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PK

Park Hotels & Resorts NYSE:PK Stock Report

Last Price

US$11.90

Market Cap

US$2.7b

7D

-14.3%

1Y

-41.0%

Updated

24 Sep, 2022

Data

Company Financials +
PK fundamental analysis
Snowflake Score
Valuation5/6
Future Growth4/6
Past Performance0/6
Financial Health1/6
Dividends0/6

PK Stock Overview

Park is the second largest publicly traded lodging REIT with a diverse portfolio of market-leading hotels and resorts with significant underlying real estate value.

Park Hotels & Resorts Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Park Hotels & Resorts
Historical stock prices
Current Share PriceUS$11.90
52 Week HighUS$21.62
52 Week LowUS$11.60
Beta1.98
1 Month Change-19.81%
3 Month Change-16.20%
1 Year Change-41.00%
3 Year Change-52.17%
5 Year Change-56.82%
Change since IPO-58.97%

Recent News & Updates

Sep 09

Park Hotels & Resorts declares $0.01 dividend

Park Hotels & Resorts (NYSE:PK) declares $0.01/share quarterly dividend, in line with previous. Forward yield 0.27% Payable Oct. 17; for shareholders of record Sept. 30; ex-div Sept. 29. See PK Dividend Scorecard, Yield Chart, & Dividend Growth.

Sep 02

Park Hotels & Resorts: No Expansion Possible Due To Their Large Debt Problem

Summary Park Hotels & Resorts' financial position has greatly improved since the corona crisis. I give Park Hotels & Resorts a sell rating because of the large amount of debt on their balance sheet. Refinancing would be an ideal option, but I suspect Park Hotels will need to issue additional shares to meet their debt obligations. There is no room left for expansion of the Park Hotels & Resorts Inc. business. Introduction I am looking back at a real estate investment trust ("REIT") I bought in my portfolio in mid-2020. This REIT is Park Hotels & Resorts Inc. (PK). Park Hotels spun off from Hilton in 2017 in an effort to lower their taxes and increase shareholder value. Shareholders holding Hilton Worldwide (HLT) shares did well, but Park Hotels' share price lagged. PK Total Return Level data by YCharts Park Hotels is a REIT with a real estate portfolio of approximately 60 hotels and resorts. Hotels and resorts have been hit hard by the mandatory closures during the corona crisis. At the time, it was my "speculation" hoping things would work out, so I took a small position in Park Hotels. At the beginning of 2021, I sold my position for a profit. I like to go on holiday, the hotels and resorts of Park Hotels look neat, but I still give it a sell rating because of the large amount of debt on their balance sheet. I expect this will deter them from making future investments. The proceeds from the equity offering will have to be used in conjunction with refinancing their debt to reduce their debt burden. This is not a good prospect. Financial Improvement, But High Debt Burden Park Hotels' financial position has greatly improved since the corona crisis. In 2020, their sales fell by 71%, but in 2021 their sales are about half of their 2019 sales. There is clearly visible recovery. Park Hotels recently raised their outlook in May. Their EBITDA has improved significantly since the coronavirus crisis and their RevPAR and Adjusted EBITDA expectations have been revised upwards. Increased Q2 2022 Guidance (May 2022 Investor Presentation ) I'm not going to use their current numbers in this analysis, as I expect the recovery to continue and their revenues to return to 2019 levels. What worries me is their long-term debts. Major repayments will be made in 2023 and 2026. The other debts are well distributed over the other years. In the years 2024, 2027, 2030 and beyond, there is an opportunity to refinance their large debt from 2023 and 2026 – at higher interest rates. Debt Maturity Schedule (May 2022 Investor Presentation) Refinancing would be an ideal option, but I suspect Park Hotels will need to issue additional shares to meet their debt obligations. In their 2019 annual report (their best year), Park Hotels generated an adjusted funds from operations ("FFO") of $613 million. Adjusted FFO 2019 and 2018 (2019 Annual Report) If we compare the adjusted FFO of $613 million for 2019 with their debt level for the coming years, we see that their debt level is higher than their 2019 adjusted FFO. They will have to refinance the high debt in 2023 and 2026 at a higher interest rate. The adjusted FFO of 2019 is the most favorable level, Park Hotels is still on track to recover. Debt maturity schedule and adjusted FFO 2019 (May 2022 Investor Presentation and Authors' Own Modification) In parallel with the refinancing, they can raise money by issuing additional shares. However, this is disadvantageous for shareholders if the proceeds are only used to pay off debts, because this does not generate any income and dilute shares. A REIT generally issues stocks to invest in real estate, which in turn generates rental income. 90% of the profit is paid out as a dividend. Park Hotels' debts are generally high and I expect that they will not be able to make new investments and will have to focus entirely on paying off their debts.

Shareholder Returns

PKUS REITsUS Market
7D-14.3%-6.2%-5.2%
1Y-41.0%-18.6%-23.1%

Return vs Industry: PK underperformed the US REITs industry which returned -18.6% over the past year.

Return vs Market: PK underperformed the US Market which returned -23.1% over the past year.

Price Volatility

Is PK's price volatile compared to industry and market?
PK volatility
PK Average Weekly Movement5.5%
REITs Industry Average Movement3.7%
Market Average Movement6.9%
10% most volatile stocks in US Market15.9%
10% least volatile stocks in US Market2.8%

Stable Share Price: PK is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: PK's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/a80Tom Baltimorehttps://www.pkhotelsandresorts.com

Park is the second largest publicly traded lodging REIT with a diverse portfolio of market-leading hotels and resorts with significant underlying real estate value. Park’s portfolio currently consists of 60 premium-branded hotels and resorts with over 33,000 rooms primarily located in prime city center and resort locations.

Park Hotels & Resorts Fundamentals Summary

How do Park Hotels & Resorts's earnings and revenue compare to its market cap?
PK fundamental statistics
Market CapUS$2.68b
Earnings (TTM)-US$60.00m
Revenue (TTM)US$2.05b

1.3x

P/S Ratio

-44.6x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PK income statement (TTM)
RevenueUS$2.05b
Cost of RevenueUS$1.50b
Gross ProfitUS$551.00m
Other ExpensesUS$611.00m
Earnings-US$60.00m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Nov 02, 2022

Earnings per share (EPS)-0.27
Gross Margin26.85%
Net Profit Margin-2.92%
Debt/Equity Ratio109.1%

How did PK perform over the long term?

See historical performance and comparison

Dividends

0.3%

Current Dividend Yield

1%

Payout Ratio

Does PK pay a reliable dividends?

See PK dividend history and benchmarks
When do you need to buy PK by to receive an upcoming dividend?
Park Hotels & Resorts dividend dates
Ex Dividend DateSep 29 2022
Dividend Pay DateOct 17 2022
Days until Ex dividend4 days
Days until Dividend pay date22 days

Does PK pay a reliable dividends?

See PK dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is PK undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PK?

Other financial metrics that can be useful for relative valuation.

PK key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.3x
Enterprise Value/EBITDA16.9x
PEG Ration/a

Price to Sales Ratio vs Peers

How does PK's PS Ratio compare to its peers?

PK PS Ratio vs Peers
The above table shows the PS ratio for PK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average2.2x
PEB Pebblebrook Hotel Trust
1.7x9.6%US$2.0b
SHO Sunstone Hotel Investors
2.7x7.2%US$2.1b
RLJ RLJ Lodging Trust
1.6x11.5%US$1.7b
APLE Apple Hospitality REIT
2.9x6.6%US$3.3b
PK Park Hotels & Resorts
1.3x8.5%US$2.7b

Price-To-Sales vs Peers: PK is good value based on its Price-To-Sales Ratio (1.3x) compared to the peer average (2.2x).


Price to Earnings Ratio vs Industry

How does PK's PE Ratio compare vs other companies in the US REITs Industry?

Price-To-Sales vs Industry: PK is good value based on its Price-To-Sales Ratio (1.3x) compared to the US REITs industry average (4.9x)


Price to Sales Ratio vs Fair Ratio

What is PK's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PK PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.3x
Fair PS Ratio2x

Price-To-Sales vs Fair Ratio: PK is good value based on its Price-To-Sales Ratio (1.3x) compared to the estimated Fair Price-To-Sales Ratio (2x).


Share Price vs Fair Value

What is the Fair Price of PK when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PK ($11.9) is trading below our estimate of fair value ($84.57)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Park Hotels & Resorts forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


33.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PK is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: PK is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: PK is expected to become profitable in the next 3 years.

Revenue vs Market: PK's revenue (8.5% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: PK's revenue (8.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PK's Return on Equity is forecast to be low in 3 years time (5%).


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Past Performance

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

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-69.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PK is currently unprofitable.

Growing Profit Margin: PK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PK is unprofitable, and losses have increased over the past 5 years at a rate of 69.5% per year.

Accelerating Growth: Unable to compare PK's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PK is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (45.8%).


Return on Equity

High ROE: PK has a negative Return on Equity (-1.14%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is Park Hotels & Resorts's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: PK's short term assets ($1.1B) exceed its short term liabilities ($211.0M).

Long Term Liabilities: PK's short term assets ($1.1B) do not cover its long term liabilities ($5.2B).


Debt to Equity History and Analysis

Debt Level: PK's net debt to equity ratio (91.4%) is considered high.

Reducing Debt: PK's debt to equity ratio has increased from 49.1% to 109.1% over the past 5 years.

Debt Coverage: PK's debt is not well covered by operating cash flow (4.6%).

Interest Coverage: PK's interest payments on its debt are not well covered by EBIT (0.5x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


0.34%

Current Dividend Yield

Upcoming Dividend Payment

TodaySep 25 2022Ex Dividend DateSep 29 2022Dividend Pay DateOct 17 202218 days from Ex DividendBuy in the next 4 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: PK's dividend (0.34%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: PK's dividend (0.34%) is low compared to the top 25% of dividend payers in the US market (4.57%).


Stability and Growth of Payments

Stable Dividend: PK is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: PK is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Earnings Payout to Shareholders

Earnings Coverage: PK is not paying a notable dividend for the US market.


Cash Payout to Shareholders

Cash Flow Coverage: PK is not paying a notable dividend for the US market.


Discover strong dividend paying companies

Management

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

4.3yrs

Average management tenure


CEO

Tom Baltimore (59 yo)

5.75yrs

Tenure

US$9,412,399

Compensation

Mr. Thomas Jeremiah Baltimore Jr., also known as Tom, has been the Chief Executive Officer and President at Park Hotels & Resorts Inc. since January 2017. Mr. Baltimore’s knowledge of extensive experience...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD9.41M) is above average for companies of similar size in the US market ($USD6.95M).

Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: PK's management team is considered experienced (4.3 years average tenure).


Board Members

Experienced Board: PK's board of directors are considered experienced (5.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

NYSE:PK Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
14 Jun 22BuyUS$151,250Thomas EckertIndividual10,000US$15.13
14 Jun 22SellUS$76,703Geoffrey GarrettIndividual5,000US$15.34

Ownership Breakdown

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


Top Shareholders

Top 25 shareholders own 69.27% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
14.4%
The Vanguard Group, Inc.
32,380,335$385.3m-3.9%0.01%
12.73%
BlackRock, Inc.
28,616,170$340.5m-3.78%0.01%
6.13%
PGGM
13,778,606$164.0m0%1.03%
5.8%
State Street Global Advisors, Inc.
13,036,934$155.1m5.35%0.01%
3.89%
Principal Global Investors, LLC
8,755,233$104.2m0.8%0.08%
2.19%
Rush Island Management, LP
4,935,042$58.7m340.4%15.98%
1.69%
Vulcan Value Partners, LLC
3,798,411$45.2m-19.64%0.46%
1.69%
CBRE Investment Management Listed Real Assets LLC
3,795,812$45.2m33.51%0.59%
1.61%
Janus Henderson Group plc
3,626,593$43.2m-21.77%0.03%
1.6%
Geode Capital Management, LLC
3,602,794$42.9m-3.35%0.01%
1.54%
Goldman Sachs Asset Management, L.P.
3,465,761$41.2m184.33%0.02%
1.43%
Dimensional Fund Advisors LP
3,204,502$38.1m-1.2%0.01%
1.35%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
3,045,445$36.2m-3.76%0.01%
1.34%
Northern Trust Global Investments
3,022,171$36.0m-9.69%0.01%
1.33%
CenterSquare Investment Management LLC
3,000,854$35.7m22.02%0.52%
1.18%
BNY Mellon Asset Management
2,663,097$31.7m0.44%0.01%
1.15%
Charles Schwab Investment Management, Inc.
2,586,264$30.8m-3.69%0.01%
1.15%
Perry Creek Capital LP
2,575,540$30.6m0.98%7.68%
1.12%
Nikko Asset Management Co., Ltd.
2,523,930$30.0m53.03%0.01%
1.11%
LaSalle Investment Management Securities, LLC
2,506,182$29.8m80.83%1.21%
1.03%
PGIM, Inc.
2,306,881$27.5m-30.67%0.04%
0.98%
Norges Bank Investment Management
2,205,980$26.3m0%no data
0.96%
Citadel Advisors LLC
2,151,627$25.6m257.46%0.04%
0.94%
Stichting Pensioenfonds ABP
2,114,188$25.2m-25.93%0.04%
0.91%
Long Pond Capital, LP
2,040,936$24.3m0%1.37%

Company Information

Park Hotels & Resorts Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Park Hotels & Resorts Inc.
  • Ticker: PK
  • Exchange: NYSE
  • Founded: NaN
  • Industry: Hotel and Resort REITs
  • Sector: Real Estate
  • Implied Market Cap: US$2.676b
  • Shares outstanding: 224.84m
  • Website: https://www.pkhotelsandresorts.com

Number of Employees


Location

  • Park Hotels & Resorts Inc.
  • 1775 Tysons Boulevard
  • 7th Floor
  • Tysons
  • Virginia
  • 22102
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PKNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 2016
HIPDB (Deutsche Boerse AG)YesCommon StockDEEURDec 2016
0KFULSE (London Stock Exchange)YesCommon StockGBUSDDec 2016

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/24 00:00
End of Day Share Price2022/09/23 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.