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HILTON WORLDWIDE HOLDINGS IN (HLT) Stock Fundamental Analysis

NYSE:HLT - New York Stock Exchange, Inc. - US43300A2033 - Common Stock - Currency: USD

273.65  +6.08 (+2.27%)

After market: 273 -0.65 (-0.24%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to HLT. HLT was compared to 131 industry peers in the Hotels, Restaurants & Leisure industry. HLT has an excellent profitability rating, but there are concerns on its financial health. HLT is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

HLT had positive earnings in the past year.
In the past year HLT had a positive cash flow from operations.
HLT had positive earnings in 4 of the past 5 years.
HLT had a positive operating cash flow in each of the past 5 years.
HLT Yearly Net Income VS EBIT VS OCF VS FCFHLT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B

1.2 Ratios

With an excellent Return On Assets value of 9.79%, HLT belongs to the best of the industry, outperforming 83.97% of the companies in the same industry.
HLT's Return On Invested Capital of 16.35% is amongst the best of the industry. HLT outperforms 84.73% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HLT is in line with the industry average of 15.87%.
The last Return On Invested Capital (16.35%) for HLT is above the 3 year average (14.57%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 9.79%
ROE N/A
ROIC 16.35%
ROA(3y)8.26%
ROA(5y)4.65%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)14.57%
ROIC(5y)N/A
HLT Yearly ROA, ROE, ROICHLT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100 -100

1.3 Margins

HLT has a better Profit Margin (13.90%) than 85.50% of its industry peers.
In the last couple of years the Profit Margin of HLT has grown nicely.
The Operating Margin of HLT (21.03%) is better than 81.68% of its industry peers.
In the last couple of years the Operating Margin of HLT has grown nicely.
The Gross Margin of HLT (37.02%) is worse than 68.70% of its industry peers.
In the last couple of years the Gross Margin of HLT has remained more or less at the same level.
Industry RankSector Rank
OM 21.03%
PM (TTM) 13.9%
GM 37.02%
OM growth 3Y6.4%
OM growth 5Y4.89%
PM growth 3Y24.7%
PM growth 5Y8.07%
GM growth 3Y-2.4%
GM growth 5Y-0.8%
HLT Yearly Profit, Operating, Gross MarginsHLT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40

3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so HLT is creating value.
Compared to 1 year ago, HLT has less shares outstanding
HLT has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, HLT has a worse debt to assets ratio.
HLT Yearly Shares OutstandingHLT Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M
HLT Yearly Total Debt VS Total AssetsHLT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B 25B

2.2 Solvency

An Altman-Z score of 2.68 indicates that HLT is not a great score, but indicates only limited risk for bankruptcy at the moment.
HLT has a Altman-Z score of 2.68. This is in the better half of the industry: HLT outperforms 68.70% of its industry peers.
The Debt to FCF ratio of HLT is 5.82, which is a neutral value as it means it would take HLT, 5.82 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.82, HLT is doing good in the industry, outperforming 75.57% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 5.82
Altman-Z 2.68
ROIC/WACC1.82
WACC8.99%
HLT Yearly LT Debt VS Equity VS FCFHLT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B

2.3 Liquidity

HLT has a Current Ratio of 0.57. This is a bad value and indicates that HLT is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.57, HLT is not doing good in the industry: 72.52% of the companies in the same industry are doing better.
A Quick Ratio of 0.57 indicates that HLT may have some problems paying its short term obligations.
HLT has a Quick ratio of 0.57. This is in the lower half of the industry: HLT underperforms 67.18% of its industry peers.
Industry RankSector Rank
Current Ratio 0.57
Quick Ratio 0.57
HLT Yearly Current Assets VS Current LiabilitesHLT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

6

3. Growth

3.1 Past

HLT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.93%, which is quite good.
HLT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.74% yearly.
The Revenue has grown by 9.17% in the past year. This is quite good.
The Revenue has been growing slightly by 3.40% on average over the past years.
EPS 1Y (TTM)11.93%
EPS 3Y50.71%
EPS 5Y12.74%
EPS Q2Q%15.18%
Revenue 1Y (TTM)9.17%
Revenue growth 3Y24.52%
Revenue growth 5Y3.4%
Sales Q2Q%6.3%

3.2 Future

HLT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.00% yearly.
Based on estimates for the next years, HLT will show a quite strong growth in Revenue. The Revenue will grow by 8.46% on average per year.
EPS Next Y12.06%
EPS Next 2Y13.41%
EPS Next 3Y14.43%
EPS Next 5Y18%
Revenue Next Year6.37%
Revenue Next 2Y7.28%
Revenue Next 3Y7.83%
Revenue Next 5Y8.46%

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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
HLT Yearly Revenue VS EstimatesHLT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5B 10B 15B 20B
HLT Yearly EPS VS EstimatesHLT Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5 10 15 20

3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 36.01, which means the current valuation is very expensive for HLT.
HLT's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 28.04. HLT is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 29.88, HLT can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HLT is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 37.64, HLT is valued a bit cheaper.
Industry RankSector Rank
PE 36.01
Fwd PE 29.88
HLT Price Earnings VS Forward Price EarningsHLT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, HLT is valued a bit more expensive than 74.05% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HLT is valued a bit cheaper than the industry average as 61.07% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 33.97
EV/EBITDA 29.3
HLT Per share dataHLT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 40 -40 -60

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of HLT may justify a higher PE ratio.
A more expensive valuation may be justified as HLT's earnings are expected to grow with 14.43% in the coming years.
PEG (NY)2.99
PEG (5Y)2.83
EPS Next 2Y13.41%
EPS Next 3Y14.43%

4

5. Dividend

5.1 Amount

HLT has a yearly dividend return of 0.22%, which is pretty low.
Compared to an average industry Dividend Yield of 3.55, HLT has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, HLT's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.22%

5.2 History

The dividend of HLT has a limited annual growth rate of 0.21%.
HLT has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of HLT decreased in the last 3 years.
Dividend Growth(5Y)0.21%
Div Incr Years0
Div Non Decr Years2
HLT Yearly Dividends per shareHLT Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2022 2023 2024 2025 0.2 0.4 0.6 0.8

5.3 Sustainability

HLT pays out 9.43% of its income as dividend. This is a sustainable payout ratio.
The dividend of HLT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP9.43%
EPS Next 2Y13.41%
EPS Next 3Y14.43%
HLT Yearly Income VS Free CF VS DividendHLT Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M 1B 1.5B
HLT Dividend Payout.HLT Dividend Payout, showing the Payout Ratio.HLT Dividend Payout.PayoutRetained Earnings

HILTON WORLDWIDE HOLDINGS IN

NYSE:HLT (7/25/2025, 8:04:00 PM)

After market: 273 -0.65 (-0.24%)

273.65

+6.08 (+2.27%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)07-23 2025-07-23/bmo
Earnings (Next)10-21 2025-10-21/bmo
Inst Owners98.41%
Inst Owner Change-0.24%
Ins Owners2.02%
Ins Owner Change0.59%
Market Cap65.05B
Analysts72.26
Price Target265.66 (-2.92%)
Short Float %3.83%
Short Ratio4.59
Dividend
Industry RankSector Rank
Dividend Yield 0.22%
Yearly Dividend0.61
Dividend Growth(5Y)0.21%
DP9.43%
Div Incr Years0
Div Non Decr Years2
Ex-Date08-29 2025-08-29 (0.15)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.66%
Min EPS beat(2)3.63%
Max EPS beat(2)5.68%
EPS beat(4)4
Avg EPS beat(4)3.51%
Min EPS beat(4)1.71%
Max EPS beat(4)5.68%
EPS beat(8)7
Avg EPS beat(8)3.57%
EPS beat(12)11
Avg EPS beat(12)7.82%
EPS beat(16)13
Avg EPS beat(16)8.1%
Revenue beat(2)0
Avg Revenue beat(2)-1.23%
Min Revenue beat(2)-1.86%
Max Revenue beat(2)-0.61%
Revenue beat(4)0
Avg Revenue beat(4)-1.27%
Min Revenue beat(4)-2.28%
Max Revenue beat(4)-0.34%
Revenue beat(8)3
Avg Revenue beat(8)-0.37%
Revenue beat(12)6
Avg Revenue beat(12)0.36%
Revenue beat(16)7
Avg Revenue beat(16)0.16%
PT rev (1m)3.95%
PT rev (3m)-2.08%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)-5.47%
EPS NY rev (1m)0.06%
EPS NY rev (3m)-1.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.8%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-1.55%
Valuation
Industry RankSector Rank
PE 36.01
Fwd PE 29.88
P/S 5.76
P/FCF 33.97
P/OCF 30.7
P/B N/A
P/tB N/A
EV/EBITDA 29.3
EPS(TTM)7.6
EY2.78%
EPS(NY)9.16
Fwd EY3.35%
FCF(TTM)8.06
FCFY2.94%
OCF(TTM)8.91
OCFY3.26%
SpS47.52
BVpS-18.42
TBVpS-66.72
PEG (NY)2.99
PEG (5Y)2.83
Profitability
Industry RankSector Rank
ROA 9.79%
ROE N/A
ROCE 21.19%
ROIC 16.35%
ROICexc 17.49%
ROICexgc N/A
OM 21.03%
PM (TTM) 13.9%
GM 37.02%
FCFM 16.95%
ROA(3y)8.26%
ROA(5y)4.65%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)14.57%
ROIC(5y)N/A
ROICexc(3y)16.06%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)18.88%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y32.29%
ROICexc growth 5Y10.5%
OM growth 3Y6.4%
OM growth 5Y4.89%
PM growth 3Y24.7%
PM growth 5Y8.07%
GM growth 3Y-2.4%
GM growth 5Y-0.8%
F-Score6
Asset Turnover0.7
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 5.82
Debt/EBITDA 4.2
Cap/Depr 135.1%
Cap/Sales 1.81%
Interest Coverage 4.01
Cash Conversion 83.89%
Profit Quality 121.98%
Current Ratio 0.57
Quick Ratio 0.57
Altman-Z 2.68
F-Score6
WACC8.99%
ROIC/WACC1.82
Cap/Depr(3y)122.2%
Cap/Depr(5y)87.28%
Cap/Sales(3y)1.78%
Cap/Sales(5y)1.77%
Profit Quality(3y)130.99%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.93%
EPS 3Y50.71%
EPS 5Y12.74%
EPS Q2Q%15.18%
EPS Next Y12.06%
EPS Next 2Y13.41%
EPS Next 3Y14.43%
EPS Next 5Y18%
Revenue 1Y (TTM)9.17%
Revenue growth 3Y24.52%
Revenue growth 5Y3.4%
Sales Q2Q%6.3%
Revenue Next Year6.37%
Revenue Next 2Y7.28%
Revenue Next 3Y7.83%
Revenue Next 5Y8.46%
EBIT growth 1Y3.67%
EBIT growth 3Y32.49%
EBIT growth 5Y8.46%
EBIT Next Year32.63%
EBIT Next 3Y16.17%
EBIT Next 5Y14.12%
FCF growth 1Y15.02%
FCF growth 3Y292.57%
FCF growth 5Y9.01%
OCF growth 1Y16.68%
OCF growth 3Y164.33%
OCF growth 5Y7.78%