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

Fundamentals

Established dividend payer and good value.


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


Market Performance


7 Day Return

1.2%

WYND

2.0%

US Hospitality

1.0%

US Market


1 Year Return

23.0%

WYND

3.5%

US Hospitality

6.7%

US Market

Return vs Industry: WYND exceeded the US Hospitality industry which returned 3.5% over the past year.

Return vs Market: WYND exceeded the US Market which returned 6.7% over the past year.


Share holder returns

WYNDIndustryMarket
7 Day1.2%2.0%1.0%
30 Day-5.3%-5.5%-1.8%
90 Day-3.8%-6.1%-1.8%
1 Year28.2%23.0%6.0%3.5%9.1%6.7%
3 Year64.1%-32.8%44.0%34.6%46.1%36.6%
5 Year50.4%-41.2%42.7%26.9%66.9%48.6%

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 based on future cash flows and its price relative to the stock market?

16%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: WYND ($45.28) is trading below our estimate of fair value ($54.03)

Significantly Undervalued: WYND is trading below fair value, but not by a significant amount.


Price Based on Earnings

PE vs Industry: WYND is good value based on its PE Ratio (9.9x) compared to the Hospitality industry average (23x).

PE vs Market: WYND is good value based on its PE Ratio (9.9x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: WYND is good value based on its PEG Ratio (0.8x)


Price Based on Value of Assets

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 expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

12.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: WYND's forecast earnings growth (12.9% per year) is above the savings rate (2.7%).

Earnings vs Market: WYND's earnings (12.9% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: WYND's revenue (4.3% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: WYND's revenue (4.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: WYND's Return on Equity is forecast to be very high in 3 years time (136.4%).


Next Steps

Past Performance

How has Wyndham Destinations performed over the past 5 years?

-5.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WYND's earnings have declined by -5.5% 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 (-24%) over the past year, making it difficult to compare to the Hospitality industry average (-13.9%).


Return on Equity

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


Return on Assets

ROA vs Industry: WYND has a higher Return on Assets than the Hospitality industry average last year.


Return on Capital Employed

ROCE Improving: WYND's Return on Capital Employed has declined over the past 3 years.


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?

4.02%

Expected Dividend Yield


Dividend Yield vs Market

company4.0%marketbottom25%1.5%markettop25%3.8%industryaverage2.3%forecastin3Years4.0%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: WYND's dividend (3.98%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: WYND's dividend (3.98%) is in the top 25% of dividend payers in the US market (3.77%)

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 (37.8%), 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 (24.5% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Mike Brown (48yo)

1.3yrs

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

1.8yrs

Average Tenure

47yo

Average Age

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


Board Age and Tenure

6.3yrs

Average Tenure

61.5yo

Average Age

Experienced Board: WYND's board of directors are considered experienced (6.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$92,72512 Sep 19
George Herrera
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,904
Max PriceUS$48.70
SellUS$346,92104 Sep 19
Noah Brodsky
EntityIndividual
Role
Senior Key Executive
Chief Brand Officer
Shares7,803
Max PriceUS$44.46
SellUS$227,79423 Aug 19
Kimberly Marshall
EntityIndividual
Role
Head of Human Resources
Chief Human Resources Officer
Shares5,300
Max PriceUS$42.98
BuyUS$200,80908 Aug 19
Michael Brown
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares5,000
Max PriceUS$40.16
SellUS$31,12505 Jun 19
George Herrera
EntityIndividual
Role
Member of the Board of Directors
Director
Shares757
Max PriceUS$41.12
SellUS$164,48007 May 19
Brad Dettmer
EntityIndividual
Role
Chief Information Officer
Chief Information Officer
Shares3,703
Max PriceUS$44.42
SellUS$30,04720 Mar 19
George Herrera
EntityIndividual
Role
Member of the Board of Directors
Director
Shares713
Max PriceUS$42.14
BuyUS$223,19406 Mar 19
Michael Brown
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares5,000
Max PriceUS$44.64

Ownership Breakdown


Management Team

  • Brad Dettmer

    Chief Information Officer

    • Tenure: 1.8yrs
  • Kimberly Marshall

    Chief Human Resources Officer

    • Tenure: 1.8yrs
  • Elizabeth Dreyer (57yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 1.3yrs
  • Michael Valentino

    Vice President of Marketing and Communications

    • Tenure: 6.7yrs
  • Jim Savina (45yo)

    Chief Ethics & Compliance Officer

    • Tenure: 1.5yrs
    • Compensation: US$2.35m
  • Noah Brodsky (38yo)

    Chief Brand Officer

    • Tenure: 1.8yrs
  • Nadeen Ayala

    Senior Vice President of Global Communications

    • Tenure: 4.5yrs
  • Mike Brown (48yo)

    CEO, President & Director

    • Tenure: 1.3yrs
    • Compensation: US$8.46m
  • Jeff Myers (51yo)

    Chief Sales & Marketing Officer of Wyndham Vacation Clubs

    • Tenure: 0yrs
    • Compensation: US$3.65m
  • Geoff Richards (46yo)

    Chief Operating Officer of Wyndham Vacation Clubs

    • Tenure: 0yrs
    • Compensation: US$3.40m

Board Members

  • James Buckman (74yo)

    Lead Director

    • Tenure: 9.6yrs
    • Compensation: US$572.53k
  • Steve Holmes (62yo)

    Chairman of the Board

    • Tenure: 13.3yrs
    • Compensation: US$21.48m
  • George Herrera (62yo)

    Director

    • Tenure: 13.3yrs
    • Compensation: US$496.19k
  • Denny Post (61yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: US$368.51k
  • Michael Wargotz (60yo)

    Director

    • Tenure: 13.3yrs
    • Compensation: US$563.53k
  • Louise F. Brady (54yo)

    Director

    • Tenure: 2.9yrs
    • Compensation: US$538.79k
  • Mike Brown (48yo)

    CEO, President & Director

    • Tenure: 1.3yrs
    • Compensation: US$8.46m
  • Ronald Rickles (67yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: US$363.51k

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$4.176b
  • Shares outstanding: 92.23m
  • 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

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. T ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 02:01
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
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.

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