Wyndham Hotels & Resorts (WH) AI Stock Analysis

• Market Cap: $6.38B
• Dividend Yield: 1.88%
• Average Volume (3M): 1.12M
• Price to Earnings (P/E): 22.8
• Beta (1Y): 0.80
• Revenue Growth: N/A
• EPS Growth: 6.40%
• Country: US
• Employees: 2,200
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Travel Lodging
• EPS (TTM): 3.63
• Shares Outstanding: 77,483,154
• 10 Day Avg. Volume: 951,832
• 30 Day Avg. Volume: 1,120,828
• PEG Ratio: 3.57
• Price to Book (P/B): N/A
• Price to Sales (P/S): 5.00
• Price to Cash Flow (P/CF): 13.20
• P/FCF Ratio: 12.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $116.78
• Price Target Upside: 46.75% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

Wyndham Hotels & Resorts scores well due to strong earnings call guidance and stable financial performance, despite a high debt ratio and recent revenue decline. Technical analysis suggests caution with bearish indicators. Valuation appears slightly high but is partially offset by a reasonable dividend yield.

Positive Factors

Financial Performance

FY25 guidance was 1% better than expected, and implied FY26 EBITDA is 4% above Street.

Growth Potential

Wyndham Hotels & Resorts has a larger growth pipeline compared to its competitor CHH, making it more attractive in terms of future expansion.

Shareholder Value

Wyndham Hotels & Resorts returned $430 million to shareholders through buybacks and dividends, indicating strong shareholder value.

Negative Factors

Government Policy Risks

Concerns exist over potential downside risks if government policies create a challenging construction environment, impacting Wyndham Hotels & Resorts' growth.

Stock Performance

Despite positive factors, recent stock performance of +29% suggests waiting for a better entry point.

Wyndham Hotels & Resorts Business Overview & Revenue Model

Company Description

Wyndham Hotels & Resorts, Inc. operates as a hotel franchisor worldwide. It operates through Hotel Franchising and Hotel Management segments. The Hotel Franchising segment licenses its lodging brands and provides related services to third-party hotel owners and others. The Hotel Management segment provides hotel management services for full-service and limited-service hotels. It is also involved in the reward loyalty program business. The company's hotel brand portfolios include Super 8, Days Inn, Travelodge, Microtel, Howard Johnson, La Quinta, Ramada, Baymont, AmericInn, Wingate, Wyndham Alltra, Wyndham Garden, Ramada Encore, Hawthorn, Registry Collection, Trademark Collection, TRYP, Dazzler, Esplendor, Wyndham Grand, Dolce, and Wyndham. As of August 9, 2022, it operated a portfolio of 22 hotel brands with approximately 9,000 hotels with approximately 8,19,000 rooms in approximately 95 countries. The company was incorporated in 2017 and is headquartered in Parsippany, New Jersey.

How the Company Makes Money

Wyndham 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 maintains strong profit margins and effective cash flow management, yet faces challenges from a slight revenue decline and high leverage, potentially impacting 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.

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.

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.

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
2.47B	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

• Technical Analysis Sentiment: Negative
• Last Price: 79.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WH, the sentiment is Negative. The current price of 79.58 is below the 20-day moving average (MA) of 90.39, below the 50-day MA of 99.85, and below the 200-day MA of 88.45, indicating a bearish trend. The MACD of -3.02 indicates Negative momentum. The RSI at 38.58 is Neutral, neither overbought nor oversold. The STOCH value of 52.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WH.

Wyndham Hotels & Resorts Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WH	72 Outperform	$6.38B	22.83	41.40%	1.88%	―	6.40%
HLT	72 Outperform	$50.04B	34.01	-41.19%	0.29%	9.17%	42.78%
H	64 Neutral	$10.48B	8.67	36.45%	0.55%	-6.41%	511.40%
IHG	62 Neutral	$15.38B	25.95	-27.16%	1.52%	6.34%	-11.99%
CHH	60 Neutral	$5.77B	19.90	-661.94%	0.93%	2.63%	23.39%
Sector *	59 Neutral	$11.18B	10.04	-1.58%	3.96%	1.31%	-16.97%
MAR	55 Neutral	$59.09B	25.77	-144.82%	1.17%	5.85%	-18.43%

Wyndham Hotels & Resorts Corporate Events

Wyndham Hotels Reports Strong 2024 Financial Results

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.