H WORLD GROUP LTD-ADR (HTHT) Stock Fundamental Analysis
NASDAQ:HTHT - Nasdaq - US44332N1063 - ADR - Currency: USD
Taking everything into account, HTHT scores 6 out of 10 in our fundamental rating. HTHT was compared to 134 industry peers in the Hotels, Restaurants & Leisure industry. While HTHT belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. HTHT may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year HTHT was profitable.
In the past year HTHT had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: HTHT reported negative net income in multiple years.
In the past 5 years HTHT always reported a positive cash flow from operatings.
1.2 Ratios
HTHT's Return On Assets of 5.33% is fine compared to the rest of the industry. HTHT outperforms 71.64% of its industry peers.
With an excellent Return On Equity value of 31.28%, HTHT belongs to the best of the industry, outperforming 85.07% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.08%, HTHT is in the better half of the industry, outperforming 65.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.33% | ||
| ROE | 31.28% | ||
| ROIC | 8.08% |
ROA(3y)2.78%
ROA(5y)0.85%
ROE(3y)12.61%
ROE(5y)2.85%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 13.67%, HTHT belongs to the best of the industry, outperforming 85.07% of the companies in the same industry.
In the last couple of years the Profit Margin of HTHT has declined.
With an excellent Operating Margin value of 21.99%, HTHT belongs to the best of the industry, outperforming 84.33% of the companies in the same industry.
HTHT's Operating Margin has improved in the last couple of years.
HTHT has a Gross Margin of 66.77%. This is amongst the best in the industry. HTHT outperforms 80.60% of its industry peers.
In the last couple of years the Gross Margin of HTHT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.99% | ||
| PM (TTM) | 13.67% | ||
| GM | 66.77% |
OM growth 3Y156.97%
OM growth 5Y2.97%
PM growth 3YN/A
PM growth 5Y-4.16%
GM growth 3Y5.3%
GM growth 5Y-0.14%
2. Health
2.1 Basic Checks
HTHT 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, HTHT has less shares outstanding
HTHT has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, HTHT has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.52, we must say that HTHT is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of HTHT (1.52) is comparable to the rest of the industry.
The Debt to FCF ratio of HTHT is 1.30, which is an excellent value as it means it would take HTHT, only 1.30 years of fcf income to pay off all of its debts.
HTHT has a better Debt to FCF ratio (1.30) than 88.06% of its industry peers.
A Debt/Equity ratio of 0.70 indicates that HTHT is somewhat dependend on debt financing.
HTHT has a better Debt to Equity ratio (0.70) than 66.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 1.3 | ||
| Altman-Z | 1.52 |
ROIC/WACC1.26
WACC6.43%
2.3 Liquidity
A Current Ratio of 0.88 indicates that HTHT may have some problems paying its short term obligations.
HTHT's Current ratio of 0.88 is in line compared to the rest of the industry. HTHT outperforms 49.25% of its industry peers.
HTHT has a Quick Ratio of 0.88. This is a bad value and indicates that HTHT is not financially healthy enough and could expect problems in meeting its short term obligations.
HTHT has a Quick ratio (0.88) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
HTHT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.34%.
HTHT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.62% yearly.
HTHT shows a small growth in Revenue. In the last year, the Revenue has grown by 5.86%.
HTHT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.33% yearly.
EPS 1Y (TTM)-10.34%
EPS 3YN/A
EPS 5Y9.62%
EPS Q2Q%33.33%
Revenue 1Y (TTM)5.86%
Revenue growth 3Y23.17%
Revenue growth 5Y16.33%
Sales Q2Q%2.22%
3.2 Future
Based on estimates for the next years, HTHT will show a very strong growth in Earnings Per Share. The EPS will grow by 21.58% on average per year.
The Revenue is expected to grow by 7.71% on average over the next years.
EPS Next Y43.67%
EPS Next 2Y27.81%
EPS Next 3Y21.58%
EPS Next 5YN/A
Revenue Next Year6.61%
Revenue Next 2Y7.41%
Revenue Next 3Y7.71%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.72, HTHT is valued on the expensive side.
70.15% of the companies in the same industry are more expensive than HTHT, based on the Price/Earnings ratio.
HTHT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.45.
Based on the Price/Forward Earnings ratio of 14.27, the valuation of HTHT can be described as correct.
HTHT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HTHT is cheaper than 76.87% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. HTHT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.72 | ||
| Fwd PE | 14.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HTHT is valued a bit cheaper than the industry average as 67.91% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, HTHT is valued cheaply inside the industry as 90.30% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.5 | ||
| EV/EBITDA | 10.29 |
4.3 Compensation for Growth
HTHT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of HTHT may justify a higher PE ratio.
A more expensive valuation may be justified as HTHT's earnings are expected to grow with 21.58% in the coming years.
PEG (NY)0.5
PEG (5Y)2.26
EPS Next 2Y27.81%
EPS Next 3Y21.58%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.79%, HTHT is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.60, HTHT pays a better dividend. On top of this HTHT pays more dividend than 93.28% of the companies listed in the same industry.
HTHT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.79% |
5.2 History
The dividend of HTHT is nicely growing with an annual growth rate of 37.96%!
HTHT has been paying a dividend for over 5 years, so it has already some track record.
The dividend of HTHT decreased recently.
Dividend Growth(5Y)37.96%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
42.31% of the earnings are spent on dividend by HTHT. This is a bit on the high side, but may be sustainable.
HTHT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP42.31%
EPS Next 2Y27.81%
EPS Next 3Y21.58%
33.23
-0.08 (-0.24%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners23.19%
Inst Owner Change-47.4%
Ins Owners29.47%
Ins Owner ChangeN/A
Market Cap10.20B
Analysts86
Price Target35.11 (5.66%)
Short Float %7.82%
Short Ratio9.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.79% |
Yearly Dividend1.64
Dividend Growth(5Y)37.96%
DP42.31%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-43.4%
Min EPS beat(2)-88.47%
Max EPS beat(2)1.67%
EPS beat(4)1
Avg EPS beat(4)-26.15%
Min EPS beat(4)-88.47%
Max EPS beat(4)1.67%
EPS beat(8)4
Avg EPS beat(8)2.49%
EPS beat(12)5
Avg EPS beat(12)-22.39%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.08%
Min Revenue beat(2)-3.23%
Max Revenue beat(2)3.38%
Revenue beat(4)1
Avg Revenue beat(4)-1.2%
Min Revenue beat(4)-3.95%
Max Revenue beat(4)3.38%
Revenue beat(8)3
Avg Revenue beat(8)-0.03%
Revenue beat(12)3
Avg Revenue beat(12)-1.37%
Revenue beat(16)4
Avg Revenue beat(16)-1.36%
PT rev (1m)-7.51%
PT rev (3m)-9.23%
EPS NQ rev (1m)-2.44%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)5.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.72 | ||
| Fwd PE | 14.27 | ||
| P/S | 3.04 | ||
| P/FCF | 11.5 | ||
| P/OCF | 10.13 | ||
| P/B | 6.96 | ||
| P/tB | 493.63 | ||
| EV/EBITDA | 10.29 |
EPS(TTM)1.53
EY4.6%
EPS(NY)2.33
Fwd EY7.01%
FCF(TTM)2.89
FCFY8.7%
OCF(TTM)3.28
OCFY9.87%
SpS10.92
BVpS4.77
TBVpS0.07
PEG (NY)0.5
PEG (5Y)2.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.33% | ||
| ROE | 31.28% | ||
| ROCE | 11.3% | ||
| ROIC | 8.08% | ||
| ROICexc | 10.53% | ||
| ROICexgc | 14.8% | ||
| OM | 21.99% | ||
| PM (TTM) | 13.67% | ||
| GM | 66.77% | ||
| FCFM | 26.47% |
ROA(3y)2.78%
ROA(5y)0.85%
ROE(3y)12.61%
ROE(5y)2.85%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y224.7%
ROICexcg growth 5Y20.59%
ROICexc growth 3Y224.02%
ROICexc growth 5Y16.7%
OM growth 3Y156.97%
OM growth 5Y2.97%
PM growth 3YN/A
PM growth 5Y-4.16%
GM growth 3Y5.3%
GM growth 5Y-0.14%
F-Score6
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 1.3 | ||
| Debt/EBITDA | 1.12 | ||
| Cap/Depr | 65.62% | ||
| Cap/Sales | 3.57% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 109.52% | ||
| Profit Quality | 193.57% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 1.52 |
F-Score6
WACC6.43%
ROIC/WACC1.26
Cap/Depr(3y)67.82%
Cap/Depr(5y)89.02%
Cap/Sales(3y)5.16%
Cap/Sales(5y)9.19%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-10.34%
EPS 3YN/A
EPS 5Y9.62%
EPS Q2Q%33.33%
EPS Next Y43.67%
EPS Next 2Y27.81%
EPS Next 3Y21.58%
EPS Next 5YN/A
Revenue 1Y (TTM)5.86%
Revenue growth 3Y23.17%
Revenue growth 5Y16.33%
Sales Q2Q%2.22%
Revenue Next Year6.61%
Revenue Next 2Y7.41%
Revenue Next 3Y7.71%
Revenue Next 5YN/A
EBIT growth 1Y4.39%
EBIT growth 3Y216.51%
EBIT growth 5Y19.79%
EBIT Next Year41.03%
EBIT Next 3Y18.48%
EBIT Next 5YN/A
FCF growth 1Y82.67%
FCF growth 3YN/A
FCF growth 5Y30.32%
OCF growth 1Y66.6%
OCF growth 3Y77.6%
OCF growth 5Y17.95%