H WORLD GROUP LTD-ADR (HTHT)
US44332N1063 - ADR
We assign a fundamental rating of 5 out of 10 to HTHT. HTHT was compared to 135 industry peers in the Hotels, Restaurants & Leisure industry. Both the profitability and the financial health of HTHT get a neutral evaluation. Nothing too spectacular is happening here. HTHT is not overvalued while it is showing excellent growth. This is an interesting combination.
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.
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's Return On Assets of 6.43% is fine compared to the rest of the industry. HTHT outperforms 75.19% of its industry peers.
HTHT has a Return On Equity of 33.66%. This is amongst the best in the industry. HTHT outperforms 81.20% of its industry peers.
With a decent Return On Invested Capital value of 7.29%, HTHT is doing good in the industry, outperforming 60.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.43% | ||
| ROE | 33.66% | ||
| ROIC | 7.29% |
ROA(3y)0.91%
ROA(5y)0.54%
ROE(3y)2.85%
ROE(5y)2.64%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
HTHT has a better Profit Margin (18.67%) than 93.23% of its industry peers.
In the last couple of years the Profit Margin of HTHT has grown nicely.
Looking at the Operating Margin, with a value of 21.56%, HTHT belongs to the top of the industry, outperforming 81.20% of the companies in the same industry.
In the last couple of years the Operating Margin of HTHT has declined.
HTHT has a better Gross Margin (66.46%) than 78.20% 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 | 21.56% | ||
| PM (TTM) | 18.67% | ||
| GM | 66.46% |
OM growth 3YN/A
OM growth 5Y-1.53%
PM growth 3YN/A
PM growth 5Y21.28%
GM growth 3Y7.52%
GM growth 5Y-0.5%
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 about the same amount of shares outstanding.
The number of shares outstanding for HTHT has been increased compared to 5 years ago.
Compared to 1 year ago, HTHT has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.59, we must say that HTHT is in the distress zone and has some risk of bankruptcy.
HTHT has a Altman-Z score (1.59) which is comparable to the rest of the industry.
HTHT has a debt to FCF ratio of 1.19. This is a very positive value and a sign of high solvency as it would only need 1.19 years to pay back of all of its debts.
HTHT's Debt to FCF ratio of 1.19 is amongst the best of the industry. HTHT outperforms 89.47% of its industry peers.
HTHT has a Debt/Equity ratio of 0.66. This is a neutral value indicating HTHT is somewhat dependend on debt financing.
The Debt to Equity ratio of HTHT (0.66) is better than 68.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 1.19 | ||
| Altman-Z | 1.59 |
ROIC/WACC1.02
WACC7.17%
2.3 Liquidity
A Current Ratio of 0.69 indicates that HTHT may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.69, HTHT is doing worse than 68.42% of the companies in the same industry.
A Quick Ratio of 0.69 indicates that HTHT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.69, HTHT is doing worse than 65.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
HTHT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 388.64%, which is quite impressive.
Measured over the past years, HTHT shows a very strong growth in Earnings Per Share. The EPS has been growing by 38.89% on average per year.
The Revenue has grown by 57.86% in the past year. This is a very strong growth!
HTHT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.81% yearly.
EPS 1Y (TTM)388.64%
EPS 3YN/A
EPS 5Y38.89%
EPS growth Q2Q377.11%
Revenue 1Y (TTM)57.86%
Revenue growth 3Y28.99%
Revenue growth 5Y16.81%
Revenue growth Q2Q50.7%
3.2 Future
Based on estimates for the next years, HTHT will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.69% on average per year.
The Revenue is expected to grow by 8.89% on average over the next years. This is quite good.
EPS Next Y5.95%
EPS Next 2Y10.51%
EPS Next 3Y10.69%
EPS Next 5YN/A
Revenue Next Year11.12%
Revenue Next 2Y10.15%
Revenue Next 3Y8.89%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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
The Price/Earnings ratio is 22.74, which indicates a rather expensive current valuation of HTHT.
Compared to the rest of the industry, the Price/Earnings ratio of HTHT indicates a somewhat cheap valuation: HTHT is cheaper than 60.90% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of HTHT to the average of the S&P500 Index (27.73), we can say HTHT is valued inline with the index average.
With a Price/Forward Earnings ratio of 21.48, HTHT is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HTHT is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 20.41. HTHT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.74 | ||
| Fwd PE | 21.48 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as HTHT.
HTHT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HTHT is cheaper than 83.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.73 | ||
| EV/EBITDA | 13.91 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
HTHT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.82
PEG (5Y)0.58
EPS Next 2Y10.51%
EPS Next 3Y10.69%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.61%, HTHT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.62, HTHT pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.41, HTHT is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
5.2 History
HTHT has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y10.51%
EPS Next 3Y10.69%
H WORLD GROUP LTD-ADR
NASDAQ:HTHT (5/6/2024, 3:04:45 PM)
After market: 40.93 0 (0%)40.93
-0.05 (-0.12%)
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 Cap12.84B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
Dividend Growth(5Y)
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Surprises & Revisions
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.74 | ||
| Fwd PE | 21.48 | ||
| 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)3.82
PEG (5Y)0.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.43% | ||
| ROE | 33.66% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21.56% | ||
| PM (TTM) | 18.67% | ||
| GM | 66.46% | ||
| 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 Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.69 | ||
| 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)388.64%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y5.95%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)57.86%
Revenue growth 3Y28.99%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
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EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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