HYATT HOTELS CORP - CL A (H) Stock Fundamental Analysis
NYSE:H - New York Stock Exchange, Inc. - US4485791028 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to H. H was compared to 136 industry peers in the Hotels, Restaurants & Leisure industry. There are concerns on the financial health of H while its profitability can be described as average. While showing a medium growth rate, H is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year H was profitable.
In the past year H had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: H reported negative net income in multiple years.
H had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
H's Return On Assets of 9.73% is amongst the best of the industry. H outperforms 83.82% of its industry peers.
H has a Return On Equity of 36.54%. This is amongst the best in the industry. H outperforms 86.76% of its industry peers.
H has a worse Return On Invested Capital (3.16%) than 65.44% of its industry peers.
H had an Average Return On Invested Capital over the past 3 years of 3.04%. This is significantly below the industry average of 15.69%.
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
Looking at the Profit Margin, with a value of 19.49%, H belongs to the top of the industry, outperforming 93.38% of the companies in the same industry.
H's Profit Margin has improved in the last couple of years.
H has a Operating Margin (6.21%) which is comparable to the rest of the industry.
H's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 48.00%, H perfoms like the industry average, outperforming 52.94% of the companies in the same industry.
H's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so H 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.
The debt/assets ratio for H is higher compared to a year ago.
2.2 Solvency
H has an Altman-Z score of 1.57. This is a bad value and indicates that H is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.57, H perfoms like the industry average, outperforming 55.15% of the companies in the same industry.
The Debt to FCF ratio of H is 8.12, which is on the high side as it means it would take H, 8.12 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 8.12, H is doing good in the industry, outperforming 65.44% of the companies in the same industry.
H has a Debt/Equity ratio of 0.94. This is a neutral value indicating H is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.94, H is in the better half of the industry, outperforming 64.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 8.12 | ||
| Altman-Z | 1.57 |
ROIC/WACC0.38
WACC8.42%
2.3 Liquidity
A Current Ratio of 0.83 indicates that H may have some problems paying its short term obligations.
H's Current ratio of 0.83 is in line compared to the rest of the industry. H outperforms 48.53% of its industry peers.
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 (0.83) which is comparable to the rest of the industry.
| 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.
H shows a decrease in Revenue. In the last year, the revenue decreased by -0.28%.
Measured over the past years, H shows a small growth in Revenue. The Revenue has been growing by 5.78% on average per year.
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
The Earnings Per Share is expected to grow by 25.70% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 6.38% on average over the next years.
EPS Next Y-15.52%
EPS Next 2Y7.85%
EPS Next 3Y14.58%
EPS Next 5Y25.7%
Revenue Next Year3.22%
Revenue Next 2Y4.49%
Revenue Next 3Y5.27%
Revenue Next 5Y6.38%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 29.42, 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.
When comparing the Price/Earnings ratio of H to the average of the S&P500 Index (28.29), we can say H is valued inline with the index average.
With a Price/Forward Earnings ratio of 34.82, H can be considered very expensive at the moment.
H's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.32, H is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.42 | ||
| Fwd PE | 34.82 |
4.2 Price Multiples
61.76% of the companies in the same industry are cheaper than H, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, H is valued a bit cheaper than 69.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.69 | ||
| EV/EBITDA | 16.27 |
4.3 Compensation for Growth
H has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as H's earnings are expected to grow with 14.58% in the coming years.
PEG (NY)N/A
PEG (5Y)2.47
EPS Next 2Y7.85%
EPS Next 3Y14.58%
5. Dividend
5.1 Amount
With a yearly dividend of 0.57%, H is not a good candidate for dividend investing.
In the last 3 months the price of H has falen by -32.10%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.92, H pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.51, H's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
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
4.63% of the earnings are spent on dividend by H. This is a low number and sustainable payout ratio.
DP4.63%
EPS Next 2Y7.85%
EPS Next 3Y14.58%
105.91
-0.1 (-0.09%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners111.99%
Inst Owner Change-0.21%
Ins Owners2.28%
Ins Owner Change8.03%
Market Cap10.11B
Analysts70.34
Price Target160.2 (51.26%)
Short Float %12.34%
Short Ratio6.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
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)-3.3%
PT rev (3m)-3.3%
EPS NQ rev (1m)-7.34%
EPS NQ rev (3m)-44.63%
EPS NY rev (1m)-13.79%
EPS NY rev (3m)-24.27%
Revenue NQ rev (1m)-0.34%
Revenue NQ rev (3m)-0.52%
Revenue NY rev (1m)-0.59%
Revenue NY rev (3m)-0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.42 | ||
| Fwd PE | 34.82 | ||
| P/S | 1.52 | ||
| P/FCF | 21.69 | ||
| P/OCF | 15.89 | ||
| P/B | 2.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.27 |
EPS(TTM)3.6
EY3.4%
EPS(NY)3.04
Fwd EY2.87%
FCF(TTM)4.88
FCFY4.61%
OCF(TTM)6.66
OCFY6.29%
SpS69.66
BVpS37.17
TBVpS-12.17
PEG (NY)N/A
PEG (5Y)2.47
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 | 1.57 |
F-Score5
WACC8.42%
ROIC/WACC0.38
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-15.52%
EPS Next 2Y7.85%
EPS Next 3Y14.58%
EPS Next 5Y25.7%
Revenue 1Y (TTM)-0.28%
Revenue growth 3Y29.97%
Revenue growth 5Y5.78%
Sales Q2Q%-3.49%
Revenue Next Year3.22%
Revenue Next 2Y4.49%
Revenue Next 3Y5.27%
Revenue Next 5Y6.38%
EBIT growth 1Y35.41%
EBIT growth 3YN/A
EBIT growth 5Y16.12%
EBIT Next Year220.98%
EBIT Next 3Y56.45%
EBIT Next 5Y37.45%
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%