H WORLD GROUP LTD-ADR (HTHT) Stock Fundamental Analysis
NASDAQ:HTHT - Nasdaq - US44332N1063 - ADR - Currency: USD
Taking everything into account, HTHT scores 5 out of 10 in our fundamental rating. HTHT was compared to 135 industry peers in the Hotels, Restaurants & Leisure industry. Both the profitability and the financial health of HTHT get a neutral evaluation. Nothing too spectacular is happening here. HTHT has a correct valuation and a medium growth rate.
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
HTHT has a Return On Assets of 6.03%. This is in the better half of the industry: HTHT outperforms 75.57% of its industry peers.
With an excellent Return On Equity value of 30.84%, HTHT belongs to the best of the industry, outperforming 84.73% of the companies in the same industry.
HTHT has a better Return On Invested Capital (7.90%) than 60.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.03% | ||
| ROE | 30.84% | ||
| ROIC | 7.9% |
ROA(3y)0.91%
ROA(5y)0.54%
ROE(3y)2.85%
ROE(5y)2.64%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
HTHT's Profit Margin of 15.96% is amongst the best of the industry. HTHT outperforms 87.02% of its industry peers.
HTHT's Profit Margin has improved in the last couple of years.
HTHT has a better Operating Margin (21.57%) than 80.92% of its industry peers.
In the last couple of years the Operating Margin of HTHT has declined.
HTHT has a better Gross Margin (66.52%) than 79.39% 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 | 21.57% | ||
| PM (TTM) | 15.96% | ||
| GM | 66.52% |
OM growth 3YN/A
OM growth 5Y-1.53%
PM growth 3YN/A
PM growth 5Y21.28%
GM growth 3Y7.52%
GM growth 5Y-0.5%
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.
Compared to 1 year ago, HTHT has more shares outstanding
Compared to 5 years ago, HTHT has more shares outstanding
Compared to 1 year ago, HTHT has an improved debt to assets ratio.
2.2 Solvency
HTHT has an Altman-Z score of 1.68. This is a bad value and indicates that HTHT is not financially healthy and even has some risk of bankruptcy.
HTHT has a Altman-Z score (1.68) which is comparable to the rest of the industry.
The Debt to FCF ratio of HTHT is 1.34, which is an excellent value as it means it would take HTHT, only 1.34 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.34, HTHT belongs to the top of the industry, outperforming 89.31% of the companies in the same industry.
A Debt/Equity ratio of 0.61 indicates that HTHT is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.61, HTHT is doing good in the industry, outperforming 69.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 1.34 | ||
| Altman-Z | 1.68 |
ROIC/WACC1.02
WACC7.71%
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.
HTHT has a Current ratio (0.88) which is in line with 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.
The Quick ratio of HTHT (0.87) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
HTHT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.30%, which is quite impressive.
Measured over the past years, HTHT shows a very strong growth in Earnings Per Share. The EPS has been growing by 38.69% on average per year.
The Revenue has grown by 17.24% in the past year. This is quite good.
HTHT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.81% yearly.
EPS 1Y (TTM)23.3%
EPS 3YN/A
EPS 5Y38.69%
EPS Q2Q%-2.44%
Revenue 1Y (TTM)17.24%
Revenue growth 3Y28.99%
Revenue growth 5Y16.81%
Sales Q2Q%2.45%
3.2 Future
Based on estimates for the next years, HTHT will show a small growth in Earnings Per Share. The EPS will grow by 7.97% on average per year.
Based on estimates for the next years, HTHT will show a quite strong growth in Revenue. The Revenue will grow by 8.34% on average per year.
EPS Next Y-3.61%
EPS Next 2Y5.37%
EPS Next 3Y7.97%
EPS Next 5YN/A
Revenue Next Year9.83%
Revenue Next 2Y8.41%
Revenue Next 3Y8.34%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
Based on the Price/Earnings ratio of 21.49, the valuation of HTHT can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of HTHT indicates a somewhat cheap valuation: HTHT is cheaper than 67.18% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.63, HTHT is valued a bit cheaper.
A Price/Forward Earnings ratio of 17.99 indicates a rather expensive valuation of HTHT.
68.70% of the companies in the same industry are more expensive than HTHT, based on the Price/Forward Earnings ratio.
HTHT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.49 | ||
| Fwd PE | 17.99 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as HTHT.
HTHT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HTHT is cheaper than 89.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.28 | ||
| EV/EBITDA | 13.1 |
4.3 Compensation for Growth
The decent profitability rating of HTHT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.56
EPS Next 2Y5.37%
EPS Next 3Y7.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.69%, HTHT has a reasonable but not impressive dividend return.
HTHT's Dividend Yield is a higher than the industry average which is at 3.06.
Compared to the average S&P500 Dividend Yield of 2.29, HTHT is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
5.2 History
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)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
93.00% of the earnings are spent on dividend by HTHT. This is not a sustainable payout ratio.
DP93%
EPS Next 2Y5.37%
EPS Next 3Y7.97%
36.32
-0.6 (-1.63%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners24.85%
Inst Owner Change11.18%
Ins Owners30.09%
Ins Owner ChangeN/A
Market Cap11.38B
Analysts87.27
Price Target34.63 (-4.65%)
Short Float %5.59%
Short Ratio5.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP93%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8.89%
Min EPS beat(2)-12.28%
Max EPS beat(2)-5.5%
EPS beat(4)1
Avg EPS beat(4)24.43%
Min EPS beat(4)-13.27%
Max EPS beat(4)128.76%
EPS beat(8)4
Avg EPS beat(8)6.06%
EPS beat(12)5
Avg EPS beat(12)-17.39%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-2.47%
Min Revenue beat(2)-3.95%
Max Revenue beat(2)-0.98%
Revenue beat(4)1
Avg Revenue beat(4)-0.35%
Min Revenue beat(4)-3.95%
Max Revenue beat(4)3.58%
Revenue beat(8)2
Avg Revenue beat(8)-0.98%
Revenue beat(12)3
Avg Revenue beat(12)-1.43%
Revenue beat(16)5
Avg Revenue beat(16)-1.17%
PT rev (1m)-2.2%
PT rev (3m)-13.25%
EPS NQ rev (1m)-11.11%
EPS NQ rev (3m)-6.1%
EPS NY rev (1m)-4.72%
EPS NY rev (3m)-6.06%
Revenue NQ rev (1m)-6.36%
Revenue NQ rev (3m)-6.38%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.49 | ||
| Fwd PE | 17.99 | ||
| P/S | 3.52 | ||
| P/FCF | 13.28 | ||
| P/OCF | 11.43 | ||
| P/B | 6.81 | ||
| P/tB | 61.42 | ||
| EV/EBITDA | 13.1 |
EPS(TTM)1.69
EY4.65%
EPS(NY)2.02
Fwd EY5.56%
FCF(TTM)2.73
FCFY7.53%
OCF(TTM)3.18
OCFY8.75%
SpS10.31
BVpS5.33
TBVpS0.59
PEG (NY)N/A
PEG (5Y)0.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.03% | ||
| ROE | 30.84% | ||
| ROCE | 10.19% | ||
| ROIC | 7.9% | ||
| ROICexc | 9.41% | ||
| ROICexgc | 12.7% | ||
| OM | 21.57% | ||
| PM (TTM) | 15.96% | ||
| GM | 66.52% | ||
| FCFM | 26.52% |
ROA(3y)0.91%
ROA(5y)0.54%
ROE(3y)2.85%
ROE(5y)2.64%
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 3YN/A
ROICexcg growth 5Y-5.5%
ROICexc growth 3YN/A
ROICexc growth 5Y-4.64%
OM growth 3YN/A
OM growth 5Y-1.53%
PM growth 3YN/A
PM growth 5Y21.28%
GM growth 3Y7.52%
GM growth 5Y-0.5%
F-Score8
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 1.34 | ||
| Debt/EBITDA | 1.16 | ||
| Cap/Depr | 75.96% | ||
| Cap/Sales | 4.29% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 113.23% | ||
| Profit Quality | 166.22% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 1.68 |
F-Score8
WACC7.71%
ROIC/WACC1.02
Cap/Depr(3y)82.5%
Cap/Depr(5y)106.45%
Cap/Sales(3y)8.27%
Cap/Sales(5y)11.17%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)23.3%
EPS 3YN/A
EPS 5Y38.69%
EPS Q2Q%-2.44%
EPS Next Y-3.61%
EPS Next 2Y5.37%
EPS Next 3Y7.97%
EPS Next 5YN/A
Revenue 1Y (TTM)17.24%
Revenue growth 3Y28.99%
Revenue growth 5Y16.81%
Sales Q2Q%2.45%
Revenue Next Year9.83%
Revenue Next 2Y8.41%
Revenue Next 3Y8.34%
Revenue Next 5YN/A
EBIT growth 1Y30.9%
EBIT growth 3YN/A
EBIT growth 5Y15.02%
EBIT Next Year36.92%
EBIT Next 3Y19.02%
EBIT Next 5YN/A
FCF growth 1Y6312.37%
FCF growth 3YN/A
FCF growth 5Y28.54%
OCF growth 1Y420.16%
OCF growth 3Y132.7%
OCF growth 5Y20.27%