H WORLD GROUP LTD-ADR (HTHT) Stock Fundamental Analysis
NASDAQ:HTHT - Nasdaq - US44332N1063 - ADR - Currency: USD
Taking everything into account, HTHT scores 6 out of 10 in our fundamental rating. HTHT was compared to 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
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.
Each year in the past 5 years HTHT had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.33%, HTHT is in the better half of the industry, outperforming 71.64% of the companies in the same industry.
The Return On Equity of HTHT (31.28%) is better than 85.07% of its industry peers.
The Return On Invested Capital of HTHT (8.08%) is better than 65.67% 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 85.07% of its industry peers.
In the last couple of years the Profit Margin of HTHT has declined.
Looking at the Operating Margin, with a value of 21.99%, HTHT belongs to the top of the industry, outperforming 84.33% of the companies in the same industry.
In the last couple of years the Operating Margin of HTHT has grown nicely.
Looking at the Gross Margin, with a value of 66.77%, HTHT belongs to the top of the industry, outperforming 80.60% 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 | 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.
HTHT has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.53, we must say that HTHT is in the distress zone and has some risk of bankruptcy.
HTHT has a Altman-Z score (1.53) 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.
HTHT's Debt to FCF ratio of 1.30 is amongst the best of the industry. HTHT outperforms 88.06% of its industry peers.
A Debt/Equity ratio of 0.70 indicates that HTHT is somewhat dependend on debt financing.
HTHT has a better Debt to Equity ratio (0.70) than 66.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 1.3 | ||
| Altman-Z | 1.53 |
ROIC/WACC1.6
WACC5.06%
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 48.51% 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 for HTHT have decreased strongly by -10.34% in the last year.
The Earnings Per Share has been growing by 9.62% on average over the past years. This is quite good.
The Revenue has been growing slightly by 5.86% 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)-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
The Earnings Per Share is expected to grow by 21.58% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 7.71% on average over the next years.
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.
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
The Price/Earnings ratio is 21.92, which indicates a rather expensive current valuation of HTHT.
67.91% of the companies in the same industry are more expensive than HTHT, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.34. HTHT is around the same levels.
A Price/Forward Earnings ratio of 14.36 indicates a correct valuation of HTHT.
Based on the Price/Forward Earnings ratio, HTHT is valued a bit cheaper than the industry average as 73.13% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of HTHT to the average of the S&P500 Index (22.19), we can say HTHT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.92 | ||
| Fwd PE | 14.36 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HTHT is valued a bit cheaper than 64.93% of the companies 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 88.06% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.57 | ||
| EV/EBITDA | 10.36 |
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)0.5
PEG (5Y)2.28
EPS Next 2Y27.81%
EPS Next 3Y21.58%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.11%, HTHT is a good candidate for dividend investing.
HTHT's Dividend Yield is rather good when compared to the industry average which is at 3.59. HTHT pays more dividend than 89.55% of the companies in the same industry.
HTHT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.11% |
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
42.31% of the earnings are spent on dividend by HTHT. 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%
33.32
-0.48 (-1.42%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners23.19%
Inst Owner Change4.02%
Ins Owners29.47%
Ins Owner ChangeN/A
Market Cap10.23B
Analysts85.71
Price Target36.83 (10.53%)
Short Float %7.18%
Short Ratio6.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.11% |
Yearly Dividend1.63
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)-2.97%
PT rev (3m)-1.46%
EPS NQ rev (1m)1.83%
EPS NQ rev (3m)N/A
EPS NY rev (1m)4.32%
EPS NY rev (3m)0.11%
Revenue NQ rev (1m)-1.34%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.92 | ||
| Fwd PE | 14.36 | ||
| P/S | 3.06 | ||
| P/FCF | 11.57 | ||
| P/OCF | 10.19 | ||
| P/B | 7 | ||
| P/tB | 496.73 | ||
| EV/EBITDA | 10.36 |
EPS(TTM)1.52
EY4.56%
EPS(NY)2.32
Fwd EY6.97%
FCF(TTM)2.88
FCFY8.64%
OCF(TTM)3.27
OCFY9.81%
SpS10.88
BVpS4.76
TBVpS0.07
PEG (NY)0.5
PEG (5Y)2.28
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 | 1.53 |
F-Score6
WACC5.06%
ROIC/WACC1.6
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%