HYATT HOTELS CORP - CL A (H) Stock Fundamental Analysis
NYSE:H - New York Stock Exchange, Inc. - US4485791028 - Common Stock - Currency: USD
Taking everything into account, H scores 4 out of 10 in our fundamental rating. H was compared to 135 industry peers in the Hotels, Restaurants & Leisure industry. H has only an average score on both its financial health and profitability. H is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
H had positive earnings in the past year.
H had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: H reported negative net income in multiple years.
Of the past 5 years H 4 years had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 9.73%, H belongs to the best of the industry, outperforming 83.97% of the companies in the same industry.
Looking at the Return On Equity, with a value of 36.54%, H belongs to the top of the industry, outperforming 89.31% of the companies in the same industry.
The Return On Invested Capital of H (3.16%) is worse than 64.12% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for H is significantly below the industry average of 10.79%.
The 3 year average ROIC (3.04%) for H is below the current ROIC(3.16%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.73% | ||
| ROE | 36.54% | ||
| ROIC | 3.16% |
ROA(3y)5.05%
ROA(5y)1.13%
ROE(3y)18.34%
ROE(5y)5.38%
ROIC(3y)3.04%
ROIC(5y)N/A
1.3 Margins
H has a Profit Margin of 19.49%. This is amongst the best in the industry. H outperforms 92.37% of its industry peers.
In the last couple of years the Profit Margin of H has grown nicely.
H has a worse Operating Margin (6.21%) than 60.31% of its industry peers.
In the last couple of years the Operating Margin of H has grown nicely.
H has a Gross Margin (48.00%) which is in line with its industry peers.
In the last couple of years the Gross Margin of H has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.21% | ||
| PM (TTM) | 19.49% | ||
| GM | 48% |
OM growth 3YN/A
OM growth 5Y9.78%
PM growth 3YN/A
PM growth 5Y5.02%
GM growth 3Y1.52%
GM growth 5Y-0.73%
2. Health
2.1 Basic Checks
H has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
H has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, H has less shares outstanding
Compared to 1 year ago, H has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.81 indicates that H is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.81, H perfoms like the industry average, outperforming 53.44% of the companies in the same industry.
H has a debt to FCF ratio of 8.12. This is a slightly negative value and a sign of low solvency as H would need 8.12 years to pay back of all of its debts.
H's Debt to FCF ratio of 8.12 is fine compared to the rest of the industry. H outperforms 63.36% of its industry peers.
A Debt/Equity ratio of 0.94 indicates that H is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.94, H is doing good in the industry, outperforming 64.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 8.12 | ||
| Altman-Z | 1.81 |
ROIC/WACC0.35
WACC9.08%
2.3 Liquidity
H has a Current Ratio of 0.83. This is a bad value and indicates that H is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of H (0.83) is comparable to the rest of the industry.
H has a Quick Ratio of 0.83. This is a bad value and indicates that H is not financially healthy enough and could expect problems in meeting its short term obligations.
H has a Quick ratio of 0.83. This is comparable to the rest of the industry: H outperforms 46.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
H shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.08%, which is quite impressive.
Measured over the past years, H shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.92% on average per year.
The Revenue has decreased by -0.28% in the past year.
The Revenue has been growing slightly by 5.78% on average over the past years.
EPS 1Y (TTM)40.08%
EPS 3YN/A
EPS 5Y11.92%
EPS Q2Q%-34.38%
Revenue 1Y (TTM)-0.28%
Revenue growth 3Y29.97%
Revenue growth 5Y5.78%
Sales Q2Q%-3.49%
3.2 Future
Based on estimates for the next years, H will show a very strong growth in Earnings Per Share. The EPS will grow by 24.74% on average per year.
H is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.93% yearly.
EPS Next Y-2.01%
EPS Next 2Y12.03%
EPS Next 3Y20.01%
EPS Next 5Y24.74%
Revenue Next Year4.7%
Revenue Next 2Y5.14%
Revenue Next 3Y6.03%
Revenue Next 5Y6.93%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 38.89, the valuation of H can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of H is on the same level as its industry peers.
H is valuated rather expensively when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 39.69, H can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of H indicates a slightly more expensive valuation: H is more expensive than 60.31% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. H is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.89 | ||
| Fwd PE | 39.69 |
4.2 Price Multiples
65.65% of the companies in the same industry are cheaper than H, based on the Enterprise Value to EBITDA ratio.
H's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. H is cheaper than 67.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.86 | ||
| EV/EBITDA | 21.48 |
4.3 Compensation for Growth
The decent profitability rating of H may justify a higher PE ratio.
A more expensive valuation may be justified as H's earnings are expected to grow with 20.01% in the coming years.
PEG (NY)N/A
PEG (5Y)3.26
EPS Next 2Y12.03%
EPS Next 3Y20.01%
5. Dividend
5.1 Amount
H has a yearly dividend return of 0.41%, which is pretty low.
H's Dividend Yield is a higher than the industry average which is at 3.08.
Compared to an average S&P500 Dividend Yield of 2.27, H's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
5.2 History
The dividend of H decreases each year by -4.75%.
H has been paying a dividend for over 5 years, so it has already some track record.
H has decreased its dividend recently.
Dividend Growth(5Y)-4.75%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
H pays out 4.63% of its income as dividend. This is a sustainable payout ratio.
DP4.63%
EPS Next 2Y12.03%
EPS Next 3Y20.01%
140.02
-5.74 (-3.94%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners107.19%
Inst Owner Change1.96%
Ins Owners1.82%
Ins Owner Change4.9%
Market Cap13.45B
Analysts70.97
Price Target165.24 (18.01%)
Short Float %10.11%
Short Ratio6.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
Yearly Dividend0.6
Dividend Growth(5Y)-4.75%
DP4.63%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-40.43%
Min EPS beat(2)-47.43%
Max EPS beat(2)-33.43%
EPS beat(4)1
Avg EPS beat(4)-19.79%
Min EPS beat(4)-47.43%
Max EPS beat(4)27.98%
EPS beat(8)3
Avg EPS beat(8)-3.29%
EPS beat(12)7
Avg EPS beat(12)244.46%
EPS beat(16)8
Avg EPS beat(16)137.56%
Revenue beat(2)1
Avg Revenue beat(2)-1.88%
Min Revenue beat(2)-5.26%
Max Revenue beat(2)1.5%
Revenue beat(4)1
Avg Revenue beat(4)-2.3%
Min Revenue beat(4)-5.26%
Max Revenue beat(4)1.5%
Revenue beat(8)3
Avg Revenue beat(8)-0.95%
Revenue beat(12)7
Avg Revenue beat(12)1.55%
Revenue beat(16)7
Avg Revenue beat(16)-0.01%
PT rev (1m)0.67%
PT rev (3m)2.06%
EPS NQ rev (1m)-1.4%
EPS NQ rev (3m)-2.71%
EPS NY rev (1m)0.5%
EPS NY rev (3m)0.5%
Revenue NQ rev (1m)0.65%
Revenue NQ rev (3m)0.89%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.89 | ||
| Fwd PE | 39.69 | ||
| P/S | 2.02 | ||
| P/FCF | 28.86 | ||
| P/OCF | 21.14 | ||
| P/B | 3.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.48 |
EPS(TTM)3.6
EY2.57%
EPS(NY)3.53
Fwd EY2.52%
FCF(TTM)4.85
FCFY3.47%
OCF(TTM)6.62
OCFY4.73%
SpS69.22
BVpS36.93
TBVpS-12.09
PEG (NY)N/A
PEG (5Y)3.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.73% | ||
| ROE | 36.54% | ||
| ROCE | 4.11% | ||
| ROIC | 3.16% | ||
| ROICexc | 3.67% | ||
| ROICexgc | 8.03% | ||
| OM | 6.21% | ||
| PM (TTM) | 19.49% | ||
| GM | 48% | ||
| FCFM | 7.01% |
ROA(3y)5.05%
ROA(5y)1.13%
ROE(3y)18.34%
ROE(5y)5.38%
ROIC(3y)3.04%
ROIC(5y)N/A
ROICexc(3y)3.46%
ROICexc(5y)N/A
ROICexgc(3y)8.23%
ROICexgc(5y)N/A
ROCE(3y)3.95%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y24.5%
ROICexc growth 3YN/A
ROICexc growth 5Y9.19%
OM growth 3YN/A
OM growth 5Y9.78%
PM growth 3YN/A
PM growth 5Y5.02%
GM growth 3Y1.52%
GM growth 5Y-0.73%
F-Score5
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 8.12 | ||
| Debt/EBITDA | 4.46 | ||
| Cap/Depr | 51.05% | ||
| Cap/Sales | 2.56% | ||
| Interest Coverage | 2.47 | ||
| Cash Conversion | 85.25% | ||
| Profit Quality | 35.96% | ||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 1.81 |
F-Score5
WACC9.08%
ROIC/WACC0.35
Cap/Depr(3y)50.21%
Cap/Depr(5y)45.16%
Cap/Sales(3y)3.03%
Cap/Sales(5y)3.73%
Profit Quality(3y)135.88%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)40.08%
EPS 3YN/A
EPS 5Y11.92%
EPS Q2Q%-34.38%
EPS Next Y-2.01%
EPS Next 2Y12.03%
EPS Next 3Y20.01%
EPS Next 5Y24.74%
Revenue 1Y (TTM)-0.28%
Revenue growth 3Y29.97%
Revenue growth 5Y5.78%
Sales Q2Q%-3.49%
Revenue Next Year4.7%
Revenue Next 2Y5.14%
Revenue Next 3Y6.03%
Revenue Next 5Y6.93%
EBIT growth 1Y35.41%
EBIT growth 3YN/A
EBIT growth 5Y16.12%
EBIT Next Year232.42%
EBIT Next 3Y61.49%
EBIT Next 5Y37.94%
FCF growth 1Y-20.88%
FCF growth 3Y31.7%
FCF growth 5Y76.77%
OCF growth 1Y-20.2%
OCF growth 3Y26.39%
OCF growth 5Y9.94%