HILTON GRAND VACATIONS INC (HGV)
US43283X1054 - Common Stock
HGV gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 135 industry peers in the Hotels, Restaurants & Leisure industry. HGV has an average financial health and profitability rating. HGV scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year HGV was profitable.
In the past year HGV had a positive cash flow from operations.
Of the past 5 years HGV 4 years were profitable.
Each year in the past 5 years HGV had a positive operating cash flow.
1.2 Ratios
HGV's Return On Assets of 3.60% is in line compared to the rest of the industry. HGV outperforms 55.22% of its industry peers.
HGV has a Return On Equity of 14.80%. This is in the better half of the industry: HGV outperforms 69.40% of its industry peers.
The Return On Invested Capital of HGV (6.38%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for HGV is below the industry average of 10.33%.
The 3 year average ROIC (6.16%) for HGV is below the current ROIC(6.38%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.6% | ||
| ROE | 14.8% | ||
| ROIC | 6.38% |
ROA(3y)3.4%
ROA(5y)2.16%
ROE(3y)13.34%
ROE(5y)4.83%
ROIC(3y)6.16%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 7.87%, HGV is in the better half of the industry, outperforming 68.66% of the companies in the same industry.
In the last couple of years the Profit Margin of HGV has declined.
Looking at the Operating Margin, with a value of 17.19%, HGV is in the better half of the industry, outperforming 73.13% of the companies in the same industry.
HGV's Operating Margin has declined in the last couple of years.
HGV has a worse Gross Margin (27.43%) than 81.34% of its industry peers.
In the last couple of years the Gross Margin of HGV has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.19% | ||
| PM (TTM) | 7.87% | ||
| GM | 27.43% |
OM growth 3YN/A
OM growth 5Y-4.56%
PM growth 3YN/A
PM growth 5Y-12%
GM growth 3Y31.43%
GM growth 5Y-1.36%
2. Health
2.1 Basic Checks
HGV has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for HGV has been reduced compared to 1 year ago.
HGV has more shares outstanding than it did 5 years ago.
HGV has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.44, we must say that HGV is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.44, HGV perfoms like the industry average, outperforming 45.52% of the companies in the same industry.
The Debt to FCF ratio of HGV is 19.05, which is on the high side as it means it would take HGV, 19.05 years of fcf income to pay off all of its debts.
HGV has a Debt to FCF ratio of 19.05. This is comparable to the rest of the industry: HGV outperforms 50.00% of its industry peers.
HGV has a Debt/Equity ratio of 2.13. This is a high value indicating a heavy dependency on external financing.
HGV has a Debt to Equity ratio (2.13) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.13 | ||
| Debt/FCF | 19.05 | ||
| Altman-Z | 1.44 |
ROIC/WACC0.83
WACC7.71%
2.3 Liquidity
A Current Ratio of 2.42 indicates that HGV has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.42, HGV belongs to the best of the industry, outperforming 90.30% of the companies in the same industry.
HGV has a Quick Ratio of 1.06. This is a normal value and indicates that HGV is financially healthy and should not expect problems in meeting its short term obligations.
HGV's Quick ratio of 1.06 is in line compared to the rest of the industry. HGV outperforms 55.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.42 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
The earnings per share for HGV have decreased by -4.76% in the last year.
HGV shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.23% yearly.
HGV shows a small growth in Revenue. In the last year, the Revenue has grown by 3.73%.
HGV shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.75% yearly.
EPS 1Y (TTM)-4.76%
EPS 3Y85.31%
EPS 5Y-3.23%
EPS growth Q2Q-8.82%
Revenue 1Y (TTM)3.73%
Revenue growth 3Y64.48%
Revenue growth 5Y14.75%
Revenue growth Q2Q2.72%
3.2 Future
The Earnings Per Share is expected to grow by 30.68% on average over the next years. This is a very strong growth
HGV is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.45% yearly.
EPS Next Y47.63%
EPS Next 2Y30.68%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year22.62%
Revenue Next 2Y13.45%
Revenue Next 3YN/A
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.84, the valuation of HGV can be described as correct.
76.12% of the companies in the same industry are more expensive than HGV, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 24.92, HGV is valued a bit cheaper.
HGV is valuated reasonably with a Price/Forward Earnings ratio of 10.73.
HGV's Price/Forward Earnings ratio is rather cheap when compared to the industry. HGV is cheaper than 91.79% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.49, HGV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.84 | ||
| Fwd PE | 10.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HGV is valued a bit cheaper than 62.69% of the companies in the same industry.
HGV's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HGV is cheaper than 68.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.6 | ||
| EV/EBITDA | 9.56 |
4.3 Compensation for Growth
HGV's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as HGV's earnings are expected to grow with 30.68% in the coming years.
PEG (NY)0.33
PEG (5Y)N/A
EPS Next 2Y30.68%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for HGV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
HILTON GRAND VACATIONS INC
NYSE:HGV (4/26/2024, 7:04:00 PM)
After market: 44.34 0 (0%)44.34
-0.07 (-0.16%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.64B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
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Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.84 | ||
| Fwd PE | 10.73 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.33
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.6% | ||
| ROE | 14.8% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.19% | ||
| PM (TTM) | 7.87% | ||
| GM | 27.43% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.13 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.42 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-4.76%
EPS 3Y85.31%
EPS 5Y
EPS growth Q2Q
EPS Next Y47.63%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.73%
Revenue growth 3Y64.48%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y