H WORLD GROUP LTD-ADR (HTHT) Stock Fundamental Analysis
USA - NASDAQ:HTHT - US44332N1063 - ADR
37.16 USD
+0.22 (+0.6%)
37.16 USD
0 (0%)
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
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.
In the past 5 years HTHT always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.80%, HTHT is in the better half of the industry, outperforming 73.13% of the companies in the same industry.
HTHT has a Return On Equity of 30.94%. This is amongst the best in the industry. HTHT outperforms 85.07% of its industry peers.
HTHT has a Return On Invested Capital of 8.65%. This is in the better half of the industry: HTHT outperforms 67.91% 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 89.55% of the companies in the same industry.
HTHT's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 22.62%, HTHT belongs to the best of the industry, outperforming 85.82% of the companies in the same industry.
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 82.09% 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.
The number of shares outstanding for HTHT has been reduced compared to 1 year ago.
The number of shares outstanding for HTHT has been increased compared to 5 years ago.
Compared to 1 year ago, HTHT has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.57, we must say that HTHT is in the distress zone and has some risk of bankruptcy.
HTHT has a Altman-Z score (1.57) 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.
Looking at the Debt to FCF ratio, with a value of 1.56, HTHT belongs to the top of the industry, outperforming 85.82% of the companies in the same industry.
A Debt/Equity ratio of 0.32 indicates that HTHT is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.32, HTHT is in the better half of the industry, outperforming 71.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.56 | ||
| Altman-Z | 1.57 |
ROIC/WACC1.33
WACC6.48%
2.3 Liquidity
A Current Ratio of 0.81 indicates that HTHT may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.81, HTHT is in line with its industry, outperforming 44.03% of the companies in the same 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 comparable to the rest of the industry.
| 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.
The Revenue has been growing slightly by 4.24% in the past year.
The Revenue has been growing by 16.33% on average over the past years. This is quite good.
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 22.69% yearly.
Based on estimates for the next years, HTHT will show a small growth in Revenue. The Revenue will grow by 6.48% on average per year.
EPS Next Y44.82%
EPS Next 2Y28.1%
EPS Next 3Y22.69%
EPS Next 5YN/A
Revenue Next Year5.35%
Revenue Next 2Y5.94%
Revenue Next 3Y6.48%
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
With a Price/Earnings ratio of 24.29, HTHT is valued on the expensive side.
HTHT's Price/Earnings ratio is a bit cheaper when compared to the industry. HTHT is cheaper than 63.43% of the companies in the same industry.
HTHT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 15.75, the valuation of HTHT can be described as correct.
Based on the Price/Forward Earnings ratio, HTHT is valued a bit cheaper than 70.15% of the companies in the same industry.
HTHT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.29 | ||
| Fwd PE | 15.75 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HTHT indicates a somewhat cheap valuation: HTHT is cheaper than 60.45% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HTHT indicates a rather cheap valuation: HTHT is cheaper than 90.30% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.96 | ||
| EV/EBITDA | 11.37 |
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 22.69% in the coming years.
PEG (NY)0.54
PEG (5Y)2.53
EPS Next 2Y28.1%
EPS Next 3Y22.69%
5. Dividend
5.1 Amount
HTHT has a Yearly Dividend Yield of 4.75%, which is a nice return.
Compared to an average industry Dividend Yield of 3.99, HTHT pays a better dividend. On top of this HTHT pays more dividend than 92.54% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, HTHT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.75% |
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 93.75% of its income as dividend. This is not a sustainable payout ratio.
The dividend of HTHT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP93.75%
EPS Next 2Y28.1%
EPS Next 3Y22.69%
37.16
+0.22 (+0.6%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners23.19%
Inst Owner Change-16.08%
Ins Owners29.47%
Ins Owner ChangeN/A
Market Cap11.41B
Analysts85
Price Target38.41 (3.36%)
Short Float %6.63%
Short Ratio6.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.75% |
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)16.56%
PT rev (3m)4.28%
EPS NQ rev (1m)-3.85%
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.09%
EPS NY rev (3m)1.09%
Revenue NQ rev (1m)-0.93%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.42%
Revenue NY rev (3m)-1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.29 | ||
| Fwd PE | 15.75 | ||
| P/S | 3.35 | ||
| P/FCF | 11.96 | ||
| P/OCF | 10.64 | ||
| P/B | 6.68 | ||
| P/tB | 58.32 | ||
| EV/EBITDA | 11.37 |
EPS(TTM)1.53
EY4.12%
EPS(NY)2.36
Fwd EY6.35%
FCF(TTM)3.11
FCFY8.36%
OCF(TTM)3.49
OCFY9.4%
SpS11.11
BVpS5.56
TBVpS0.64
PEG (NY)0.54
PEG (5Y)2.53
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 | 1.57 |
F-Score6
WACC6.48%
ROIC/WACC1.33
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 Y44.82%
EPS Next 2Y28.1%
EPS Next 3Y22.69%
EPS Next 5YN/A
Revenue 1Y (TTM)4.24%
Revenue growth 3Y23.17%
Revenue growth 5Y16.33%
Sales Q2Q%4.52%
Revenue Next Year5.35%
Revenue Next 2Y5.94%
Revenue Next 3Y6.48%
Revenue Next 5YN/A
EBIT growth 1Y4.77%
EBIT growth 3Y216.51%
EBIT growth 5Y19.79%
EBIT Next Year41.03%
EBIT Next 3Y18.48%
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%