NYSE:WH

Stock Analysis Report

Executive Summary

Wyndham Hotels & Resorts, Inc. operates as a hotel franchisor worldwide.


Snowflake Analysis

High growth potential second-rate dividend payer.


Similar Companies

Share Price & News

How has Wyndham Hotels & Resorts's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WH's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

25.2%

WH

15.5%

US Hospitality

10.5%

US Market


1 Year Return

-36.0%

WH

-41.4%

US Hospitality

-11.5%

US Market

Return vs Industry: WH exceeded the US Hospitality industry which returned -41.4% over the past year.

Return vs Market: WH underperformed the US Market which returned -11.5% over the past year.


Shareholder returns

WHIndustryMarket
7 Day25.2%15.5%10.5%
30 Day-36.9%-35.2%-15.4%
90 Day-49.4%-46.5%-21.4%
1 Year-34.5%-36.0%-39.8%-41.4%-9.6%-11.5%
3 Yearn/a-29.3%-34.2%12.6%5.4%
5 Yearn/a-23.1%-31.6%32.8%18.1%

Price Volatility Vs. Market

How volatile is Wyndham Hotels & Resorts's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Wyndham Hotels & Resorts undervalued compared to its fair value and its price relative to the market?

19.65x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WH ($31.97) is trading above our estimate of fair value ($29.65)

Significantly Below Fair Value: WH is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: WH is poor value based on its PE Ratio (19.7x) compared to the Hospitality industry average (12.7x).

PE vs Market: WH is poor value based on its PE Ratio (19.7x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: WH is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: WH is overvalued based on its PB Ratio (2.5x) compared to the US Hospitality industry average (1.4x).


Next Steps

Future Growth

How is Wyndham Hotels & Resorts forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

34.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WH's forecast earnings growth (34% per year) is above the savings rate (1.7%).

Earnings vs Market: WH's earnings (34% per year) are forecast to grow faster than the US market (12.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: WH's revenue (12.6% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: WH's revenue (12.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WH's Return on Equity is forecast to be high in 3 years time (32.5%)


Next Steps

Past Performance

How has Wyndham Hotels & Resorts performed over the past 5 years?

-4.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WH has a large one-off loss of $157.0M impacting its December 31 2019 financial results.

Growing Profit Margin: WH's current net profit margins (11%) are lower than last year (12.6%).


Past Earnings Growth Analysis

Earnings Trend: WH's earnings have declined by -4% per year over the past 5 years.

Accelerating Growth: WH's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: WH had negative earnings growth (-3.1%) over the past year, making it difficult to compare to the Hospitality industry average (1.7%).


Return on Equity

High ROE: WH's Return on Equity (13%) is considered low.


Next Steps

Financial Health

How is Wyndham Hotels & Resorts's financial position?


Financial Position Analysis

Short Term Liabilities: WH's short term assets ($499.0M) exceed its short term liabilities ($462.0M).

Long Term Liabilities: WH's short term assets ($499.0M) do not cover its long term liabilities ($2.9B).


Debt to Equity History and Analysis

Debt Level: WH's debt to equity ratio (172.9%) is considered high.

Reducing Debt: Insufficient data to determine if WH's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: WH's debt is not well covered by operating cash flow (4.8%).

Interest Coverage: WH's interest payments on its debt are well covered by EBIT (4.6x coverage).


Balance Sheet

Inventory Level: WH has a low level of unsold assets or inventory.

Debt Coverage by Assets: WH's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

What is Wyndham Hotels & Resorts's current dividend yield, its reliability and sustainability?

4.00%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WH's dividend (4%) is higher than the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: WH's dividend (4%) is low compared to the top 25% of dividend payers in the US market (5.45%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, WH has been paying a dividend for less than 10 years.

Growing Dividend: WH's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (71.3%), WH's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WH's dividends in 3 years are forecast to be well covered by earnings (36.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Geoff Ballotti (57yo)

1.75s

Tenure

US$8,815,739

Compensation

Mr. Geoffrey A. Ballotti, also known as Geoff, has been the Chief Executive Officer and President of Hotel Division at Wyndham Worldwide Corporation since March 28, 2014. Mr. Ballotti has been Chief Execut ...


CEO Compensation Analysis

Compensation vs Market: Geoff's total compensation ($USD8.82M) is above average for companies of similar size in the US market ($USD5.51M).

Compensation vs Earnings: Geoff's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Geoffrey Ballotti
President1.75yrsUS$8.82m0.21% $6.7m
Robert Loewen
Chief Operating Officer1.75yrsUS$3.14m0.018% $585.1k
Mary Falvey
Chief Administrative Officer1.75yrsUS$5.15m0.12% $3.9m
Paul Cash
General Counsel1.75yrsUS$2.35m0.012% $377.2k
Michele Allen
Chief Financial Officer0.25yrno data0.0021% $65.7k
Nicola Rossi
Chief Accounting Officerno datano data0.0015% $46.6k
Scott Strickland
Chief Information Officer1.75yrsno data0.0040% $128.2k
Matt Capuzzi
Vice President of Investor Relationsno datano datano data
David DeCecco
Group Vice President of Global Communicationsno datano datano data
Lisa Checchio
Chief Marketing Officerno datano data0.0047% $148.9k

1.8yrs

Average Tenure

50.5yo

Average Age

Experienced Management: WH's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Geoffrey Ballotti
President1.75yrsUS$8.82m0.21% $6.7m
Myra Biblowit
Independent Director1.75yrsUS$317.58k0.0085% $269.7k
James Buckman
Independent Director1.75yrsUS$312.97k0.0075% $238.2k
Stephen Holmes
Non-Executive Chairman1.75yrsUS$387.31k0.83% $26.3m
Ronald Nelson
Director0.58yrno data0.033% $1.1m
Bruce Churchill
Independent Director1.75yrsUS$376.31kno data
Mukul Deoras
Independent Director1.75yrsUS$299.85k0.0021% $66.6k
Pauline D. Richards
Independent Director1.75yrsno data0.0063% $200.2k

1.8yrs

Average Tenure

64yo

Average Age

Experienced Board: WH's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: WH insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Wyndham Hotels & Resorts, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Wyndham Hotels & Resorts, Inc.
  • Ticker: WH
  • Exchange: NYSE
  • Founded: 2017
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: US$3.188b
  • Shares outstanding: 93.70m
  • Website: https://www.wyndhamhotels.com

Number of Employees


Location

  • Wyndham Hotels & Resorts, Inc.
  • 22 Sylvan Way
  • Parsippany
  • New Jersey
  • 7054
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WHNYSE (New York Stock Exchange)YesCommon StockUSUSDMay 2018
2WYDB (Deutsche Boerse AG)YesCommon StockDEEURMay 2018
0YTRLSE (London Stock Exchange)YesCommon StockGBUSDMay 2018

Biography

Wyndham Hotels & Resorts, Inc. operates as a hotel franchisor worldwide. The company licenses its hotel brands, including Super 8, Days Inn, Ramada, Microtel Inn & Suites, La Quinta, Baymont, Wingate, AmericInn, Hawthorn Suites, The Trademark Collection, and Wyndham to hotel owners in approximately 90 countries. Its Hotel Franchising segments licenses its lodging brands and provides related services to third-party hotel owners and others. The company’s Hotel Management segment provides hotel management services for full-service and limited service hotels. As of February 13, 2020, it operated a portfolio of 20 hotel brands with approximately 9,300 hotels with 831,000 rooms; and managed approximately 400 hotels. Wyndham Hotels & Resorts, Inc. is also involved in the loyalty program business. The company was incorporated in 2017 and is headquartered in Parsippany, New Jersey. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 03:41
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.