HILTON WORLDWIDE HOLDINGS IN (HLT) Stock Fundamental Analysis
NYSE:HLT - New York Stock Exchange, Inc. - US43300A2033 - Common Stock - Currency: USD
Taking everything into account, HLT scores 5 out of 10 in our fundamental rating. 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
In the past year HLT was profitable.
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
HLT has a better Return On Assets (9.79%) than 84.21% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.35%, HLT belongs to the top of the industry, outperforming 84.96% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HLT is in line with the industry average of 13.97%.
The 3 year average ROIC (14.57%) for HLT is below the current ROIC(16.35%), indicating increased profibility in the last year.
| 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's Profit Margin of 13.90% is amongst the best of the industry. HLT outperforms 86.47% of its industry peers.
HLT's Profit Margin has improved in the last couple of years.
The Operating Margin of HLT (21.03%) is better than 81.95% of its industry peers.
HLT's Operating Margin has improved in the last couple of years.
HLT's Gross Margin of 37.02% 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 | 21.03% | ||
| 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.
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
HLT has an Altman-Z score of 2.59. 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 has a better Altman-Z score (2.59) than 69.92% 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.
HLT has a Debt to FCF ratio of 5.82. This is in the better half of the industry: HLT outperforms 75.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.82 | ||
| Altman-Z | 2.59 |
ROIC/WACC1.83
WACC8.95%
2.3 Liquidity
A Current Ratio of 0.57 indicates that HLT may have some problems paying its short term obligations.
HLT has a worse Current ratio (0.57) than 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
HLT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.29%, 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 7.43% 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)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
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.
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 Y11.95%
EPS Next 2Y13.33%
EPS Next 3Y14.16%
EPS Next 5Y18%
Revenue Next Year6.36%
Revenue Next 2Y7.26%
Revenue Next 3Y7.81%
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 34.27, which means the current valuation is very expensive for HLT.
The rest of the industry has a similar Price/Earnings ratio as HLT.
The average S&P500 Price/Earnings ratio is at 26.60. HLT is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 27.40, 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 22.39, HLT is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.27 | ||
| Fwd PE | 27.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HLT is valued a bit more expensive than the industry average as 72.93% of the companies are valued more cheaply.
60.90% of the companies in the same industry are more expensive than HLT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.1 | ||
| EV/EBITDA | 27.98 |
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 14.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.87
PEG (5Y)2.69
EPS Next 2Y13.33%
EPS Next 3Y14.16%
5. Dividend
5.1 Amount
HLT has a yearly dividend return of 0.24%, which is pretty low.
Compared to an average industry Dividend Yield of 3.82, HLT has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, HLT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.24% |
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.
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
9.43% 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 2Y13.33%
EPS Next 3Y14.16%
250.55
-2.99 (-1.18%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners97.71%
Inst Owner Change-0.13%
Ins Owners1.96%
Ins Owner Change0.59%
Market Cap59.56B
Analysts72
Price Target255.57 (2%)
Short Float %2.44%
Short Ratio2.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.24% |
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)0.82%
PT rev (3m)-6.62%
EPS NQ rev (1m)-1.61%
EPS NQ rev (3m)-5.63%
EPS NY rev (1m)-1.13%
EPS NY rev (3m)-1.57%
Revenue NQ rev (1m)-1.23%
Revenue NQ rev (3m)-2.86%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-1.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.27 | ||
| Fwd PE | 27.4 | ||
| P/S | 5.27 | ||
| P/FCF | 31.1 | ||
| P/OCF | 28.11 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 27.98 |
EPS(TTM)7.31
EY2.92%
EPS(NY)9.15
Fwd EY3.65%
FCF(TTM)8.06
FCFY3.22%
OCF(TTM)8.91
OCFY3.56%
SpS47.52
BVpS-18.42
TBVpS-66.72
PEG (NY)2.87
PEG (5Y)2.69
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 | 2.59 |
F-Score6
WACC8.95%
ROIC/WACC1.83
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 Y11.95%
EPS Next 2Y13.33%
EPS Next 3Y14.16%
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 3Y7.81%
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%