We assign a fundamental rating of 4 out of 10 to HGV. HGV was compared to 133 industry peers in the Hotels, Restaurants & Leisure industry. HGV may be in some trouble as it scores bad on both profitability and health. HGV is not valued too expensively and it also shows a decent growth rate.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

HGV had positive earnings in the past year.
HGV had a positive operating cash flow in the past year.
Of the past 5 years HGV 4 years were profitable.
In the past 5 years HGV always reported a positive cash flow from operatings.

1.2 Ratios

With a Return On Assets value of 0.45%, HGV perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
The Return On Equity of HGV (3.83%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 4.14%, HGV perfoms like the industry average, outperforming 46.62% of the companies in the same industry.
HGV had an Average Return On Invested Capital over the past 3 years of 6.80%. This is below the industry average of 10.34%.

		Industry Rank	Sector Rank
ROA	0.45%
ROE	3.83%
ROIC	4.14%

ROA(3y)2.8%

ROA(5y)0.84%

ROE(3y)11.28%

ROE(5y)-2.21%

ROIC(3y)6.8%

ROIC(5y)N/A

1.3 Margins

With a Profit Margin value of 1.06%, HGV perfoms like the industry average, outperforming 44.36% of the companies in the same industry.
In the last couple of years the Profit Margin of HGV has declined.
The Operating Margin of HGV (11.02%) is better than 60.90% of its industry peers.
HGV's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 22.59%, HGV is doing worse than 82.71% of the companies in the same industry.
HGV's Gross Margin has declined in the last couple of years.

		Industry Rank	Sector Rank
OM	11.02%
PM (TTM)	1.06%
GM	22.59%

OM growth 3Y-13.11%

OM growth 5Y-3.97%

PM growth 3Y-49.98%

PM growth 5Y-39.61%

GM growth 3Y-11.04%

GM growth 5Y-2.08%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HGV is destroying value.
HGV has less shares outstanding than it did 1 year ago.
The number of shares outstanding for HGV has been increased compared to 5 years ago.
Compared to 1 year ago, HGV has a worse debt to assets ratio.

2.2 Solvency

Based on the Altman-Z score of 1.03, we must say that HGV is in the distress zone and has some risk of bankruptcy.
HGV's Altman-Z score of 1.03 is on the low side compared to the rest of the industry. HGV is outperformed by 63.91% of its industry peers.
HGV has a debt to FCF ratio of 93.39. This is a negative value and a sign of low solvency as HGV would need 93.39 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 93.39, HGV is in line with its industry, outperforming 40.60% of the companies in the same industry.
A Debt/Equity ratio of 5.19 is on the high side and indicates that HGV has dependencies on debt financing.
The Debt to Equity ratio of HGV (5.19) is worse than 60.90% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	5.19
Debt/FCF	93.39
Altman-Z	1.03

ROIC/WACC0.51

WACC8.08%

2.3 Liquidity

A Current Ratio of 2.68 indicates that HGV has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.68, HGV belongs to the top of the industry, outperforming 89.47% of the companies in the same industry.
A Quick Ratio of 0.57 indicates that HGV may have some problems paying its short term obligations.
The Quick ratio of HGV (0.57) is worse than 67.67% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	2.68
Quick Ratio	0.57

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

The earnings per share for HGV have decreased strongly by -37.50% in the last year.
Measured over the past years, HGV shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -28.63% on average per year.
The Revenue has been growing slightly by 5.98% in the past year.
The Revenue has been growing by 22.07% on average over the past years. This is a very strong growth!

EPS 1Y (TTM)-37.5%

EPS 3Y-33.78%

EPS 5Y-28.63%

EPS Q2Q%0%

Revenue 1Y (TTM)5.98%

Revenue growth 3Y28.73%

Revenue growth 5Y22.07%

Sales Q2Q%-0.46%

3.2 Future

The Earnings Per Share is expected to grow by 113.68% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 3.86% on average over the next years.

EPS Next Y264.16%

EPS Next 2Y191.08%

EPS Next 3Y113.68%

EPS Next 5YN/A

Revenue Next Year1.41%

Revenue Next 2Y5.41%

Revenue Next 3Y3.86%

Revenue Next 5YN/A

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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 82.47, which means the current valuation is very expensive for HGV.
HGV's Price/Earnings ratio is in line with the industry average.
HGV's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.21.
The Price/Forward Earnings ratio is 11.90, which indicates a very decent valuation of HGV.
Based on the Price/Forward Earnings ratio, HGV is valued cheaply inside the industry as 83.46% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 24.26. HGV is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	82.47
Fwd PE	11.9

4.2 Price Multiples

HGV's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HGV is on the same level as its industry peers.

		Industry Rank	Sector Rank
P/FCF	50.39
EV/EBITDA	13.47

4.3 Compensation for Growth

HGV's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
HGV's earnings are expected to grow with 113.68% in the coming years. This may justify a more expensive valuation.