HILTON WORLDWIDE HOLDINGS IN (HLT) Stock Fundamental Analysis
USA - NYSE:HLT - US43300A2033 - Common Stock
274.73 USD
-3.49 (-1.25%)
274 USD
-0.73 (-0.27%)
We assign a fundamental rating of 5 out of 10 to HLT. HLT was compared to 133 industry peers in the Hotels, Restaurants & Leisure industry. While HLT has a great profitability rating, there are quite some concerns on its financial health. HLT is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
HLT had positive earnings in the past year.
HLT had a positive operating cash flow in the past year.
HLT had positive earnings in 4 of the past 5 years.
In the past 5 years HLT always reported a positive cash flow from operatings.
1.2 Ratios
HLT has a better Return On Assets (9.99%) than 84.96% of its industry peers.
With an excellent Return On Invested Capital value of 16.55%, HLT belongs to the best of the industry, outperforming 84.96% of the companies in the same industry.
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 15.68%.
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
HLT has a Profit Margin of 13.84%. This is amongst the best in the industry. HLT outperforms 83.46% of its industry peers.
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 80.45% of its industry peers.
HLT's Operating Margin has improved in the last couple of years.
HLT's Gross Margin of 36.73% is on the low side compared to the rest of the industry. HLT is outperformed by 69.92% 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.
The number of shares outstanding for HLT has been reduced compared to 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 2.77. 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.
The Altman-Z score of HLT (2.77) is better than 70.68% 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.
Looking at the Debt to FCF ratio, with a value of 5.10, HLT is in the better half of the industry, outperforming 75.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.1 | ||
| Altman-Z | 2.77 |
ROIC/WACC1.89
WACC8.78%
2.3 Liquidity
A Current Ratio of 0.54 indicates that HLT may have some problems paying its short term obligations.
HLT has a Current ratio of 0.54. This is in the lower half of the industry: HLT underperforms 72.18% of its industry peers.
A Quick Ratio of 0.54 indicates that HLT may have some problems paying its short term obligations.
The Quick ratio of HLT (0.54) is worse than 69.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.54 |
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.
Looking at the last year, HLT shows a small growth in Revenue. The Revenue has grown by 6.26% in the last year.
Measured over the past years, HLT shows a small growth in Revenue. The Revenue has been growing by 3.40% on average per year.
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
Based on estimates for the next years, HLT will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.99% on average per year.
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 Y13.16%
EPS Next 2Y13.24%
EPS Next 3Y14.09%
EPS Next 5Y16.99%
Revenue Next Year6.13%
Revenue Next 2Y7.03%
Revenue Next 3Y7.64%
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
A Price/Earnings ratio of 36.15 indicates a quite expensive valuation of HLT.
The rest of the industry has a similar Price/Earnings ratio as HLT.
HLT's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.30.
The Price/Forward Earnings ratio is 30.09, which means the current valuation is very expensive for HLT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HLT is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of HLT to the average of the S&P500 Index (22.73), we can say HLT is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.15 | ||
| Fwd PE | 30.09 |
4.2 Price Multiples
75.94% of the companies in the same industry are cheaper than HLT, based on the Enterprise Value to EBITDA ratio.
HLT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HLT is cheaper than 62.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.09 | ||
| EV/EBITDA | 29.05 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HLT does not grow enough to justify the current Price/Earnings ratio.
HLT has a very decent profitability rating, which may justify a higher PE ratio.
HLT's earnings are expected to grow with 14.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.75
PEG (5Y)2.84
EPS Next 2Y13.24%
EPS Next 3Y14.09%
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 3.93, HLT has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, HLT's dividend is way lower than the S&P500 average.
| 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 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
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 2Y13.24%
EPS Next 3Y14.09%
274.73
-3.49 (-1.25%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners99.48%
Inst Owner Change0.57%
Ins Owners2.04%
Ins Owner Change0.05%
Market Cap64.61B
Analysts72.26
Price Target277.21 (0.9%)
Short Float %3.15%
Short Ratio3.85
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)0%
PT rev (3m)8.47%
EPS NQ rev (1m)0.36%
EPS NQ rev (3m)-3.66%
EPS NY rev (1m)0.98%
EPS NY rev (3m)1.08%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-1.61%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.15 | ||
| Fwd PE | 30.09 | ||
| P/S | 5.63 | ||
| P/FCF | 30.09 | ||
| P/OCF | 27.43 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 29.05 |
EPS(TTM)7.6
EY2.77%
EPS(NY)9.13
Fwd EY3.32%
FCF(TTM)9.13
FCFY3.32%
OCF(TTM)10.02
OCFY3.65%
SpS48.82
BVpS-19.52
TBVpS-68.69
PEG (NY)2.75
PEG (5Y)2.84
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 | 2.77 |
F-Score6
WACC8.78%
ROIC/WACC1.89
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 Y13.16%
EPS Next 2Y13.24%
EPS Next 3Y14.09%
EPS Next 5Y16.99%
Revenue 1Y (TTM)6.26%
Revenue growth 3Y24.52%
Revenue growth 5Y3.4%
Sales Q2Q%6.3%
Revenue Next Year6.13%
Revenue Next 2Y7.03%
Revenue Next 3Y7.64%
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%