WYN

Wyndham Worldwide Corp

Consumer


Presented:01/19/2017
Price:$77.79
Cap:$8.56B
Current Price:$39.71
Cap:$3.66B

Presented

Date01/19/2017
Price$77.79
Market Cap$8.56B
Ent Value$13.50B
P/E Ratio14.9x
Book ValueN/A
Div Yield0.03%
Shares O/S107.78M
Ave Daily Vol990,411
Short IntN/A

Current

Price$39.71
Market Cap$3.66B
Wyndham Worldwide Corp. offers individual consumers and business customers a broad array of hospitality services and products across various accommodation alternatives through its portfolio of brands. It operates through three business segments: Hotel Group, Destination Network, and Vacation Ownership. The Hotel Group segment franchises hotels in the upscale, upper midscale, midscale, economy and extended stay segments and provides hotel management services for full-service and select limited-service hotels. The Destination Network segment provides vacation exchange services and products to owners of intervals of vacation ownership interests and markets vacation rental properties primarily on behalf of independent owners. The Vacation Ownership segment develops, markets and sells vacation ownership interests to individual consumers, provides consumer financing with the sale of vacation ownership interests and provides property management services at resorts. The company was founded on July 31, 2006 and is headquartered in Parsippany, NJ.

Publicly traded companies mentioned herein: Choice Hotels International Inc (CHH), Hilton Grand Vacations Inc (HGV), ILG Inc (ILG), La Quinta Holdings Inc (LQ), Marriott Vacations Worldwide Corp (VAC) Wyndham Worldwide Corporation (WYN)

Highlights

Wyndham (WYN) shares appear to be overvalued at ~$78 and the presenter is short the stock. In his opinion, bulls who think the stock can’t get any cheaper than 8x EBITDA may not fully appreciate the headwinds facing the business, and on the other side the bears that believe there may be accounting issues or think the timeshare business is “a zero” appear to be off-base. While bears’ beliefs would certainly help the short position if true, his view is that WYN is simply stuck at a point where EBITDA and earnings growth are decelerating sharply. As such, the presenter sees a reasonable probability of a guidance “reset” when the company reports FY 2016 earnings on February 15, 2017; if the story unfolds as he expects, the stock is likely to decline to mid-$60s near-term (10-11x 2017 EPS estimates).

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.