H WORLD GROUP LTD-ADR (HTHT) Stock Fundamental Analysis
NASDAQ:HTHT - Nasdaq - US44332N1063 - ADR - Currency: USD
HTHT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 136 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
HTHT had positive earnings in the past year.
In the past year HTHT had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: HTHT reported negative net income in multiple years.
In the past 5 years HTHT always reported a positive cash flow from operatings.
1.2 Ratios
HTHT has a better Return On Assets (4.87%) than 69.85% of its industry peers.
HTHT has a better Return On Equity (25.03%) than 82.35% of its industry peers.
With a decent Return On Invested Capital value of 7.55%, HTHT is doing good in the industry, outperforming 61.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.87% | ||
| ROE | 25.03% | ||
| ROIC | 7.55% |
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
HTHT has a better Profit Margin (12.76%) than 80.15% of its industry peers.
In the last couple of years the Profit Margin of HTHT has declined.
HTHT has a Operating Margin of 21.77%. This is amongst the best in the industry. HTHT outperforms 83.09% of its industry peers.
In the last couple of years the Operating Margin of HTHT has grown nicely.
HTHT has a Gross Margin of 67.05%. This is amongst the best in the industry. HTHT outperforms 81.62% of its industry peers.
In the last couple of years the Gross Margin of HTHT has remained more or less at the same level.
| 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.
The number of shares outstanding for HTHT has been reduced compared to 1 year ago.
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
HTHT has an Altman-Z score of 1.66. This is a bad value and indicates that HTHT is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.66, HTHT is in line with its industry, outperforming 55.15% of the companies in the same industry.
HTHT has a debt to FCF ratio of 1.26. This is a very positive value and a sign of high solvency as it would only need 1.26 years to pay back of all of its debts.
HTHT has a Debt to FCF ratio of 1.26. This is amongst the best in the industry. HTHT outperforms 88.97% of its industry peers.
HTHT has a Debt/Equity ratio of 0.61. This is a neutral value indicating HTHT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.61, HTHT is in the better half of the industry, outperforming 69.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 1.26 | ||
| Altman-Z | 1.66 |
ROIC/WACC1.04
WACC7.29%
2.3 Liquidity
HTHT has a Current Ratio of 0.99. This is a bad value and indicates that HTHT is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.99, HTHT is in line with its industry, outperforming 58.09% of the companies in the same industry.
HTHT has a Quick Ratio of 0.99. 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 of 0.99. This is in the better half of the industry: HTHT outperforms 61.76% 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 -23.62%.
The Earnings Per Share has been growing by 9.85% on average over the past years. This is quite good.
The Revenue has grown by 9.18% in the past year. This is quite good.
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)-23.62%
EPS 3YN/A
EPS 5Y9.85%
EPS Q2Q%-91.3%
Revenue 1Y (TTM)9.18%
Revenue growth 3Y23.17%
Revenue growth 5Y16.33%
Sales Q2Q%7.84%
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
Based on estimates for the next years, HTHT will show a small growth in Revenue. The Revenue will grow by 7.71% on average per year.
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
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
HTHT is valuated quite expensively with a Price/Earnings ratio of 26.21.
The rest of the industry has a similar Price/Earnings ratio as HTHT.
HTHT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.18.
A Price/Forward Earnings ratio of 18.28 indicates a rather expensive valuation of HTHT.
Based on the Price/Forward Earnings ratio, HTHT is valued a bit cheaper than 63.97% of the companies in the same industry.
HTHT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.21 | ||
| Fwd PE | 18.28 |
4.2 Price Multiples
HTHT's Enterprise Value to EBITDA ratio is in line with the industry average.
84.56% of the companies in the same industry are more expensive than HTHT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.02 | ||
| EV/EBITDA | 11.2 |
4.3 Compensation for Growth
The 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)0.6
PEG (5Y)2.66
EPS Next 2Y27.81%
EPS Next 3Y21.58%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.53%, HTHT is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.67, HTHT pays a better dividend. On top of this HTHT pays more dividend than 90.44% 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 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.53% |
5.2 History
On average, the dividend of HTHT grows each year by 37.74%, 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)37.74%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
HTHT pays out 114.17% 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.
DP114.17%
EPS Next 2Y27.81%
EPS Next 3Y21.58%
35.65
+1.22 (+3.54%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners24.85%
Inst Owner Change5.67%
Ins Owners30.09%
Ins Owner ChangeN/A
Market Cap10.94B
Analysts85.71
Price Target36.7 (2.95%)
Short Float %5.87%
Short Ratio4.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.53% |
Yearly Dividend1.55
Dividend Growth(5Y)37.74%
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)-7.07%
PT rev (3m)5.97%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)2%
EPS NY rev (3m)-3.26%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)-0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.21 | ||
| Fwd PE | 18.28 | ||
| P/S | 3.33 | ||
| P/FCF | 12.02 | ||
| P/OCF | 10.58 | ||
| P/B | 6.53 | ||
| P/tB | 39.66 | ||
| EV/EBITDA | 11.2 |
EPS(TTM)1.36
EY3.81%
EPS(NY)1.95
Fwd EY5.47%
FCF(TTM)2.97
FCFY8.32%
OCF(TTM)3.37
OCFY9.45%
SpS10.7
BVpS5.46
TBVpS0.9
PEG (NY)0.6
PEG (5Y)2.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.87% | ||
| ROE | 25.03% | ||
| ROCE | 10.56% | ||
| ROIC | 7.55% | ||
| ROICexc | 9.74% | ||
| ROICexgc | 13.28% | ||
| 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 3Y224.85%
ROICexcg growth 5Y20.63%
ROICexc growth 3Y224.13%
ROICexc growth 5Y16.72%
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 | 1.13 | ||
| Cap/Depr | 67.17% | ||
| Cap/Sales | 3.76% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 115.01% | ||
| Profit Quality | 217.19% | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 1.66 |
F-Score7
WACC7.29%
ROIC/WACC1.04
Cap/Depr(3y)67.74%
Cap/Depr(5y)88.97%
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)-23.62%
EPS 3YN/A
EPS 5Y9.85%
EPS Q2Q%-91.3%
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%7.84%
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 Year45.44%
EBIT Next 3Y18.52%
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%