Wyndham Hotels & Resorts, Inc. (WH) stock analysis

P/E above its 5-year median

Wyndham Hotels & Resorts's P/E of 29.9 is above its own 5-year median of 22.9.

P/E above the industry

Wyndham Hotels & Resorts's P/E of 29.9 is above the Hotels and Motels median of 25.6.

EV/EBITDA above its 5-year median

Wyndham Hotels & Resorts's EV/EBITDA of 17.6 is above its 5-year median of 15.8.

P/B above the industry

Wyndham Hotels & Resorts's price-to-book of 12.39 is above the Hotels and Motels median of 2.81.

Trading above fair value

The share price of $80.76 is above our fair value estimate of $55.54.

Margin of safety under 20%

The price is 45.4% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -1.6% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -13.9% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 0.7% over the last twelve months; the Hotels and Motels median is 3.9%.

Guidance raised

Wyndham Hotels & Resorts raised its full-year Net revenues outlook on Jul 22, 2026.

Gross margin trend

This company does not report gross profit.

Return on equity over 15%

Return on equity was 38.2% over the last twelve months and averaged 33.6% over five years.

Return on capital under 10%

Return on invested capital was 9.7%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Wyndham Hotels & Resorts's return on equity of 38.2% is above the Hotels and Motels median of 20.0%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was 14.0% over the last twelve months, against a 5-year average of 18.8%.

Net margin above the industry

Wyndham Hotels & Resorts's net margin of 14.0% is above the Hotels and Motels median of 5.7%.

High debt

Debt is 574% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 270% five years ago to 574%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 13.9% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense 3.0 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 1.01 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.77; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Wyndham Hotels & Resorts paid dividends worth 2.1% of the share price over the last twelve months.

Yield below Treasuries

The 2.1% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Wyndham Hotels & Resorts yields 2.1%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 8 fiscal years.

Covered by earnings

Dividends take 63.9% of net income.

Covered by free cash flow

Dividends take 39.1% of free cash flow.