HILTON WORLDWIDE HOLDINGS IN (HLT) Stock Fundamental Analysis
NYSE:HLT - New York Stock Exchange, Inc. - 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. While HLT belongs to the best of the industry regarding profitability, 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.
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
HLT's Return On Assets of 7.05% is fine compared to the rest of the industry. HLT outperforms 79.39% of its industry peers.
With an excellent Return On Invested Capital value of 13.33%, HLT belongs to the best of the industry, outperforming 82.44% 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 10.54%.
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 has a Profit Margin of 10.70%. This is in the better half of the industry: HLT outperforms 74.05% of its industry peers.
HLT's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 21.04%, HLT belongs to the best of the industry, outperforming 80.15% of the companies in the same industry.
HLT's Operating Margin has improved in the last couple of years.
The Gross Margin of HLT (37.56%) is worse than 67.94% of its industry peers.
In the last couple of years the Gross Margin of HLT has remained more or less at the same level.
| 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
HLT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, HLT has less shares outstanding
Compared to 5 years ago, HLT has less shares outstanding
Compared to 1 year ago, HLT has a worse debt to assets ratio.
2.2 Solvency
HLT has an Altman-Z score of 2.57. 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's Altman-Z score of 2.57 is fine compared to the rest of the industry. HLT outperforms 71.76% of its industry peers.
HLT has a debt to FCF ratio of 6.54. This is a slightly negative value and a sign of low solvency as HLT would need 6.54 years to pay back of all of its debts.
HLT has a Debt to FCF ratio of 6.54. This is in the better half of the industry: HLT outperforms 68.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.54 | ||
| Altman-Z | 2.57 |
ROIC/WACC1.56
WACC8.55%
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 Current ratio (0.80) which 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 46.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.85% over the past year.
HLT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.22% yearly.
Looking at the last year, HLT shows a quite strong growth in Revenue. The Revenue has grown by 9.24% in the last year.
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
HLT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.94% yearly.
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 Y14.12%
EPS Next 2Y13.94%
EPS Next 3Y14.59%
EPS Next 5Y16.94%
Revenue Next Year9.07%
Revenue Next 2Y8.54%
Revenue Next 3Y8.7%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 35.16 indicates a quite expensive valuation of 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 28.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 30.65 indicates a quite expensive valuation of HLT.
HLT's Price/Forward Earnings ratio is in line with the industry average.
HLT is valuated rather expensively when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.16 | ||
| Fwd PE | 30.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HLT is valued a bit more expensive than 74.81% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as HLT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.35 | ||
| EV/EBITDA | 28.49 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HLT does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of HLT may justify a higher PE ratio.
HLT's earnings are expected to grow with 14.59% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.49
PEG (5Y)2.04
EPS Next 2Y13.94%
EPS Next 3Y14.59%
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 2.98.
With a Dividend Yield of 0.24, HLT pays less dividend than the S&P500 average, which is at 2.28.
| 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 in the last 3 years.
Dividend Growth(5Y)0.49%
Div Incr Years1
Div Non Decr Years2
5.3 Sustainability
12.83% of the earnings are spent on dividend by HLT. This is a low number and sustainable payout ratio.
The dividend of HLT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP12.83%
EPS Next 2Y13.94%
EPS Next 3Y14.59%
HILTON WORLDWIDE HOLDINGS IN
NYSE:HLT (1/21/2025, 8:05:42 PM)
Premarket: 247.5 0 (0%)247.5
+0.89 (+0.36%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners97.51%
Inst Owner Change-0.27%
Ins Owners1.9%
Ins Owner Change0.03%
Market Cap60.34B
Analysts71.61
Price Target246.04 (-0.59%)
Short Float %1.75%
Short Ratio3.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.24% |
Yearly Dividend0.61
Dividend Growth(5Y)0.49%
DP12.83%
Div Incr Years1
Div Non Decr Years2
Ex-DateN/A
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)1.56%
PT rev (3m)10.39%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.21%
EPS NY rev (1m)0%
EPS NY rev (3m)0.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.43%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.16 | ||
| Fwd PE | 30.65 | ||
| P/S | 5.49 | ||
| P/FCF | 35.35 | ||
| P/OCF | 31.82 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.49 |
EPS(TTM)7.04
EY2.84%
EPS(NY)8.07
Fwd EY3.26%
FCF(TTM)7
FCFY2.83%
OCF(TTM)7.78
OCFY3.14%
SpS45.12
BVpS-14.23
TBVpS-61.32
PEG (NY)2.49
PEG (5Y)2.04
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 | 2.57 |
F-Score5
WACC8.55%
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 Y14.12%
EPS Next 2Y13.94%
EPS Next 3Y14.59%
EPS Next 5Y16.94%
Revenue 1Y (TTM)9.24%
Revenue growth 3Y33.45%
Revenue growth 5Y2.82%
Sales Q2Q%7.26%
Revenue Next Year9.07%
Revenue Next 2Y8.54%
Revenue Next 3Y8.7%
Revenue Next 5Y8.71%
EBIT growth 1Y-0.64%
EBIT growth 3YN/A
EBIT growth 5Y9.58%
EBIT Next Year33.02%
EBIT Next 3Y16.26%
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%