NYSE:PK

Stock Analysis Report

Executive Summary

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.


Snowflake Analysis

Good value average dividend payer.


Similar Companies

Share Price & News

How has Park Hotels & Resorts's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.2%

PK

-0.2%

US REITs

0.06%

US Market


1 Year Return

-27.1%

PK

15.9%

US REITs

19.3%

US Market

Return vs Industry: PK underperformed the US REITs industry which returned 15.9% over the past year.

Return vs Market: PK underperformed the US Market which returned 19.3% over the past year.


Shareholder returns

PKIndustryMarket
7 Day-1.2%-0.2%0.06%
30 Day-4.2%3.7%1.7%
90 Day4.5%7.8%9.0%
1 Year-21.8%-27.1%20.6%15.9%21.8%19.3%
3 Year14.0%-9.9%37.5%20.3%49.5%39.9%
5 Yearn/a59.9%27.0%73.1%54.1%

Price Volatility Vs. Market

How volatile is Park Hotels & Resorts's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Park Hotels & Resorts undervalued compared to its fair value and its price relative to the market?

37.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PK ($23.35) is trading below our estimate of fair value ($37.09)

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


Price To Earnings Ratio

PE vs Industry: PK is good value based on its PE Ratio (20.1x) compared to the REITs industry average (37.2x).

PE vs Market: PK is poor value based on its PE Ratio (20.1x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: PK is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: PK is good value based on its PB Ratio (0.9x) compared to the US REITs industry average (2.1x).


Next Steps

Future Growth

How is Park Hotels & Resorts forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

12.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PK's forecast earnings growth (12.5% per year) is above the savings rate (1.7%).

Earnings vs Market: PK's earnings (12.5% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: PK's revenue (5.7% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: PK's revenue (5.7% 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 (6.5%).


Next Steps

Past Performance

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

3.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PK has high quality earnings.

Growing Profit Margin: PK's current net profit margins (8.7%) are lower than last year (17.2%).


Past Earnings Growth Analysis

Earnings Trend: PK's earnings have grown by 3.8% per year over the past 5 years.

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

Earnings vs Industry: PK had negative earnings growth (-50.6%) over the past year, making it difficult to compare to the REITs industry average (6.7%).


Return on Equity

High ROE: PK's Return on Equity (3.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Park Hotels & Resorts's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

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

Debt Coverage by Assets: PK's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

Asset Level: PK's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if PK has a sufficient allowance for bad loans.

Low Risk Liabilities: PK reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if PK has an acceptable proportion of non-loan assets held.

Low Risk Deposits: PK has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if PK has an appropriate level of bad loans.


Next Steps

Dividend

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

7.71%

Current Dividend Yield


Dividend Yield vs Market

company7.7%marketbottom25%1.4%markettop25%3.7%industryaverage3.5%forecastin3Years7.9%

Current dividend yield vs market & industry

Notable Dividend: PK's dividend (7.71%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: PK's dividend (7.71%) is in the top 25% of dividend payers in the US market (3.71%)


Stability and Growth of Payments

Stable Dividend: PK has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: PK's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (97.1%), PK's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PK's dividends in 3 years are forecast to be thoroughly covered by earnings (0.3% payout ratio).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Tom Baltimore (56yo)

3.2yrs

Tenure

US$7,601,165

Compensation

Mr. Thomas Jeremiah Baltimore Jr., also known as Tom, has been Director at AutoNation, Inc. since April 18, 2019. He has been the Chief Executive Officer and President at Park Hotels & Resorts Inc. since M ...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD7.60M) is about average for companies of similar size in the US market ($USD6.36M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Baltimore
Chairman3.2yrsUS$7.60m0.23% $13.1m
Sean Dell'Orto
Executive VP3.2yrsUS$2.50m0.068% $3.8m
Thomas Morey
Executive VP0.08yrsUS$2.20m0.037% $2.1m
Darren Robb
Senior VP & Chief Accounting Officer3.2yrsno data0.012% $658.5k
Ian Weissman
Senior Vice President of Corporate Strategy0yrsno datano data
Jill Olander
Executive Vice President of Human Resources3.1yrsno data0.016% $887.6k
Scott Winer
Senior Vice President of Tax0yrsno datano data
Diem Larsen
Senior VP of Financial Planning & Analysis1.9yrsno datano data
Carl Mayfield
Executive VP of Design & Construction1.4yrsno data0.022% $1.2m
Jonathan Fuisz
Senior Vice President of Investments0.08yrsno datano data

2.5yrs

Average Tenure

46yo

Average Age

Experienced Management: PK's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thomas Baltimore
Chairman3.2yrsUS$7.60m0.23% $13.1m
Gordon Bethune
Lead Independent Director3.1yrsUS$278.43k0.0065% $360.5k
Stephen Sadove
Independent Director3.1yrsUS$255.74k0.016% $904.4k
Timothy Naughton
Independent Director3.1yrsUS$255.52k0.011% $623.8k
Thomas Eckert
Independent Director0.4yrsno data0.012% $664.6k
Thomas Natelli
Independent Director0.4yrsno data0.041% $2.3m
Patricia Bedient
Independent Director3.1yrsUS$243.04k0.011% $592.5k
Christie Kelly
Independent Director3.2yrsUS$260.81k0.011% $636.1k
Geoffrey Garrett
Independent Director2.7yrsUS$235.84k0.0056% $311.3k
Joseph Lieberman
Independent Director3.1yrsUS$244.20k0.0065% $360.5k

3.1yrs

Average Tenure

62yo

Average Age

Experienced Board: PK's board of directors are considered experienced (3.1 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.


Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Park Hotels & Resorts Inc.
  • Ticker: PK
  • Exchange: NYSE
  • Founded:
  • Industry: Hotel and Resort REITs
  • Sector: Real Estate
  • Market Cap: US$5.590b
  • Shares outstanding: 239.39m
  • 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

Biography

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 66 premium-branded hotels and resorts with over 35,000 rooms primarily located in prime city center and resort locations, which includes 18 hotels with approximately 6,000 rooms acquired in the Chesapeake Lodging Trust acquisition. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 01:59
End of Day Share Price2020/02/20 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.