H WORLD GROUP LTD-ADR (HTHT) Stock Fundamental Analysis
USA - NASDAQ:HTHT - US44332N1063 - ADR
38.31 USD
-0.19 (-0.49%)
38.31 USD
0 (0%)
Overall HTHT gets a fundamental rating of 5 out of 10. We evaluated HTHT against 135 industry peers in the Hotels, Restaurants & Leisure industry. HTHT scores excellent on profitability, but there are some minor concerns on its financial health. HTHT is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
HTHT had positive earnings in the past year.
HTHT had a positive operating cash flow in the past year.
In multiple years HTHT reported negative net income over the last 5 years.
HTHT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HTHT has a Return On Assets of 5.80%. This is in the better half of the industry: HTHT outperforms 72.59% of its industry peers.
The Return On Equity of HTHT (30.94%) is better than 85.19% of its industry peers.
HTHT's Return On Invested Capital of 8.65% is fine compared to the rest of the industry. HTHT outperforms 69.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.8% | ||
| ROE | 30.94% | ||
| ROIC | 8.65% |
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
Looking at the Profit Margin, with a value of 15.48%, HTHT belongs to the top of the industry, outperforming 89.63% of the companies in the same industry.
HTHT's Profit Margin has declined in the last couple of years.
The Operating Margin of HTHT (22.62%) is better than 85.93% of its industry peers.
In the last couple of years the Operating Margin of HTHT has grown nicely.
With an excellent Gross Margin value of 66.94%, HTHT belongs to the best of the industry, outperforming 82.22% of the companies in the same industry.
HTHT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.62% | ||
| PM (TTM) | 15.48% | ||
| GM | 66.94% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HTHT is creating some value.
Compared to 1 year ago, HTHT has less shares outstanding
HTHT has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, HTHT has a worse debt to assets ratio.
2.2 Solvency
HTHT has an Altman-Z score of 1.60. This is a bad value and indicates that HTHT is not financially healthy and even has some risk of bankruptcy.
HTHT has a Altman-Z score (1.60) which is in line with its industry peers.
The Debt to FCF ratio of HTHT is 1.56, which is an excellent value as it means it would take HTHT, only 1.56 years of fcf income to pay off all of its debts.
HTHT has a better Debt to FCF ratio (1.56) than 85.93% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that HTHT is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.32, HTHT is doing good in the industry, outperforming 71.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.56 | ||
| Altman-Z | 1.6 |
ROIC/WACC1.53
WACC5.67%
2.3 Liquidity
A Current Ratio of 0.81 indicates that HTHT may have some problems paying its short term obligations.
The Current ratio of HTHT (0.81) is comparable to the rest of the industry.
HTHT has a Quick Ratio of 0.81. This is a bad value and indicates that HTHT is not financially healthy enough and could expect problems in meeting its short term obligations.
HTHT has a Quick ratio (0.81) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The earnings per share for HTHT have decreased strongly by -13.45% in the last year.
HTHT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.62% yearly.
Looking at the last year, HTHT shows a small growth in Revenue. The Revenue has grown by 4.24% in the last year.
Measured over the past years, HTHT shows a quite strong growth in Revenue. The Revenue has been growing by 16.33% on average per year.
EPS 1Y (TTM)-13.45%
EPS 3YN/A
EPS 5Y9.62%
EPS Q2Q%-2.94%
Revenue 1Y (TTM)4.24%
Revenue growth 3Y23.17%
Revenue growth 5Y16.33%
Sales Q2Q%4.52%
3.2 Future
HTHT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.76% yearly.
The Revenue is expected to grow by 6.30% on average over the next years.
EPS Next Y47.08%
EPS Next 2Y26.82%
EPS Next 3Y21.76%
EPS Next 5YN/A
Revenue Next Year5.22%
Revenue Next 2Y5.78%
Revenue Next 3Y6.3%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 25.04, which means the current valuation is very expensive for HTHT.
HTHT's Price/Earnings ratio is a bit cheaper when compared to the industry. HTHT is cheaper than 61.48% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.90, HTHT is valued at the same level.
HTHT is valuated correctly with a Price/Forward Earnings ratio of 16.56.
Based on the Price/Forward Earnings ratio, HTHT is valued a bit cheaper than 71.11% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HTHT to the average of the S&P500 Index (23.36), we can say HTHT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.04 | ||
| Fwd PE | 16.56 |
4.2 Price Multiples
HTHT's Enterprise Value to EBITDA is on the same level as the industry average.
HTHT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HTHT is cheaper than 88.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.32 | ||
| EV/EBITDA | 11.8 |
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 21.76% in the coming years.
PEG (NY)0.53
PEG (5Y)2.6
EPS Next 2Y26.82%
EPS Next 3Y21.76%
5. Dividend
5.1 Amount
HTHT has a Yearly Dividend Yield of 4.55%, which is a nice return.
Compared to an average industry Dividend Yield of 6.99, HTHT pays a better dividend. On top of this HTHT pays more dividend than 93.33% 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 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.55% |
5.2 History
The dividend of HTHT is nicely growing with an annual growth rate of 37.96%!
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
HTHT pays out 93.75% of its income as dividend. This is not a sustainable payout ratio.
HTHT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP93.75%
EPS Next 2Y26.82%
EPS Next 3Y21.76%
38.31
-0.19 (-0.49%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners26.54%
Inst Owner Change0%
Ins Owners22.78%
Ins Owner ChangeN/A
Market Cap11.76B
Analysts85
Price Target40.59 (5.95%)
Short Float %6.84%
Short Ratio5.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.55% |
Yearly Dividend1.65
Dividend Growth(5Y)37.96%
DP93.75%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-9.22%
Min EPS beat(2)-20.12%
Max EPS beat(2)1.67%
EPS beat(4)1
Avg EPS beat(4)-28.1%
Min EPS beat(4)-88.47%
Max EPS beat(4)1.67%
EPS beat(8)3
Avg EPS beat(8)-1.09%
EPS beat(12)5
Avg EPS beat(12)-21.37%
EPS beat(16)6
Avg EPS beat(16)-27.51%
Revenue beat(2)0
Avg Revenue beat(2)-1.7%
Min Revenue beat(2)-3.23%
Max Revenue beat(2)-0.17%
Revenue beat(4)1
Avg Revenue beat(4)-0.99%
Min Revenue beat(4)-3.95%
Max Revenue beat(4)3.38%
Revenue beat(8)3
Avg Revenue beat(8)0.09%
Revenue beat(12)3
Avg Revenue beat(12)-1.04%
Revenue beat(16)4
Avg Revenue beat(16)-1.22%
PT rev (1m)10.01%
PT rev (3m)15.62%
EPS NQ rev (1m)-3.12%
EPS NQ rev (3m)-3.85%
EPS NY rev (1m)1.56%
EPS NY rev (3m)2.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.06%
Revenue NY rev (1m)-0.42%
Revenue NY rev (3m)-1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.04 | ||
| Fwd PE | 16.56 | ||
| P/S | 3.45 | ||
| P/FCF | 12.32 | ||
| P/OCF | 10.96 | ||
| P/B | 6.89 | ||
| P/tB | 60.1 | ||
| EV/EBITDA | 11.8 |
EPS(TTM)1.53
EY3.99%
EPS(NY)2.31
Fwd EY6.04%
FCF(TTM)3.11
FCFY8.11%
OCF(TTM)3.49
OCFY9.12%
SpS11.11
BVpS5.56
TBVpS0.64
PEG (NY)0.53
PEG (5Y)2.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.8% | ||
| ROE | 30.94% | ||
| ROCE | 12.1% | ||
| ROIC | 8.65% | ||
| ROICexc | 11.91% | ||
| ROICexgc | 17.69% | ||
| OM | 22.62% | ||
| PM (TTM) | 15.48% | ||
| GM | 66.94% | ||
| FCFM | 27.97% |
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-Score6
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.56 | ||
| Debt/EBITDA | 0.58 | ||
| Cap/Depr | 65.55% | ||
| Cap/Sales | 3.47% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 112.63% | ||
| Profit Quality | 180.67% | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 1.6 |
F-Score6
WACC5.67%
ROIC/WACC1.53
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)-13.45%
EPS 3YN/A
EPS 5Y9.62%
EPS Q2Q%-2.94%
EPS Next Y47.08%
EPS Next 2Y26.82%
EPS Next 3Y21.76%
EPS Next 5YN/A
Revenue 1Y (TTM)4.24%
Revenue growth 3Y23.17%
Revenue growth 5Y16.33%
Sales Q2Q%4.52%
Revenue Next Year5.22%
Revenue Next 2Y5.78%
Revenue Next 3Y6.3%
Revenue Next 5YN/A
EBIT growth 1Y4.77%
EBIT growth 3Y216.51%
EBIT growth 5Y19.79%
EBIT Next Year46.82%
EBIT Next 3Y19.93%
EBIT Next 5YN/A
FCF growth 1Y44.53%
FCF growth 3YN/A
FCF growth 5Y30.32%
OCF growth 1Y36.89%
OCF growth 3Y77.6%
OCF growth 5Y17.95%