DB:CL4A

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Executive Summary

Huazhu Group Limited, together with its subsidiaries, develops leased and owned, manachised, and franchised hotels primarily in the People’s Republic of China.


Snowflake Analysis

Solid track record with high growth potential.


Similar Companies

Share Price & News

How has Huazhu Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CL4A has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.7%

CL4A

22.9%

DE Hospitality

3.1%

DE Market


1 Year Return

6.8%

CL4A

-29.7%

DE Hospitality

0.1%

DE Market

Return vs Industry: CL4A exceeded the German Hospitality industry which returned -29.6% over the past year.

Return vs Market: CL4A exceeded the German Market which returned 0% over the past year.


Shareholder returns

CL4AIndustryMarket
7 Day0.7%22.9%3.1%
30 Day-12.0%20.0%5.6%
90 Day-2.6%-16.6%-1.8%
1 Year7.7%6.8%-27.1%-29.7%1.8%0.1%
3 Year71.0%66.7%-49.8%-56.5%-7.2%-14.3%
5 Year419.3%394.9%-47.8%-58.7%4.3%-9.1%

Price Volatility Vs. Market

How volatile is Huazhu Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Huazhu Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CL4A (€29.4) is trading below our estimate of fair value (€77.62)

Significantly Below Fair Value: CL4A is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CL4A is poor value based on its PE Ratio (38.8x) compared to the Hospitality industry average (23.4x).

PE vs Market: CL4A is poor value based on its PE Ratio (38.8x) compared to the German market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: CL4A is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: CL4A is overvalued based on its PB Ratio (9.4x) compared to the DE Hospitality industry average (2x).


Next Steps

Future Growth

How is Huazhu Group forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

25.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CL4A's forecast earnings growth (25.4% per year) is above the savings rate (0.2%).

Earnings vs Market: CL4A's earnings (25.4% per year) are forecast to grow faster than the German market (21.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CL4A's revenue (16.3% per year) is forecast to grow faster than the German market (5.7% per year).

High Growth Revenue: CL4A's revenue (16.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CL4A's Return on Equity is forecast to be high in 3 years time (29.3%)


Next Steps

Past Performance

How has Huazhu Group performed over the past 5 years?

22.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CL4A has high quality earnings.

Growing Profit Margin: CL4A's current net profit margins (15.8%) are higher than last year (7.1%).


Past Earnings Growth Analysis

Earnings Trend: CL4A's earnings have grown significantly by 22.5% per year over the past 5 years.

Accelerating Growth: CL4A's earnings growth over the past year (147.1%) exceeds its 5-year average (22.5% per year).

Earnings vs Industry: CL4A earnings growth over the past year (147.1%) exceeded the Hospitality industry -36.8%.


Return on Equity

High ROE: Whilst CL4A's Return on Equity (23.48%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Huazhu Group's financial position?


Financial Position Analysis

Short Term Liabilities: CL4A's short term assets (CN¥18.3B) exceed its short term liabilities (CN¥17.3B).

Long Term Liabilities: CL4A's short term assets (CN¥18.3B) do not cover its long term liabilities (CN¥28.2B).


Debt to Equity History and Analysis

Debt Level: CL4A's debt to equity ratio (221.1%) is considered high.

Reducing Debt: Insufficient data to determine if CL4A's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: CL4A's debt is not well covered by operating cash flow (19.9%).

Interest Coverage: CL4A's interest payments on its debt are well covered by EBIT (13.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Huazhu Group's current dividend yield, its reliability and sustainability?

0.97%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CL4A's dividend (0.97%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.29%).

High Dividend: CL4A's dividend (0.97%) is low compared to the top 25% of dividend payers in the German market (3.86%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether CL4A's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if CL4A's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38%), CL4A's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CL4A's dividends in 3 years are forecast to be well covered by earnings (24.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Qi Ji (52yo)

0.42

Tenure

Mr. Qi Ji has been an Executive Chairman of Huazhu Group Limited (formerly known as, China Lodging Group) since February 2007 and has been its Chief Executive Officer since November 8, 2019. He serves as t ...


Leadership Team

NamePositionTenureCompensationOwnership
Qi Ji
Founder0.42yrno data25.9% CN¥2.3b
Jiong Wu
Co-Founder & Independent Director13.33yrsno data2.68% CN¥233.5m
Tong Tong Zhao
Co-Founder & Independent Director13.17yrsno data9.19% CN¥800.8m
Hui Jin
Co-President1.33yrsno datano data
Xinxin Liu
Co-President1.33yrsno datano data
Nee Chuan Teo
Chief Financial Officer4.17yrsno datano data
Yu Ida
Senior Manager of Investor Relationsno datano datano data
Yuewu Rong
Legal Directorno datano datano data

1.3yrs

Average Tenure

49.5yo

Average Age

Experienced Management: CL4A's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Qi Ji
Founder0.42yrno data25.9% CN¥2.3b
Jiong Wu
Co-Founder & Independent Director13.33yrsno data2.68% CN¥233.5m
Tong Tong Zhao
Co-Founder & Independent Director13.17yrsno data9.19% CN¥800.8m
Sébastien Bazin
Director4.33yrsno datano data
Jian Shang
Independent Director6yrsno datano data
Min Zhang
Executive Vice-Chairlady0.42yrno datano data
Xiaofan Wang
Director2.33yrsno datano data
Gaurav Bhushan
Alternate Director4.17yrsno datano data
Shangzhi Zhang
Director3.83yrsno datano data

4.3yrs

Average Tenure

51yo

Average Age

Experienced Board: CL4A's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Huazhu Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Huazhu Group Limited
  • Ticker: CL4A
  • Exchange: DB
  • Founded: 2005
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: US$9.686b
  • Listing Market Cap: US$8.713b
  • Shares outstanding: 286.40m
  • Website: https://www.huazhu.com

Number of Employees


Location

  • Huazhu Group Limited
  • No. 2266 Hongqiao Road
  • Changning District
  • Shanghai
  • 200336
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HTHTNasdaqGS (Nasdaq Global Select)YesSPONSORED ADSUSUSDMar 2010
CL4ADB (Deutsche Boerse AG)YesSPONSORED ADSDEEURMar 2010
HTHT NBMV (Bolsa Mexicana de Valores)YesSPONSORED ADSMXMXNMar 2010
0A2ILSE (London Stock Exchange)YesSPONSORED ADSGBUSDMar 2010

Biography

Huazhu Group Limited, together with its subsidiaries, develops leased and owned, manachised, and franchised hotels primarily in the People’s Republic of China. It operates hotels under its own brands, such as Hi Inn, Elan Hotel, HanTing Hotel, JI Hotel, Starway Hotel, Orange Hotel, Crystal Orange Hotel, Manxin Hotel, Madison Hotel, Joya Hotel, and Blossom Hill Hotels & Resorts. The company also operates hotels under brand franchise agreements that include Ibis, Ibis Styles, Mercure, Novotel, and Grand Mercure. As of March 31, 2020, it operated 5,953 hotels with 575,488 rooms in 15 countries. The company was formerly known as China Lodging Group, Limited and changed its name to Huazhu Group Limited in June 2018. Huazhu Group Limited was founded in 2005 and is headquartered in Shanghai, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/31 00:11
End of Day Share Price2020/05/29 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.