HILTON WORLDWIDE HOLDINGS IN (HLT) Stock Fundamental Analysis
NYSE:HLT - New York Stock Exchange, Inc. - US43300A2033 - Common Stock - Currency: USD
Overall HLT gets a fundamental rating of 5 out of 10. We evaluated HLT against 133 industry peers in the Hotels, Restaurants & Leisure industry. HLT has an excellent profitability rating, but there are 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
In the past year HLT was profitable.
In the past year HLT had a positive cash flow from operations.
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
With an excellent Return On Assets value of 9.79%, HLT belongs to the best of the industry, outperforming 84.96% of the companies in the same industry.
The Return On Invested Capital of HLT (16.35%) is better than 84.96% 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 13.81%.
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 86.47% of its industry peers.
In the last couple of years the Profit Margin of HLT has grown nicely.
With an excellent Operating Margin value of 21.03%, HLT belongs to the best of the industry, outperforming 81.95% of the companies in the same industry.
In the last couple of years the Operating Margin of HLT has grown nicely.
With a Gross Margin value of 37.02%, HLT is not doing good in the industry: 69.17% of the companies in the same industry are doing better.
HLT's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HLT 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.
The debt/assets ratio for HLT is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.70 indicates that HLT is not a great score, but indicates only limited risk for bankruptcy at the moment.
HLT has a better Altman-Z score (2.70) than 71.43% of its industry peers.
HLT has a debt to FCF ratio of 5.82. This is a neutral value as HLT would need 5.82 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.82, HLT is in the better half of the industry, outperforming 75.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.82 | ||
| Altman-Z | 2.7 |
ROIC/WACC1.97
WACC8.28%
2.3 Liquidity
A Current Ratio of 0.57 indicates that HLT may have some problems paying its short term obligations.
HLT's Current ratio of 0.57 is on the low side compared to the rest of the industry. HLT is outperformed by 72.18% of its industry peers.
HLT has a Quick 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 Quick ratio value of 0.57, HLT is not doing good in the industry: 66.92% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.29% over the past year.
Measured over the past years, HLT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.74% on average per year.
Looking at the last year, HLT shows a small growth in Revenue. The Revenue has grown by 7.43% in the last year.
HLT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.40% yearly.
EPS 1Y (TTM)12.29%
EPS 3Y50.71%
EPS 5Y12.74%
EPS Q2Q%12.42%
Revenue 1Y (TTM)7.43%
Revenue growth 3Y24.52%
Revenue growth 5Y3.4%
Sales Q2Q%4.74%
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 18.00% 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 Y12%
EPS Next 2Y13.31%
EPS Next 3Y14.32%
EPS Next 5Y18%
Revenue Next Year6.36%
Revenue Next 2Y7.26%
Revenue Next 3Y7.8%
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
With a Price/Earnings ratio of 37.35, HLT can be considered very expensive at the moment.
HLT's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.28. HLT is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 29.87, HLT can be considered very expensive at the moment.
HLT's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of HLT to the average of the S&P500 Index (21.76), we can say HLT is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.35 | ||
| Fwd PE | 29.87 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HLT indicates a slightly more expensive valuation: HLT is more expensive than 73.68% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as HLT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.89 | ||
| EV/EBITDA | 29.54 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
HLT has a very decent profitability rating, which may justify a higher PE ratio.
HLT's earnings are expected to grow with 14.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.11
PEG (5Y)2.93
EPS Next 2Y13.31%
EPS Next 3Y14.32%
5. Dividend
5.1 Amount
With a yearly dividend of 0.23%, HLT is not a good candidate for dividend investing.
HLT's Dividend Yield is comparable with the industry average which is at 3.71.
With a Dividend Yield of 0.23, HLT pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.23% |
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.
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
9.43% 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.
DP9.43%
EPS Next 2Y13.31%
EPS Next 3Y14.32%
NYSE:HLT (7/3/2025, 11:30:59 AM)
273.02
+2.91 (+1.08%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners98.41%
Inst Owner Change-0.13%
Ins Owners2.02%
Ins Owner Change0.59%
Market Cap64.90B
Analysts72
Price Target256.08 (-6.2%)
Short Float %2.95%
Short Ratio3.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.23% |
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)1.02%
PT rev (3m)-6.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.72%
EPS NY rev (1m)0.05%
EPS NY rev (3m)-1.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.8%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-1.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.35 | ||
| Fwd PE | 29.87 | ||
| P/S | 5.75 | ||
| P/FCF | 33.89 | ||
| P/OCF | 30.63 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 29.54 |
EPS(TTM)7.31
EY2.68%
EPS(NY)9.14
Fwd EY3.35%
FCF(TTM)8.06
FCFY2.95%
OCF(TTM)8.91
OCFY3.27%
SpS47.52
BVpS-18.42
TBVpS-66.72
PEG (NY)3.11
PEG (5Y)2.93
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 | 2.7 |
F-Score6
WACC8.28%
ROIC/WACC1.97
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)12.29%
EPS 3Y50.71%
EPS 5Y12.74%
EPS Q2Q%12.42%
EPS Next Y12%
EPS Next 2Y13.31%
EPS Next 3Y14.32%
EPS Next 5Y18%
Revenue 1Y (TTM)7.43%
Revenue growth 3Y24.52%
Revenue growth 5Y3.4%
Sales Q2Q%4.74%
Revenue Next Year6.36%
Revenue Next 2Y7.26%
Revenue Next 3Y7.8%
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%