H WORLD GROUP LTD-ADR (HTHT) Stock Fundamental Analysis
NASDAQ:HTHT - Nasdaq - US44332N1063 - ADR - Currency: USD
Overall HTHT gets a fundamental rating of 5 out of 10. We evaluated HTHT against 134 industry peers in the Hotels, Restaurants & Leisure industry. HTHT scores excellent on profitability, but there are some minor concerns on its financial health. HTHT has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year HTHT was profitable.
HTHT had a positive operating cash flow in the past year.
In multiple years HTHT reported negative net income over the last 5 years.
In the past 5 years HTHT always reported a positive cash flow from operatings.
1.2 Ratios
HTHT has a Return On Assets of 4.87%. This is in the better half of the industry: HTHT outperforms 70.15% of its industry peers.
HTHT has a better Return On Equity (25.03%) than 82.84% of its industry peers.
The Return On Invested Capital of HTHT (7.54%) is better than 64.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.87% | ||
| ROE | 25.03% | ||
| ROIC | 7.54% |
ROA(3y)2.78%
ROA(5y)0.85%
ROE(3y)12.61%
ROE(5y)2.85%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 12.76%, HTHT belongs to the best of the industry, outperforming 82.84% of the companies in the same industry.
In the last couple of years the Profit Margin of HTHT has declined.
Looking at the Operating Margin, with a value of 21.77%, HTHT belongs to the top of the industry, outperforming 83.58% of the companies in the same industry.
HTHT's Operating Margin has improved in the last couple of years.
The Gross Margin of HTHT (67.05%) is better than 80.60% of its industry peers.
HTHT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.77% | ||
| PM (TTM) | 12.76% | ||
| GM | 67.05% |
OM growth 3Y156.97%
OM growth 5Y2.97%
PM growth 3YN/A
PM growth 5Y-4.16%
GM growth 3Y5.3%
GM growth 5Y-0.14%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HTHT is still creating some value.
Compared to 1 year ago, HTHT has less shares outstanding
Compared to 5 years ago, HTHT has more shares outstanding
Compared to 1 year ago, HTHT has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.66, we must say that HTHT is in the distress zone and has some risk of bankruptcy.
HTHT has a Altman-Z score (1.66) which is comparable to the rest of the industry.
The Debt to FCF ratio of HTHT is 1.26, which is an excellent value as it means it would take HTHT, only 1.26 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.26, HTHT belongs to the top of the industry, outperforming 88.06% of the companies in the same industry.
HTHT has a Debt/Equity ratio of 0.61. This is a neutral value indicating HTHT is somewhat dependend on debt financing.
HTHT's Debt to Equity ratio of 0.61 is fine compared to the rest of the industry. HTHT outperforms 68.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 1.26 | ||
| Altman-Z | 1.66 |
ROIC/WACC1.07
WACC7.04%
2.3 Liquidity
A Current Ratio of 0.99 indicates that HTHT may have some problems paying its short term obligations.
HTHT has a Current ratio (0.99) which is comparable to the rest of the industry.
A Quick Ratio of 0.99 indicates that HTHT may have some problems paying its short term obligations.
HTHT's Quick ratio of 0.99 is in line compared to the rest of the industry. HTHT outperforms 59.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
HTHT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.34%.
The Earnings Per Share has been growing by 9.62% on average over the past years. This is quite good.
HTHT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.18%.
HTHT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.33% yearly.
EPS 1Y (TTM)-10.34%
EPS 3YN/A
EPS 5Y9.62%
EPS Q2Q%33.33%
Revenue 1Y (TTM)9.18%
Revenue growth 3Y23.17%
Revenue growth 5Y16.33%
Sales Q2Q%2.22%
3.2 Future
The Earnings Per Share is expected to grow by 21.58% on average over the next years. This is a very strong growth
HTHT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.71% yearly.
EPS Next Y43.67%
EPS Next 2Y27.81%
EPS Next 3Y21.58%
EPS Next 5YN/A
Revenue Next Year6.61%
Revenue Next 2Y7.41%
Revenue Next 3Y7.71%
Revenue Next 5YN/A
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 24.57, which indicates a rather expensive current valuation of HTHT.
Based on the Price/Earnings ratio, HTHT is valued a bit cheaper than the industry average as 60.45% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of HTHT to the average of the S&P500 Index (26.35), we can say HTHT is valued inline with the index average.
HTHT is valuated correctly with a Price/Forward Earnings ratio of 16.12.
Based on the Price/Forward Earnings ratio, HTHT is valued a bit cheaper than 67.91% of the companies in the same industry.
HTHT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.57 | ||
| Fwd PE | 16.12 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as HTHT.
Based on the Price/Free Cash Flow ratio, HTHT is valued cheaply inside the industry as 88.06% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.95 | ||
| EV/EBITDA | 11.27 |
4.3 Compensation for Growth
HTHT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
HTHT has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as HTHT's earnings are expected to grow with 21.58% in the coming years.
PEG (NY)0.56
PEG (5Y)2.55
EPS Next 2Y27.81%
EPS Next 3Y21.58%
5. Dividend
5.1 Amount
HTHT has a Yearly Dividend Yield of 4.58%, which is a nice return.
Compared to an average industry Dividend Yield of 3.85, HTHT pays a better dividend. On top of this HTHT pays more dividend than 90.30% of the companies listed in the same industry.
HTHT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.58% |
5.2 History
On average, the dividend of HTHT grows each year by 37.96%, which is quite nice.
HTHT has been paying a dividend for over 5 years, so it has already some track record.
HTHT has decreased its dividend recently.
Dividend Growth(5Y)37.96%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
114.17% of the earnings are spent on dividend by HTHT. This is not a sustainable payout ratio.
HTHT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP114.17%
EPS Next 2Y27.81%
EPS Next 3Y21.58%
35.87
-0.39 (-1.08%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners24.85%
Inst Owner Change4.02%
Ins Owners30.09%
Ins Owner ChangeN/A
Market Cap11.01B
Analysts85.71
Price Target37.96 (5.83%)
Short Float %6.38%
Short Ratio5.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.58% |
Yearly Dividend1.57
Dividend Growth(5Y)37.96%
DP114.17%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-46.99%
Min EPS beat(2)-88.47%
Max EPS beat(2)-5.5%
EPS beat(4)1
Avg EPS beat(4)5.63%
Min EPS beat(4)-88.47%
Max EPS beat(4)128.76%
EPS beat(8)4
Avg EPS beat(8)33.36%
EPS beat(12)5
Avg EPS beat(12)-21.66%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.28%
Min Revenue beat(2)-3.95%
Max Revenue beat(2)3.38%
Revenue beat(4)1
Avg Revenue beat(4)-0.4%
Min Revenue beat(4)-3.95%
Max Revenue beat(4)3.38%
Revenue beat(8)3
Avg Revenue beat(8)0.3%
Revenue beat(12)4
Avg Revenue beat(12)-1.05%
Revenue beat(16)5
Avg Revenue beat(16)-1%
PT rev (1m)-1.87%
PT rev (3m)9.6%
EPS NQ rev (1m)-5.72%
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.27%
EPS NY rev (3m)-4.04%
Revenue NQ rev (1m)-0.38%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.57 | ||
| Fwd PE | 16.12 | ||
| P/S | 3.31 | ||
| P/FCF | 11.95 | ||
| P/OCF | 10.53 | ||
| P/B | 6.5 | ||
| P/tB | 39.45 | ||
| EV/EBITDA | 11.27 |
EPS(TTM)1.46
EY4.07%
EPS(NY)2.23
Fwd EY6.2%
FCF(TTM)3
FCFY8.37%
OCF(TTM)3.41
OCFY9.5%
SpS10.83
BVpS5.52
TBVpS0.91
PEG (NY)0.56
PEG (5Y)2.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.87% | ||
| ROE | 25.03% | ||
| ROCE | 10.56% | ||
| ROIC | 7.54% | ||
| ROICexc | 9.73% | ||
| ROICexgc | 13.26% | ||
| OM | 21.77% | ||
| PM (TTM) | 12.76% | ||
| GM | 67.05% | ||
| FCFM | 27.71% |
ROA(3y)2.78%
ROA(5y)0.85%
ROE(3y)12.61%
ROE(5y)2.85%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y224.7%
ROICexcg growth 5Y20.59%
ROICexc growth 3Y224.02%
ROICexc growth 5Y16.7%
OM growth 3Y156.97%
OM growth 5Y2.97%
PM growth 3YN/A
PM growth 5Y-4.16%
GM growth 3Y5.3%
GM growth 5Y-0.14%
F-Score7
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 1.26 | ||
| Debt/EBITDA | 1.14 | ||
| Cap/Depr | 67.42% | ||
| Cap/Sales | 3.76% | ||
| Interest Coverage | 31.33 | ||
| Cash Conversion | 115.1% | ||
| Profit Quality | 217.19% | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 1.66 |
F-Score7
WACC7.04%
ROIC/WACC1.07
Cap/Depr(3y)67.82%
Cap/Depr(5y)89.02%
Cap/Sales(3y)5.16%
Cap/Sales(5y)9.19%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-10.34%
EPS 3YN/A
EPS 5Y9.62%
EPS Q2Q%33.33%
EPS Next Y43.67%
EPS Next 2Y27.81%
EPS Next 3Y21.58%
EPS Next 5YN/A
Revenue 1Y (TTM)9.18%
Revenue growth 3Y23.17%
Revenue growth 5Y16.33%
Sales Q2Q%2.22%
Revenue Next Year6.61%
Revenue Next 2Y7.41%
Revenue Next 3Y7.71%
Revenue Next 5YN/A
EBIT growth 1Y10.22%
EBIT growth 3Y216.51%
EBIT growth 5Y19.79%
EBIT Next Year41.03%
EBIT Next 3Y18.48%
EBIT Next 5YN/A
FCF growth 1Y-2.26%
FCF growth 3YN/A
FCF growth 5Y30.32%
OCF growth 1Y-2.03%
OCF growth 3Y77.6%
OCF growth 5Y17.95%