Wyndham Worldwide Corp

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WYN : NYSE : Services
$103.06 up 0.42 | 0.41%
Today's Range: 101.87 - 103.3
Avg. Daily Volume: 1329700.0
07/21/17 - 4:02 PM ET

Financial Analysis


WYNDHAM WORLDWIDE CORP's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. WYNDHAM WORLDWIDE CORP has weak liquidity. Currently, the Quick Ratio is 0.60 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 20.90% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)1319.01303.0
EBITDA ($mil)294.0299.0
EBIT ($mil)231.0237.0
Net Income ($mil)141.096.0


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)316.0486.0
Total Assets ($mil)10343.010165.0
Total Debt ($mil)5713.05432.0
Equity ($mil)662.0837.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin51.7151.96
EBITDA Margin22.2822.94
Operating Margin17.5118.19
Sales Turnover0.540.55
Return on Assets6.345.76
Return on Equity99.0970.01
Debt Q1 FY17 Q1 FY16
Current Ratio0.981.04
Debt/Capital0.90.87
Interest Expense52.052.0
Interest Coverage4.444.56


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)104.24111.86
Div / share0.580.5
EPS1.330.84
Book value / share6.357.48
Institutional Own % n/a n/a
Avg Daily Volume1352071.01089886.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 37.44 for the Hotels, Restaurants & Leisure industry and a discount compared to the S&P 500 average of 24.41. For additional comparison, its price-to-book ratio of 16.07 indicates a significant premium versus the S&P 500 average of 3.04 and a significant premium versus the industry average of 10.74. 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 16.92 Peers 37.44   WYN 11.13 Peers 19.39

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 14.74 Peers 25.06   WYN 1.38 Peers 3.01

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 16.07 Peers 10.74   WYN 20.84 Peers 114.10

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 1.89 Peers 3.43   WYN 0.68 Peers 4.03

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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