HILTON WORLDWIDE HOLDINGS IN (HLT) Stock Fundamental Analysis
NYSE:HLT - New York Stock Exchange, Inc. - US43300A2033 - Common Stock - Currency: USD
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.
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.
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 Rank | Sector 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
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 Rank | Sector 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%
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.82 | ||
| Altman-Z | 2.68 |
ROIC/WACC1.82
WACC8.99%
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.57 |
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.01 | ||
| Fwd PE | 29.88 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.97 | ||
| EV/EBITDA | 29.3 |
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%
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 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
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%
273.65
+6.08 (+2.27%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
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 Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.22% |
Yearly Dividend0.61
Dividend Growth(5Y)0.21%
DP9.43%
Div Incr Years0
Div Non Decr Years2
Ex-Date
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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%