NYSE:WYND

Stock Analysis Report

Executive Summary

Wyndham Destinations, Inc. operates as a vacation ownership and exchange company in the United States and internationally.


Snowflake Analysis

Undervalued average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: WYND has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.6%

WYND

-1.6%

US Hospitality

-1.0%

US Market


1 Year Return

3.3%

WYND

4.0%

US Hospitality

18.0%

US Market

Return vs Industry: WYND matched the US Hospitality industry which returned 4% over the past year.

Return vs Market: WYND underperformed the US Market which returned 18% over the past year.


Shareholder returns

WYNDIndustryMarket
7 Day-1.6%-1.6%-1.0%
30 Day-5.6%-3.2%0.6%
90 Day0.5%4.6%7.9%
1 Year7.5%3.3%6.7%4.0%20.4%18.0%
3 Year41.8%-42.1%33.4%24.5%48.0%38.5%
5 Year36.5%-46.9%44.9%29.4%72.2%53.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Wyndham Destinations undervalued compared to its fair value and its price relative to the market?

24.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WYND ($48.6) is trading below our estimate of fair value ($64.52)

Significantly Below Fair Value: WYND is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: WYND is good value based on its PE Ratio (10.4x) compared to the Hospitality industry average (23.7x).

PE vs Market: WYND is good value based on its PE Ratio (10.4x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: WYND is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: WYND has negative assets, so we can't compare its PB Ratio to the US Hospitality industry average.


Next Steps

Future Growth

How is Wyndham Destinations forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

15.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WYND's forecast earnings growth (15.5% per year) is above the savings rate (1.7%).

Earnings vs Market: WYND's earnings (15.5% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: WYND's earnings are forecast to grow, but not significantly.

Revenue vs Market: WYND's revenue (4.2% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: WYND's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WYND's Return on Equity is forecast to be very high in 3 years time (112.6%).


Next Steps

Past Performance

How has Wyndham Destinations performed over the past 5 years?

-6.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WYND has high quality earnings.

Growing Profit Margin: WYND's current net profit margins (11%) are lower than last year (15.5%).


Past Earnings Growth Analysis

Earnings Trend: WYND's earnings have declined by -6% per year over the past 5 years.

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

Earnings vs Industry: WYND had negative earnings growth (-27.2%) over the past year, making it difficult to compare to the Hospitality industry average (-8.2%).


Return on Equity

High ROE: WYND's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Wyndham Destinations's financial position?


Financial Position Analysis

Short Term Liabilities: WYND has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: WYND has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: WYND has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: WYND's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: WYND's debt is not well covered by operating cash flow (7.4%).

Interest Coverage: WYND's interest payments on its debt are well covered by EBIT (5.2x coverage).


Balance Sheet

Inventory Level: WYND has a high level of physical assets or inventory.

Debt Coverage by Assets: WYND has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

What is Wyndham Destinations's current dividend yield, its reliability and sustainability?

3.70%

Current Dividend Yield


Dividend Yield vs Market

company3.7%marketbottom25%1.4%markettop25%3.7%industryaverage3.1%forecastin3Years3.8%

Current dividend yield vs market & industry

Notable Dividend: WYND's dividend (3.7%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: WYND's dividend (3.7%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

Stable Dividend: WYND's dividend payments have been volatile in the past 10 years.

Growing Dividend: WYND's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.6%), WYND's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WYND's dividends in 3 years are forecast to be well covered by earnings (22.6% payout ratio).


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Mike Brown (48yo)

1.7yrs

Tenure

US$8,464,246

Compensation

Mr. Michael D. Brown, also known as Mike, has been Director, President and Chief Executive Officer at Wyndham Destinations, Inc. since June 1, 2018. Mr. Brown was the Chief Executive Officer and President  ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD8.46M) is above average for companies of similar size in the US market ($USD4.87M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Brown
CEO, President & Director1.7yrsUS$8.46m0.066% $2.9m
Michael Hug
Chief Financial Officer & Executive Vice President0yrsUS$3.42m0.020% $863.9k
James Savina
Chief Ethics & Compliance Officer1.8yrsUS$2.35m0.0039% $169.6k
Jeff Myers
Chief Sales & Marketing Officer of Wyndham Vacation Clubs0yrsUS$3.65m0.025% $1.1m
Geoff Richards
Chief Operating Officer of Wyndham Vacation Clubs0yrsUS$3.40m0.029% $1.3m
Elizabeth Dreyer
Senior VP & Chief Accounting Officer1.7yrsno data0.0019% $85.0k
Brad Dettmer
Chief Information Officer2.1yrsno data0.0034% $147.6k
Nadeen Ayala
Senior Vice President of Global Communications4.8yrsno datano data
Michael Valentino
Vice President of Marketing and Communications7yrsno datano data
Kimberly Marshall
Chief Human Resources Officer2.1yrsno data0.0013% $55.9k

2.1yrs

Average Tenure

49.5yo

Average Age

Experienced Management: WYND's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Brown
CEO, President & Director1.7yrsUS$8.46m0.066% $2.9m
James Buckman
Lead Director9.9yrsUS$572.53k0.0077% $340.1k
Stephen Holmes
Chairman of the Board13.6yrsUS$21.48m0.85% $37.3m
George Herrera
Independent Director13.6yrsUS$496.19kno data
Denny Post
Director1.7yrsUS$368.51k0.0030% $130.8k
Michael Wargotz
Independent Director13.6yrsUS$563.53k0.00080% $35.2k
Louise F. Brady
Independent Director3.3yrsUS$538.79kno data
Ronald Rickles
Director1.7yrsUS$363.51kno data

6.6yrs

Average Tenure

61.5yo

Average Age

Experienced Board: WYND's board of directors are considered experienced (6.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: WYND insiders have only sold shares 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 Destinations, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Wyndham Destinations, Inc.
  • Ticker: WYND
  • Exchange: NYSE
  • Founded: 1990
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: US$4.405b
  • Shares outstanding: 90.65m
  • Website: https://www.wyndhamdestinations.com

Number of Employees


Location

  • Wyndham Destinations, Inc.
  • 6277 Sea Harbor Drive
  • Orlando
  • Florida
  • 32821
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WYNDNYSE (New York Stock Exchange)YesCommon StockUSUSDJul 2006
WD5DB (Deutsche Boerse AG)YesCommon StockDEEURJul 2006
0M1KLSE (London Stock Exchange)YesCommon StockGBUSDJul 2006
WD5BRSE (Berne Stock Exchange)YesCommon StockCHCHFJul 2006

Biography

Wyndham Destinations, Inc. operates as a vacation ownership and exchange company in the United States and internationally. The company operates in two segments, Vacation Ownership and Exchange & Rentals. The Vacation Ownership segment develops, markets, and sells vacation ownership interests (VOIs) to individual consumers; provides consumer financing in connection with the sale of VOIs; and provides property management services at resorts. The Exchange & Rentals segment offers vacation exchange services and products to owners of VOIs; and manages and markets vacation rental properties primarily on behalf of independent owners. As of October 24, 2019, it had approximately 220 vacation ownership resorts. Wyndham Destinations, Inc. also has relationships with approximately 4,300 vacation ownership resorts. The company was formerly known as Wyndham Worldwide Corporation and changed its name to Wyndham Destinations, Inc. in May 2018. Wyndham Destinations, Inc. was founded in 1990 and is headquartered in Orlando, Florida. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 00:38
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.