Franchise hotel brands to third-party owners. Provide hotel management services. Now — the numbers.
Revenue is spread across several lines; no single product carries the company.
This is an established company with proven profits.
The gap is $3.0B. In times of high interest rates, a gap like that can squeeze a company.
We compared this company with its own sector across five subjects.
A score of 50 means class average.
Profit power and business quality lead the class.
Clearly below the class average.
Clearly below the class average.
There is growth, but not at top-of-the-class tempo.
Clearly below the class average.
Financial Strength: The cash-and-debt balance is thin; the buffer for hard times is slim.
Valuation: The stock trades at a price that looks expensive next to its earnings; that can cap future returns.
The stock trades 38% below its peak. The market has trimmed its expectations for the company.
It met or beat analyst expectations in 8 of the last 8 quarters — consistency is a promise kept.
Over the last 12 months, company executives reported 106 buys and 52 sells. Management buying with its own money is usually read as a good sign.
It pays out $1.68 per share each year — regular cash for whoever holds the stock.
Over the last 4 years, sales fell about 2% a year on average. Profit is holding up, but a shrinking business is a risk worth watching.
The balance sheet offers little cushion against a rough stretch. Report-card grade: 31/100.
Today’s price already includes part of tomorrow’s optimism. Report-card grade: 31/100.
On our five-subject report card, WH sits in the middle of the class: some subjects shine, others don’t. The grade moves as the numbers move.
The takeaway: WH is an established business that has proven its profits for years. The real debate isn’t the quality of the business — it’s whether the price paid for the stock is too high.
The total grade weighs these five subjects against the sector — it isn’t a simple average of the five.
Analysts’ average target sits above today’s price, yet the valuation grade (31/100) says the stock isn’t cheap.