Wyndham Hotels & Resorts: Evaluating Value After CFO Transition and Leadership Shakeup

Wyndham Hotels & Resorts (NYSE:WH) has announced that Michele Allen, Chief Financial Officer and Head of Strategy, is stepping down to pursue a new opportunity outside the hotel sector. Kurt Albert, previously Treasurer, will take over as interim CFO.

See our latest analysis for Wyndham Hotels & Resorts.

This leadership shakeup comes on the heels of a challenging year for Wyndham Hotels & Resorts, with the share price returning -26.1% year-to-date and the 1-year total shareholder return standing at -21.7%. Despite several strategic moves, such as new international hotel openings and loyalty program enhancements, market momentum has faded and the latest executive changes reinforce a wait-and-see approach among investors. Over the longer term, however, the company’s five-year total shareholder return of 47% shows it still has an established track record in the hospitality sector.

If you’re weighing opportunities beyond the hotel industry, this could be the perfect moment to widen your search and discover fast growing stocks with high insider ownership

With the stock still trading at a significant discount to analyst price targets, investors are left to question whether Wyndham is offering genuine value or if the market is fairly reflecting its future prospects.

Most Popular Narrative: 30% Undervalued

According to Zwfis, the narrative fair value for Wyndham Hotels & Resorts stands at $105.80, compared to a last close price of $73.73. This points to a substantial upside in the eyes of this widely-followed contributor, who anchors their view on key business model strengths and future growth expectations.

Wyndham is different because they do not actually own any real property at all. Instead they make all of their revenue from fees and royalties coming from their franchisees. This allows them to have good reserves of cash and be available to reward investors whether by share repurchases, dividends or even strategic acquisitions like with what they did with La Quinta a couple of years ago.

Read the complete narrative.

Wondering what bold growth and profitability assumptions power that triple-digit fair value? The narrative tackles a capital-light global model, leverage nuance, and loyalty economics. But there is an unexpected revenue angle and a sharp double-digit forecast that you have to see to believe. Dive into the projections that set this valuation apart from the crowd.

Result: Fair Value of $105.80 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, risks such as slowing international demand or unexpected rises in debt costs could challenge the optimistic valuation narrative for Wyndham Hotels & Resorts.

Find out about the key risks to this Wyndham Hotels & Resorts narrative.

Build Your Own Wyndham Hotels & Resorts Narrative

If the current valuations or viewpoints do not quite align with your own, you can dig into the data and craft a personal take faster than you think, often in just a few minutes. Do it your way

A great starting point for your Wyndham Hotels & Resorts research is our analysis highlighting 5 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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