HILTON WORLDWIDE HOLDINGS IN (HLT) Stock Fundamental Analysis
NYSE:HLT - US43300A2033 - Common Stock
277.5 USD
+8.31 (+3.09%)
277.5 USD
0 (0%)
Overall HLT gets a fundamental rating of 5 out of 10. We evaluated HLT against 131 industry peers in the Hotels, Restaurants & Leisure industry. HLT scores excellent on profitability, but there are concerns on its financial health. While showing a medium growth rate, HLT is valued expensive at the moment.
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.
Of the past 5 years HLT 4 years were profitable.
HLT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of HLT (9.99%) is better than 85.50% of its industry peers.
The Return On Invested Capital of HLT (16.55%) is better than 86.26% of its industry peers.
HLT had an Average Return On Invested Capital over the past 3 years of 14.57%. This is in line with the industry average of 15.79%.
The 3 year average ROIC (14.57%) for HLT is below the current ROIC(16.55%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.99% | ||
| ROE | N/A | ||
| ROIC | 16.55% |
ROA(3y)8.26%
ROA(5y)4.65%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)14.57%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 13.84%, HLT belongs to the top of the industry, outperforming 84.73% of the companies in the same industry.
In the last couple of years the Profit Margin of HLT has grown nicely.
HLT's Operating Margin of 21.15% is amongst the best of the industry. HLT outperforms 80.92% of its industry peers.
HLT's Operating Margin has improved in the last couple of years.
The Gross Margin of HLT (36.73%) is worse than 67.94% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.15% | ||
| PM (TTM) | 13.84% | ||
| GM | 36.73% |
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%
2. Health
2.1 Basic Checks
HLT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
HLT has less shares outstanding than it did 1 year ago.
The number of shares outstanding for HLT has been reduced compared to 5 years ago.
Compared to 1 year ago, HLT has a worse debt to assets ratio.
2.2 Solvency
HLT has an Altman-Z score of 2.73. This is not the best score and indicates that HLT is in the grey zone with still only limited risk for bankruptcy at the moment.
HLT's Altman-Z score of 2.73 is fine compared to the rest of the industry. HLT outperforms 70.99% of its industry peers.
The Debt to FCF ratio of HLT is 5.10, which is a neutral value as it means it would take HLT, 5.10 years of fcf income to pay off all of its debts.
HLT has a better Debt to FCF ratio (5.10) than 78.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.1 | ||
| Altman-Z | 2.73 |
ROIC/WACC1.85
WACC8.94%
2.3 Liquidity
HLT has a Current Ratio of 0.54. This is a bad value and indicates that HLT is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of HLT (0.54) is worse than 73.28% of its industry peers.
A Quick Ratio of 0.54 indicates that HLT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.54, HLT is doing worse than 71.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.93% over the past year.
The Earnings Per Share has been growing by 12.74% on average over the past years. This is quite good.
HLT shows a small growth in Revenue. In the last year, the Revenue has grown by 6.26%.
HLT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.40% yearly.
EPS 1Y (TTM)11.93%
EPS 3Y50.71%
EPS 5Y12.74%
EPS Q2Q%15.18%
Revenue 1Y (TTM)6.26%
Revenue growth 3Y24.52%
Revenue growth 5Y3.4%
Sales Q2Q%6.3%
3.2 Future
The Earnings Per Share is expected to grow by 16.99% on average over the next years. This is quite good.
HLT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.46% yearly.
EPS Next Y12.06%
EPS Next 2Y13.41%
EPS Next 3Y14.43%
EPS Next 5Y16.99%
Revenue Next Year6.3%
Revenue Next 2Y7.27%
Revenue Next 3Y7.86%
Revenue Next 5Y8.46%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
HLT is valuated quite expensively with a Price/Earnings ratio of 36.51.
HLT's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.24. HLT is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 30.30, the valuation of HLT can be described as expensive.
HLT's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.82, HLT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.51 | ||
| Fwd PE | 30.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HLT is valued a bit more expensive than 74.81% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HLT is valued a bit cheaper than 64.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.4 | ||
| EV/EBITDA | 28.55 |
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)3.03
PEG (5Y)2.87
EPS Next 2Y13.41%
EPS Next 3Y14.43%
5. Dividend
5.1 Amount
HLT has a yearly dividend return of 0.22%, which is pretty low.
HLT's Dividend Yield is comparable with the industry average which is at 7.20.
With a Dividend Yield of 0.22, HLT pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.22% |
5.2 History
The dividend of HLT has a limited annual growth rate of 0.21%.
HLT has paid a dividend for at least 10 years, which is a reliable track record.
HLT has decreased its dividend in the last 3 years.
Dividend Growth(5Y)0.21%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
9.25% of the earnings are spent on dividend by HLT. This is a low number and sustainable payout ratio.
The dividend of HLT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP9.25%
EPS Next 2Y13.41%
EPS Next 3Y14.43%
277.5
+8.31 (+3.09%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners99.48%
Inst Owner Change0.56%
Ins Owners2.04%
Ins Owner Change0.45%
Market Cap65.27B
Analysts72.26
Price Target277.21 (-0.1%)
Short Float %3.39%
Short Ratio4.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.22% |
Yearly Dividend0.61
Dividend Growth(5Y)0.21%
DP9.25%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.22%
Min EPS beat(2)5.68%
Max EPS beat(2)6.76%
EPS beat(4)4
Avg EPS beat(4)4.77%
Min EPS beat(4)2.99%
Max EPS beat(4)6.76%
EPS beat(8)7
Avg EPS beat(8)4.11%
EPS beat(12)11
Avg EPS beat(12)6.45%
EPS beat(16)13
Avg EPS beat(16)6%
Revenue beat(2)1
Avg Revenue beat(2)-0.86%
Min Revenue beat(2)-1.86%
Max Revenue beat(2)0.13%
Revenue beat(4)1
Avg Revenue beat(4)-1.16%
Min Revenue beat(4)-2.28%
Max Revenue beat(4)0.13%
Revenue beat(8)3
Avg Revenue beat(8)-0.64%
Revenue beat(12)6
Avg Revenue beat(12)-0.2%
Revenue beat(16)8
Avg Revenue beat(16)0.47%
PT rev (1m)8.25%
PT rev (3m)9.36%
EPS NQ rev (1m)-4.07%
EPS NQ rev (3m)-6.14%
EPS NY rev (1m)0%
EPS NY rev (3m)0.1%
Revenue NQ rev (1m)-1.64%
Revenue NQ rev (3m)-3.05%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.51 | ||
| Fwd PE | 30.3 | ||
| P/S | 5.68 | ||
| P/FCF | 30.4 | ||
| P/OCF | 27.7 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.55 |
EPS(TTM)7.6
EY2.74%
EPS(NY)9.16
Fwd EY3.3%
FCF(TTM)9.13
FCFY3.29%
OCF(TTM)10.02
OCFY3.61%
SpS48.82
BVpS-19.52
TBVpS-68.69
PEG (NY)3.03
PEG (5Y)2.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.99% | ||
| ROE | N/A | ||
| ROCE | 21.45% | ||
| ROIC | 16.55% | ||
| ROICexc | 17.11% | ||
| ROICexgc | N/A | ||
| OM | 21.15% | ||
| PM (TTM) | 13.84% | ||
| GM | 36.73% | ||
| FCFM | 18.7% |
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 Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.1 | ||
| Debt/EBITDA | 4.22 | ||
| Cap/Depr | 130.63% | ||
| Cap/Sales | 1.82% | ||
| Interest Coverage | 3.98 | ||
| Cash Conversion | 91.04% | ||
| Profit Quality | 135.12% | ||
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 2.73 |
F-Score6
WACC8.94%
ROIC/WACC1.85
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 5Y16.99%
Revenue 1Y (TTM)6.26%
Revenue growth 3Y24.52%
Revenue growth 5Y3.4%
Sales Q2Q%6.3%
Revenue Next Year6.3%
Revenue Next 2Y7.27%
Revenue Next 3Y7.86%
Revenue Next 5Y8.46%
EBIT growth 1Y3.67%
EBIT growth 3Y32.49%
EBIT growth 5Y8.46%
EBIT Next Year32.95%
EBIT Next 3Y15.84%
EBIT Next 5Y14.15%
FCF growth 1Y21.64%
FCF growth 3Y292.57%
FCF growth 5Y9.01%
OCF growth 1Y21.01%
OCF growth 3Y164.33%
OCF growth 5Y7.78%