Wyndham Hotels Resorts Stock Beneish M Score

WH Stock  USD 91.14  0.04  0.04%   
This module uses fundamental data of Wyndham Hotels to approximate the value of its Beneish M Score. Wyndham Hotels M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Wyndham Hotels Piotroski F Score and Wyndham Hotels Altman Z Score analysis.
  
As of now, Wyndham Hotels' Debt Equity Ratio is increasing as compared to previous years. As of now, Wyndham Hotels' Net Income Per Share is increasing as compared to previous years. The Wyndham Hotels' current Days Of Inventory On Hand is estimated to increase to 25.09, while Price To Sales Ratio is projected to decrease to 3.58.
At this time, it appears that Wyndham Hotels Resorts is a possible manipulator. The earnings manipulation may begin if Wyndham Hotels' top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Wyndham Hotels executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Wyndham Hotels' earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.15
Beneish M Score - Possible Manipulator
Elasticity of Receivables

0.85

Focus
Asset Quality

0.94

Focus
Expense Coverage

0.7

Focus
Gross Margin Strengs

1.05

Focus
Accruals Factor

0.7

Focus
Depreciation Resistance

1.56

Focus
Net Sales Growth

1.17

Focus
Financial Leverage Condition

0.83

Focus

Wyndham Hotels Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Wyndham Hotels' auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Receivables269.2 M271 M
Slightly Down
Slightly volatile
Total Revenue1.7 B1.4 B
Fairly Up
Slightly volatile
Total Assets4.1 B4.2 B
Sufficiently Down
Slightly volatile
Total Current Assets582.8 M467 M
Fairly Up
Slightly volatile
Non Current Assets Total3.7 B3.8 B
Fairly Down
Slightly volatile
Property Plant Equipment169.4 M89.1 M
Way Up
Slightly volatile
Depreciation And Amortization67.5 M71 M
Notably Down
Slightly volatile
Selling General Administrative123.4 M149.5 M
Significantly Down
Slightly volatile
Total Current Liabilities475.4 M466 M
Fairly Up
Slightly volatile
Non Current Liabilities Total2.6 B3.1 B
Fairly Down
Slightly volatile
Net Debt1.8 B2.4 B
Way Down
Slightly volatile
Short Term Debt40.7 M46 M
Fairly Down
Slightly volatile
Long Term Debt1.9 B2.4 B
Significantly Down
Slightly volatile
Operating Income419.8 M495 M
Fairly Down
Slightly volatile
Total Cash From Operating Activities299.1 M290 M
Sufficiently Up
Pretty Stable
Gross Profit Margin0.990.9425
Sufficiently Up
Slightly volatile

Wyndham Hotels Resorts Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Wyndham Hotels' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Wyndham Hotels in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Wyndham Hotels' degree of accounting gimmicks and manipulations.

About Wyndham Hotels Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Current Deferred Revenue

100.71 Million

As of now, Wyndham Hotels' Current Deferred Revenue is increasing as compared to previous years.

Wyndham Hotels Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Wyndham Hotels. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
202020212022202320242025 (projected)
Net Receivables295M246M234M241M271M269.2M
Total Revenue1.3B1.6B1.5B1.4B1.4B1.7B
Total Assets4.6B4.3B4.1B4.0B4.2B4.1B
Total Current Assets788M571M893M373M467M582.8M
Net Debt2.1B1.9B1.9B2.1B2.4B1.8B
Long Term Debt2.6B2.0B2.0B2.2B2.4B1.9B
Operating Income208M446M558M503M495M419.8M
Investments(31M)(34M)179M(61M)(65M)(68.3M)
Gross Profit Margin0.410.510.550.580.940.99

Wyndham Hotels ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Wyndham Hotels' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Wyndham Hotels' managers, analysts, and investors.
Environmental
Governance
Social

About Wyndham Hotels Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Wyndham Hotels Resorts's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Wyndham Hotels using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Wyndham Hotels Resorts based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

Currently Active Assets on Macroaxis

Check out Wyndham Hotels Piotroski F Score and Wyndham Hotels Altman Z Score analysis.
You can also try the Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Is Hotels, Resorts & Cruise Lines space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Wyndham Hotels. If investors know Wyndham will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Wyndham Hotels listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.799
Dividend Share
1.52
Earnings Share
3.61
Revenue Per Share
17.66
Quarterly Revenue Growth
0.066
The market value of Wyndham Hotels Resorts is measured differently than its book value, which is the value of Wyndham that is recorded on the company's balance sheet. Investors also form their own opinion of Wyndham Hotels' value that differs from its market value or its book value, called intrinsic value, which is Wyndham Hotels' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Wyndham Hotels' market value can be influenced by many factors that don't directly affect Wyndham Hotels' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Wyndham Hotels' value and its price as these two are different measures arrived at by different means. Investors typically determine if Wyndham Hotels is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Wyndham Hotels' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.