| Snowflake Score | |
|---|---|
| Valuation | 5/6 |
| Future Growth | 4/6 |
| Past Performance | 0/6 |
| Financial Health | 1/6 |
| Dividends | 0/6 |
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
| Historical stock prices | |
|---|---|
| Current Share Price | US$11.90 |
| 52 Week High | US$21.62 |
| 52 Week Low | US$11.60 |
| Beta | 1.98 |
| 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
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.
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
| PK | US REITs | US 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
| PK volatility | |
|---|---|
| PK Average Weekly Movement | 5.5% |
| REITs Industry Average Movement | 3.7% |
| Market Average Movement | 6.9% |
| 10% most volatile stocks in US Market | 15.9% |
| 10% least volatile stocks in US Market | 2.8% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| n/a | 80 | Tom Baltimore | https://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
| PK fundamental statistics | |
|---|---|
| Market Cap | US$2.68b |
| Earnings (TTM) | -US$60.00m |
| Revenue (TTM) | US$2.05b |
1.3x
P/S Ratio-44.6x
P/E RatioIs PK overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| PK income statement (TTM) | |
|---|---|
| Revenue | US$2.05b |
| Cost of Revenue | US$1.50b |
| Gross Profit | US$551.00m |
| Other Expenses | US$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 Margin | 26.85% |
| Net Profit Margin | -2.92% |
| Debt/Equity Ratio | 109.1% |
How did PK perform over the long term?
See historical performance and comparisonDividends
0.3%
Current Dividend Yield1%
Payout RatioDoes PK pay a reliable dividends?
See PK dividend history and benchmarks| Park Hotels & Resorts dividend dates | |
|---|---|
| Ex Dividend Date | Sep 29 2022 |
| Dividend Pay Date | Oct 17 2022 |
| Days until Ex dividend | 4 days |
| Days until Dividend pay date | 22 days |
Does PK pay a reliable dividends?
See PK dividend history and benchmarksValuation
Is PK undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
5/6Valuation 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.
| What is PK's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | US$2.68b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 3.3x |
| Enterprise Value/EBITDA | 16.9x |
| PEG Ratio | n/a |
Price to Sales Ratio vs Peers
How does PK's PS Ratio compare to its peers?
| PK PS Ratio vs Peers |
|---|
| Company | PS | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 2.2x | ||
PEB Pebblebrook Hotel Trust | 1.7x | 9.6% | US$2.0b |
SHO Sunstone Hotel Investors | 2.7x | 7.2% | US$2.1b |
RLJ RLJ Lodging Trust | 1.6x | 11.5% | US$1.7b |
APLE Apple Hospitality REIT | 2.9x | 6.6% | US$3.3b |
PK Park Hotels & Resorts | 1.3x | 8.5% | 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.
| Fair Ratio | |
|---|---|
| Current PS Ratio | 1.3x |
| Fair PS Ratio | 2x |
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
4/6Future 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
0/6Past 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.
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Financial Health
How is Park Hotels & Resorts's financial position?
Financial Health Score
1/6Financial 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
0/6Dividend Score 0/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage
0.34%
Current Dividend Yield
Upcoming Dividend Payment
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.
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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
| Date | Value | Name | Entity | Role | Shares | Max Price |
|---|---|---|---|---|---|---|
| 14 Jun 22 | BuyUS$151,250 | Thomas Eckert | Individual | 10,000 | US$15.13 | |
| 14 Jun 22 | SellUS$76,703 | Geoffrey Garrett | Individual | 5,000 | US$15.34 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
| Ownership | Name | Shares | Current Value | Change % | Portfolio % | |
|---|---|---|---|---|---|---|
| 32,380,335 | $385.3m | -3.9% | 0.01% | |||
| 28,616,170 | $340.5m | -3.78% | 0.01% | |||
| 13,778,606 | $164.0m | 0% | 1.03% | |||
| 13,036,934 | $155.1m | 5.35% | 0.01% | |||
| 8,755,233 | $104.2m | 0.8% | 0.08% | |||
| 4,935,042 | $58.7m | 340.4% | 15.98% | |||
| 3,798,411 | $45.2m | -19.64% | 0.46% | |||
| 3,795,812 | $45.2m | 33.51% | 0.59% | |||
| 3,626,593 | $43.2m | -21.77% | 0.03% | |||
| 3,602,794 | $42.9m | -3.35% | 0.01% | |||
| 3,465,761 | $41.2m | 184.33% | 0.02% | |||
| 3,204,502 | $38.1m | -1.2% | 0.01% | |||
| 3,045,445 | $36.2m | -3.76% | 0.01% | |||
| 3,022,171 | $36.0m | -9.69% | 0.01% | |||
| 3,000,854 | $35.7m | 22.02% | 0.52% | |||
| 2,663,097 | $31.7m | 0.44% | 0.01% | |||
| 2,586,264 | $30.8m | -3.69% | 0.01% | |||
| 2,575,540 | $30.6m | 0.98% | 7.68% | |||
| 2,523,930 | $30.0m | 53.03% | 0.01% | |||
| 2,506,182 | $29.8m | 80.83% | 1.21% | |||
| 2,306,881 | $27.5m | -30.67% | 0.04% | |||
| 2,205,980 | $26.3m | 0% | no data | |||
| 2,151,627 | $25.6m | 257.46% | 0.04% | |||
| 2,114,188 | $25.2m | -25.93% | 0.04% | |||
| 2,040,936 | $24.3m | 0% | 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| PK | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Dec 2016 |
| HIP | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Dec 2016 |
| 0KFU | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Dec 2016 |
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/09/24 00:00 |
| End of Day Share Price | 2022/09/23 00:00 |
| Earnings | 2022/06/30 |
| Annual Earnings | 2021/12/31 |
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.