H WORLD GROUP LTD-ADR (HTHT) Stock Fundamental Analysis
NASDAQ:HTHT - US44332N1063 - ADR
36.24 USD
+0.31 (+0.86%)
36.2 USD
-0.04 (-0.11%)
We assign a fundamental rating of 6 out of 10 to HTHT. HTHT was compared to 131 industry peers in the Hotels, Restaurants & Leisure industry. While HTHT belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. HTHT may be a bit undervalued, certainly considering the very reasonable score on growth
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.
The reported net income has been mixed in the past 5 years: HTHT reported negative net income in multiple years.
HTHT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 5.33%, HTHT is doing good in the industry, outperforming 70.99% of the companies in the same industry.
HTHT has a better Return On Equity (31.28%) than 84.73% of its industry peers.
HTHT has a better Return On Invested Capital (8.08%) than 66.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.33% | ||
| ROE | 31.28% | ||
| ROIC | 8.08% |
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's Profit Margin of 13.67% is amongst the best of the industry. HTHT outperforms 83.97% of its industry peers.
HTHT's Profit Margin has declined in the last couple of years.
HTHT has a better Operating Margin (21.99%) than 83.97% of its industry peers.
HTHT's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 66.77%, HTHT belongs to the top of the industry, outperforming 82.44% of the companies in the same industry.
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 | 21.99% | ||
| PM (TTM) | 13.67% | ||
| GM | 66.77% |
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
HTHT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, HTHT has less shares outstanding
The number of shares outstanding for HTHT has been increased compared to 5 years ago.
The debt/assets ratio for HTHT is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.60, we must say that HTHT is in the distress zone and has some risk of bankruptcy.
HTHT has a Altman-Z score (1.60) which is comparable to the rest of the industry.
The Debt to FCF ratio of HTHT is 1.30, which is an excellent value as it means it would take HTHT, only 1.30 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HTHT (1.30) is better than 90.08% of its industry peers.
A Debt/Equity ratio of 0.70 indicates that HTHT is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.70, HTHT is doing good in the industry, outperforming 64.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 1.3 | ||
| Altman-Z | 1.6 |
ROIC/WACC1.25
WACC6.47%
2.3 Liquidity
A Current Ratio of 0.88 indicates that HTHT may have some problems paying its short term obligations.
HTHT has a Current ratio of 0.88. This is comparable to the rest of the industry: HTHT outperforms 48.85% of its industry peers.
A Quick Ratio of 0.88 indicates that HTHT may have some problems paying its short term obligations.
HTHT has a Quick ratio (0.88) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 314.67% over the past 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 quite strong growth in Revenue. The Revenue has grown by 9.18% 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)314.67%
EPS 3YN/A
EPS 5Y9.62%
EPS Q2Q%1145.46%
Revenue 1Y (TTM)9.18%
Revenue growth 3Y23.17%
Revenue growth 5Y16.33%
Sales Q2Q%4.72%
3.2 Future
HTHT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.69% yearly.
The Revenue is expected to grow by 6.86% on average over the next years.
EPS Next Y44.82%
EPS Next 2Y28.1%
EPS Next 3Y22.69%
EPS Next 5YN/A
Revenue Next Year5.66%
Revenue Next 2Y6.27%
Revenue Next 3Y6.86%
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.
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
With a Price/Earnings ratio of 5.01, the valuation of HTHT can be described as very cheap.
Based on the Price/Earnings ratio, HTHT is valued cheaply inside the industry as 96.95% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of HTHT to the average of the S&P500 Index (27.24), we can say HTHT is valued rather cheaply.
With a Price/Forward Earnings ratio of 15.52, HTHT is valued correctly.
Based on the Price/Forward Earnings ratio, HTHT is valued a bit cheaper than 70.99% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.82, HTHT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.01 | ||
| Fwd PE | 15.52 |
4.2 Price Multiples
HTHT's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HTHT indicates a rather cheap valuation: HTHT is cheaper than 91.60% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.56 | ||
| EV/EBITDA | 11.22 |
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.
The decent profitability rating of HTHT may justify a higher PE ratio.
HTHT's earnings are expected to grow with 22.69% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.11
PEG (5Y)0.52
EPS Next 2Y28.1%
EPS Next 3Y22.69%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.29%, HTHT is a good candidate for dividend investing.
HTHT's Dividend Yield is rather good when compared to the industry average which is at 7.20. HTHT pays more dividend than 93.89% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, HTHT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.29% |
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.
The dividend of HTHT decreased recently.
Dividend Growth(5Y)37.96%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
HTHT pays out 42.31% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of HTHT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP42.31%
EPS Next 2Y28.1%
EPS Next 3Y22.69%
36.24
+0.31 (+0.86%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners23.19%
Inst Owner Change-16.07%
Ins Owners29.47%
Ins Owner ChangeN/A
Market Cap11.12B
Analysts85.26
Price Target36.9 (1.82%)
Short Float %6.9%
Short Ratio7.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.29% |
Yearly Dividend1.64
Dividend Growth(5Y)37.96%
DP42.31%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-43.4%
Min EPS beat(2)-88.47%
Max EPS beat(2)1.67%
EPS beat(4)1
Avg EPS beat(4)-26.15%
Min EPS beat(4)-88.47%
Max EPS beat(4)1.67%
EPS beat(8)4
Avg EPS beat(8)2.49%
EPS beat(12)5
Avg EPS beat(12)-22.39%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.08%
Min Revenue beat(2)-3.23%
Max Revenue beat(2)3.38%
Revenue beat(4)1
Avg Revenue beat(4)-1.2%
Min Revenue beat(4)-3.95%
Max Revenue beat(4)3.38%
Revenue beat(8)3
Avg Revenue beat(8)-0.03%
Revenue beat(12)3
Avg Revenue beat(12)-1.37%
Revenue beat(16)4
Avg Revenue beat(16)-1.36%
PT rev (1m)-6.14%
PT rev (3m)-13.19%
EPS NQ rev (1m)1.25%
EPS NQ rev (3m)0.59%
EPS NY rev (1m)0%
EPS NY rev (3m)4.32%
Revenue NQ rev (1m)-0.39%
Revenue NQ rev (3m)-1.73%
Revenue NY rev (1m)-0.76%
Revenue NY rev (3m)-0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.01 | ||
| Fwd PE | 15.52 | ||
| P/S | 3.33 | ||
| P/FCF | 12.56 | ||
| P/OCF | 11.07 | ||
| P/B | 7.61 | ||
| P/tB | 539.5 | ||
| EV/EBITDA | 11.22 |
EPS(TTM)7.24
EY19.98%
EPS(NY)2.33
Fwd EY6.44%
FCF(TTM)2.88
FCFY7.96%
OCF(TTM)3.27
OCFY9.03%
SpS10.9
BVpS4.76
TBVpS0.07
PEG (NY)0.11
PEG (5Y)0.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.33% | ||
| ROE | 31.28% | ||
| ROCE | 11.3% | ||
| ROIC | 8.08% | ||
| ROICexc | 10.53% | ||
| ROICexgc | 14.8% | ||
| OM | 21.99% | ||
| PM (TTM) | 13.67% | ||
| GM | 66.77% | ||
| FCFM | 26.47% |
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 Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 1.3 | ||
| Debt/EBITDA | 1.12 | ||
| Cap/Depr | 65.62% | ||
| Cap/Sales | 3.57% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 109.52% | ||
| Profit Quality | 193.57% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 1.6 |
F-Score6
WACC6.47%
ROIC/WACC1.25
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)314.67%
EPS 3YN/A
EPS 5Y9.62%
EPS Q2Q%1145.46%
EPS Next Y44.82%
EPS Next 2Y28.1%
EPS Next 3Y22.69%
EPS Next 5YN/A
Revenue 1Y (TTM)9.18%
Revenue growth 3Y23.17%
Revenue growth 5Y16.33%
Sales Q2Q%4.72%
Revenue Next Year5.66%
Revenue Next 2Y6.27%
Revenue Next 3Y6.86%
Revenue Next 5YN/A
EBIT growth 1Y4.39%
EBIT growth 3Y216.51%
EBIT growth 5Y19.79%
EBIT Next Year41.03%
EBIT Next 3Y18.48%
EBIT Next 5YN/A
FCF growth 1Y82.67%
FCF growth 3YN/A
FCF growth 5Y30.32%
OCF growth 1Y66.6%
OCF growth 3Y77.6%
OCF growth 5Y17.95%