HILTON WORLDWIDE HOLDINGS IN (HLT) Stock Fundamental Analysis
NYSE:HLT - New York Stock Exchange, Inc. - US43300A2033 - Common Stock - Currency: USD
Overall HLT gets a fundamental rating of 5 out of 10. We evaluated HLT against 135 industry peers in the Hotels, Restaurants & Leisure industry. HLT scores excellent on profitability, but there are concerns on its financial health. HLT is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year HLT was profitable.
HLT had a positive operating cash flow in the past year.
Of the past 5 years HLT 4 years were profitable.
HLT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of HLT (9.29%) is better than 83.21% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.44%, HLT belongs to the top of the industry, outperforming 83.21% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HLT is above the industry average of 10.79%.
The last Return On Invested Capital (15.44%) for HLT is above the 3 year average (14.57%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.29% | ||
| ROE | N/A | ||
| ROIC | 15.44% |
ROA(3y)8.26%
ROA(5y)4.65%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)14.57%
ROIC(5y)N/A
1.3 Margins
HLT has a better Profit Margin (13.74%) than 82.44% of its industry peers.
In the last couple of years the Profit Margin of HLT has grown nicely.
The Operating Margin of HLT (21.17%) is better than 79.39% of its industry peers.
HLT's Operating Margin has improved in the last couple of years.
HLT has a worse Gross Margin (37.49%) than 68.70% of its industry peers.
HLT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.17% | ||
| PM (TTM) | 13.74% | ||
| GM | 37.49% |
OM growth 3Y6.4%
OM growth 5Y4.89%
PM growth 3Y24.7%
PM growth 5Y8.07%
GM growth 3Y-2.4%
GM growth 5Y-0.8%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HLT is still creating some value.
The number of shares outstanding for HLT has been reduced compared to 1 year ago.
HLT has less shares outstanding than it did 5 years ago.
The debt/assets ratio for HLT is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.72 indicates that HLT is not a great score, but indicates only limited risk for bankruptcy at the moment.
HLT has a Altman-Z score of 2.72. This is in the better half of the industry: HLT outperforms 70.99% of its industry peers.
HLT has a debt to FCF ratio of 6.14. This is a slightly negative value and a sign of low solvency as HLT would need 6.14 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.14, HLT is in the better half of the industry, outperforming 70.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.14 | ||
| Altman-Z | 2.72 |
ROIC/WACC1.67
WACC9.27%
2.3 Liquidity
HLT has a Current Ratio of 0.70. This is a bad value and indicates that HLT is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of HLT (0.70) is worse than 64.89% of its industry peers.
A Quick Ratio of 0.70 indicates that HLT may have some problems paying its short term obligations.
With a Quick ratio value of 0.70, HLT is not doing good in the industry: 60.31% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
HLT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.47%, which is quite good.
Measured over the past years, HLT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.74% on average per year.
HLT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.17%.
HLT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.40% yearly.
EPS 1Y (TTM)14.47%
EPS 3Y50.71%
EPS 5Y12.74%
EPS Q2Q%4.76%
Revenue 1Y (TTM)9.17%
Revenue growth 3Y24.52%
Revenue growth 5Y3.4%
Sales Q2Q%6.67%
3.2 Future
HLT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.61% yearly.
Based on estimates for the next years, HLT will show a quite strong growth in Revenue. The Revenue will grow by 8.97% on average per year.
EPS Next Y13.79%
EPS Next 2Y14.74%
EPS Next 3Y15.13%
EPS Next 5Y17.61%
Revenue Next Year7.76%
Revenue Next 2Y8.44%
Revenue Next 3Y8.39%
Revenue Next 5Y8.97%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 36.45, HLT can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of HLT is on the same level as its industry peers.
When comparing the Price/Earnings ratio of HLT to the average of the S&P500 Index (29.63), we can say HLT is valued slightly more expensively.
The Price/Forward Earnings ratio is 32.03, which means the current valuation is very expensive for HLT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HLT is on the same level as its industry peers.
HLT's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.45 | ||
| Fwd PE | 32.03 |
4.2 Price Multiples
HLT's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. HLT is more expensive than 74.05% of the companies in the same industry.
HLT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.4 | ||
| EV/EBITDA | 29.58 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of HLT may justify a higher PE ratio.
HLT's earnings are expected to grow with 15.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.64
PEG (5Y)2.86
EPS Next 2Y14.74%
EPS Next 3Y15.13%
5. Dividend
5.1 Amount
HLT has a yearly dividend return of 0.22%, which is pretty low.
HLT's Dividend Yield is comparable with the industry average which is at 3.06.
With a Dividend Yield of 0.22, HLT pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.22% |
5.2 History
The dividend of HLT has a limited annual growth rate of 0.21%.
HLT has paid a dividend for at least 10 years, which is a reliable track record.
HLT has decreased its dividend in the last 3 years.
Dividend Growth(5Y)0.21%
Div Incr Years1
Div Non Decr Years2
5.3 Sustainability
9.77% of the earnings are spent on dividend by HLT. This is a low number and sustainable payout ratio.
HLT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP9.77%
EPS Next 2Y14.74%
EPS Next 3Y15.13%
259.49
-8.32 (-3.11%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners97.51%
Inst Owner Change-2.88%
Ins Owners1.9%
Ins Owner Change0.18%
Market Cap62.43B
Analysts71.25
Price Target248.15 (-4.37%)
Short Float %1.7%
Short Ratio2.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.22% |
Yearly Dividend0.61
Dividend Growth(5Y)0.21%
DP9.77%
Div Incr Years1
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.31%
Min EPS beat(2)2.99%
Max EPS beat(2)3.63%
EPS beat(4)4
Avg EPS beat(4)3.81%
Min EPS beat(4)1.71%
Max EPS beat(4)6.88%
EPS beat(8)7
Avg EPS beat(8)3.92%
EPS beat(12)11
Avg EPS beat(12)8.05%
EPS beat(16)12
Avg EPS beat(16)3.12%
Revenue beat(2)0
Avg Revenue beat(2)-1.45%
Min Revenue beat(2)-2.28%
Max Revenue beat(2)-0.61%
Revenue beat(4)1
Avg Revenue beat(4)-0.66%
Min Revenue beat(4)-2.28%
Max Revenue beat(4)0.59%
Revenue beat(8)4
Avg Revenue beat(8)0.25%
Revenue beat(12)6
Avg Revenue beat(12)0.37%
Revenue beat(16)7
Avg Revenue beat(16)-1.06%
PT rev (1m)0.86%
PT rev (3m)8.5%
EPS NQ rev (1m)-2.17%
EPS NQ rev (3m)0.43%
EPS NY rev (1m)0.34%
EPS NY rev (3m)0.42%
Revenue NQ rev (1m)-1.54%
Revenue NQ rev (3m)-0.36%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.45 | ||
| Fwd PE | 32.03 | ||
| P/S | 5.59 | ||
| P/FCF | 34.4 | ||
| P/OCF | 31.02 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 29.58 |
EPS(TTM)7.12
EY2.74%
EPS(NY)8.1
Fwd EY3.12%
FCF(TTM)7.54
FCFY2.91%
OCF(TTM)8.37
OCFY3.22%
SpS46.44
BVpS-15.49
TBVpS-63.1
PEG (NY)2.64
PEG (5Y)2.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.29% | ||
| ROE | N/A | ||
| ROCE | 20.01% | ||
| ROIC | 15.44% | ||
| ROICexc | 17.35% | ||
| ROICexgc | N/A | ||
| OM | 21.17% | ||
| PM (TTM) | 13.74% | ||
| GM | 37.49% | ||
| FCFM | 16.24% |
ROA(3y)8.26%
ROA(5y)4.65%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)14.57%
ROIC(5y)N/A
ROICexc(3y)16.06%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)18.88%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y32.29%
ROICexc growth 5Y10.5%
OM growth 3Y6.4%
OM growth 5Y4.89%
PM growth 3Y24.7%
PM growth 5Y8.07%
GM growth 3Y-2.4%
GM growth 5Y-0.8%
F-Score6
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.14 | ||
| Debt/EBITDA | 4.23 | ||
| Cap/Depr | 135.62% | ||
| Cap/Sales | 1.77% | ||
| Interest Coverage | 4.21 | ||
| Cash Conversion | 80.17% | ||
| Profit Quality | 118.24% | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 2.72 |
F-Score6
WACC9.27%
ROIC/WACC1.67
Cap/Depr(3y)122.2%
Cap/Depr(5y)87.28%
Cap/Sales(3y)1.78%
Cap/Sales(5y)1.77%
Profit Quality(3y)130.99%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)14.47%
EPS 3Y50.71%
EPS 5Y12.74%
EPS Q2Q%4.76%
EPS Next Y13.79%
EPS Next 2Y14.74%
EPS Next 3Y15.13%
EPS Next 5Y17.61%
Revenue 1Y (TTM)9.17%
Revenue growth 3Y24.52%
Revenue growth 5Y3.4%
Sales Q2Q%6.67%
Revenue Next Year7.76%
Revenue Next 2Y8.44%
Revenue Next 3Y8.39%
Revenue Next 5Y8.97%
EBIT growth 1Y4.51%
EBIT growth 3Y32.49%
EBIT growth 5Y8.46%
EBIT Next Year33.2%
EBIT Next 3Y16.75%
EBIT Next 5Y13.77%
FCF growth 1Y6.83%
FCF growth 3Y292.57%
FCF growth 5Y9.01%
OCF growth 1Y3.44%
OCF growth 3Y164.33%
OCF growth 5Y7.78%