Wyndham Worldwide Corp

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WYN : NYSE : Services
$101.47 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 998500.0
09/18/17 - 4:00 PM ET

Financial Analysis


WYNDHAM WORLDWIDE CORP's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. WYNDHAM WORLDWIDE CORP has weak liquidity. Currently, the Quick Ratio is 0.62 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 24.55% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)1479.01403.0
EBITDA ($mil)366.0353.0
EBIT ($mil)301.0290.0
Net Income ($mil)78.0155.0


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)613.0653.0
Total Assets ($mil)10348.09942.0
Total Debt ($mil)5760.05406.0
Equity ($mil)587.0778.0


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin53.2153.46
EBITDA Margin24.7425.16
Operating Margin20.3520.67
Sales Turnover0.550.56
Return on Assets5.595.84
Return on Equity98.6374.67
Debt Q2 FY17 Q2 FY16
Current Ratio0.950.97
Debt/Capital0.910.87
Interest Expense59.055.0
Interest Coverage5.15.27


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)102.71109.8
Div / share0.580.5
EPS0.751.39
Book value / share5.727.09
Institutional Own % n/a n/a
Avg Daily Volume1019400.01348800.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 44.25 for the Hotels, Restaurants & Leisure industry and a discount compared to the S&P 500 average of 24.88. For additional comparison, its price-to-book ratio of 17.97 indicates a significant premium versus the S&P 500 average of 3.10 and a significant premium versus the industry average of 9.96. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount. The valuation analysis reveals that, WYNDHAM WORLDWIDE CORP seems to be trading at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
WYN 19.05 Peers 44.25   WYN 11.11 Peers 18.23

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

WYN is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

WYN is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
WYN 14.80 Peers 25.32   WYN 1.60 Peers 2.87

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

WYN is trading at a significant discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

WYN trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
WYN 17.97 Peers 9.96   WYN 6.73 Peers 50.58

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

WYN is trading at a significant premium to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, WYN is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
WYN 1.85 Peers 3.35   WYN 1.97 Peers 7.77

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

WYN is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

WYN significantly trails its peers on the basis of sales growth

 

 

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