HILTON WORLDWIDE HOLDINGS IN (HLT)
US43300A2033 - Common Stock
Taking everything into account, HLT scores 5 out of 10 in our fundamental rating. HLT was compared to 135 industry peers in the Hotels, Restaurants & Leisure industry. HLT scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, HLT is valued expensive at the moment.
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.
HLT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of HLT (7.53%) is better than 81.34% of its industry peers.
HLT has a better Return On Invested Capital (13.24%) than 82.09% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HLT is in line with the industry average of 10.07%.
The 3 year average ROIC (10.58%) for HLT is below the current ROIC(13.24%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.53% | ||
| ROE | N/A | ||
| ROIC | 13.24% |
ROA(3y)6.08%
ROA(5y)3.97%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)10.58%
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 11.41%, HLT is doing good in the industry, outperforming 76.87% of the companies in the same industry.
HLT's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 21.79%, HLT belongs to the best of the industry, outperforming 82.09% of the companies in the same industry.
In the last couple of years the Operating Margin of HLT has grown nicely.
HLT has a worse Gross Margin (39.14%) than 65.67% 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 | 21.79% | ||
| PM (TTM) | 11.41% | ||
| GM | 39.14% |
OM growth 3YN/A
OM growth 5Y6.58%
PM growth 3YN/A
PM growth 5Y5.38%
GM growth 3Y12.51%
GM growth 5Y-0.23%
2. Health
2.1 Basic Checks
HLT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for HLT has been reduced compared to 1 year ago.
Compared to 5 years ago, HLT has less shares outstanding
Compared to 1 year ago, HLT has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.33 indicates that HLT is not a great score, but indicates only limited risk for bankruptcy at the moment.
HLT's Altman-Z score of 2.33 is fine compared to the rest of the industry. HLT outperforms 71.64% of its industry peers.
HLT has a debt to FCF ratio of 5.83. This is a neutral value as HLT would need 5.83 years to pay back of all of its debts.
The Debt to FCF ratio of HLT (5.83) is better than 70.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.83 | ||
| Altman-Z | 2.33 |
ROIC/WACC1.57
WACC8.44%
2.3 Liquidity
HLT has a Current Ratio of 0.84. 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 (0.84) which is comparable to the rest of the industry.
A Quick Ratio of 0.84 indicates that HLT may have some problems paying its short term obligations.
HLT has a Quick ratio (0.84) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.89% 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 17.22% on average per year.
Looking at the last year, HLT shows a quite strong growth in Revenue. The Revenue has grown by 12.52% in the last year.
HLT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.82% yearly.
EPS 1Y (TTM)19.89%
EPS 3Y310.38%
EPS 5Y17.22%
EPS growth Q2Q23.39%
Revenue 1Y (TTM)12.52%
Revenue growth 3Y33.45%
Revenue growth 5Y2.82%
Revenue growth Q2Q12.21%
3.2 Future
The Earnings Per Share is expected to grow by 18.25% on average over the next years. This is quite good.
HLT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.72% yearly.
EPS Next Y15.57%
EPS Next 2Y16.12%
EPS Next 3Y15.52%
EPS Next 5Y18.25%
Revenue Next Year9.78%
Revenue Next 2Y9.16%
Revenue Next 3Y8.69%
Revenue Next 5Y9.72%
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 stable.
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 30.34 indicates a quite expensive valuation of HLT.
The rest of the industry has a similar Price/Earnings ratio as HLT.
The average S&P500 Price/Earnings ratio is at 28.28. HLT is around the same levels.
HLT is valuated rather expensively with a Price/Forward Earnings ratio of 23.55.
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 20.88, HLT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.34 | ||
| Fwd PE | 23.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HLT is valued a bit more expensive than the industry average as 73.13% of the companies are valued more cheaply.
HLT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.47 | ||
| EV/EBITDA | 24 |
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 15.52% in the coming years.
PEG (NY)1.95
PEG (5Y)1.76
EPS Next 2Y16.12%
EPS Next 3Y15.52%
5. Dividend
5.1 Amount
With a yearly dividend of 0.30%, HLT is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.58, HLT pays a bit more dividend than its industry peers.
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 | 0.3% |
5.2 History
The dividend of HLT has a limited annual growth rate of 0.49%.
HLT has been paying a dividend for over 5 years, so it has already some track record.
HLT has decreased its dividend recently.
Dividend Growth(5Y)0.49%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
HLT pays out 13.00% 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.
DP13%
EPS Next 2Y16.12%
EPS Next 3Y15.52%
HILTON WORLDWIDE HOLDINGS IN
NYSE:HLT (5/3/2024, 6:00:00 PM)
After market: 197.54 0 (0%)197.54
+0.01 (+0.01%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap49.65B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.3% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.34 | ||
| Fwd PE | 23.55 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.95
PEG (5Y)1.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.53% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21.79% | ||
| PM (TTM) | 11.41% | ||
| GM | 39.14% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)19.89%
EPS 3Y310.38%
EPS 5Y
EPS growth Q2Q
EPS Next Y15.57%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.52%
Revenue growth 3Y33.45%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y