Wyndham Hotels & Resorts, Inc.
Wyndham Hotels & Resorts, Inc. Fundamental Analysis
Wyndham Hotels & Resorts, Inc. (WH) shows moderate financial fundamentals with a PE ratio of 32.85, profit margin of 13.51%, and ROE of 35.09%. The company generates $1.4B in annual revenue with weak year-over-year growth of 0.79%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 40.8/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze WH's fundamental strength across five key dimensions:
Efficiency Score
WeakWH struggles to generate sufficient returns from assets.
Valuation Score
ModerateWH shows balanced valuation metrics.
Growth Score
WeakWH faces weak or negative growth trends.
Financial Health Score
WeakWH carries high financial risk with limited liquidity.
Profitability Score
ModerateWH maintains healthy but balanced margins.
Key Financial Metrics
Is WH Expensive or Cheap?
P/E Ratio
WH trades at 32.85 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, WH's PEG of -0.76 indicates potential undervaluation.
Price to Book
The market values Wyndham Hotels & Resorts, Inc. at 13.55 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 6.92 times EBITDA. This is generally considered low.
How Well Does WH Make Money?
Net Profit Margin
For every $100 in sales, Wyndham Hotels & Resorts, Inc. keeps $13.51 as profit after all expenses.
Operating Margin
Core operations generate 28.41 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $35.09 in profit for every $100 of shareholder equity.
ROA
Wyndham Hotels & Resorts, Inc. generates $4.62 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Wyndham Hotels & Resorts, Inc. generates strong operating cash flow of $366.28M, reflecting robust business health.
Free Cash Flow
Wyndham Hotels & Resorts, Inc. generates strong free cash flow of $320.37M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.24 in free cash annually.
FCF Yield
WH converts 5.09% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
32.85
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.76
vs 25 benchmark
P/B Ratio
Price to book value ratio
13.55
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.43
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
6.53
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.71
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.35
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How WH Stacks Against Its Sector Peers
| Metric | WH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 32.85 | 24.97 | Worse (Expensive) |
| ROE | 35.09% | 1167.00% | Weak |
| Net Margin | 13.51% | 673.00% | Weak |
| Debt/Equity | 6.53 | 0.66 | Weak (High Leverage) |
| Current Ratio | 0.71 | 4.01 | Weak Liquidity |
| ROA | 4.62% | -8477.00% (disorted) | Weak |
WH outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Wyndham Hotels & Resorts, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-16.75%
Industry Style: Cyclical, Growth, Discretionary
DecliningEPS CAGR
123.44%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
252.01%
Industry Style: Cyclical, Growth, Discretionary
High Growth