Playa Hotels & Resorts (PLYA) AI Stock Analysis

• Market Cap: $1.65B
• Dividend Yield: N/A
• Average Volume (3M): 1.93M
• Price to Earnings (P/E): 26.7
• Beta (1Y): 0.61
• Revenue Growth: -9.78%
• EPS Growth: 7.43%
• Country: US
• Employees: 13,000
• Sector: Consumer Cyclical
• Sector Strength: 74
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.37
• Shares Outstanding: 123,013,380
• 10 Day Avg. Volume: 1,207,513
• 30 Day Avg. Volume: 1,932,457
• PEG Ratio: -2.95
• Price to Book (P/B): 3.11
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 72.50
• 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: $13.50
• Price Target Upside: 0.37% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: ―

Playa Hotels & Resorts shows a promising recovery trajectory with strong financial stability and growth in direct bookings. However, valuation concerns and operational challenges, such as those in Jamaica and construction disruptions, present notable risks. Despite these challenges, the agreement with Hyatt and improved guest mix provide a positive outlook for future growth.

Positive Factors

Acquisition Strategy

The acquisition is seen as a favorable move that unlocks value for PLYA shareholders.

Strategic Expansion

Hyatt noted that the deal allows it to broaden its portfolio while also providing value through an expanded management platform for all-inclusive resorts.

Negative Factors

Stock Rating Downgrade

Given PLYA shares are trading near the acquisition price, the rating is being moved to Perform from Outperform.

Target Price Adjustment

The target price is lowered to $13.50, which is equal to the proposed acquisition price.

Playa Hotels & Resorts Business Overview & Revenue Model

Company Description

Playa Hotels & Resorts N.V., together with its subsidiaries, owns, develops, and operates resorts in prime beachfront locations in Mexico and the Caribbean. As of December 31, 2021, it owned a portfolio of 22 resorts with 8,366 rooms located in Mexico, Jamaica, and the Dominican Republic. The company was founded in 2006 and is headquartered in Fairfax, Virginia.

How the Company Makes Money

Playa Hotels & Resorts generates revenue primarily through the operation and management of all-inclusive resorts. The company's key revenue streams include room bookings, which encompass accommodation fees and ancillary services such as food and beverage offerings, spa services, and on-site entertainment. Playa also enters into strategic partnerships with major hospitality brands like Hyatt and Hilton, leveraging their brand recognition and loyalty programs to attract a broader customer base. Additionally, Playa benefits from economies of scale and cost efficiencies achieved through its portfolio, enhancing profitability. The company may also derive income from resort management fees and potential development projects or property sales.

Playa Hotels & Resorts Financial Statement Overview

Summary

Playa Hotels & Resorts has shown a strong recovery post-pandemic, with improved revenue and gross profit margin, although recent revenue decline poses a challenge. The elimination of debt enhances financial stability, and positive operating cash flow indicates strong operational performance. However, the decrease in stockholders' equity and fluctuating free cash flow growth highlight areas for improvement.

Income Statement

Playa Hotels & Resorts has shown a consistent recovery in revenue since the pandemic, with a significant revenue growth rate from 2020 to 2023. The gross profit margin in the latest period was strong at 100%, indicating efficient cost management. However, there was a decline in revenue from 2023 to 2024. Net profit margin improved over the years but remains modest, suggesting room for profitability enhancement.

Balance Sheet

The company has strengthened its financial position, eliminating total debt by 2024, which improves financial stability. The equity ratio is moderate, indicating a healthy balance between equity and liabilities. Return on Equity has improved, reflecting better utilization of shareholders' funds. However, the stockholders' equity has decreased from previous years, which may pose risks if not managed properly.

Cash Flow

Operating cash flow has been positive and growing, indicating strong cash generation from operations. The free cash flow growth has fluctuated, but recent figures are positive, providing a cushion for future investments. The operating cash flow to net income ratio suggests efficient conversion of income into cash, though free cash flow to net income ratio shows variability, reflecting investment levels.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
905.98M	938.57M	977.50M	856.26M	534.64M	273.19M
	Gross Profit
523.64M	440.40M	461.06M	387.53M	201.85M	61.17M
	EBIT
148.22M	173.91M	175.00M	129.77M	-1.02M	-135.59M
	EBITDA
182.97M	238.37M	255.58M	207.91M	57.27M	-98.83M
	Net Income Common Stockholders
52.63M	73.81M	53.85M	56.71M	-89.68M	-262.37M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
265.40M	189.28M	272.52M	283.94M	270.09M	146.92M
	Total Assets
1.86B	1.82B	1.93B	2.07B	2.06B	2.10B
	Total Debt
0.00	1.08B	1.07B	1.07B	1.14B	1.25B
	Net Debt
-265.40M	888.11M	797.58M	781.51M	869.23M	1.10B
	Total Liabilities
1.33B	1.34B	1.38B	1.40B	1.43B	1.53B
	Stockholders Equity
529.73M	481.89M	554.80M	664.86M	630.83M	568.14M
Cash Flow		Free Cash Flow
23.68M	16.25M	89.95M	129.01M	12.00M	-137.30M
	Operating Cash Flow
134.15M	113.12M	136.37M	158.23M	29.64M	-99.94M
	Investing Cash Flow
-17.30M	-33.19M	50.53M	-27.15M	73.40M	29.41M
	Financing Cash Flow
-136.77M	-163.17M	-198.33M	-140.71M	17.67M	222.46M

Playa Hotels & Resorts Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLYA, the sentiment is Positive. The current price of 13.45 is above the 20-day moving average (MA) of 13.43, above the 50-day MA of 13.38, and above the 200-day MA of 10.92, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 65.42 is Neutral, neither overbought nor oversold. The STOCH value of 77.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PLYA.

Playa Hotels & Resorts Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MCRI	76 Outperform	$1.51B	16.14	18.31%	1.46%	3.84%	19.95%
PLYA	72 Outperform	$1.65B	26.72	11.21%	―	-9.78%	7.43%
VAC	71 Outperform	$2.27B	11.25	9.43%	4.71%	4.61%	9.16%
HGV	69 Neutral	$3.48B	116.06	1.90%	―	18.40%	-84.43%
Sector *	62 Neutral	$6.84B	11.22	2.83%	3.95%	2.65%	-21.93%
MLCO	52 Neutral	$2.51B	43.27	25.40%	―	14.07%	―
PENN	48 Neutral	$2.27B	―	-2.81%	―	5.51%	92.46%

Playa Hotels & Resorts Corporate Events

Playa Hotels Amends Purchase Agreement with Hyatt

On May 16, 2025, Playa Hotels & Resorts N.V. and Hyatt Hotels Corporation amended their Purchase Agreement from February 9, 2025. The amendment clarifies that Company Restricted Shares, which cannot be tendered in the current tender offer, are excluded from Playa’s share capital for the ‘Minimum Condition’ definition. This adjustment impacts the ongoing tender offer process but does not alter other terms of the agreement.

The most recent analyst rating on (PLYA) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Playa Hotels & Resorts stock, see the PLYA Stock Forecast page.