Wyndham Hotels & Resorts (WH) AI Stock Analysis

• Market Cap: $6.70B
• Dividend Yield: 1.78%
• Average Volume (3M): 1.01M
• Price to Earnings (P/E): 24.1
• Beta (1Y): 0.80
• Revenue Growth: 1.57%
• EPS Growth: 48.48%
• Country: US
• Employees: 2,200
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Travel Lodging
• EPS (TTM): 4.21
• Shares Outstanding: 77,483,154
• 10 Day Avg. Volume: 1,047,000
• 30 Day Avg. Volume: 1,013,962
• PEG Ratio: 0.50
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.54
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 7.77
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $108.65
• Price Target Upside: 24.81% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

Wyndham Hotels & Resorts shows solid financial performance with strong revenue growth and profitability. Challenges include high leverage and declining cash flow growth. Technical indicators point to bearish trends. Valuation is moderate, with a reasonable P/E ratio. The earnings call was positive but highlighted regional challenges. These factors lead to an overall score of 62, reflecting stable but cautious growth prospects.

Positive Factors

Growth Potential

Wyndham Hotels & Resorts has a larger growth pipeline compared to its competitor CHH, making it more attractive in terms of future expansion.

Shareholder Value

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

Negative Factors

Market Entry Timing

Despite positive factors, recent stock performance of +29% suggests waiting for a better entry point.

Policy Risks

Concerns exist over potential downside risks if government policies create a challenging construction environment, impacting Wyndham Hotels & Resorts' growth.

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 franchise fees, which include royalties and marketing fees paid by hotel owners based on a percentage of room revenues. These fees are linked to the brand recognition and services provided by Wyndham, such as access to the company's reservation system, loyalty programs, and marketing efforts. Additionally, Wyndham benefits from partnerships with travel agencies and online travel platforms, expanding its market reach and driving more bookings to its franchised locations. The company also earns revenue from management services, particularly for properties it manages directly, although this represents a smaller portion of its income.

Wyndham Hotels & Resorts Financial Statement Overview

Summary

Wyndham Hotels & Resorts has demonstrated strong revenue and profit margins, with a net profit margin improving to 23.52%. However, an increasing debt-to-equity ratio and a decline in free cash flow growth are concerns. The financial health is stable, supported by a strong ROE but requires vigilance regarding leverage.

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

Wyndham Hotels & Resorts Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 87.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WH, the sentiment is Neutral. The current price of 87.05 is above the 20-day moving average (MA) of 83.46, below the 50-day MA of 91.01, and below the 200-day MA of 89.51, indicating a neutral trend. The MACD of -1.22 indicates Negative momentum. The RSI at 51.59 is Neutral, neither overbought nor oversold. The STOCH value of 78.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WH.

Wyndham Hotels & Resorts Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
H	72 Outperform	$10.41B	8.62	22.31%	0.49%	-6.41%	511.40%
CHH	69 Neutral	$6.03B	20.83	-661.94%	0.89%	2.63%	23.39%
IHG	66 Neutral	$15.72B	26.69	-27.16%	1.45%	6.34%	-11.99%
HLT	66 Neutral	$57.26B	38.00	-41.19%	0.25%	7.43%	38.52%
MAR	63 Neutral	$62.02B	27.05	-144.82%	1.01%	5.85%	-18.43%
WH	62 Neutral	$6.70B	24.13	53.31%	1.78%	1.57%	48.48%
Sector *	61 Neutral	$6.65B	11.71	3.09%	3.98%	2.65%	-20.82%

Wyndham Hotels & Resorts Corporate Events

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.

Spark’s Take on WH Stock

According to Spark, TipRanks’ AI Analyst, WH is a Outperform.

Wyndham Hotels & Resorts has a solid overall score of 70, driven by strong earnings call insights highlighting growth and strategic expansion. However, the stock faces challenges from technical indicators showing bearish trends and financial leverage that could impact future growth. Valuation is moderate, suggesting reasonable pricing but not significant undervaluation.

To see Spark’s full report on WH stock, click here.

Wyndham Hotels Reports Strong 2024 Financial Results

Wyndham Hotels & Resorts reported strong financial results for the fourth quarter and full-year 2024, with significant growth in global and U.S. RevPAR, system-wide rooms, and development pipeline. The company achieved record-high openings and retention rates, increased its quarterly dividend by 8%, and returned $430 million to shareholders, highlighting promising future growth and sustained value creation for stakeholders.