HILTON WORLDWIDE HOLDINGS IN (HLT) Stock Fundamental Analysis
USA - NYSE:HLT - US43300A2033 - Common Stock
273.61 USD
-0.93 (-0.34%)
273.62 USD
0.01 (0%)
Taking everything into account, HLT scores 5 out of 10 in our fundamental rating. HLT was compared to 132 industry peers in the Hotels, Restaurants & Leisure industry. While HLT has a great profitability rating, there are quite some concerns on its financial health. While showing a medium growth rate, HLT is valued expensive at the moment.
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.
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 Return On Assets of 10.01%. This is amongst the best in the industry. HLT outperforms 83.33% of its industry peers.
HLT's Return On Invested Capital of 16.67% is amongst the best of the industry. HLT outperforms 84.85% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HLT is above the industry average of 10.82%.
The last Return On Invested Capital (16.67%) for HLT is above the 3 year average (14.57%), which is a sign of increasing profitability.
| 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
HLT has a better Profit Margin (14.19%) than 85.61% of its industry peers.
In the last couple of years the Profit Margin of HLT has grown nicely.
The Operating Margin of HLT (21.99%) is better than 81.06% of its industry peers.
In the last couple of years the Operating Margin of HLT has grown nicely.
Looking at the Gross Margin, with a value of 37.14%, HLT is doing worse than 68.18% of the companies in the same industry.
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 | 21.99% | ||
| 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.
The number of shares outstanding for HLT has been reduced compared to 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 2.75. 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.
With a decent Altman-Z score value of 2.75, HLT is doing good in the industry, outperforming 73.48% of the companies in the same industry.
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 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.07 | ||
| Altman-Z | 2.75 |
ROIC/WACC2.05
WACC8.15%
2.3 Liquidity
A Current Ratio of 0.66 indicates that HLT may have some problems paying its short term obligations.
With a Current ratio value of 0.66, HLT is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
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.
Looking at the Quick ratio, with a value of 0.66, HLT is doing worse than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.65% 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 12.74% yearly.
HLT shows a small growth in Revenue. In the last year, the Revenue has grown by 6.68%.
The Revenue has been growing slightly by 3.40% on average over the past years.
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
The Earnings Per Share is expected to grow by 16.55% on average over the next years. This is quite good.
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
The EPS growth rate is accelerating: in the next years the growth will be better 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
With a Price/Earnings ratio of 35.12, HLT can be considered very expensive at the moment.
HLT's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.35, HLT is valued a bit more expensive.
The Price/Forward Earnings ratio is 29.67, which means the current valuation is very expensive for HLT.
HLT's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 33.72. HLT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.12 | ||
| Fwd PE | 29.67 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HLT is valued a bit more expensive than 75.76% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HLT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.03 | ||
| EV/EBITDA | 27.34 |
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.
HLT has a very decent profitability rating, which 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)2.48
PEG (5Y)2.76
EPS Next 2Y13.8%
EPS Next 3Y14.24%
5. Dividend
5.1 Amount
With a yearly dividend of 0.23%, HLT is not a good candidate for dividend investing.
HLT's Dividend Yield is comparable with the industry average which is at 4.34.
With a Dividend Yield of 0.23, HLT pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.23% |
5.2 History
The dividend of HLT has a limited annual growth rate of 0.21%.
HLT has paid a dividend for at least 10 years, which is a reliable track record.
HLT has decreased its dividend 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%
273.61
-0.93 (-0.34%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners101.42%
Inst Owner Change-0.03%
Ins Owners2.05%
Ins Owner Change0.03%
Market Cap64.35B
Revenue(TTM)11.73B
Net Income(TTM)1.67B
Analysts72.26
Price Target284.32 (3.91%)
Short Float %3.07%
Short Ratio4.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.23% |
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)2.1%
PT rev (3m)2.56%
EPS NQ rev (1m)0.53%
EPS NQ rev (3m)0.87%
EPS NY rev (1m)0.75%
EPS NY rev (3m)1.87%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)-0.17%
Revenue NY rev (1m)0.64%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.12 | ||
| Fwd PE | 29.67 | ||
| P/S | 5.48 | ||
| P/FCF | 28.03 | ||
| P/OCF | 25.66 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 27.34 |
EPS(TTM)7.79
EY2.85%
EPS(NY)9.22
Fwd EY3.37%
FCF(TTM)9.76
FCFY3.57%
OCF(TTM)10.66
OCFY3.9%
SpS49.9
BVpS-20.97
TBVpS-70.68
PEG (NY)2.48
PEG (5Y)2.76
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 | 2.75 |
F-Score6
WACC8.15%
ROIC/WACC2.05
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 2 / 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%.