HILTON WORLDWIDE HOLDINGS IN (HLT) Stock Fundamental Analysis
USA - NYSE:HLT - US43300A2033 - Common Stock
256.96 USD
-3.22 (-1.24%)
263 USD
+6.04 (+2.35%)
Overall HLT gets a fundamental rating of 5 out of 10. We evaluated HLT against 132 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.
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 (10.01%) than 84.09% of its industry peers.
With an excellent Return On Invested Capital value of 16.67%, HLT belongs to the best of the industry, outperforming 84.85% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HLT is above the industry average of 10.72%.
The 3 year average ROIC (14.57%) for HLT is below the current ROIC(16.67%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.01% | ||
| ROE | N/A | ||
| ROIC | 16.67% |
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 14.19%, HLT belongs to the top of the industry, outperforming 85.61% 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 21.99% is amongst the best of the industry. HLT outperforms 82.58% of its industry peers.
HLT's Operating Margin has improved in the last couple of years.
HLT has a worse Gross Margin (37.14%) than 68.18% 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 | 21.99% | ||
| PM (TTM) | 14.19% | ||
| GM | 37.14% |
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.
HLT has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.63 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 (2.63) than 71.97% of its industry peers.
The Debt to FCF ratio of HLT is 5.07, which is a neutral value as it means it would take HLT, 5.07 years of fcf income to pay off all of its debts.
HLT's Debt to FCF ratio of 5.07 is fine compared to the rest of the industry. HLT outperforms 75.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.07 | ||
| Altman-Z | 2.63 |
ROIC/WACC2.06
WACC8.1%
2.3 Liquidity
HLT has a Current Ratio of 0.66. This is a bad value and indicates that HLT is not financially healthy enough and could expect problems in meeting its short term obligations.
HLT has a Current ratio of 0.66. This is in the lower half of the industry: HLT underperforms 65.91% of its industry peers.
HLT has a Quick Ratio of 0.66. This is a bad value and indicates that HLT is not financially healthy enough and could expect problems in meeting its short term obligations.
HLT has a worse Quick ratio (0.66) than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
HLT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.65%, which is quite good.
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.
The Revenue has been growing slightly by 6.68% in the past 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)10.65%
EPS 3Y50.71%
EPS 5Y12.74%
EPS Q2Q%9.9%
Revenue 1Y (TTM)6.68%
Revenue growth 3Y24.52%
Revenue growth 5Y3.4%
Sales Q2Q%8.82%
3.2 Future
The Earnings Per Share is expected to grow by 16.99% on average over the next years. This is quite good.
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 Y13.49%
EPS Next 2Y13.07%
EPS Next 3Y13.94%
EPS Next 5Y16.99%
Revenue Next Year5.99%
Revenue Next 2Y7%
Revenue Next 3Y7.61%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 32.99 indicates a quite expensive valuation of HLT.
Compared to the rest of the industry, the Price/Earnings ratio of HLT is on the same level as its industry peers.
When comparing the Price/Earnings ratio of HLT to the average of the S&P500 Index (26.11), we can say HLT is valued slightly more expensively.
HLT is valuated quite expensively with a Price/Forward Earnings ratio of 28.23.
The rest of the industry has a similar Price/Forward Earnings ratio as HLT.
HLT's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.55.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.99 | ||
| Fwd PE | 28.23 |
4.2 Price Multiples
75.76% of the companies in the same industry are cheaper than HLT, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, HLT is valued a bit cheaper than the industry average as 61.36% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.32 | ||
| EV/EBITDA | 25.83 |
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.
A more expensive valuation may be justified as HLT's earnings are expected to grow with 13.94% in the coming years.
PEG (NY)2.44
PEG (5Y)2.59
EPS Next 2Y13.07%
EPS Next 3Y13.94%
5. Dividend
5.1 Amount
HLT has a yearly dividend return of 0.23%, which is pretty low.
HLT's Dividend Yield is comparable with the industry average which is at 4.12.
Compared to an average S&P500 Dividend Yield of 2.37, HLT's dividend is way lower than the S&P500 average.
| 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 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 8.71% 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.
DP8.71%
EPS Next 2Y13.07%
EPS Next 3Y13.94%
256.96
-3.22 (-1.24%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners101.42%
Inst Owner Change-0.33%
Ins Owners2.05%
Ins Owner Change0.03%
Market Cap60.43B
Revenue(TTM)11.73B
Net Income(TTM)1.67B
Analysts72.26
Price Target284.32 (10.65%)
Short Float %3.07%
Short Ratio4.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.23% |
Yearly Dividend0.61
Dividend Growth(5Y)0.21%
DP8.71%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.16%
Min EPS beat(2)1.57%
Max EPS beat(2)6.76%
EPS beat(4)4
Avg EPS beat(4)4.41%
Min EPS beat(4)1.57%
Max EPS beat(4)6.76%
EPS beat(8)8
Avg EPS beat(8)4.42%
EPS beat(12)11
Avg EPS beat(12)6.22%
EPS beat(16)14
Avg EPS beat(16)6.65%
Revenue beat(2)2
Avg Revenue beat(2)1.38%
Min Revenue beat(2)0.13%
Max Revenue beat(2)2.63%
Revenue beat(4)2
Avg Revenue beat(4)0.07%
Min Revenue beat(4)-1.86%
Max Revenue beat(4)2.63%
Revenue beat(8)3
Avg Revenue beat(8)-0.36%
Revenue beat(12)7
Avg Revenue beat(12)0.36%
Revenue beat(16)8
Avg Revenue beat(16)0.31%
PT rev (1m)2.56%
PT rev (3m)7.02%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)0.57%
EPS NY rev (1m)0.16%
EPS NY rev (3m)1.28%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.99 | ||
| Fwd PE | 28.23 | ||
| P/S | 5.15 | ||
| P/FCF | 26.32 | ||
| P/OCF | 24.1 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.83 |
EPS(TTM)7.79
EY3.03%
EPS(NY)9.1
Fwd EY3.54%
FCF(TTM)9.76
FCFY3.8%
OCF(TTM)10.66
OCFY4.15%
SpS49.9
BVpS-20.97
TBVpS-70.68
PEG (NY)2.44
PEG (5Y)2.59
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.01% | ||
| ROE | N/A | ||
| ROCE | 21.6% | ||
| ROIC | 16.67% | ||
| ROICexc | 18.29% | ||
| ROICexgc | N/A | ||
| OM | 21.99% | ||
| PM (TTM) | 14.19% | ||
| GM | 37.14% | ||
| FCFM | 19.57% |
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
ROICexgc growth 3YN/A
ROICexgc 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 Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.07 | ||
| Debt/EBITDA | 4.22 | ||
| Cap/Depr | 125.44% | ||
| Cap/Sales | 1.81% | ||
| Interest Coverage | 4.06 | ||
| Cash Conversion | 91.23% | ||
| Profit Quality | 137.9% | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | 2.63 |
F-Score6
WACC8.1%
ROIC/WACC2.06
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)10.65%
EPS 3Y50.71%
EPS 5Y12.74%
EPS Q2Q%9.9%
EPS Next Y13.49%
EPS Next 2Y13.07%
EPS Next 3Y13.94%
EPS Next 5Y16.99%
Revenue 1Y (TTM)6.68%
Revenue growth 3Y24.52%
Revenue growth 5Y3.4%
Sales Q2Q%8.82%
Revenue Next Year5.99%
Revenue Next 2Y7%
Revenue Next 3Y7.61%
Revenue Next 5Y8.46%
EBIT growth 1Y11.5%
EBIT growth 3Y32.49%
EBIT growth 5Y8.46%
EBIT Next Year32.99%
EBIT Next 3Y16.05%
EBIT Next 5Y14.15%
FCF growth 1Y31.5%
FCF growth 3Y292.57%
FCF growth 5Y9.01%
OCF growth 1Y27.76%
OCF growth 3Y164.33%
OCF growth 5Y7.78%
HILTON WORLDWIDE HOLDINGS IN / HLT FAQ
What is the fundamental rating for HLT stock?
ChartMill assigns a fundamental rating of 5 / 10 to HLT.
What is the valuation status of HILTON WORLDWIDE HOLDINGS IN (HLT) stock?
ChartMill assigns a valuation rating of 2 / 10 to HILTON WORLDWIDE HOLDINGS IN (HLT). This can be considered as Overvalued.
Can you provide the profitability details for HILTON WORLDWIDE HOLDINGS IN?
HILTON WORLDWIDE HOLDINGS IN (HLT) has a profitability rating of 7 / 10.
What is the earnings growth outlook for HILTON WORLDWIDE HOLDINGS IN?
The Earnings per Share (EPS) of HILTON WORLDWIDE HOLDINGS IN (HLT) is expected to grow by 13.49% in the next year.
How sustainable is the dividend of HILTON WORLDWIDE HOLDINGS IN (HLT) stock?
The dividend rating of HILTON WORLDWIDE HOLDINGS IN (HLT) is 4 / 10 and the dividend payout ratio is 8.71%.