* Note: Prices are in Million (M) USD.
Description:
Wyndham Hotels & Resorts, Inc. is a global hotel franchisor. The company is headquartered in Parsippany, New Jersey.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $103 M
Debt : $2,420 M
EBITDA : $596 M
Net Debt (Debt - Cash): $2,317 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Consumer Cyclical
Industry: Lodging
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 19.88
Since Forward PE Ratio is between 15 - 20, 3 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $226 M
Average Revenue: $1,501 M
Revenue Converted To Free Cash Flow (%): 15%
Avg Free Cash Flow Growth Per Year (Last 5 Years): 193.98%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 15, 3 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $1,408 M
Revenue 4 Years Ago (2020-12-31): $1,300 M
Last 5 Years Average Revenue Growth: 2%
Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $80 M
Share Count 5 Years Ago (2020-12-31): $93 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $4.57
Trailing 12-Month Earnings Per Share (EPS): $4.26
Average Earnings Per Share (EPS): $4.41
Dividend Per Share (DPS): $2
Payout Ratio: 35%
Dividend Yield: 2%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is greater than 2, 2 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 20%
Since Average ROE is greater than 20, 5 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $88
52-Week Low: $69
Threshold Price (15% Above 52-Week Low): $79
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $6,680 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Value-Trade has assigned 23 points to above Wyndham Hotels & Resorts Inc (WH) stock.
Last 6 Years Avg PE (Limited to last 6 years of EPS data) 20.99, Fair Value PE 15, Industry Based PE is 15 and Growth based PE is 8. Based on these all values average assigned is 14.75.
Value-Trades has assined P/E value 14.75. Since an average (Current Year EPS + Next Year EPS) earning per share is $4.41.
The fair value of Wyndham Hotels & Resorts Inc (WH) stock should be (14.75 x $4.41) = $65.05
