Wyndham Worldwide Corp

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WYN : NYSE : Services
$77.87 | %
Today's Range: 77.0 - 78.0
Avg. Daily Volume: 1047300.0
12/09/16 - 4:02 PM ET

Financial Analysis


WYNDHAM WORLDWIDE CORP's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. WYNDHAM WORLDWIDE CORP has weak liquidity. Currently, the Quick Ratio is 0.66 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has decreased by 21.94% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)1573.01563.0
EBITDA ($mil)432.0414.0
EBIT ($mil)370.0355.0
Net Income ($mil)196.0189.0


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)468.0394.0
Total Assets ($mil)9743.09707.0
Total Debt ($mil)5449.05183.0
Equity ($mil)793.01016.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin53.8553.23
EBITDA Margin27.4626.48
Operating Margin23.5222.71
Sales Turnover0.570.56
Return on Assets6.035.68
Return on Equity74.1454.33
Debt Q3 FY16 Q3 FY15
Current Ratio0.950.97
Debt/Capital0.870.84
Interest Expense54.053.0
Interest Coverage6.856.7


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)107.68115.99
Div / share0.50.42
EPS1.781.61
Book value / share7.368.76
Institutional Own % n/a n/a
Avg Daily Volume1014984.01301013.0

Valuation


BUY. WYNDHAM WORLDWIDE CORP's P/E ratio indicates a significant discount compared to an average of 30.32 for the Hotels, Restaurants & Leisure industry and a significant discount compared to the S&P 500 average of 25.16. For additional comparison, its price-to-book ratio of 9.84 indicates a significant premium versus the S&P 500 average of 2.79 and a significant premium versus the industry average of 7.40. The price-to-sales ratio is well below both the S&P 500 average and 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 13.88 Peers 30.32   WYN 8.08 Peers 15.08

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 11.59 Peers 30.95   WYN 1.30 Peers 1.37

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.

 

Average. 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 valuation on par to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
WYN 9.84 Peers 7.40   WYN 13.72 Peers 69.89

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 1.40 Peers 2.87   WYN 2.49 Peers 5.67

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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