H WORLD GROUP LTD-ADR (HTHT) Stock Fundamental Analysis
NASDAQ:HTHT - Nasdaq - US44332N1063 - ADR - Currency: USD
HTHT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 131 industry peers in the Hotels, Restaurants & Leisure industry. HTHT has an excellent profitability rating, but there are some minor concerns on its financial health. HTHT is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year HTHT was profitable.
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.
In the past 5 years HTHT always reported a positive cash flow from operatings.
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.
The Return On Equity of HTHT (31.28%) is better than 84.73% of its industry peers.
With a decent Return On Invested Capital value of 8.08%, HTHT is doing good in the industry, outperforming 65.65% of the companies in the same industry.
| 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
With an excellent Profit Margin value of 13.67%, HTHT belongs to the best of the industry, outperforming 83.97% of the companies in the same industry.
HTHT's Profit Margin has declined in the last couple of years.
HTHT has a Operating Margin of 21.99%. This is amongst the best in the industry. HTHT outperforms 83.97% of its industry peers.
HTHT's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 66.77%, HTHT belongs to the best of the industry, outperforming 81.68% 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.
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.
The debt/assets ratio for HTHT is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.52, we must say that HTHT is in the distress zone and has some risk of bankruptcy.
HTHT has a Altman-Z score (1.52) which is comparable to the rest of the industry.
HTHT has a debt to FCF ratio of 1.30. This is a very positive value and a sign of high solvency as it would only need 1.30 years to pay back of all of its debts.
HTHT's Debt to FCF ratio of 1.30 is amongst the best of the industry. HTHT outperforms 87.79% 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 64.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 1.3 | ||
| Altman-Z | 1.52 |
ROIC/WACC1.26
WACC6.41%
2.3 Liquidity
A Current Ratio of 0.88 indicates that HTHT may have some problems paying its short term obligations.
HTHT's Current ratio of 0.88 is in line compared 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's Quick ratio of 0.88 is in line compared to the rest of the industry. HTHT outperforms 51.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
HTHT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.34%.
Measured over the past years, HTHT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.62% on average per year.
HTHT shows a small growth in Revenue. In the last year, the Revenue has grown by 5.86%.
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)-10.34%
EPS 3YN/A
EPS 5Y9.62%
EPS Q2Q%33.33%
Revenue 1Y (TTM)5.86%
Revenue growth 3Y23.17%
Revenue growth 5Y16.33%
Sales Q2Q%2.22%
3.2 Future
Based on estimates for the next years, HTHT will show a very strong growth in Earnings Per Share. The EPS will grow by 21.58% on average per year.
HTHT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.71% yearly.
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
A Price/Earnings ratio of 22.07 indicates a rather expensive 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 69.47% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of HTHT to the average of the S&P500 Index (27.53), we can say HTHT is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 14.52, the valuation of HTHT can be described as correct.
77.10% of the companies in the same industry are more expensive than HTHT, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.71, HTHT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.07 | ||
| Fwd PE | 14.52 |
4.2 Price Multiples
69.47% of the companies in the same industry are more expensive than HTHT, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, HTHT is valued cheaper than 90.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.7 | ||
| EV/EBITDA | 10.25 |
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 21.58% in the coming years.
PEG (NY)0.51
PEG (5Y)2.29
EPS Next 2Y27.81%
EPS Next 3Y21.58%
5. Dividend
5.1 Amount
HTHT has a Yearly Dividend Yield of 4.83%, which is a nice return.
Compared to an average industry Dividend Yield of 3.64, HTHT pays a better dividend. On top of this HTHT pays more dividend than 93.13% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, HTHT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.83% |
5.2 History
On average, the dividend of HTHT grows each year by 37.96%, 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)37.96%
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.
HTHT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP42.31%
EPS Next 2Y27.81%
EPS Next 3Y21.58%
33.76
+0.71 (+2.15%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners23.19%
Inst Owner Change-0.16%
Ins Owners29.47%
Ins Owner ChangeN/A
Market Cap10.36B
Analysts86
Price Target34.23 (1.39%)
Short Float %7.63%
Short Ratio9.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.83% |
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)-7.08%
PT rev (3m)-11.52%
EPS NQ rev (1m)-2.44%
EPS NQ rev (3m)0.61%
EPS NY rev (1m)0%
EPS NY rev (3m)5.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.07 | ||
| Fwd PE | 14.52 | ||
| P/S | 3.1 | ||
| P/FCF | 11.7 | ||
| P/OCF | 10.31 | ||
| P/B | 7.09 | ||
| P/tB | 502.45 | ||
| EV/EBITDA | 10.25 |
EPS(TTM)1.53
EY4.53%
EPS(NY)2.33
Fwd EY6.89%
FCF(TTM)2.89
FCFY8.55%
OCF(TTM)3.27
OCFY9.7%
SpS10.9
BVpS4.76
TBVpS0.07
PEG (NY)0.51
PEG (5Y)2.29
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 | 1.52 |
F-Score6
WACC6.41%
ROIC/WACC1.26
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)-10.34%
EPS 3YN/A
EPS 5Y9.62%
EPS Q2Q%33.33%
EPS Next Y43.67%
EPS Next 2Y27.81%
EPS Next 3Y21.58%
EPS Next 5YN/A
Revenue 1Y (TTM)5.86%
Revenue growth 3Y23.17%
Revenue growth 5Y16.33%
Sales Q2Q%2.22%
Revenue Next Year6.61%
Revenue Next 2Y7.41%
Revenue Next 3Y7.71%
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%