Wyndham Hotels & Resorts (WH) AI Stock Analysis

• Market Cap: $6.14B
• Dividend Yield: 2.06%
• Average Volume (3M): 953.60K
• Price to Earnings (P/E): 18.9
• Beta (1Y): 0.85
• Revenue Growth: 4.79%
• EPS Growth: 48.48%
• Country: US
• Employees: 2,200
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Travel Lodging
• EPS (TTM): 0.86
• Shares Outstanding: 76,997,640
• 10 Day Avg. Volume: 985,389
• 30 Day Avg. Volume: 953,598
• PEG Ratio: 0.36
• Price to Book (P/B): 6.69
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.89
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: 1.49
• Enterprise Value/Gross Profit: 7.09
• Enterprise Value/Ebitda: 3.42
• 1Y Price Target: $104.18
• Price Target Upside: 31.32% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 67 Neutral
• Price Target: $93.00 ▲(17.23%Upside)

Wyndham's strong earnings performance and profitability are the primary strengths, supported by international expansion and strategic growth. However, high debt levels, moderate valuation, and bearish technical indicators present cautionary elements. The revised outlook due to challenges in key markets also impacts the overall score.

Positive Factors

Growth potential

The setup for growth is increasingly favorable, with positive secular trends in the mid-lower chain scales where WH is positioned.

Shareholder value

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

Valuation

Valuation is still at a discount to peers despite a similar 'algorithm' for 2025, which may indicate potential for growth.

Negative Factors

Market expectations

FY25 guidance was 1% better than expected, yet the market response was not as positive as anticipated.

Stock performance

Despite an upside FY25 adj EBITDA guide, WH underperformed, -2% vs SPX +0.5%.

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 two main streams: franchise fees and hotel management fees. Franchise fees are earned from hotel owners who operate their properties under one of Wyndham's brands, paying for brand recognition, marketing support, and operational standards. These fees typically include initial fees, ongoing royalties based on a percentage of room revenue, and marketing and reservation fees. In addition to franchising, Wyndham manages some properties directly, earning management fees based on the performance and revenue of these hotels. Strategic partnerships and loyalty programs also contribute to Wyndham's revenue by enhancing guest engagement and driving repeat business.

Wyndham Hotels & Resorts Financial Statement Overview

Summary

Wyndham Hotels & Resorts shows strong profitability and revenue growth with solid margins. However, high debt levels present risks, despite a robust ROE. Cash flow conversion is moderate, indicating a need for improved free cash flow generation.

Income Statement

Wyndham Hotels & Resorts has shown a consistent revenue growth trend from 2020 to TTM 2025, with a notable revenue increase of 0.85% from the previous year to TTM 2025. The gross profit margin is strong at 83.24% for TTM 2025, indicating efficient cost management. The net profit margin improved to 23.52% in TTM 2025, up from 20.52% in 2024, reflecting enhanced profitability. However, the company experienced a slight decline in net income growth from 2022 to 2023, indicating potential challenges. The EBIT and EBITDA margins remain solid, supporting overall profitability.

Balance Sheet

The company's debt-to-equity ratio has been increasing, reaching a high of 5.22 in TTM 2025, suggesting a significant reliance on debt financing which could pose risks in economic downturns. The equity ratio has declined to 13.63% in TTM 2025, indicating a lower proportion of equity financing relative to total assets. Return on Equity (ROE) improved to 57.69% in TTM 2025, showcasing effective use of equity to generate profits despite the high leverage.

Cash Flow

Free cash flow decreased from 2024 to TTM 2025, with a decline in free cash flow growth rate, suggesting a need to enhance cash generation. The operating cash flow to net income ratio stands at 0.81 in TTM 2025, indicating that a significant portion of net income is being converted into operating cash flow, which is positive. The free cash flow to net income ratio is 0.67, suggesting a moderate conversion of net income into free cash flow, pointing to effective cash management.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.42B	1.41B	1.40B	1.50B	1.56B	1.30B
	Gross Profit
1.18B	1.33B	815.00M	830.00M	795.00M	531.00M
	EBIT
552.00M	495.00M	503.00M	558.00M	446.00M	208.00M
	EBITDA
620.00M	563.00M	582.00M	601.00M	550.00M	54.00M
	Net Income Common Stockholders
334.00M	289.00M	289.00M	355.00M	244.00M	-132.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
48.00M	103.00M	66.00M	161.00M	171.00M	493.00M
	Total Assets
4.25B	4.22B	4.03B	4.12B	4.27B	4.64B
	Total Debt
2.53B	2.47B	2.21B	2.10B	2.08B	2.60B
	Net Debt
2.48B	2.36B	2.14B	1.94B	1.91B	2.10B
	Total Liabilities
3.67B	3.57B	3.29B	3.16B	3.18B	3.68B
	Stockholders Equity
579.00M	650.00M	746.00M	962.00M	1.09B	963.00M
Cash Flow		Free Cash Flow
223.00M	241.00M	339.00M	360.00M	389.00M	34.00M
	Operating Cash Flow
270.00M	290.00M	376.00M	399.00M	426.00M	67.00M
	Investing Cash Flow
-100.00M	-65.00M	-66.00M	179.00M	-34.00M	-31.00M
	Financing Cash Flow
-173.00M	-175.00M	-402.00M	-584.00M	-713.00M	363.00M

Wyndham Hotels & Resorts Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 79.33
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 79.33 is below the 20-day moving average (MA) of 82.26, below the 50-day MA of 83.56, and below the 200-day MA of 90.65, indicating a bearish trend. The MACD of -1.42 indicates Positive momentum. The RSI at 38.89 is Neutral, neither overbought nor oversold. The STOCH value of 16.49 is Positive, 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
HLT	73 Outperform	$59.15B	39.25	-41.19%	0.24%	7.43%	38.52%
MAR	72 Outperform	$70.54B	29.33	-144.82%	1.04%	5.45%	-9.50%
CHH	70 Outperform	$5.70B	18.69	-661.94%	0.94%	2.75%	40.83%
H	70 Outperform	$12.65B	17.18	22.31%	0.46%	-7.38%	19.62%
WH	67 Neutral	$6.14B	18.94	53.31%	2.06%	4.79%	48.48%
IHG	64 Neutral	$16.84B	28.78	-27.16%	4.08%	6.34%	-11.99%
Sector *	62 Neutral	$6.76B	11.07	2.80%	6.34%	2.68%	-24.87%

Wyndham Hotels & Resorts Corporate Events

Wyndham Hotels Elects Directors at Annual Meeting

On May 15, 2025, Wyndham Hotels & Resorts held its Annual Meeting of Stockholders, where stockholders elected eight directors to serve until the 2026 meeting. Additionally, stockholders approved executive compensation and decided to hold annual advisory votes on this matter. Deloitte & Touche LLP was ratified as the independent auditor for 2025.

The most recent analyst rating on (WH) stock is a Buy with a $89.00 price target. To see the full list of analyst forecasts on Wyndham Hotels & Resorts stock, see the WH Stock Forecast page.

Wyndham Reports Strong Q1 2025 Financial Results

On April 30, 2025, Wyndham Hotels & Resorts reported strong first-quarter results for the period ending March 31, 2025, with record global openings of 15,000 rooms, a 4% year-over-year system-wide room growth, and a 6% increase in awarded development contracts. The company achieved a 2% growth in global RevPAR, with notable performance in EMEA and Latin America, and a significant increase in net income to $61 million from $16 million in the prior-year quarter. Wyndham’s development pipeline reached a record 254,000 rooms, with 70% in midscale and above segments, reflecting strategic growth and market positioning.