Wyndham Hotels & Resorts Inc. Common Stock (WH)

FairStock Score: 34/100 — RISKY

Key Financials

Strengths

• Generates $321 million in annual free cash flow (5.0% yield on market cap)
• High return on equity of 34.5% demonstrating efficient capital deployment

Concerns

• Trades significantly above Graham Number ($19) with negative 356% margin of safety—limited downside protection
• High leverage at 5.50x debt-to-equity increases financial risk and interest expense burden
• Currently unprofitable—sustained losses could lead to dilutive capital raises or balance sheet deterioration
• Revenue declining at 2.0% year-over-year signals potential demand weakness or market share loss

AI Analysis

Wyndham Hotels & Resorts Inc. Common Stock is a small-cap consumer cyclical company valued at $6.4 billion. Revenue stands at $1.4 billion, though the company is currently unprofitable. From a quality standpoint, Wyndham shows weak Piotroski F-Score of 3/9 signaling deteriorating fundamentals and distressed Altman Z-Score of 1.3 warrants caution. On valuation, the stock is trading at a premium 34.6x earnings, with trades far above its Graham Number ($19) with no margin of safety. Growth dynamics show revenue growing at -2.0% and profit growth of -170.6%. The 1.9% dividend yield adds an income component for patient holders. Our composite FairStock Score of 34/100 reflects below-average fundamentals overall. Without profitability, this remains speculative—suitable only for those with high risk tolerance and a long time horizon.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $321 million in annual free cash flow (5.0% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 35x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer