Wyndham Hotels & Resorts, Inc. Reports Mixed Financial Results for Q1 2024
Wyndham Hotels & Resorts, Inc. has recently announced its financial results for the quarter ending March 2024. The company, which operates in the Hotels/Resorts/Cruise lines industry, has seen a negative performance in this quarter.
However, there are some positive aspects to the company's financials. Wyndham Hotels & Resorts, Inc. has distributed the highest dividend per share of USD 5.83 in the last five years, indicating that it is sharing its profits with shareholders. The dividend payout ratio has also been the highest at 194.27% in the last five years, showing that the company is distributing a higher proportion of its profits as dividends.
On the other hand, there are some concerning factors in the company's financials. The interest cost has grown by 31.03% period on period, indicating increased borrowings. The interest coverage ratio has also been the lowest at 339.47 in the last five periods, suggesting that the company's ability to manage interest payments is deteriorating. The debt-equity ratio has also been the highest at 325.07% and has grown in each half year in the last five semi-annual periods, indicating that the company is borrowing more to fund its operations and its liquidity situation may be stressed.
Furthermore, the net sales have been the lowest at USD 305 in the last five periods, showing a negative trend in the near term. The pre-tax profit has also been the lowest at USD 78 in the last five periods, indicating a negative trend in the near term. The earnings per share have also been the lowest at USD 0.2 MM in the last five periods, showing a decline in profitability and lower earnings for shareholders. The company's short-term liquidity has also deteriorated, with cash and equivalents being the lowest at USD 116 MM in the last six semi-annual periods. Additionally, the raw material cost has grown by 7.41% year on year, indicating that the company's ability to pass on the cost of raw materials to customers has deteriorated, which may lead to a fall in profit margin.
In conclusion, while Wyndham Hotels & Resorts, Inc. has seen some positive aspects in its financials, there are also some concerning factors that investors should take note of. The stock call by Infinhub for the company is 'Sell', and it is important for investors to carefully consider all the financial information before making any investment decisions.