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Wyndham Hotels & Resorts

NYSE:WH
Snowflake Description

Reasonable growth potential second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
WH
NYSE
$5B
Market Cap
  1. Home
  2. US
  3. Consumer Services
Company description

Wyndham Hotels & Resorts, Inc. operates as a hotel franchisor worldwide. The last earnings update was 56 days ago. More info.


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WH Share Price and Events
7 Day Returns
-1.3%
NYSE:WH
-0%
US Hospitality
2%
US Market
1 Year Returns
-8.8%
NYSE:WH
-9%
US Hospitality
4.3%
US Market
WH Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Wyndham Hotels & Resorts (WH) -1.3% 2.2% 12.9% -8.8% - -
US Hospitality -0% 3.1% 1.4% -9% 47.5% 18.1%
US Market 2% 4.1% 4.2% 4.3% 43.9% 40.8%
1 Year Return vs Industry and Market
  • WH matched the Hospitality industry (-9%) over the past year.
  • WH underperformed the Market in United States of America which returned 4.3% over the past year.
Price Volatility
Industry
5yr Volatility vs Market

Value

 Is Wyndham Hotels & Resorts undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Wyndham Hotels & Resorts to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Wyndham Hotels & Resorts.

NYSE:WH Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 9 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:WH
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Hospitality Unlevered Beta Simply Wall St/ S&P Global 0.92
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.924 (1 + (1- 21%) (39.86%))
1.144
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.14
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.144 * 5.96%)
9.55%

Discounted Cash Flow Calculation for NYSE:WH using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Wyndham Hotels & Resorts is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:WH DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.55%)
2019 144.20 Analyst x3 131.63
2020 384.63 Analyst x3 320.51
2021 64.00 Analyst x1 48.68
2022 63.16 Est @ -1.31% 43.85
2023 63.10 Est @ -0.1% 39.99
2024 63.57 Est @ 0.75% 36.78
2025 64.42 Est @ 1.34% 34.02
2026 65.55 Est @ 1.76% 31.61
2027 66.90 Est @ 2.05% 29.44
2028 68.41 Est @ 2.25% 27.48
Present value of next 10 years cash flows $744.00
NYSE:WH DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $68.41 × (1 + 2.73%) ÷ (9.55% – 2.73%)
$1,030.69
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,030.69 ÷ (1 + 9.55%)10
$414.07
NYSE:WH Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $744.00 + $414.07
$1,158.07
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,158.07 / 97.29
$11.9
NYSE:WH Discount to Share Price
Calculation Result
Value per share (USD) From above. $11.90
Current discount Discount to share price of $55.77
= -1 x ($55.77 - $11.90) / $11.90
-368.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Wyndham Hotels & Resorts is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Wyndham Hotels & Resorts's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Wyndham Hotels & Resorts's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:WH PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $1.45
NYSE:WH Share Price ** NYSE (2019-06-24) in USD $55.77
United States of America Hospitality Industry PE Ratio Median Figure of 74 Publicly-Listed Hospitality Companies 22.7x
United States of America Market PE Ratio Median Figure of 3,095 Publicly-Listed Companies 17.88x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Wyndham Hotels & Resorts.

NYSE:WH PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:WH Share Price ÷ EPS (both in USD)

= 55.77 ÷ 1.45

38.35x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Wyndham Hotels & Resorts is overvalued based on earnings compared to the US Hospitality industry average.
  • Wyndham Hotels & Resorts is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Wyndham Hotels & Resorts's expected growth come at a high price?
Raw Data
NYSE:WH PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 38.35x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
26%per year
United States of America Hospitality Industry PEG Ratio Median Figure of 55 Publicly-Listed Hospitality Companies 1.94x
United States of America Market PEG Ratio Median Figure of 2,134 Publicly-Listed Companies 1.54x

*Line of best fit is calculated by linear regression .

NYSE:WH PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 38.35x ÷ 26%

1.47x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Wyndham Hotels & Resorts is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Wyndham Hotels & Resorts's assets?
Raw Data
NYSE:WH PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $14.02
NYSE:WH Share Price * NYSE (2019-06-24) in USD $55.77
United States of America Hospitality Industry PB Ratio Median Figure of 112 Publicly-Listed Hospitality Companies 2.19x
United States of America Market PB Ratio Median Figure of 5,255 Publicly-Listed Companies 1.8x
NYSE:WH PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:WH Share Price ÷ Book Value per Share (both in USD)

= 55.77 ÷ 14.02

3.98x

* Primary Listing of Wyndham Hotels & Resorts.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Wyndham Hotels & Resorts is overvalued based on assets compared to the US Hospitality industry average.
X
Value checks
We assess Wyndham Hotels & Resorts's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check)
  5. Wyndham Hotels & Resorts has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
26%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Wyndham Hotels & Resorts expected to grow at an attractive rate?
  • Wyndham Hotels & Resorts's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Wyndham Hotels & Resorts's earnings growth is expected to exceed the United States of America market average.
  • Wyndham Hotels & Resorts's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:WH Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:WH Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 26%
NYSE:WH Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 9.7%
United States of America Hospitality Industry Earnings Growth Rate Market Cap Weighted Average 16.6%
United States of America Hospitality Industry Revenue Growth Rate Market Cap Weighted Average 7.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:WH Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:WH Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31
2021-12-31 2,356 2
2020-12-31 2,247 467 326 8
2019-12-31 2,152 249 287 8
NYSE:WH Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 1,359 222 144
2018-12-31 1,282 231 162
2018-09-30 1,258 228 223
2018-06-30 1,156 232 223
2018-03-31 1,029 271 236
2017-12-31 1,016 278 230
2016-12-31 998 264 176

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Wyndham Hotels & Resorts's earnings are expected to grow significantly at over 20% yearly.
  • Wyndham Hotels & Resorts's revenue is expected to grow by 9.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:WH Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from Wyndham Hotels & Resorts Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:WH Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31
2020-12-31 3.44 3.81 3.14 7.00
2019-12-31 2.86 3.22 2.58 6.00
NYSE:WH Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 1.45
2018-12-31 1.63
2018-09-30 2.25
2018-06-30 2.23
2018-03-31 2.37
2017-12-31 2.30
2016-12-31 1.76

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Wyndham Hotels & Resorts will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Wyndham Hotels & Resorts's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Wyndham Hotels & Resorts has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Wyndham Hotels & Resorts's growth in the last year to its industry (Hospitality).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Wyndham Hotels & Resorts's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Wyndham Hotels & Resorts's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Wyndham Hotels & Resorts's 1-year earnings growth is negative, it can't be compared to the US Hospitality industry average.
Earnings and Revenue History
Wyndham Hotels & Resorts's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Wyndham Hotels & Resorts Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:WH Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 1,359.00 144.00 407.00
2018-12-31 1,282.00 162.00 393.00
2018-09-30 1,258.00 223.00 317.00
2018-06-30 1,156.00 223.00 297.00
2018-03-31 1,029.00 236.00 329.00
2017-12-31 1,016.00 230.00 332.00
2016-12-31 998.00 176.00 321.00
2015-12-31 1,029.00 149.00 267.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Wyndham Hotels & Resorts has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Wyndham Hotels & Resorts used its assets less efficiently than the US Hospitality industry average last year based on Return on Assets.
  • Wyndham Hotels & Resorts's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Wyndham Hotels & Resorts's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Wyndham Hotels & Resorts has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Wyndham Hotels & Resorts's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Wyndham Hotels & Resorts's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Wyndham Hotels & Resorts is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Wyndham Hotels & Resorts's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Wyndham Hotels & Resorts's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Wyndham Hotels & Resorts Company Filings, last reported 2 months ago.

NYSE:WH Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,364.00 2,087.00 284.00
2018-12-31 1,418.00 2,141.00 366.00
2018-09-30 1,443.00 2,145.00 387.00
2018-06-30 1,436.00 2,145.00 416.00
2018-03-31 1,273.00 197.00 71.00
2017-12-31 1,262.00 184.00 57.00
2016-12-31 1,111.00 174.00 28.00
2015-12-31 1,179.00 95.00 38.00
  • Wyndham Hotels & Resorts's level of debt (157.7%) compared to net worth is high (greater than 40%).
  • Unable to establish if Wyndham Hotels & Resorts's debt level has increased without past 5-year debt data.
  • Debt is not well covered by operating cash flow (10.3%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.9x coverage).
X
Financial health checks
We assess Wyndham Hotels & Resorts's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Wyndham Hotels & Resorts has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.08%
Current annual income from Wyndham Hotels & Resorts dividends. Estimated to be 2.1% next year.
If you bought $2,000 of Wyndham Hotels & Resorts shares you are expected to receive $42 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Wyndham Hotels & Resorts's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • Wyndham Hotels & Resorts's dividend is below the markets top 25% of dividend payers in United States of America (3.73%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:WH Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
United States of America Hospitality Industry Average Dividend Yield Market Cap Weighted Average of 47 Stocks 2.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2012 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:WH Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31 1.20 2.00
2020-12-31 1.23 6.00
2019-12-31 1.10 6.00
NYSE:WH Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-14 1.160 2.101
2019-02-13 1.160 2.193
2018-11-16 1.000 2.072
2018-08-09 1.000 1.908
2018-08-06 1.000 1.681
2018-08-01 1.000 1.643
2018-06-11 1.000 1.685

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • It is too early to tell whether Wyndham Hotels & Resorts has stable dividend payments.
  • Wyndham Hotels & Resorts only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of Wyndham Hotels & Resorts's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.3x coverage).
X
Income/ dividend checks
We assess Wyndham Hotels & Resorts's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Wyndham Hotels & Resorts afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Wyndham Hotels & Resorts has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Wyndham Hotels & Resorts's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Geoff Ballotti
COMPENSATION $8,815,739
AGE 56
TENURE AS CEO 1 years
CEO Bio

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 Executive Officer, Director and President at Wyndham Hotels & Resorts, Inc. since June 1, 2018. He was the Group Chief Executive Officer and Group President of Wyndham Hotel Group, LLC since March 28, 2014 until May 31, 2018. He has been the Group Chief Executive Officer and President of Group RCI, Inc and Wyndham Hotel Group, LLC since March 28, 2008. He served as the Chief Executive Officer and President at Wyndham Exchange and Rentals, Inc. until March 28, 2014. He served as the President of North America Region of Starwood Hotels & Resorts Worldwide Inc. from October 2, 2003 to April 2008. He served as an Executive Vice President of North America Hotel Operations of Starwood Hotel & Resorts Worldwide Inc. from 2002 to October 2003also served as its President of Starwood North America. Mr. Ballotti served as the Senior Vice President of Operations of Southern Europe and a Managing Director of CIGA Spa from 1999 to 2002. He served in various senior executive capacities at Starwood Hotels & Resorts Worldwide, Inc., where he joined in 1989. Prior to joining Starwood Hotels and Resorts Worldwide, Mr. Ballotti was a Banking Officer in the Commercial Real Estate Group at the Bank of New England. He served as Head of North American operations and led operations for a Portfolio of 450 hotels with 65,000 associates across multiple brands. He is a Director of American Hotel and Lodging Association. He serves as a Director of Christel House International, Inc. He served as a Director of Biglari Holdings Inc. (a/k/a Steak n Shake Co.) from April 23, 2007 to November, 2008. Mr. Ballotti has an MBA from Harvard Business School and is a Graduate of Colby College and Harvard Business School.

CEO Compensation
  • Geoff's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Geoff's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Wyndham Hotels & Resorts management team in years:

1
Average Tenure
50
Average Age
  • The average tenure for the Wyndham Hotels & Resorts management team is less than 2 years, this suggests a new team.
Management Team

Geoff Ballotti

TITLE
President
COMPENSATION
$9M
AGE
56
TENURE
1 yrs

David Wyshner

TITLE
Chief Financial Officer
COMPENSATION
$6M
AGE
50
TENURE
1 yrs

Bob Loewen

TITLE
Chief Operating Officer
COMPENSATION
$3M
AGE
52
TENURE
1 yrs

Mary Falvey

TITLE
Chief Administrative Officer
COMPENSATION
$5M
AGE
57
TENURE
1 yrs

Paul Cash

TITLE
General Counsel & Corporate Secretary
COMPENSATION
$2M
AGE
48
TENURE
1 yrs

Nicola Rossi

TITLE
Chief Accounting Officer
AGE
51

Scott Strickland

TITLE
Chief Information Officer
AGE
47
TENURE
1 yrs

Matt Capuzzi Capuzzi

TITLE
Vice President

Lisa Checchio

TITLE
Chief Marketing Officer
AGE
37

Thomas Barber

TITLE
Global Chief Development Officer
AGE
46
TENURE
1 yrs
Board of Directors Tenure

Average tenure and age of the Wyndham Hotels & Resorts board of directors in years:

1
Average Tenure
65
Average Age
  • The average tenure for the Wyndham Hotels & Resorts board of directors is less than 3 years, this suggests a new board.
Board of Directors

Steve Holmes

TITLE
Non-Executive Chairman
COMPENSATION
$387K
AGE
61
TENURE
1 yrs

Geoff Ballotti

TITLE
President
COMPENSATION
$9M
AGE
56
TENURE
1 yrs

M. Mulroney

TITLE
Lead Director
COMPENSATION
$349K
AGE
78
TENURE
1 yrs

Pauline Richards

TITLE
Director
COMPENSATION
$319K
AGE
69
TENURE
1 yrs

Myra Biblowit

TITLE
Director
COMPENSATION
$318K
AGE
69
TENURE
1 yrs

Mukul Deoras

TITLE
Director
COMPENSATION
$300K
AGE
54
TENURE
1 yrs

James Buckman

TITLE
Director
COMPENSATION
$313K
AGE
73
TENURE
1 yrs

Bruce Churchill

TITLE
Director
COMPENSATION
$376K
AGE
60
TENURE
1 yrs
Who owns this company?
Recent Insider Trading
  • Wyndham Hotels & Resorts individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
10. Jun 19 Sell Michele Allen Individual 07. Jun 19 07. Jun 19 -4,475 $56.12 $-251,119
10. Jun 19 Sell Nicola Rossi Individual 06. Jun 19 06. Jun 19 -1,500 $55.46 $-83,193
21. May 19 Sell Pauline D. Richards Individual 17. May 19 17. May 19 -10,000 $55.72 $-557,204
07. Sep 18 Buy David Wyshner Individual 06. Sep 18 06. Sep 18 3,669 $54.52 $200,020
09. Aug 18 Sell Thomas Barber Individual 08. Aug 18 08. Aug 18 -879 $60.07 $-52,798
06. Aug 18 Buy Geoffrey Ballotti Individual 06. Aug 18 06. Aug 18 10,000 $61.48 $614,824
X
Management checks
We assess Wyndham Hotels & Resorts's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Wyndham Hotels & Resorts has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

What To Know Before Buying Wyndham Hotels & Resorts, Inc. (NYSE:WH) For Its Dividend

Some readers mightn't know much about Wyndham Hotels & Resorts's 2.1% dividend, as it has only been paying distributions for a year or so. … Click the interactive chart for our full dividend analysis NYSE:WH Historical Dividend Yield, June 7th 2019 Payout ratios Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of a company's net income after tax. Looking at the data, we can see that 72% of Wyndham Hotels & Resorts's profits were paid out as dividends in the last 12 months. A payout ratio above 50% generally implies a business is reaching maturity, although it is still possible to reinvest in the business or increase the dividend over time. We also measure dividends paid against a company's levered free cash flow, to see if enough cash was generated to cover the dividend. The company paid out 50% of its free cash flow, which is not bad per se, but does start to limit the amount of cash Wyndham Hotels & Resorts has available to meet other needs. It's positive to see that Wyndham Hotels & Resorts's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. Is Wyndham Hotels & Resorts's Balance Sheet Risky? As Wyndham Hotels & Resorts has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments on debt. Essentially we check that a) a company does not have too much debt, and b) that it can afford to pay the interest. … Earnings per share are down, and to our mind Wyndham Hotels & Resorts has not been paying a dividend long enough to demonstrate its resilience across economic cycles.

Simply Wall St -

An Intrinsic Calculation For Wyndham Hotels & Resorts, Inc. (NYSE:WH) Suggests It's 26% Undervalued

by projecting its future cash flows and then discounting them to today's value. … We generally believe that a company's value is the present value of all of the cash it will generate in the future. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

How Much Are Wyndham Hotels & Resorts, Inc. (NYSE:WH) Insiders Spending On Buying Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Wyndham Hotels & Resorts, Inc. … Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. … Overall, Wyndham Hotels & Resorts insiders were net buyers last year

Simply Wall St -

Evaluating Wyndham Hotels & Resorts, Inc.’s (NYSE:WH) Investments In Its Business

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … What is Return On Capital Employed (ROCE)? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Does Wyndham Hotels & Resorts, Inc. (NYSE:WH) Have A Place In Your Portfolio?

Recently, Wyndham Hotels & Resorts, Inc. … Let's take a look at Wyndham Hotels & Resorts in more detail. … View our latest analysis for Wyndham Hotels & Resorts

Simply Wall St -

A Note On Wyndham Hotels & Resorts, Inc.'s (NYSE:WH) ROE and Debt To Equity

Our data shows Wyndham Hotels & Resorts has a return on equity of 15% for the last year. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.15 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Is Wyndham Hotels & Resorts Inc's (NYSE:WH) Future Growth Already Accounted For In Today's Price?

Growth expectations for Wyndham Hotels & Resorts Inc (NYSE:WH) are high, but many investors are starting to ask whether its last close at $45.65 can still be rationalized by the future potential. … See our latest analysis for Wyndham Hotels & Resorts? … The excitement around Wyndham Hotels & Resorts's growth potential is not unfounded

Simply Wall St -

What To Know Before Buying Wyndham Hotels & Resorts Inc (NYSE:WH) For Its Dividend

Recently, Wyndham Hotels & Resorts Inc (NYSE:WH) has started paying dividends to shareholders. … Let's dig deeper into whether Wyndham Hotels & Resorts should have a place in your portfolio. … View our latest analysis for Wyndham Hotels & Resorts

Simply Wall St -

Does Wyndham Hotels & Resorts Inc's (NYSE:WH) PE Ratio Signal A Selling Opportunity?

and want to better understand how you can grow your money by investing in Wyndham Hotels & Resorts Inc (NYSE:WH). … Wyndham Hotels & Resorts Inc (NYSE:WH) is trading with a trailing P/E of 24.7x, which is higher than the industry average of 23x. … See our latest analysis for Wyndham Hotels & Resorts

Simply Wall St -

Company Info

Description

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, Wingate, AmericInn, Hawthorn Suites, The Trademark Collection, and Wyndham to hotel owners in approximately 80 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. Wyndham Hotels & Resorts, Inc. operates a portfolio of 20 hotel brands with approximately 9,200 franchised hotels with 810,000 rooms; and manages hotels, including 438 third-party-owned properties and 2 owned properties. It is also involved in the loyalty program business. The company was incorporated in 2017 and is headquartered in Parsippany, New Jersey.

Details
Name: Wyndham Hotels & Resorts, Inc.
WH
Exchange: NYSE
Founded: 2017
$5,426,104,561
97,294,326
Website: http://www.wyndhamhotels.com
Address: Wyndham Hotels & Resorts, Inc.
22 Sylvan Way,
Parsippany,
New Jersey, 07054,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE WH Common Stock New York Stock Exchange US USD 18. May 2018
DB 2WY Common Stock Deutsche Boerse AG DE EUR 18. May 2018
LSE 0YTR Common Stock London Stock Exchange GB USD 18. May 2018
Number of employees
Current staff
Staff numbers
16,200
Wyndham Hotels & Resorts employees.
Industry
Hotels, Resorts and Cruise Lines
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/25 01:01
End of day share price update: 2019/06/24 00:00
Last estimates confirmation: 2019/06/24
Last earnings filing: 2019/04/30
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.