HILTON WORLDWIDE HOLDINGS IN (HLT)
US43300A2033 - Common Stock
We assign a fundamental rating of 5 out of 10 to HLT. HLT was compared to 135 industry peers in the Hotels, Restaurants & Leisure industry. While HLT has a great profitability rating, there are quite some 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.
HLT had positive earnings in 4 of the past 5 years.
HLT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.05%, HLT is in the better half of the industry, outperforming 79.85% of the companies in the same industry.
HLT has a Return On Invested Capital of 13.33%. This is amongst the best in the industry. HLT outperforms 82.09% of its industry peers.
HLT had an Average Return On Invested Capital over the past 3 years of 10.58%. This is in line with the industry average of 10.40%.
The 3 year average ROIC (10.58%) for HLT is below the current ROIC(13.33%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.05% | ||
| ROE | N/A | ||
| ROIC | 13.33% |
ROA(3y)6.08%
ROA(5y)3.97%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)10.58%
ROIC(5y)N/A
1.3 Margins
HLT's Profit Margin of 10.70% is fine compared to the rest of the industry. HLT outperforms 76.12% of its industry peers.
In the last couple of years the Profit Margin of HLT has grown nicely.
With an excellent Operating Margin value of 21.04%, HLT belongs to the best of the industry, outperforming 81.34% of the companies in the same industry.
In the last couple of years the Operating Margin of HLT has grown nicely.
The Gross Margin of HLT (37.56%) is worse than 67.91% of its industry peers.
HLT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.04% | ||
| PM (TTM) | 10.7% | ||
| GM | 37.56% |
OM growth 3YN/A
OM growth 5Y6.58%
PM growth 3YN/A
PM growth 5Y5.38%
GM growth 3Y12.51%
GM growth 5Y-0.23%
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.
Compared to 1 year ago, HLT has less shares outstanding
The number of shares outstanding for HLT has been reduced compared to 5 years ago.
HLT has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.58 indicates that HLT is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of HLT (2.58) is better than 74.63% of its industry peers.
The Debt to FCF ratio of HLT is 6.54, which is on the high side as it means it would take HLT, 6.54 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 6.54, HLT is doing good in the industry, outperforming 70.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.54 | ||
| Altman-Z | 2.58 |
ROIC/WACC1.59
WACC8.4%
2.3 Liquidity
HLT has a Current Ratio of 0.80. This is a bad value and indicates that HLT is not financially healthy enough and could expect problems in meeting its short term obligations.
HLT has a worse Current ratio (0.80) than 60.45% of its industry peers.
A Quick Ratio of 0.80 indicates that HLT may have some problems paying its short term obligations.
HLT's Quick ratio of 0.80 is in line compared to the rest of the industry. HLT outperforms 44.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
HLT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.85%, which is quite good.
HLT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.22% yearly.
HLT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.24%.
HLT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.82% yearly.
EPS 1Y (TTM)14.85%
EPS 3Y310.38%
EPS 5Y17.22%
EPS Q2Q%14.97%
Revenue 1Y (TTM)9.24%
Revenue growth 3Y33.45%
Revenue growth 5Y2.82%
Sales Q2Q%7.26%
3.2 Future
Based on estimates for the next years, HLT will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.52% on average per year.
HLT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.31% yearly.
EPS Next Y14.1%
EPS Next 2Y13.89%
EPS Next 3Y14.61%
EPS Next 5Y18.52%
Revenue Next Year9.05%
Revenue Next 2Y8.49%
Revenue Next 3Y8.76%
Revenue Next 5Y9.31%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
The Price/Earnings ratio is 35.38, which means the current valuation is very expensive for HLT.
Compared to the rest of the industry, the Price/Earnings ratio of HLT is on the same level as its industry peers.
HLT is valuated rather expensively when we compare the Price/Earnings ratio to 28.65, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 30.87, HLT can be considered very expensive at the moment.
HLT's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.50, HLT is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.38 | ||
| Fwd PE | 30.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HLT is valued a bit more expensive than 75.37% 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 | 35.57 | ||
| EV/EBITDA | 28.65 |
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.
A more expensive valuation may be justified as HLT's earnings are expected to grow with 14.61% in the coming years.
PEG (NY)2.51
PEG (5Y)2.05
EPS Next 2Y13.89%
EPS Next 3Y14.61%
5. Dividend
5.1 Amount
HLT has a yearly dividend return of 0.24%, which is pretty low.
Compared to an average industry Dividend Yield of 2.82, HLT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.22, HLT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.24% |
5.2 History
The dividend of HLT has a limited annual growth rate of 0.49%.
HLT has been paying a dividend for over 5 years, so it has already some track record.
HLT has decreased its dividend recently.
Dividend Growth(5Y)0.49%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
HLT pays out 12.83% of its income as dividend. This is a sustainable payout ratio.
The dividend of HLT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP12.83%
EPS Next 2Y13.89%
EPS Next 3Y14.61%
HILTON WORLDWIDE HOLDINGS IN
NYSE:HLT (11/18/2024, 8:04:00 PM)
After market: 249.04 0 (0%)249.04
+0.63 (+0.25%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap60.71B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.24% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.38 | ||
| Fwd PE | 30.87 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.51
PEG (5Y)2.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.05% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21.04% | ||
| PM (TTM) | 10.7% | ||
| GM | 37.56% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)14.85%
EPS 3Y310.38%
EPS 5Y
EPS Q2Q%
EPS Next Y14.1%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.24%
Revenue growth 3Y33.45%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y