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 133 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 has a decent growth rate and is not valued too expensively.
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.
In multiple years HTHT reported negative net income over the last 5 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 71.43% of its industry peers.
HTHT has a better Return On Equity (31.28%) than 84.96% of its industry peers.
HTHT has a better Return On Invested Capital (8.08%) than 65.41% 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
HTHT has a Profit Margin of 13.67%. This is amongst the best in the industry. HTHT outperforms 84.96% of its industry peers.
In the last couple of years the Profit Margin of HTHT has declined.
The Operating Margin of HTHT (21.99%) is better than 84.21% of its industry peers.
In the last couple of years the Operating Margin of HTHT has grown nicely.
With an excellent Gross Margin value of 66.77%, HTHT belongs to the best of the industry, outperforming 81.20% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HTHT is creating some value.
Compared to 1 year ago, HTHT has less shares outstanding
Compared to 5 years ago, HTHT has more shares outstanding
The debt/assets ratio for HTHT is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.54, we must say that HTHT is in the distress zone and has some risk of bankruptcy.
HTHT's Altman-Z score of 1.54 is in line compared to the rest of the industry. HTHT outperforms 49.62% of its industry peers.
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 Debt to FCF ratio of 1.30. This is amongst the best in the industry. HTHT outperforms 87.97% 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 66.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 1.3 | ||
| Altman-Z | 1.54 |
ROIC/WACC1.28
WACC6.33%
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.
With a Current ratio value of 0.88, HTHT perfoms like the industry average, outperforming 48.87% of the companies in the same industry.
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 of 0.88. This is comparable to the rest of the industry: HTHT outperforms 51.88% 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.
HTHT shows a small growth in Revenue. In the last year, the Revenue has grown by 5.86%.
Measured over the past years, HTHT shows a quite strong growth in Revenue. The Revenue has been growing by 16.33% on average per year.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
HTHT is valuated rather expensively with a Price/Earnings ratio of 22.19.
69.17% of the companies in the same industry are more expensive than HTHT, based on the Price/Earnings ratio.
HTHT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.29, which is the current average of the S&P500 Index.
HTHT is valuated correctly with a Price/Forward Earnings ratio of 14.60.
Based on the Price/Forward Earnings ratio, HTHT is valued a bit cheaper than the industry average as 75.19% of the companies are valued more expensively.
HTHT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.19 | ||
| Fwd PE | 14.6 |
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 65.41% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, HTHT is valued cheaply inside the industry as 89.47% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.76 | ||
| EV/EBITDA | 10.55 |
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)0.51
PEG (5Y)2.31
EPS Next 2Y27.81%
EPS Next 3Y21.58%
5. Dividend
5.1 Amount
HTHT has a Yearly Dividend Yield of 4.79%, which is a nice return.
Compared to an average industry Dividend Yield of 3.53, HTHT pays a better dividend. On top of this HTHT pays more dividend than 93.23% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, HTHT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.79% |
5.2 History
On average, the dividend of HTHT grows each year by 37.96%, which is quite nice.
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%
33.95
+0.72 (+2.17%)
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 Cap10.42B
Analysts86
Price Target35.11 (3.42%)
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 | 22.19 | ||
| Fwd PE | 14.6 | ||
| P/S | 3.11 | ||
| P/FCF | 11.76 | ||
| P/OCF | 10.36 | ||
| P/B | 7.12 | ||
| P/tB | 505.06 | ||
| EV/EBITDA | 10.55 |
EPS(TTM)1.53
EY4.51%
EPS(NY)2.33
Fwd EY6.85%
FCF(TTM)2.89
FCFY8.5%
OCF(TTM)3.28
OCFY9.65%
SpS10.9
BVpS4.77
TBVpS0.07
PEG (NY)0.51
PEG (5Y)2.31
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 | 1.54 |
F-Score6
WACC6.33%
ROIC/WACC1.28
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%