H World Group Limited
H World Group Limited Fundamental Analysis
H World Group Limited (HTHT) shows moderate financial fundamentals with a PE ratio of 29.15, profit margin of 15.95%, and ROE of 33.88%. The company generates $24.8B in annual revenue with moderate year-over-year growth of 9.18%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 60.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze HTHT's fundamental strength across five key dimensions:
Efficiency Score
WeakHTHT struggles to generate sufficient returns from assets.
Valuation Score
ModerateHTHT shows balanced valuation metrics.
Growth Score
ModerateHTHT shows steady but slowing expansion.
Financial Health Score
WeakHTHT carries high financial risk with limited liquidity.
Profitability Score
ExcellentHTHT achieves industry-leading margins.
Key Financial Metrics
Is HTHT Expensive or Cheap?
P/E Ratio
HTHT trades at 29.15 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HTHT's PEG of 0.74 indicates potential undervaluation.
Price to Book
The market values H World Group Limited at 9.71 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 10.91 times EBITDA. This signals the market has high growth expectations.
How Well Does HTHT Make Money?
Net Profit Margin
For every $100 in sales, H World Group Limited keeps $15.95 as profit after all expenses.
Operating Margin
Core operations generate 23.46 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $33.88 in profit for every $100 of shareholder equity.
ROA
H World Group Limited generates $6.22 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
H World Group Limited generates strong operating cash flow of $7.74B, reflecting robust business health.
Free Cash Flow
H World Group Limited generates strong free cash flow of $6.91B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $22.45 in free cash annually.
FCF Yield
HTHT converts 6.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.15
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.74
vs 25 benchmark
P/B Ratio
Price to book value ratio
9.71
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.65
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.13
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.85
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.34
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How HTHT Stacks Against Its Sector Peers
| Metric | HTHT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 29.15 | 24.97 | Worse (Expensive) |
| ROE | 33.88% | 1167.00% | Weak |
| Net Margin | 15.95% | 673.00% | Weak |
| Debt/Equity | 3.13 | 0.66 | Weak (High Leverage) |
| Current Ratio | 0.85 | 4.01 | Weak Liquidity |
| ROA | 6.22% | -8477.00% (disorted) | Weak |
HTHT outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews H World Group Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
1942.32%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
1551.43%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
2088.18%
Industry Style: Cyclical, Growth, Discretionary
High Growth