Wyndham Hotels & Resorts, Inc. (WH) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Norwegian Cruise Line Holdings Ltd.

Royal Caribbean Group

Choice Hotels International, Inc.

Hyatt Hotels Corp.

Red Rock Resorts, Inc.

Wyndham Hotels & Resorts, Inc.

Carnival Corp.

Vail Resorts, Inc.

Marriott International, Inc.

Travel + Leisure Co.

Hilton Worldwide Holdings, Inc.

Why is Wyndham Hotels & Resorts, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 35.28%

Poor long term growth as Net Sales has grown by an annual rate of -3.49%

Positive results in Jun 25

OPERATING CASH FLOW(Y) Highest at USD 345 MM
ROCE(HY) Highest at 56.16%
DIVIDEND PER SHARE(HY) Highest at USD 2.81

With ROE of 59.46%, it has a expensive valuation with a 12.25 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -27.12%, its profits have risen by 19.8% ; the PEG ratio of the company is 0.8

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -27.12% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Wyndham Hotels & Resorts, Inc. should be less than 10%
Overall Portfolio exposure to Hotels & Resorts should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Hotels & Resorts)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Wyndham Hotels & Resorts, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Wyndham Hotels & Resorts, Inc.

-11.91%

0.19

31.73%

S&P 500

22.36%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.77%

EBIT Growth (5y)

22.92%

EBIT to Interest (avg)

5.35

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

2.29

Tax Ratio

21.60%

Dividend Payout Ratio

65.60%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

77.90%

ROE (avg)

35.28%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

14.11

EV to EBIT

12.53

EV to EBITDA

11.22

EV to Capital Employed

16.19

EV to Sales

4.58

PEG Ratio

Dividend Yield

211.77%

ROCE (Latest)

129.21%

ROE (Latest)

63.09%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 371 MM

DIVIDEND PER SHARE(HY)

Highest at USD 1.91

RAW MATERIAL COST(Y)

Fallen by -10.44% (YoY

-10What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.91 times

INTEREST(Q)

At USD 39 MM has Grown at 14.71%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 31.7%

DEBT-EQUITY RATIO (HY)

Highest at 542.92 %

Here's what is working for Wyndham Hotels & Resorts, Inc.

Operating Cash Flow

Highest at USD 371 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Dividend per share

Highest at USD 1.91 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Raw Material Cost

Fallen by -10.44% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Wyndham Hotels & Resorts, Inc.

Interest

At USD 39 MM has Grown at 14.71%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debtors Turnover Ratio

Lowest at 1.91 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Debt-Equity Ratio

Highest at 542.92 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Dividend Payout Ratio

Lowest at 31.7%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)