Hilton Worldwide Holdings Inc. Fundamental Analysis (NYSE: HLT)
Hilton Worldwide Holdings Inc. Fundamental Analysis (NYSE: HLT)
Hilton Worldwide Holdings Inc. (NYSE: HLT) shows weak financial fundamentals with a PE ratio of 47.96, profit margin of 12.69%, and ROE of -28.13%. The company generates $12.4B in annual revenue with moderate year-over-year growth of 7.74%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.9/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HLT's fundamental strength across five key dimensions:
Efficiency Score
WeakHLT struggles to generate sufficient returns from assets.
Valuation Score
WeakHLT trades at a premium to fair value.
Growth Score
ModerateHLT shows steady but slowing expansion.
Financial Health Score
ModerateHLT shows balanced financial health with some risks.
Profitability Score
WeakHLT struggles to sustain strong margins.
Key Financial Metrics
Is HLT Expensive or Cheap?
P/E Ratio
HLT trades at 47.96 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, HLT's PEG of 10.52 indicates potential overvaluation.
Price to Book
The market values Hilton Worldwide Holdings Inc. at -11.88 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 19.80 times EBITDA. This signals the market has high growth expectations.
How Well Does HLT Make Money?
Net Profit Margin
For every $100 in sales, Hilton Worldwide Holdings Inc. keeps $12.69 as profit after all expenses.
Operating Margin
Core operations generate 23.35 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-28.13 in profit for every $100 of shareholder equity.
ROA
Hilton Worldwide Holdings Inc. generates $9.36 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hilton Worldwide Holdings Inc. produces operating cash flow of $2.09B, showing steady but balanced cash generation.
Free Cash Flow
Hilton Worldwide Holdings Inc. generates strong free cash flow of $1.99B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $8.84 in free cash annually.
FCF Yield
HLT converts 2.70% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
47.96
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
10.52
vs 25 benchmark
P/B Ratio
Price to book value ratio
-11.88
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.95
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-2.22
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.65
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.28
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.25
vs 25 benchmark
How HLT Stacks Against Its Sector Peers
| Metric | HLT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 47.96 | 25.50 | Worse (Expensive) |
| ROE | -28.13% | 964.00% | Weak |
| Net Margin | 12.69% | -4901.00% (disorted) | Strong |
| Debt/Equity | -2.22 | 0.60 | Strong (Low Leverage) |
| Current Ratio | 0.65 | 2.34 | Weak Liquidity |
| ROA | 9.36% | 322.00% | Weak |
HLT outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hilton Worldwide Holdings Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
228.08%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
339.18%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
252.95%
Industry Style: Cyclical, Growth, Discretionary
High Growth