HILTON WORLDWIDE HOLDINGS IN (HLT) Stock Fundamental Analysis
USA - NYSE:HLT - US43300A2033 - Common Stock
266.41 USD
-7.47 (-2.73%)
266.41 USD
0 (0%)
Overall HLT gets a fundamental rating of 5 out of 10. We evaluated HLT against 133 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
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
With an excellent Return On Assets value of 9.99%, HLT belongs to the best of the industry, outperforming 84.96% of the companies in the same industry.
HLT has a better Return On Invested Capital (16.55%) than 84.96% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HLT is in line with the industry average of 15.68%.
The last Return On Invested Capital (16.55%) for HLT is above the 3 year average (14.57%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.99% | ||
| ROE | N/A | ||
| ROIC | 16.55% |
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
With an excellent Profit Margin value of 13.84%, HLT belongs to the best of the industry, outperforming 83.46% of the companies in the same industry.
HLT's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 21.15%, HLT belongs to the top of the industry, outperforming 80.45% of the companies in the same industry.
HLT's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 36.73%, HLT is not doing good in the industry: 69.92% 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 | 21.15% | ||
| PM (TTM) | 13.84% | ||
| GM | 36.73% |
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 well above the Cost of Capital (WACC), so HLT is creating 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.
The debt/assets ratio for HLT is higher compared to a year ago.
2.2 Solvency
HLT has an Altman-Z score of 2.76. 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 Altman-Z score of 2.76. This is in the better half of the industry: HLT outperforms 70.68% of its industry peers.
HLT has a debt to FCF ratio of 5.10. This is a neutral value as HLT would need 5.10 years to pay back of all of its debts.
HLT's Debt to FCF ratio of 5.10 is fine compared to the rest of the industry. HLT outperforms 75.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.1 | ||
| Altman-Z | 2.76 |
ROIC/WACC1.89
WACC8.74%
2.3 Liquidity
HLT has a Current Ratio of 0.54. This is a bad value and indicates that HLT is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.54, HLT is not doing good in the industry: 72.18% of the companies in the same industry are doing better.
HLT has a Quick Ratio of 0.54. 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 Quick ratio (0.54) than 69.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
HLT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.93%, 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 12.74% yearly.
HLT shows a small growth in Revenue. In the last year, the Revenue has grown by 6.26%.
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)11.93%
EPS 3Y50.71%
EPS 5Y12.74%
EPS Q2Q%15.18%
Revenue 1Y (TTM)6.26%
Revenue growth 3Y24.52%
Revenue growth 5Y3.4%
Sales Q2Q%6.3%
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 16.99% on average per year.
The Revenue is expected to grow by 8.46% on average over the next years. This is quite good.
EPS Next Y13.16%
EPS Next 2Y13.24%
EPS Next 3Y14.09%
EPS Next 5Y16.99%
Revenue Next Year6.13%
Revenue Next 2Y7.03%
Revenue Next 3Y7.64%
Revenue Next 5Y8.46%
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 35.05, HLT can be considered very expensive at the moment.
HLT's Price/Earnings ratio is in line with the industry average.
HLT is valuated rather expensively when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
HLT is valuated quite expensively with a Price/Forward Earnings ratio of 29.18.
The rest of the industry has a similar Price/Forward Earnings ratio as HLT.
The average S&P500 Price/Forward Earnings ratio is at 22.70. HLT is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.05 | ||
| Fwd PE | 29.18 |
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 75.94% of the companies in the same industry.
HLT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HLT is cheaper than 62.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.18 | ||
| EV/EBITDA | 28.97 |
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.
A more expensive valuation may be justified as HLT's earnings are expected to grow with 14.09% in the coming years.
PEG (NY)2.66
PEG (5Y)2.75
EPS Next 2Y13.24%
EPS Next 3Y14.09%
5. Dividend
5.1 Amount
With a yearly dividend of 0.22%, HLT is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.93, HLT has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, HLT's dividend is way lower than the S&P500 average.
| 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 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
9.25% 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.
DP9.25%
EPS Next 2Y13.24%
EPS Next 3Y14.09%
266.41
-7.47 (-2.73%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners99.48%
Inst Owner Change0.57%
Ins Owners2.04%
Ins Owner Change0.05%
Market Cap62.66B
Analysts72.26
Price Target277.21 (4.05%)
Short Float %3.55%
Short Ratio5.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.22% |
Yearly Dividend0.61
Dividend Growth(5Y)0.21%
DP9.25%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.22%
Min EPS beat(2)5.68%
Max EPS beat(2)6.76%
EPS beat(4)4
Avg EPS beat(4)4.77%
Min EPS beat(4)2.99%
Max EPS beat(4)6.76%
EPS beat(8)7
Avg EPS beat(8)4.11%
EPS beat(12)11
Avg EPS beat(12)6.45%
EPS beat(16)13
Avg EPS beat(16)6%
Revenue beat(2)1
Avg Revenue beat(2)-0.86%
Min Revenue beat(2)-1.86%
Max Revenue beat(2)0.13%
Revenue beat(4)1
Avg Revenue beat(4)-1.16%
Min Revenue beat(4)-2.28%
Max Revenue beat(4)0.13%
Revenue beat(8)3
Avg Revenue beat(8)-0.64%
Revenue beat(12)6
Avg Revenue beat(12)-0.2%
Revenue beat(16)8
Avg Revenue beat(16)0.47%
PT rev (1m)0%
PT rev (3m)8.47%
EPS NQ rev (1m)0.36%
EPS NQ rev (3m)-3.66%
EPS NY rev (1m)0.98%
EPS NY rev (3m)1.08%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-1.61%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.05 | ||
| Fwd PE | 29.18 | ||
| P/S | 5.46 | ||
| P/FCF | 29.18 | ||
| P/OCF | 26.59 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.97 |
EPS(TTM)7.6
EY2.85%
EPS(NY)9.13
Fwd EY3.43%
FCF(TTM)9.13
FCFY3.43%
OCF(TTM)10.02
OCFY3.76%
SpS48.82
BVpS-19.52
TBVpS-68.69
PEG (NY)2.66
PEG (5Y)2.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.99% | ||
| ROE | N/A | ||
| ROCE | 21.45% | ||
| ROIC | 16.55% | ||
| ROICexc | 17.11% | ||
| ROICexgc | N/A | ||
| OM | 21.15% | ||
| PM (TTM) | 13.84% | ||
| GM | 36.73% | ||
| FCFM | 18.7% |
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 Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.1 | ||
| Debt/EBITDA | 4.22 | ||
| Cap/Depr | 130.63% | ||
| Cap/Sales | 1.82% | ||
| Interest Coverage | 3.98 | ||
| Cash Conversion | 91.04% | ||
| Profit Quality | 135.12% | ||
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 2.76 |
F-Score6
WACC8.74%
ROIC/WACC1.89
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)11.93%
EPS 3Y50.71%
EPS 5Y12.74%
EPS Q2Q%15.18%
EPS Next Y13.16%
EPS Next 2Y13.24%
EPS Next 3Y14.09%
EPS Next 5Y16.99%
Revenue 1Y (TTM)6.26%
Revenue growth 3Y24.52%
Revenue growth 5Y3.4%
Sales Q2Q%6.3%
Revenue Next Year6.13%
Revenue Next 2Y7.03%
Revenue Next 3Y7.64%
Revenue Next 5Y8.46%
EBIT growth 1Y3.67%
EBIT growth 3Y32.49%
EBIT growth 5Y8.46%
EBIT Next Year32.95%
EBIT Next 3Y15.84%
EBIT Next 5Y14.15%
FCF growth 1Y21.64%
FCF growth 3Y292.57%
FCF growth 5Y9.01%
OCF growth 1Y21.01%
OCF growth 3Y164.33%
OCF growth 5Y7.78%