Wyndham Hotels & Resorts
WH
$86.12
+3.65%
Wyndham Hotels & Resorts is a leading hotel franchisor operating a global portfolio of over 20 brands, predominantly in the economy and midscale segments, with a system of approximately 869,000 rooms as of the end of 2025. The company's competitive identity is that of a pure-play franchisor and licensor, distinct from asset-heavy peers, focusing on fee-based revenue streams from its well-known brands like Ramada, Days Inn, and Super 8. The current investor narrative is shaped by a volatile earnings profile, highlighted by a significant Q4 2025 loss, and the ongoing strategic debate around its resilience in the face of potential economic softness, its ability to grow its extended-stay brands, and its capital return policy amidst a high debt load.…
WH
Wyndham Hotels & Resorts
$86.12
WH 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Wyndham Hotels & Resorts's 12-month outlook, with a consensus price target around $111.96 and implied upside of +30.0% versus the current price.
Average Target
$111.96
3 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
3
covering this stock
Price Range
$69 - $112
Analyst target range
Analyst coverage for Wyndham is limited, with only 3 analysts providing estimates for revenue and EPS, indicating this is a stock with less pervasive institutional research coverage which can lead to higher volatility and less efficient price discovery. The available data shows consensus estimates for the next period, with an average EPS forecast of $7.46 (range: $7.31 to $7.67) and average revenue forecast of $1.80 billion (range: $1.78B to $1.84B), but a formal consensus price target, recommendation, and Buy/Hold/Sell distribution are not provided in the dataset. The institutional ratings data shows a decidedly bullish tilt among major firms, with recent actions from Morgan Stanley (Overweight), Mizuho (Outperform), Truist (Buy), JP Morgan (Overweight), Stifel (Buy), and Barclays (Overweight) all maintaining or initiating positive ratings, though Goldman Sachs downgraded to Neutral in December 2025; this pattern suggests strong institutional conviction in the company's franchise model and recovery prospects, despite the limited breadth of quantitative analyst coverage.
WH Technical Analysis
The stock is in a pronounced downtrend over the past year, evidenced by a 1-year price change of -10.94%, significantly underperforming the broader market's 22.2% gain. With a current price of $82.16, the stock is trading approximately 55% of the way up from its 52-week low of $69.21 towards its high of $92.685, indicating it is in the lower-middle portion of its annual range, which suggests lingering weakness but not at an extreme oversold level. Recent momentum, however, shows signs of a potential short-term recovery, with the stock posting a 1-month gain of 1.53% and a more substantial 3-month gain of 9.15%, both of which starkly contrast with the S&P 500's declines of -4.28% and -4.0% over the same periods, respectively, indicating strong relative strength. This divergence suggests the downtrend may be stabilizing, with the stock attempting to find a bottom and potentially stage a mean reversion rally, though it remains well below its yearly highs. Key technical support is firmly established at the 52-week low of $69.21, while immediate overhead resistance sits near the 52-week high of $92.685; a sustained breakout above this level would signal a major trend reversal, while a breakdown below support could trigger a new leg down. The stock's beta of 0.706 indicates it is approximately 30% less volatile than the broader market, which is a defensive characteristic but also implies muted upside potential during strong market rallies, a factor important for risk-adjusted positioning.
Beta
0.71
0.71x market volatility
Max Drawdown
-34.2%
Largest decline past year
52-Week Range
$69-$93
Price range past year
Annual Return
-1.8%
Cumulative gain past year
| Period | WH Return | S&P 500 |
|---|---|---|
| 1m | +16.5% | +0.4% |
| 3m | +6.2% | -2.0% |
| 6m | +13.6% | +4.1% |
| 1y | -1.8% | +23.9% |
| ytd | +14.4% | -0.3% |
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WH Fundamental Analysis
The company's revenue trajectory is volatile and recently contracted, with Q4 2025 revenue of $334 million representing a -2.05% year-over-year decline, a sharp reversal from the robust growth seen in prior quarters like Q3 2025's $382 million. Segment data reveals the business is heavily reliant on franchising fees, with Royalties and Franchise Fees ($247M) and Marketing, Reservation and Loyalty ($248M) constituting the bulk of revenue, making it sensitive to unit growth and RevPAR trends. Profitability is highly inconsistent, as evidenced by a Q4 2025 net loss of -$60 million and a gross margin that collapsed to 22.46% in that quarter, down dramatically from 92.41% in Q3 2025; this quarterly loss starkly contrasts with the trailing twelve-month net margin of 13.51%, highlighting significant earnings volatility and potential one-time charges or seasonality impacting results. The balance sheet carries substantial financial leverage, with a debt-to-equity ratio of 6.53, indicating a highly leveraged capital structure that amplifies risk during downturns. However, the company generates solid cash flow, with free cash flow over the trailing twelve months of $321 million, providing some cushion to service its debt and fund shareholder returns, as evidenced by a current ratio of 0.71, which points to potential short-term liquidity constraints that are manageable given its franchise model's low capital intensity.
Quarterly Revenue
$334000000.0B
2025-12
Revenue YoY Growth
-0.02%
YoY Comparison
Gross Margin
+0.22%
Latest Quarter
Free Cash Flow
$321000000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is WH Overvalued?
Given the company's positive trailing twelve-month net income, the primary valuation metric selected is the Price-to-Earnings (P/E) ratio. The trailing P/E stands at 29.64x, while the forward P/E is significantly lower at 15.28x, indicating the market expects a substantial recovery in earnings over the next year, aligning with analyst EPS estimates averaging $7.46. Compared to sector averages, Wyndham's trailing P/E of 29.64x and Price-to-Sales (P/S) ratio of 4.00x are not directly comparable without a provided industry benchmark, but the elevated P/E suggests the market may be pricing in a normalization of profits post the anomalous Q4 loss. Historically, the stock's own valuation has been extremely volatile; its current trailing P/E of 29.64x is above the negative P/E of -23.83x recorded at the end of Q4 2025 (due to the quarterly loss) but is within the wide historical range observed over recent quarters, which has seen P/E ratios swing from negative to over 90x, reflecting the earnings instability inherent in the business model and making historical comparisons less meaningful.
PE
29.6x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range -24x~96x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
18.7x
Enterprise Value Multiple

