HILTON WORLDWIDE HOLDINGS IN (HLT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HLT - US43300A2033 - Common Stock
285.03 USD
-0.74 (-0.26%)
285.03 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to HLT. HLT was compared to 132 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.
In the past year HLT had a positive cash flow from operations.
HLT had positive earnings in 4 of the past 5 years.
Each year in the past 5 years HLT had a positive operating cash flow.
1.2 Ratios
HLT has a better Return On Assets (10.01%) than 81.06% of its industry peers.
HLT has a better Return On Invested Capital (16.67%) than 85.61% of its industry peers.
HLT had an Average Return On Invested Capital over the past 3 years of 14.57%. This is above the industry average of 10.42%.
The 3 year average ROIC (14.57%) for HLT is below the current ROIC(16.67%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.01% | ||
| ROE | N/A | ||
| ROIC | 16.67% |
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
The Profit Margin of HLT (14.19%) is better than 83.33% of its industry peers.
HLT's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 21.99%, HLT belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
In the last couple of years the Operating Margin of HLT has grown nicely.
With a Gross Margin value of 37.14%, HLT is not doing good in the industry: 68.18% of the companies in the same industry are doing better.
HLT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.99% | ||
| PM (TTM) | 14.19% | ||
| GM | 37.14% |
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
HLT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
HLT has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, HLT has less shares outstanding
The debt/assets ratio for HLT is higher compared to a year ago.
2.2 Solvency
HLT has an Altman-Z score of 2.82. 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 (2.82) than 73.48% of its industry peers.
HLT has a debt to FCF ratio of 5.07. This is a neutral value as HLT would need 5.07 years to pay back of all of its debts.
The Debt to FCF ratio of HLT (5.07) is better than 74.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.07 | ||
| Altman-Z | 2.82 |
ROIC/WACC2.06
WACC8.08%
2.3 Liquidity
A Current Ratio of 0.66 indicates that HLT may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.66, HLT is doing worse than 66.67% of the companies in the same industry.
HLT has a Quick Ratio of 0.66. 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's Quick ratio of 0.66 is on the low side compared to the rest of the industry. HLT is outperformed by 62.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
HLT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.65%, which is quite good.
The Earnings Per Share has been growing by 12.74% on average over the past years. This is quite good.
The Revenue has been growing slightly by 6.68% in the past year.
Measured over the past years, HLT shows a small growth in Revenue. The Revenue has been growing by 3.40% on average per year.
EPS 1Y (TTM)10.65%
EPS 3Y50.71%
EPS 5Y12.74%
EPS Q2Q%9.9%
Revenue 1Y (TTM)6.68%
Revenue growth 3Y24.52%
Revenue growth 5Y3.4%
Sales Q2Q%8.82%
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 16.55% yearly.
The Revenue is expected to grow by 7.91% on average over the next years.
EPS Next Y14.16%
EPS Next 2Y13.8%
EPS Next 3Y14.24%
EPS Next 5Y16.55%
Revenue Next Year6.82%
Revenue Next 2Y7.32%
Revenue Next 3Y7.76%
Revenue Next 5Y7.91%
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.
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
With a Price/Earnings ratio of 36.59, HLT can be considered very expensive at the moment.
HLT's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.31. HLT is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 30.91, which means the current valuation is very expensive for HLT.
HLT's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.59, HLT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.59 | ||
| Fwd PE | 30.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HLT is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, HLT is valued a bit cheaper than 60.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.2 | ||
| EV/EBITDA | 28.3 |
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 14.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.58
PEG (5Y)2.87
EPS Next 2Y13.8%
EPS Next 3Y14.24%
5. Dividend
5.1 Amount
HLT has a yearly dividend return of 0.21%, which is pretty low.
HLT's Dividend Yield is comparable with the industry average which is at 6.38.
Compared to an average S&P500 Dividend Yield of 2.40, HLT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.21% |
5.2 History
The dividend of HLT has a limited annual growth rate of 0.21%.
HLT has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of HLT decreased in the last 3 years.
Dividend Growth(5Y)0.21%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
8.71% 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.
DP8.71%
EPS Next 2Y13.8%
EPS Next 3Y14.24%
285.03
-0.74 (-0.26%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners101.42%
Inst Owner Change-1.34%
Ins Owners2.05%
Ins Owner Change0%
Market Cap66.25B
Revenue(TTM)11.73B
Net Income(TTM)1.67B
Analysts72.26
Price Target285.92 (0.31%)
Short Float %2.99%
Short Ratio3.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.21% |
Yearly Dividend0.61
Dividend Growth(5Y)0.21%
DP8.71%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.16%
Min EPS beat(2)1.57%
Max EPS beat(2)6.76%
EPS beat(4)4
Avg EPS beat(4)4.41%
Min EPS beat(4)1.57%
Max EPS beat(4)6.76%
EPS beat(8)8
Avg EPS beat(8)4.42%
EPS beat(12)11
Avg EPS beat(12)6.22%
EPS beat(16)14
Avg EPS beat(16)6.65%
Revenue beat(2)2
Avg Revenue beat(2)1.38%
Min Revenue beat(2)0.13%
Max Revenue beat(2)2.63%
Revenue beat(4)2
Avg Revenue beat(4)0.07%
Min Revenue beat(4)-1.86%
Max Revenue beat(4)2.63%
Revenue beat(8)3
Avg Revenue beat(8)-0.36%
Revenue beat(12)7
Avg Revenue beat(12)0.36%
Revenue beat(16)8
Avg Revenue beat(16)0.31%
PT rev (1m)2.68%
PT rev (3m)3.14%
EPS NQ rev (1m)1.12%
EPS NQ rev (3m)0.78%
EPS NY rev (1m)0.59%
EPS NY rev (3m)0.89%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)-0.17%
Revenue NY rev (1m)0.78%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.59 | ||
| Fwd PE | 30.91 | ||
| P/S | 5.71 | ||
| P/FCF | 29.2 | ||
| P/OCF | 26.73 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.3 |
EPS(TTM)7.79
EY2.73%
EPS(NY)9.22
Fwd EY3.24%
FCF(TTM)9.76
FCFY3.43%
OCF(TTM)10.66
OCFY3.74%
SpS49.9
BVpS-20.97
TBVpS-70.68
PEG (NY)2.58
PEG (5Y)2.87
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.01% | ||
| ROE | N/A | ||
| ROCE | 21.6% | ||
| ROIC | 16.67% | ||
| ROICexc | 18.29% | ||
| ROICexgc | N/A | ||
| OM | 21.99% | ||
| PM (TTM) | 14.19% | ||
| GM | 37.14% | ||
| FCFM | 19.57% |
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
ROICexgc growth 3YN/A
ROICexgc 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 Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.07 | ||
| Debt/EBITDA | 4.22 | ||
| Cap/Depr | 125.44% | ||
| Cap/Sales | 1.81% | ||
| Interest Coverage | 4.06 | ||
| Cash Conversion | 91.23% | ||
| Profit Quality | 137.9% | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | 2.82 |
F-Score6
WACC8.08%
ROIC/WACC2.06
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)10.65%
EPS 3Y50.71%
EPS 5Y12.74%
EPS Q2Q%9.9%
EPS Next Y14.16%
EPS Next 2Y13.8%
EPS Next 3Y14.24%
EPS Next 5Y16.55%
Revenue 1Y (TTM)6.68%
Revenue growth 3Y24.52%
Revenue growth 5Y3.4%
Sales Q2Q%8.82%
Revenue Next Year6.82%
Revenue Next 2Y7.32%
Revenue Next 3Y7.76%
Revenue Next 5Y7.91%
EBIT growth 1Y11.5%
EBIT growth 3Y32.49%
EBIT growth 5Y8.46%
EBIT Next Year32.99%
EBIT Next 3Y16.05%
EBIT Next 5Y13.85%
FCF growth 1Y31.5%
FCF growth 3Y292.57%
FCF growth 5Y9.01%
OCF growth 1Y27.76%
OCF growth 3Y164.33%
OCF growth 5Y7.78%
HILTON WORLDWIDE HOLDINGS IN / HLT FAQ
What is the fundamental rating for HLT stock?
ChartMill assigns a fundamental rating of 5 / 10 to HLT.
What is the valuation status of HILTON WORLDWIDE HOLDINGS IN (HLT) stock?
ChartMill assigns a valuation rating of 3 / 10 to HILTON WORLDWIDE HOLDINGS IN (HLT). This can be considered as Overvalued.
Can you provide the profitability details for HILTON WORLDWIDE HOLDINGS IN?
HILTON WORLDWIDE HOLDINGS IN (HLT) has a profitability rating of 7 / 10.
What is the earnings growth outlook for HILTON WORLDWIDE HOLDINGS IN?
The Earnings per Share (EPS) of HILTON WORLDWIDE HOLDINGS IN (HLT) is expected to grow by 14.16% in the next year.
How sustainable is the dividend of HILTON WORLDWIDE HOLDINGS IN (HLT) stock?
The dividend rating of HILTON WORLDWIDE HOLDINGS IN (HLT) is 4 / 10 and the dividend payout ratio is 8.71%.