Park Hotels & Resorts (PK) Fundamental Analysis: Revenue, Earnings & Valuation

7.49 / 10

Outperform

PK's fundamental analysis is encouraging, earning a 7.5/10. Key strengths include an operating cycle of 18.67 days and a fixed-assets turnover ratio of 0.247, both in favorable quartiles. However, a -7.22% growth rate in shareholders' equity attributable to the parent company introduces risk. Net profit margin is negative at -3.96%, and cost of sales ratio stands at 60.68%, tempering otherwise solid liquidity metrics. The composite score of 7.49 supports an 'Outperform' rating but underscores the need to monitor equity dilution and profitability trends.

Analysis Checks(9/10)

Operating cycle

Value18.67

Score2/3

Weight6.44%

1M Return1.33%

Non-current assets / Total assets (%)

Value93.59

Score2/3

Weight8.29%

1M Return1.68%

Quick ratio

Value2.20

Score2/3

Weight1.32%

1M Return0.27%

Non-current liabilities / Total liabilities (%)

Value86.83

Score2/3

Weight4.17%

1M Return0.85%

Shareholders’ equity attributable to parent company (growth rate compared to beginning of year %)

Value-7.22

Score0/3

Weight-7.55%

1M Return-1.83%

Net profit margin (%)

Value-3.96

Score2/3

Weight-2.31%

1M Return-0.49%

Fixed assets turnover ratio

Value0.25

Score3/3

Weight37.63%

1M Return6.91%

Cost of sales ratio (%)

Value60.68

Score2/3

Weight1.62%

1M Return0.33%

Current assets / Total assets (%)

Value6.41

Score3/3

Weight37.44%

1M Return7.04%

Current ratio

Value0.78

Score2/3

Weight12.95%

1M Return2.48%

Is PK undervalued or overvalued?

PK scores 7.49/10 on fundamentals and holds a Discounted valuation at present. Backed by its -2.25% ROE, 0.00% net margin, -192.08 P/E ratio, 0.69 P/B ratio, and -105.13% earnings growth, these metrics solidify its Outperform investment rating.