HYATT HOTELS CORP - CL A (H) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:H - US4485791028 - Common Stock
159.26 USD
-2.52 (-1.56%)
We assign a fundamental rating of 2 out of 10 to H. H was compared to 132 industry peers in the Hotels, Restaurants & Leisure industry. Both the profitability and financial health of H have multiple concerns. 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.
- In multiple years H reported negative net income over the last 5 years.
- Of the past 5 years H 4 years had a positive operating cash flow.
1.2 Ratios
- H's Return On Assets of -0.56% is on the low side compared to the rest of the industry. H is outperformed by 64.39% of its industry peers.
- The Return On Equity of H (-2.53%) is comparable to the rest of the industry.
- H has a worse Return On Invested Capital (2.96%) than 61.36% 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 10.36%.
| 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 comparable to the rest of the industry.
- 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 50.76% of 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 | 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.
- Compared to 1 year ago, H has less shares outstanding
- The number of shares outstanding for H has been reduced compared to 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 1.54, we must say that H is in the distress zone and has some risk of bankruptcy.
- H has a Altman-Z score (1.54) which is in line with its industry peers.
- The Debt to FCF ratio of H is 105.51, which is on the high side as it means it would take H, 105.51 years of fcf income to pay off all of its debts.
- H's Debt to FCF ratio of 105.51 is on the low side compared to the rest of the industry. H is outperformed by 60.61% of its industry peers.
- H has a Debt/Equity ratio of 1.61. This is a high value indicating a heavy dependency on external financing.
- H has a Debt to Equity ratio (1.61) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.61 | ||
| Debt/FCF | 105.51 | ||
| Altman-Z | 1.54 |
ROIC/WACC0.37
WACC7.95%
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.
- With a Current ratio value of 0.69, H is not doing good in the industry: 64.39% of the companies in the same industry are doing better.
- H has a Quick 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 Quick ratio of 0.68 is on the low side compared to the rest of the industry. H is outperformed by 61.36% of its industry peers.
| 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%.
- The Earnings Per Share has been growing by 11.92% on average over the past years. This is quite good.
- Looking at the last year, H shows a small growth in Revenue. The Revenue has grown by 3.10% in the last 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
- The Earnings Per Share is expected to grow by 23.44% on average over the next years. This is a very strong growth
- H is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.36% yearly.
EPS Next Y-64.25%
EPS Next 2Y2.39%
EPS Next 3Y10%
EPS Next 5Y23.44%
Revenue Next Year5.83%
Revenue Next 2Y4.78%
Revenue Next 3Y5.42%
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 126.40, the valuation of H can be described as expensive.
- 61.36% of the companies in the same industry are cheaper than H, based on the Price/Earnings ratio.
- H's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.25.
- H is valuated quite expensively with a Price/Forward Earnings ratio of 42.20.
- H's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, H is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 126.4 | ||
| Fwd PE | 42.2 |
4.2 Price Multiples
- H's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. H is more expensive than 75.00% of the companies in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as H.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 265.32 | ||
| EV/EBITDA | 26.45 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)10.6
EPS Next 2Y2.39%
EPS Next 3Y10%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.36%, H is not a good candidate for dividend investing.
- H's Dividend Yield is comparable with the industry average which is at 1.21.
- Compared to an average S&P500 Dividend Yield of 1.82, H's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.36% |
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
- The earnings of H are negative and hence is the payout ratio. H will probably not be able to sustain this dividend level.
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.