HILTON WORLDWIDE HOLDINGS IN (HLT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HLT - US43300A2033 - Common Stock
284.73 USD
+10.4 (+3.79%)
285 USD
+0.27 (+0.09%)
Taking everything into account, HLT scores 5 out of 10 in our fundamental rating. HLT was compared to 132 industry peers in the Hotels, Restaurants & Leisure industry. HLT scores excellent on profitability, 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.
Of the past 5 years HLT 4 years were profitable.
Each year in the past 5 years HLT had a positive operating cash flow.
1.2 Ratios
HLT has a better Return On Assets (10.01%) than 81.06% of its industry peers.
HLT's Return On Invested Capital of 16.67% is amongst the best of the industry. HLT outperforms 85.61% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HLT is above the industry average of 10.41%.
The last Return On Invested Capital (16.67%) for HLT is above the 3 year average (14.57%), which is a sign of increasing profitability.
| 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
HLT has a better Profit Margin (14.19%) than 83.33% of its industry peers.
HLT's Profit Margin has improved in the last couple of years.
The Operating Margin of HLT (21.99%) is better than 81.82% of its industry peers.
In the last couple of years the Operating Margin of HLT has grown nicely.
The Gross Margin of HLT (37.14%) is worse 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
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.
The debt/assets ratio for HLT is higher compared to a year ago.
2.2 Solvency
HLT has an Altman-Z score of 2.82. 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.
With a decent Altman-Z score value of 2.82, HLT is doing good in the industry, outperforming 73.48% of the companies in the same industry.
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 has a Debt to FCF ratio of 5.07. This is in the better half of the industry: HLT outperforms 74.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.07 | ||
| Altman-Z | 2.82 |
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's Current ratio of 0.66 is on the low side compared to the rest of the industry. HLT is outperformed by 66.67% of its industry peers.
A Quick Ratio of 0.66 indicates that HLT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.66, HLT is doing worse than 62.12% of the companies in the same industry.
| 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.
HLT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.74% yearly.
HLT shows a small growth in Revenue. In the last year, the Revenue has grown by 6.68%.
The Revenue has been growing slightly by 3.40% on average over the past years.
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
HLT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.55% yearly.
The Revenue is expected to grow by 7.91% on average over the next years.
EPS Next Y14.16%
EPS Next 2Y13.8%
EPS Next 3Y14.24%
EPS Next 5Y16.55%
Revenue Next Year6.82%
Revenue Next 2Y7.32%
Revenue Next 3Y7.76%
Revenue Next 5Y7.91%
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 36.55 indicates a quite expensive valuation of HLT.
HLT's Price/Earnings is on the same level as the industry average.
HLT's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.98.
The Price/Forward Earnings ratio is 30.88, which means the current valuation is very expensive for HLT.
HLT's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.79, HLT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.55 | ||
| Fwd PE | 30.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HLT is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, HLT is valued a bit cheaper than the industry average as 60.61% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.17 | ||
| EV/EBITDA | 28.21 |
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 14.24% in the coming years.
PEG (NY)2.58
PEG (5Y)2.87
EPS Next 2Y13.8%
EPS Next 3Y14.24%
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 6.40.
Compared to an average S&P500 Dividend Yield of 2.41, 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.
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
8.71% of the earnings are spent on dividend by HLT. This is a low number and sustainable payout ratio.
HLT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP8.71%
EPS Next 2Y13.8%
EPS Next 3Y14.24%
284.73
+10.4 (+3.79%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners101.42%
Inst Owner Change-1.34%
Ins Owners2.05%
Ins Owner Change0%
Market Cap66.97B
Revenue(TTM)11.73B
Net Income(TTM)1.67B
Analysts72.26
Price Target285.92 (0.42%)
Short Float %2.99%
Short Ratio3.91
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)2.68%
PT rev (3m)3.14%
EPS NQ rev (1m)1.12%
EPS NQ rev (3m)0.78%
EPS NY rev (1m)0.59%
EPS NY rev (3m)0.89%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)-0.17%
Revenue NY rev (1m)0.78%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.55 | ||
| Fwd PE | 30.88 | ||
| P/S | 5.71 | ||
| P/FCF | 29.17 | ||
| P/OCF | 26.7 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.21 |
EPS(TTM)7.79
EY2.74%
EPS(NY)9.22
Fwd EY3.24%
FCF(TTM)9.76
FCFY3.43%
OCF(TTM)10.66
OCFY3.75%
SpS49.9
BVpS-20.97
TBVpS-70.68
PEG (NY)2.58
PEG (5Y)2.87
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 | 2.82 |
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 Y14.16%
EPS Next 2Y13.8%
EPS Next 3Y14.24%
EPS Next 5Y16.55%
Revenue 1Y (TTM)6.68%
Revenue growth 3Y24.52%
Revenue growth 5Y3.4%
Sales Q2Q%8.82%
Revenue Next Year6.82%
Revenue Next 2Y7.32%
Revenue Next 3Y7.76%
Revenue Next 5Y7.91%
EBIT growth 1Y11.5%
EBIT growth 3Y32.49%
EBIT growth 5Y8.46%
EBIT Next Year32.99%
EBIT Next 3Y16.05%
EBIT Next 5Y13.85%
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 14.16% 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%.