HYATT HOTELS CORP - CL A (H) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:H - US4485791028 - Common Stock
163.78 USD
-1.66 (-1%)
163.78 USD
0 (0%)
H gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 133 industry peers in the Hotels, Restaurants & Leisure industry. H may be in some trouble as it scores bad on both profitability and health. H is quite expensive at the moment. 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
- H has a worse Return On Assets (-0.56%) than 64.66% of its industry peers.
- H has a Return On Equity (-2.53%) which is comparable to the rest of the industry.
- Looking at the Return On Invested Capital, with a value of 2.96%, H is doing worse than 61.65% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for H is significantly below the industry average of 10.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.56% | ||
| ROE | -2.53% | ||
| ROIC | 2.96% |
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
- In the last couple of years the Profit Margin of H has grown nicely.
- H has a Operating Margin (7.01%) which is in line with its industry peers.
- In the last couple of years the Operating Margin of H has grown nicely.
- H's Gross Margin of 47.31% is in line compared to the rest of the industry. H outperforms 50.38% of its industry peers.
- H's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.01% | ||
| PM (TTM) | N/A | ||
| GM | 47.31% |
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.
- The number of shares outstanding for H has been reduced compared to 1 year ago.
- H has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, H has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.56, we must say that H is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 1.56, H perfoms like the industry average, outperforming 48.87% of the companies in the same industry.
- H has a debt to FCF ratio of 105.51. This is a negative value and a sign of low solvency as H would need 105.51 years to pay back of all of its debts.
- With a Debt to FCF ratio value of 105.51, H is not doing good in the industry: 60.15% of the companies in the same industry are doing better.
- A Debt/Equity ratio of 1.61 is on the high side and indicates that H has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 1.61, H is in line with its industry, outperforming 54.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.61 | ||
| Debt/FCF | 105.51 | ||
| Altman-Z | 1.56 |
ROIC/WACC0.37
WACC7.96%
2.3 Liquidity
- H has a Current Ratio of 0.69. 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's Current ratio of 0.69 is on the low side compared to the rest of the industry. H is outperformed by 63.91% of its industry peers.
- A Quick Ratio of 0.68 indicates that H may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.68, H is doing worse than 60.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
- H shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -67.02%.
- H shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.92% yearly.
- The Revenue has been growing slightly by 3.10% in the past year.
- The Revenue has been growing slightly by 5.78% on average over the past years.
EPS 1Y (TTM)-67.02%
EPS 3YN/A
EPS 5Y11.92%
EPS Q2Q%-131.91%
Revenue 1Y (TTM)3.1%
Revenue growth 3Y29.97%
Revenue growth 5Y5.78%
Sales Q2Q%9.64%
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 23.44% on average per year.
- The Revenue is expected to grow by 7.36% on average over the next years.
EPS Next Y-64.25%
EPS Next 2Y2.39%
EPS Next 3Y10%
EPS Next 5Y23.44%
Revenue Next Year5.99%
Revenue Next 2Y5.14%
Revenue Next 3Y5.57%
Revenue Next 5Y7.36%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 129.98, which means the current valuation is very expensive for H.
- 61.65% of the companies in the same industry are cheaper than H, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, H is valued quite expensively.
- H is valuated quite expensively with a Price/Forward Earnings ratio of 43.40.
- H's Price/Forward Earnings is on the same level as the industry average.
- H's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 129.98 | ||
| Fwd PE | 43.4 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of H indicates a slightly more expensive valuation: H is more expensive than 75.19% of the companies listed in the same industry.
- H's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 272.85 | ||
| EV/EBITDA | 26.89 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)10.9
EPS Next 2Y2.39%
EPS Next 3Y10%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.35%, H is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.20, H has a dividend in line with its industry peers.
- With a Dividend Yield of 0.35, H pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
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.
- The dividend of H decreased recently.
Dividend Growth(5Y)-4.75%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- H has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-64.77%
EPS Next 2Y2.39%
EPS Next 3Y10%
HYATT HOTELS CORP - CL A / H FAQ
What is the ChartMill fundamental rating of HYATT HOTELS CORP - CL A (H) stock?
ChartMill assigns a fundamental rating of 2 / 10 to H.
Can you provide the valuation status for HYATT HOTELS CORP - CL A?
ChartMill assigns a valuation rating of 1 / 10 to HYATT HOTELS CORP - CL A (H). This can be considered as Overvalued.
How profitable is HYATT HOTELS CORP - CL A (H) stock?
HYATT HOTELS CORP - CL A (H) has a profitability rating of 3 / 10.
What is the financial health of HYATT HOTELS CORP - CL A (H) stock?
The financial health rating of HYATT HOTELS CORP - CL A (H) is 1 / 10.
What is the earnings growth outlook for HYATT HOTELS CORP - CL A?
The Earnings per Share (EPS) of HYATT HOTELS CORP - CL A (H) is expected to decline by -64.25% in the next year.