H WORLD GROUP LTD-ADR (HTHT) Stock Fundamental Analysis
NASDAQ:HTHT - Nasdaq - US44332N1063 - ADR - Currency: USD
HTHT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 132 industry peers in the Hotels, Restaurants & Leisure industry. While HTHT has a great profitability rating, there are some minor concerns on its financial health. HTHT is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
HTHT had positive earnings in the past year.
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.
Each year in the past 5 years HTHT had a positive operating cash flow.
1.2 Ratios
The Return On Assets of HTHT (5.33%) is better than 71.21% of its industry peers.
With an excellent Return On Equity value of 31.28%, HTHT belongs to the best of the industry, outperforming 84.85% of the companies in the same industry.
HTHT's Return On Invested Capital of 8.08% is fine compared to the rest of the industry. HTHT outperforms 65.91% of its industry peers.
| 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
The Profit Margin of HTHT (13.67%) is better than 84.09% of its industry peers.
In the last couple of years the Profit Margin of HTHT has declined.
HTHT's Operating Margin of 21.99% is amongst the best of the industry. HTHT outperforms 84.09% of its industry peers.
HTHT's Operating Margin has improved in the last couple of years.
The Gross Margin of HTHT (66.77%) is better than 81.82% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HTHT is still creating some value.
The number of shares outstanding for HTHT has been reduced compared to 1 year ago.
The number of shares outstanding for HTHT has been increased compared to 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 1.53, we must say that HTHT is in the distress zone and has some risk of bankruptcy.
HTHT has a Altman-Z score (1.53) which 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.
Looking at the Debt to FCF ratio, with a value of 1.30, HTHT belongs to the top of the industry, outperforming 87.88% of the companies in the same industry.
A Debt/Equity ratio of 0.70 indicates that HTHT is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.70, HTHT is doing good in the industry, outperforming 64.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 1.3 | ||
| Altman-Z | 1.53 |
ROIC/WACC1.25
WACC6.47%
2.3 Liquidity
HTHT has a Current 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.
The Current ratio of HTHT (0.88) is comparable to the rest of the industry.
A Quick Ratio of 0.88 indicates that HTHT may have some problems paying its short term obligations.
HTHT has a Quick ratio of 0.88. This is comparable to the rest of the industry: HTHT outperforms 52.27% of its industry peers.
| 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%.
The Earnings Per Share has been growing by 9.62% on average over the past years. This is quite good.
The Revenue has been growing slightly by 5.86% in the past year.
The Revenue has been growing by 16.33% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 21.58% on average over the next years. This is a very strong growth
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
A Price/Earnings ratio of 21.69 indicates a rather expensive valuation of HTHT.
Compared to the rest of the industry, the Price/Earnings ratio of HTHT indicates a somewhat cheap valuation: HTHT is cheaper than 68.18% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.50. HTHT is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 14.19, HTHT is valued correctly.
77.27% of the companies in the same industry are more expensive than HTHT, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of HTHT to the average of the S&P500 Index (36.44), we can say HTHT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.69 | ||
| Fwd PE | 14.19 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HTHT indicates a somewhat cheap valuation: HTHT is cheaper than 69.70% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, HTHT is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.44 | ||
| EV/EBITDA | 10.31 |
4.3 Compensation for Growth
The 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
HTHT has a Yearly Dividend Yield of 4.80%, which is a nice return.
HTHT's Dividend Yield is rather good when compared to the industry average which is at 3.47. HTHT pays more dividend than 93.94% of the companies in the same industry.
HTHT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.8% |
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.
HTHT has decreased its dividend 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.
The dividend of HTHT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP42.31%
EPS Next 2Y27.81%
EPS Next 3Y21.58%
32.97
-0.23 (-0.69%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners23.19%
Inst Owner Change0%
Ins Owners29.47%
Ins Owner ChangeN/A
Market Cap10.12B
Analysts86
Price Target35.11 (6.49%)
Short Float %7.63%
Short Ratio9.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.8% |
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)-4.68%
PT rev (3m)-9.23%
EPS NQ rev (1m)-2.44%
EPS NQ rev (3m)0.61%
EPS NY rev (1m)0%
EPS NY rev (3m)5.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.69 | ||
| Fwd PE | 14.19 | ||
| P/S | 3.03 | ||
| P/FCF | 11.44 | ||
| P/OCF | 10.08 | ||
| P/B | 6.92 | ||
| P/tB | 491.06 | ||
| EV/EBITDA | 10.31 |
EPS(TTM)1.52
EY4.61%
EPS(NY)2.32
Fwd EY7.05%
FCF(TTM)2.88
FCFY8.74%
OCF(TTM)3.27
OCFY9.92%
SpS10.89
BVpS4.76
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 | 1.53 |
F-Score6
WACC6.47%
ROIC/WACC1.25
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%