HILTON WORLDWIDE HOLDINGS IN (HLT)
US43300A2033 - Common Stock
Overall HLT gets a fundamental rating of 5 out of 10. We evaluated HLT against 134 industry peers in the Hotels, Restaurants & Leisure industry. HLT scores excellent on profitability, but there are concerns on its financial health. HLT is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
HLT had positive earnings in the past year.
In the past year HLT had a positive cash flow from operations.
Of the past 5 years HLT 4 years were profitable.
In the past 5 years HLT always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of HLT (7.05%) is better than 79.85% of its industry peers.
With an excellent Return On Invested Capital value of 13.33%, HLT belongs to the best of the industry, outperforming 82.84% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HLT is in line with the industry average of 10.50%.
The last Return On Invested Capital (13.33%) for HLT is above the 3 year average (10.58%), which is a sign of increasing profitability.
| 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 has a Profit Margin of 10.70%. This is in the better half of the industry: HLT outperforms 74.63% of its industry peers.
HLT's Profit Margin has improved in the last couple of years.
HLT's Operating Margin of 21.04% is amongst the best of the industry. HLT outperforms 80.60% of its industry peers.
HLT's Operating Margin has improved in the last couple of years.
HLT has a Gross Margin of 37.56%. This is in the lower half of the industry: HLT underperforms 68.66% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HLT is creating some value.
HLT has less shares outstanding than it did 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
HLT has an Altman-Z score of 2.56. This is not the best score and indicates that HLT is in the grey zone with still only limited risk for bankruptcy at the moment.
HLT has a better Altman-Z score (2.56) than 71.64% 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.
HLT has a better Debt to FCF ratio (6.54) than 68.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.54 | ||
| Altman-Z | 2.56 |
ROIC/WACC1.56
WACC8.52%
2.3 Liquidity
A Current Ratio of 0.80 indicates that HLT may have some problems paying its short term obligations.
The Current ratio of HLT (0.80) is comparable to the rest of the industry.
HLT has a Quick 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.
Looking at the Quick ratio, with a value of 0.80, HLT is in line with its industry, outperforming 46.27% of the companies in the same industry.
| 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.
Measured over the past years, HLT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.22% on average per year.
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
The Earnings Per Share is expected to grow by 16.94% on average over the next years. This is quite good.
HLT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.71% yearly.
EPS Next Y14.1%
EPS Next 2Y13.92%
EPS Next 3Y14.64%
EPS Next 5Y16.94%
Revenue Next Year9.06%
Revenue Next 2Y8.52%
Revenue Next 3Y8.79%
Revenue Next 5Y8.71%
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 stable.
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 35.43, HLT can be considered very expensive at the moment.
HLT's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of HLT to the average of the S&P500 Index (27.73), we can say HLT is valued slightly more expensively.
The Price/Forward Earnings ratio is 30.90, which means the current valuation is very expensive for HLT.
HLT's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, HLT is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.43 | ||
| Fwd PE | 30.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HLT is valued a bit more expensive than the industry average as 74.63% of the companies are valued more cheaply.
HLT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.62 | ||
| EV/EBITDA | 28.32 |
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 14.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.51
PEG (5Y)2.06
EPS Next 2Y13.92%
EPS Next 3Y14.64%
5. Dividend
5.1 Amount
With a yearly dividend of 0.24%, HLT is not a good candidate for dividend investing.
HLT's Dividend Yield is a higher than the industry average which is at 2.82.
With a Dividend Yield of 0.24, HLT pays less dividend than the S&P500 average, which is at 2.24.
| 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.
The dividend of HLT decreased in the last 3 years.
Dividend Growth(5Y)0.49%
Div Incr Years1
Div Non Decr Years2
5.3 Sustainability
HLT pays out 12.83% of its income as dividend. This is a sustainable payout ratio.
HLT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP12.83%
EPS Next 2Y13.92%
EPS Next 3Y14.64%
HILTON WORLDWIDE HOLDINGS IN
NYSE:HLT (12/20/2024, 8:16:50 PM)
After market: 249.42 0 (0%)249.42
+3.67 (+1.49%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners97.51%
Inst Owner Change-0.12%
Ins Owners1.9%
Ins Owner Change0.03%
Market Cap60.80B
Analysts71.61
Price Target242.27 (-2.87%)
Short Float %1.91%
Short Ratio3.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.24% |
Dividend Growth(5Y)0.49%
DP12.83%
Div Incr Years1
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.35%
Min EPS beat(2)1.71%
Max EPS beat(2)2.99%
EPS beat(4)4
Avg EPS beat(4)4.44%
Min EPS beat(4)1.71%
Max EPS beat(4)6.88%
EPS beat(8)7
Avg EPS beat(8)7.12%
EPS beat(12)10
Avg EPS beat(12)7.39%
EPS beat(16)11
Avg EPS beat(16)-21.62%
Revenue beat(2)0
Avg Revenue beat(2)-1.31%
Min Revenue beat(2)-2.28%
Max Revenue beat(2)-0.34%
Revenue beat(4)1
Avg Revenue beat(4)-0.79%
Min Revenue beat(4)-2.28%
Max Revenue beat(4)0.59%
Revenue beat(8)5
Avg Revenue beat(8)0.51%
Revenue beat(12)6
Avg Revenue beat(12)0.39%
Revenue beat(16)7
Avg Revenue beat(16)-1.94%
PT rev (1m)5.92%
PT rev (3m)8.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.21%
EPS NY rev (1m)0%
EPS NY rev (3m)0.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.43%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.43 | ||
| Fwd PE | 30.9 | ||
| P/S | 5.53 | ||
| P/FCF | 35.62 | ||
| P/OCF | 32.07 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.32 |
EPS(TTM)7.04
EY2.82%
EPS(NY)8.07
Fwd EY3.24%
FCF(TTM)7
FCFY2.81%
OCF(TTM)7.78
OCFY3.12%
SpS45.12
BVpS-14.23
TBVpS-61.32
PEG (NY)2.51
PEG (5Y)2.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.05% | ||
| ROE | N/A | ||
| ROCE | 18.97% | ||
| ROIC | 13.33% | ||
| ROICexc | 15.31% | ||
| ROICexgc | N/A | ||
| OM | 21.04% | ||
| PM (TTM) | 10.7% | ||
| GM | 37.56% | ||
| FCFM | 15.52% |
ROA(3y)6.08%
ROA(5y)3.97%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)10.58%
ROIC(5y)N/A
ROICexc(3y)11.63%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)15.06%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5Y9.78%
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%
F-Score5
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.54 | ||
| Debt/EBITDA | 4.33 | ||
| Cap/Depr | 135% | ||
| Cap/Sales | 1.72% | ||
| Interest Coverage | 4.33 | ||
| Cash Conversion | 77.26% | ||
| Profit Quality | 145.03% | ||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 2.56 |
F-Score5
WACC8.52%
ROIC/WACC1.56
Cap/Depr(3y)91%
Cap/Depr(5y)72.01%
Cap/Sales(3y)1.65%
Cap/Sales(5y)1.85%
Profit Quality(3y)94.01%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)14.85%
EPS 3Y310.38%
EPS 5Y17.22%
EPS Q2Q%14.97%
EPS Next Y14.1%
EPS Next 2Y13.92%
EPS Next 3Y14.64%
EPS Next 5Y16.94%
Revenue 1Y (TTM)9.24%
Revenue growth 3Y33.45%
Revenue growth 5Y2.82%
Sales Q2Q%7.26%
Revenue Next Year9.06%
Revenue Next 2Y8.52%
Revenue Next 3Y8.79%
Revenue Next 5Y8.71%
EBIT growth 1Y-0.64%
EBIT growth 3YN/A
EBIT growth 5Y9.58%
EBIT Next Year32.98%
EBIT Next 3Y16.27%
EBIT Next 5Y13.71%
FCF growth 1Y38.33%
FCF growth 3Y40.24%
FCF growth 5Y9.16%
OCF growth 1Y42.56%
OCF growth 3Y40.08%
OCF growth 5Y9.17%