HILTON WORLDWIDE HOLDINGS IN (HLT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HLT - US43300A2033 - Common Stock
272.25 USD
-1.2 (-0.44%)
275.01 USD
+2.76 (+1.01%)
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. 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.
HLT had a positive operating cash flow in the past year.
Of the past 5 years HLT 4 years were profitable.
Each year in the past 5 years HLT had a positive operating cash flow.
1.2 Ratios
HLT's Return On Assets of 10.01% is amongst the best of the industry. HLT outperforms 81.06% of its industry peers.
With an excellent Return On Invested Capital value of 16.67%, HLT belongs to the best of the industry, outperforming 85.61% of the companies in the same industry.
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.
The Operating Margin of HLT (21.99%) is better than 81.82% 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.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HLT is creating value.
The number of shares outstanding for HLT has been reduced compared to 1 year ago.
The number of shares outstanding for HLT has been reduced compared to 5 years ago.
HLT has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.72 indicates that HLT is not a great score, but indicates only limited risk for bankruptcy at the moment.
HLT has a Altman-Z score of 2.72. This is in the better half of the industry: HLT outperforms 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 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.07 | ||
| Altman-Z | 2.72 |
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.
HLT's Current ratio of 0.66 is on the low side compared to the rest of the industry. HLT is outperformed by 66.67% of its industry peers.
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.
The Quick ratio of HLT (0.66) is worse than 62.12% of its industry peers.
| 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.
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.
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
Based on estimates for the next years, HLT will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.55% on average per year.
HLT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.91% yearly.
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
The Price/Earnings ratio is 34.95, which means the current valuation is very expensive for HLT.
HLT's Price/Earnings is on the same level as the industry average.
HLT is valuated rather expensively when we compare the Price/Earnings ratio to 26.46, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 29.52, HLT can be considered very expensive at the moment.
HLT's Price/Forward Earnings is on the same level as the industry average.
HLT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 36.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.95 | ||
| Fwd PE | 29.52 |
4.2 Price Multiples
75.00% of the companies in the same industry are cheaper than HLT, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HLT indicates a somewhat cheap valuation: HLT is cheaper than 63.64% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.56 | ||
| EV/EBITDA | 26.97 |
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.
A more expensive valuation may be justified as HLT's earnings are expected to grow with 14.24% in the coming years.
PEG (NY)2.47
PEG (5Y)2.74
EPS Next 2Y13.8%
EPS Next 3Y14.24%
5. Dividend
5.1 Amount
HLT has a yearly dividend return of 0.22%, which is pretty low.
Compared to an average industry Dividend Yield of 7.72, HLT has a dividend in line with its industry peers.
With a Dividend Yield of 0.22, HLT pays less dividend than the S&P500 average, which is at 2.32.
| 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.
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
HLT pays out 8.71% 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.
DP8.71%
EPS Next 2Y13.8%
EPS Next 3Y14.24%
272.25
-1.2 (-0.44%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners100.21%
Inst Owner Change-1.34%
Ins Owners2.07%
Ins Owner Change0%
Market Cap63.28B
Revenue(TTM)11.73B
Net Income(TTM)1.67B
Analysts72.9
Price Target287.99 (5.78%)
Short Float %2.97%
Short Ratio3.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.22% |
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)0.56%
PT rev (3m)3.14%
EPS NQ rev (1m)0.73%
EPS NQ rev (3m)1.05%
EPS NY rev (1m)0.59%
EPS NY rev (3m)0.89%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)-0.03%
Revenue NY rev (1m)0.78%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.95 | ||
| Fwd PE | 29.52 | ||
| P/S | 5.39 | ||
| P/FCF | 27.56 | ||
| P/OCF | 25.23 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.97 |
EPS(TTM)7.79
EY2.86%
EPS(NY)9.22
Fwd EY3.39%
FCF(TTM)9.88
FCFY3.63%
OCF(TTM)10.79
OCFY3.96%
SpS50.49
BVpS-21.22
TBVpS-71.52
PEG (NY)2.47
PEG (5Y)2.74
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 | 2.72 |
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 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%.