HYATT HOTELS CORP - CL A (H) Stock Fundamental Analysis
NYSE:H - New York Stock Exchange, Inc. - US4485791028 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to H. H was compared to 135 industry peers in the Hotels, Restaurants & Leisure industry. While H is still in line with the averages on profitability rating, there are concerns on its financial health. H is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year H was profitable.
In the past year H had a positive cash flow from operations.
In multiple years H reported negative net income over the last 5 years.
Of the past 5 years H 4 years had a positive operating cash flow.
1.2 Ratios
H has a Return On Assets of 5.67%. This is in the better half of the industry: H outperforms 72.59% of its industry peers.
Looking at the Return On Equity, with a value of 22.94%, H belongs to the top of the industry, outperforming 81.48% of the companies in the same industry.
H has a worse Return On Invested Capital (3.57%) than 62.96% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for H is significantly below the industry average of 14.13%.
The 3 year average ROIC (3.04%) for H is below the current ROIC(3.57%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.67% | ||
| ROE | 22.94% | ||
| ROIC | 3.57% |
ROA(3y)5.05%
ROA(5y)1.13%
ROE(3y)18.34%
ROE(5y)5.38%
ROIC(3y)3.04%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 11.94%, H is in the better half of the industry, outperforming 79.26% of the companies in the same industry.
In the last couple of years the Profit Margin of H has grown nicely.
Looking at the Operating Margin, with a value of 7.43%, H is in line with its industry, outperforming 45.19% of the companies in the same industry.
In the last couple of years the Operating Margin of H has grown nicely.
H has a Gross Margin (47.04%) which is in line with its industry peers.
H's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.43% | ||
| PM (TTM) | 11.94% | ||
| GM | 47.04% |
OM growth 3YN/A
OM growth 5Y9.78%
PM growth 3YN/A
PM growth 5Y5.02%
GM growth 3Y1.52%
GM growth 5Y-0.73%
2. Health
2.1 Basic Checks
H has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, H has less shares outstanding
H has less shares outstanding than it did 5 years ago.
The debt/assets ratio for H is higher compared to a year ago.
2.2 Solvency
H has an Altman-Z score of 1.65. This is a bad value and indicates that H is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.65, H perfoms like the industry average, outperforming 54.81% of the companies in the same industry.
H has a debt to FCF ratio of 11.73. This is a negative value and a sign of low solvency as H would need 11.73 years to pay back of all of its debts.
H's Debt to FCF ratio of 11.73 is in line compared to the rest of the industry. H outperforms 54.07% of its industry peers.
A Debt/Equity ratio of 1.13 is on the high side and indicates that H has dependencies on debt financing.
H has a better Debt to Equity ratio (1.13) than 61.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 11.73 | ||
| Altman-Z | 1.65 |
ROIC/WACC0.41
WACC8.63%
2.3 Liquidity
A Current Ratio of 0.98 indicates that H may have some problems paying its short term obligations.
The Current ratio of H (0.98) is comparable to the rest of the industry.
H has a Quick Ratio of 0.98. This is a bad value and indicates that H is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.98, H perfoms like the industry average, outperforming 59.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
H shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.72%, which is quite good.
Measured over the past years, H shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.92% on average per year.
The Revenue has decreased by -0.73% in the past year.
H shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.78% yearly.
EPS 1Y (TTM)16.72%
EPS 3YN/A
EPS 5Y11.92%
EPS Q2Q%-35.21%
Revenue 1Y (TTM)-0.73%
Revenue growth 3Y29.97%
Revenue growth 5Y5.78%
Sales Q2Q%0.23%
3.2 Future
Based on estimates for the next years, H will show a very strong growth in Earnings Per Share. The EPS will grow by 25.70% on average per year.
Based on estimates for the next years, H will show a small growth in Revenue. The Revenue will grow by 6.38% on average per year.
EPS Next Y-29.94%
EPS Next 2Y0.48%
EPS Next 3Y9.3%
EPS Next 5Y25.7%
Revenue Next Year2.44%
Revenue Next 2Y3.99%
Revenue Next 3Y4.77%
Revenue Next 5Y6.38%
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 38.01, which means the current valuation is very expensive for H.
H's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of H to the average of the S&P500 Index (25.82), we can say H is valued slightly more expensively.
H is valuated quite expensively with a Price/Forward Earnings ratio of 35.04.
Compared to the rest of the industry, the Price/Forward Earnings ratio of H is on the same level as its industry peers.
H is valuated expensively when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.01 | ||
| Fwd PE | 35.04 |
4.2 Price Multiples
63.70% of the companies in the same industry are cheaper than H, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of H is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.93 | ||
| EV/EBITDA | 17.94 |
4.3 Compensation for Growth
The decent profitability rating of H may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.19
EPS Next 2Y0.48%
EPS Next 3Y9.3%
5. Dividend
5.1 Amount
With a yearly dividend of 0.45%, H is not a good candidate for dividend investing.
H's Dividend Yield is a higher than the industry average which is at 3.59.
With a Dividend Yield of 0.45, H pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
5.2 History
The dividend of H decreases each year by -4.75%.
H has been paying a dividend for over 5 years, so it has already some track record.
The dividend of H decreased recently.
Dividend Growth(5Y)-4.75%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
H pays out 7.43% of its income as dividend. This is a sustainable payout ratio.
DP7.43%
EPS Next 2Y0.48%
EPS Next 3Y9.3%
127.35
-0.19 (-0.15%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners111.99%
Inst Owner Change2.47%
Ins Owners2.28%
Ins Owner Change8.03%
Market Cap12.15B
Analysts69.66
Price Target146.14 (14.75%)
Short Float %15.95%
Short Ratio5.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
Yearly Dividend0.6
Dividend Growth(5Y)-4.75%
DP7.43%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.06%
Min EPS beat(2)-47.43%
Max EPS beat(2)41.32%
EPS beat(4)2
Avg EPS beat(4)-2.89%
Min EPS beat(4)-47.43%
Max EPS beat(4)41.32%
EPS beat(8)4
Avg EPS beat(8)3.89%
EPS beat(12)7
Avg EPS beat(12)247.19%
EPS beat(16)9
Avg EPS beat(16)159.68%
Revenue beat(2)0
Avg Revenue beat(2)-3.04%
Min Revenue beat(2)-5.26%
Max Revenue beat(2)-0.81%
Revenue beat(4)1
Avg Revenue beat(4)-2.12%
Min Revenue beat(4)-5.26%
Max Revenue beat(4)1.5%
Revenue beat(8)2
Avg Revenue beat(8)-1.55%
Revenue beat(12)6
Avg Revenue beat(12)0.31%
Revenue beat(16)7
Avg Revenue beat(16)0.46%
PT rev (1m)-8.77%
PT rev (3m)-12.38%
EPS NQ rev (1m)-25.89%
EPS NQ rev (3m)-39.03%
EPS NY rev (1m)-17.06%
EPS NY rev (3m)-35.18%
Revenue NQ rev (1m)-1.18%
Revenue NQ rev (3m)-2.82%
Revenue NY rev (1m)-0.75%
Revenue NY rev (3m)-2.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.01 | ||
| Fwd PE | 35.04 | ||
| P/S | 1.83 | ||
| P/FCF | 32.93 | ||
| P/OCF | 22.34 | ||
| P/B | 3.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.94 |
EPS(TTM)3.35
EY2.63%
EPS(NY)3.63
Fwd EY2.85%
FCF(TTM)3.87
FCFY3.04%
OCF(TTM)5.7
OCFY4.48%
SpS69.71
BVpS36.27
TBVpS-13.58
PEG (NY)N/A
PEG (5Y)3.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.67% | ||
| ROE | 22.94% | ||
| ROCE | 4.64% | ||
| ROIC | 3.57% | ||
| ROICexc | 4.29% | ||
| ROICexgc | 9.28% | ||
| OM | 7.43% | ||
| PM (TTM) | 11.94% | ||
| GM | 47.04% | ||
| FCFM | 5.55% |
ROA(3y)5.05%
ROA(5y)1.13%
ROE(3y)18.34%
ROE(5y)5.38%
ROIC(3y)3.04%
ROIC(5y)N/A
ROICexc(3y)3.46%
ROICexc(5y)N/A
ROICexgc(3y)8.23%
ROICexgc(5y)N/A
ROCE(3y)3.95%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y24.5%
ROICexc growth 3YN/A
ROICexc growth 5Y9.19%
OM growth 3YN/A
OM growth 5Y9.78%
PM growth 3YN/A
PM growth 5Y5.02%
GM growth 3Y1.52%
GM growth 5Y-0.73%
F-Score4
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 11.73 | ||
| Debt/EBITDA | 4.81 | ||
| Cap/Depr | 54.52% | ||
| Cap/Sales | 2.63% | ||
| Interest Coverage | 2.82 | ||
| Cash Conversion | 66.75% | ||
| Profit Quality | 46.47% | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 1.65 |
F-Score4
WACC8.63%
ROIC/WACC0.41
Cap/Depr(3y)50.21%
Cap/Depr(5y)45.16%
Cap/Sales(3y)3.03%
Cap/Sales(5y)3.73%
Profit Quality(3y)135.88%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)16.72%
EPS 3YN/A
EPS 5Y11.92%
EPS Q2Q%-35.21%
EPS Next Y-29.94%
EPS Next 2Y0.48%
EPS Next 3Y9.3%
EPS Next 5Y25.7%
Revenue 1Y (TTM)-0.73%
Revenue growth 3Y29.97%
Revenue growth 5Y5.78%
Sales Q2Q%0.23%
Revenue Next Year2.44%
Revenue Next 2Y3.99%
Revenue Next 3Y4.77%
Revenue Next 5Y6.38%
EBIT growth 1Y80.29%
EBIT growth 3YN/A
EBIT growth 5Y16.12%
EBIT Next Year220.98%
EBIT Next 3Y56.45%
EBIT Next 5Y37.45%
FCF growth 1Y-31.41%
FCF growth 3Y31.7%
FCF growth 5Y76.77%
OCF growth 1Y-25.07%
OCF growth 3Y26.39%
OCF growth 5Y9.94%