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Wyndham Hotels & Resorts Inc (WH)
NYSE:WH
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Wyndham Hotels & Resorts
(NYSE:WH)75Outperform
Positive Factors
Financial performance
Wyndham Hotels & Resorts returned $430 million to shareholders through buybacks and dividends, indicating strong shareholder value.
Growth potential
Wyndham Hotels & Resorts has a larger growth pipeline compared to its competitor CHH, making it more attractive in terms of future expansion.
Negative Factors
Stock valuation concerns
Despite positive factors, recent stock performance of +29% suggests waiting for a better entry point.
Wyndham Hotels & Resorts (WH) vs. S&P 500 (SPY)
Market Cap
$8.11B
Dividend Yield1.46%
Average Volume (3M)836.92K
Price to Earnings (P/E)28.9
Beta (1Y)0.72
Revenue GrowthN/A
EPS Growth6.40%
CountryUS
Employees2,200
SectorConsumer Cyclical
Sector Strength53
IndustryHotels, Lodging & Leisure
Share Statistics
EPS (TTM)3.63
Shares Outstanding77,745,950
10 Day Avg. Volume883,242
30 Day Avg. Volume836,919
Financial Highlights & Ratios
PEG Ratio4.52
Price to Book (P/B)N/A
Price to Sales (P/S)5.76
Price to Cash Flow (P/CF)15.10
P/FCF Ratio14.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$117.91Price Target Upside12.01% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
Wyndham Hotels & Resorts Business Overview & Revenue Model
Company DescriptionWyndham Hotels & Resorts, Inc. engages in the franchise and operation of hotels under the Wyndham brand. It operates through the following segments: Hotel Franchising and Hotel Management. The Hotel Franchising segment offers licenses of brand names and associated trademarks to hotel owners under long-term franchise agreements. The Hotel Management segment provides management services. The company was founded in 1990 and is headquartered in Parsippany, NJ.
How the Company Makes MoneyWyndham Hotels & Resorts primarily generates revenue through franchise fees, which include royalties and marketing fees paid by hotel owners based on a percentage of room revenues. These fees are linked to the brand recognition and services provided by Wyndham, such as access to the company's reservation system, loyalty programs, and marketing efforts. Additionally, Wyndham benefits from partnerships with travel agencies and online travel platforms, expanding its market reach and driving more bookings to its franchised locations. The company also earns revenue from management services, particularly for properties it manages directly, although this represents a smaller portion of its income.
Wyndham Hotels & Resorts Financial Statement Overview
Summary
Wyndham Hotels & Resorts exhibits stability with strong profit margins and efficient cash flow management. However, challenges include a slight revenue decline and high leverage, which could impact future growth and financial flexibility.Income Statement
Wyndham Hotels & Resorts shows a stable income statement with a consistent gross profit margin around 94% and a solid net profit margin of approximately 20% in recent years. However, revenue has shown a slight decline from 2022 to 2024, which is a concern. EBIT margin remains strong at about 35%, indicating efficient operational management, but the lack of recent revenue growth could affect future profitability.75
Positive
Balance Sheet
The balance sheet indicates a high debt-to-equity ratio of 3.79, signaling significant leverage, which might pose risks in a high-interest environment. However, the equity ratio is low at 15.39%, suggesting limited shareholder equity relative to total assets. Return on equity is relatively strong, highlighting effective use of equity to generate profit despite the leverage concerns.65
Positive
Cash Flow
Wyndham's cash flow statement shows a declining trend in operating cash flow from 2021 to 2024, but free cash flow remains positive and stable, indicating effective capital expenditure management. The ratio of operating cash flow to net income remains healthy, suggesting good cash generation from operations relative to accounting profits.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.41B | 1.40B | 1.50B | 1.56B | 1.30B | Gross Profit |
| 1.33B | 815.00M | 830.00M | 795.00M | 531.00M | EBIT |
| 495.00M | 503.00M | 558.00M | 446.00M | 208.00M | EBITDA |
| 568.00M | 582.00M | 601.00M | 550.00M | 54.00M | Net Income Common Stockholders |
| 289.00M | 289.00M | 355.00M | 244.00M | -132.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 103.00M | 66.00M | 161.00M | 171.00M | 493.00M | Total Assets |
| 4.22B | 4.03B | 4.12B | 4.27B | 4.64B | Total Debt |
| 2.46B | 2.21B | 2.10B | 2.08B | 2.60B | Net Debt |
| 2.36B | 2.14B | 1.94B | 1.91B | 2.10B | Total Liabilities |
| 3.57B | 3.29B | 3.16B | 3.18B | 3.68B | Stockholders Equity |
| 650.00M | 746.00M | 962.00M | 1.09B | 963.00M |
| Cash Flow | Free Cash Flow | |||
| 241.00M | 339.00M | 360.00M | 389.00M | 34.00M | Operating Cash Flow |
| 290.00M | 376.00M | 399.00M | 426.00M | 67.00M | Investing Cash Flow |
| -65.00M | -66.00M | 179.00M | -34.00M | -31.00M | Financing Cash Flow |
| -175.00M | -402.00M | -584.00M | -713.00M | 363.00M |
Wyndham Hotels & Resorts Technical Analysis
Neutral
105.27
Price Trends
104.60
Negative
98.57
Positive
86.28
Positive
Market Momentum
0.53
Positive
41.96
Neutral
22.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WH, the sentiment is Neutral. The current price of 105.27 is below the 20-day moving average (MA) of 108.03, above the 50-day MA of 104.60, and above the 200-day MA of 86.28, indicating a neutral trend. The MACD of 0.53 indicates Positive momentum. The RSI at 41.96 is Neutral, neither overbought nor oversold. The STOCH value of 22.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WH.
Wyndham Hotels & Resorts Risk Analysis
Wyndham Hotels & Resorts disclosed 28 risk factors in its most recent earnings report. Wyndham Hotels & Resorts reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Wyndham Hotels & Resorts Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $8.11B | 28.93 | 41.40% | 1.46% | ― | 6.40% | |
74 Outperform | $11.08B | 16.01 | 10.53% | 5.05% | 7.02% | -4.78% | |
68 Neutral | $63.42B | 42.93 | -41.19% | 0.23% | 9.17% | 42.78% | |
66 Neutral | $74.66B | 32.52 | -144.82% | 0.93% | 5.85% | -18.43% | |
64 Neutral | $13.20B | 10.85 | 36.54% | 0.44% | -6.41% | 511.40% | |
61 Neutral | $19.58B | 32.29 | -27.16% | 1.23% | 6.34% | -11.99% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% |
* Consumer Cyclical Sector Average
Performance Comparison
WH
Wyndham Hotels & Resorts
105.27
31.74
43.17%
H
Hyatt Hotels
139.87
-16.83
-10.74%
IHG
Intercontinental Hotels Group
126.19
20.91
19.86%
MAR
Marriott International
271.10
26.46
10.82%
HST
Host Hotels & Resorts
16.08
-3.84
-19.28%
HLT
Hilton Worldwide Holdings
259.49
56.41
27.78%
Wyndham Hotels & Resorts Earnings Call Summary
Earnings Call Date: Feb 12, 2025 | % Change Since: -3.51% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance, record room additions, and successful international and domestic expansion, despite some challenges in China. The introduction of innovative financial products and a robust loyalty program further underscore the positive outlook for Wyndham. Overall, the positive aspects significantly outweigh the challenges.Highlights
Record-Breaking Room Additions
Opened a record 69,000 rooms, the largest number of annual organic room additions in Wyndham's history, representing a 4% increase from last year.
Strong Financial Metrics
Net room growth of 4% and comparable adjusted EBITDA and EPS growth of 7% and 10% respectively, all in line with expectations.
High Retention Rate
Global retention rate improved by 10 basis points to 95.7%, indicative of high franchisee engagement and satisfaction.
International Expansion Success
International net rooms grew 2% sequentially and 7% year-over-year, with notable growth in regions like EMEA, Latin America, and Asia Pacific.
Strong U.S. RevPAR Growth
U.S. RevPAR in the fourth quarter grew by 5.3%, driven by increased blue-collar mid-week business demand and leisure transient weekend bookings.
Successful Loyalty Program
Wyndham Rewards reached 114 million members globally, an 8% increase versus last year, with increased engagement and exclusive offerings.
Innovative Financial Products
Introduced a co-branded debit card with Galileo Financial Technologies, designed to tap into the $4.5 trillion debit card spending market.
Lowlights
Deflationary Pressures in China
RevPAR in China declined 11% due to continued deflationary pressures, although ADR remains 3% ahead of 2019 levels.
Impact of Legacy Master License Agreements
Legacy master license agreements in China had a nominal impact on EBITDA, and without them, net room growth in 2024 would have been 40 basis points higher.
Company Guidance
During the Wyndham Hotels and Resorts Fourth Quarter and Full-Year 2024 Earnings Conference Call, the company provided robust guidance for 2025. They anticipate global net room growth to be between 3.6% and 4.6%, with RevPAR expected to grow 2% to 3% on a constant currency basis. The company reported significant development momentum, with a record addition of 69,000 rooms and a pipeline that grew by 20% in EMEA and 15% in Latin America. Wyndham highlighted a strong performance from its ECHO Suites brand and upscale offerings like Wyndham Residences. Royalty rates increased by 10 basis points domestically and 12 basis points internationally, driven by a focus on higher FeePAR properties. The company also emphasized ancillary fee growth, driven by a renewed co-branded credit card agreement with Barclays, expected to drive ancillary revenue growth in the low teens for 2025. Overall, Wyndham remains confident in achieving its 2025 growth targets, supported by strategic expansions and enhancements in its business model.Wyndham Hotels & Resorts Corporate Events
DividendsBusiness Operations and StrategyFinancial Disclosures
Wyndham Hotels Reports Strong 2024 Financial Results
Positive
Feb 12, 2025
Wyndham Hotels & Resorts reported strong financial results for the fourth quarter and full-year 2024, with significant growth in global and U.S. RevPAR, system-wide rooms, and development pipeline. The company achieved record-high openings and retention rates, increased its quarterly dividend by 8%, and returned $430 million to shareholders, highlighting promising future growth and sustained value creation for stakeholders.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.