%
EBIT growth 1Y11.6%
EBIT growth 3Y7.04%
EBIT growth 5Y3.76%
EBIT Next Year36.65%
EBIT Next 3Y16.42%
EBIT Next 5Y13.17%
FCF growth 1Y-1.36%
FCF growth 3Y-14.75%
FCF growth 5Y36.96%
OCF growth 1Y2.7%
OCF growth 3Y-12.03%
OCF growth 5Y23.73%