DB:HIE

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Hilton Grand Vacations

Executive Summary

Hilton Grand Vacations Inc., a timeshare company, develops, markets, and operates vacation ownership resorts primarily under the Hilton Grand Vacations brand.


Snowflake Analysis

Exceptional growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has Hilton Grand Vacations's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HIE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.5%

HIE

-1.6%

DE Hospitality

0.7%

DE Market


1 Year Return

-37.5%

HIE

-35.2%

DE Hospitality

3.9%

DE Market

Return vs Industry: HIE underperformed the German Hospitality industry which returned -35.2% over the past year.

Return vs Market: HIE underperformed the German Market which returned 3.9% over the past year.


Shareholder returns

HIEIndustryMarket
7 Day0.5%-1.6%0.7%
30 Day-8.2%-7.4%5.3%
90 Day7.5%3.8%17.3%
1 Year-37.5%-37.5%-32.4%-35.2%6.2%3.9%
3 Year-44.0%-44.0%-49.4%-56.3%1.8%-6.2%
5 Yearn/a-50.8%-61.2%9.3%-5.4%

Price Volatility Vs. Market

How volatile is Hilton Grand Vacations's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Hilton Grand Vacations undervalued compared to its fair value and its price relative to the market?

10.51x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HIE (€17.74) is trading above our estimate of fair value (€17.56)

Significantly Below Fair Value: HIE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HIE is good value based on its PE Ratio (10.5x) compared to the DE Hospitality industry average (20.3x).

PE vs Market: HIE is good value based on its PE Ratio (10.5x) compared to the German market (21x).


Price to Earnings Growth Ratio

PEG Ratio: HIE is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: HIE is overvalued based on its PB Ratio (3.1x) compared to the DE Hospitality industry average (2x).


Next Steps

Future Growth

How is Hilton Grand Vacations forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

61.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HIE's forecast earnings growth (61% per year) is above the savings rate (0.2%).

Earnings vs Market: HIE's earnings (61% per year) are forecast to grow faster than the German market (22.4% per year).

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

Revenue vs Market: HIE's revenue (22.5% per year) is forecast to grow faster than the German market (5.9% per year).

High Growth Revenue: HIE's revenue (22.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HIE's Return on Equity is forecast to be high in 3 years time (26.1%)


Next Steps

Past Performance

How has Hilton Grand Vacations performed over the past 5 years?

10.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HIE has high quality earnings.

Growing Profit Margin: HIE's current net profit margins (10.8%) are lower than last year (16.7%).


Past Earnings Growth Analysis

Earnings Trend: HIE's earnings have grown by 10% per year over the past 5 years.

Accelerating Growth: HIE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HIE had negative earnings growth (-47.6%) over the past year, making it difficult to compare to the Hospitality industry average (-15.6%).


Return on Equity

High ROE: Whilst HIE's Return on Equity (30.02%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Hilton Grand Vacations's financial position?


Financial Position Analysis

Short Term Liabilities: HIE's short term assets ($2.9B) exceed its short term liabilities ($221.0M).

Long Term Liabilities: HIE's short term assets ($2.9B) exceed its long term liabilities ($2.9B).


Debt to Equity History and Analysis

Debt Level: HIE's debt to equity ratio (382.1%) is considered high.

Reducing Debt: HIE had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: HIE's debt is not well covered by operating cash flow (8.6%).

Interest Coverage: HIE's interest payments on its debt are well covered by EBIT (6x coverage).


Balance Sheet


Next Steps

Dividend

What is Hilton Grand Vacations's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate HIE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate HIE's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HIE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HIE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HIE's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Mark Wang (63yo)

3.5yrs

Tenure

US$5,905,405

Compensation

Mr. Mark D. Wang has been the Chief Executive Officer and President of Hilton Grand Vacations Inc. (HGV) since January 3, 2017 & March 2008 respectively. Mr. Wang serves as an Executive Vice President at H ...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD5.91M) is above average for companies of similar size in the German market ($USD1.49M).

Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Mark Wang
President3.5yrsUS$5.91m0.34% $5.2m
Daniel Mathewes
Executive VP1.67yrsUS$2.27m0.0055% $84.4k
Gordon Gurnik
Executive VP & COO1.58yrsUS$2.15m0.015% $234.4k
Sherri Silver
Executive VP & Chief Marketing Officer2.92yrsUS$2.09m0.0077% $118.6k
Stan Soroka
Executive VP & Chief Customer Officer5.5yrsUS$1.92m0.064% $978.5k
Erin Day
Vice President of Corporate Finance and Strategic Planningno datano datano data
Rich Jackson
Chief Information Officer & Senior VPno datano datano data
Charles Corbin
Executive VP3.67yrsUS$2.14m0.054% $826.0k
Dennis DeLorenzo
Executive VP & Chief Sales Officer3.58yrsUS$2.43m0.035% $536.2k
Barbara Hollkamp
Executive VP & Chief Human Resources Officer3.92yrsUS$1.86m0.046% $701.6k

3.5yrs

Average Tenure

58.5yo

Average Age

Experienced Management: HIE's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Wang
President3.5yrsUS$5.91m0.34% $5.2m
Paul Whetsell
Independent Director3.5yrsUS$235.37k0.020% $314.3k
Pamela Patsley
Independent Director3.58yrsUS$229.70k0.015% $223.8k
Leonard Potter
Independent Chairman3.5yrsUS$340.00k0.085% $1.3m
David Johnson
Independent Director3.5yrsUS$220.00k0.056% $857.9k
Mark Lazarus
Independent Director3.5yrsUS$213.07k0.015% $223.8k
Brenda Bacon
Independent Director3.5yrsUS$220.00k0.015% $223.8k

3.5yrs

Average Tenure

63yo

Average Age

Experienced Board: HIE's board of directors are considered experienced (3.5 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

Hilton Grand Vacations Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hilton Grand Vacations Inc.
  • Ticker: HIE
  • Exchange: DB
  • Founded: 1992
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: US$1.742b
  • Listing Market Cap: US$1.540b
  • Shares outstanding: 84.99m
  • Website: https://www.hiltongrandvacations.com

Number of Employees


Location

  • Hilton Grand Vacations Inc.
  • 6355 Metrowest Boulevard
  • Suite 180
  • Orlando
  • Florida
  • 32835
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HGVNYSE (New York Stock Exchange)YesNew Common StockUSUSDDec 2016
HIEDB (Deutsche Boerse AG)YesNew Common StockDEEURDec 2016

Biography

Hilton Grand Vacations Inc., a timeshare company, develops, markets, and operates vacation ownership resorts primarily under the Hilton Grand Vacations brand. The company operates in two segments, Real Estate Sales and Financing; and Resort Operations and Club Management. It sells vacation ownership intervals; manages resorts; operates a points-based vacation club; and finances and services loans provided to consumers for their timeshare purchases. The company also manages and operates the points-based Hilton Grand Vacations Club and Hilton Club exchange programs, which provide exchange, leisure travel, and reservation services to approximately 326,000 members, as well as engages in the rental of inventory made available due to ownership exchanges through its club programs. As of December 31, 2019, it had 59 resorts comprising 9,540 units located in the Hawaiian Islands, New York City, Orlando, South Carolina, Washington D.C., and Las Vegas; and Europe. The company was founded in 1992 and is headquartered in Orlando, Florida. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/11 21:38
End of Day Share Price2020/07/10 00:00
Earnings2020/03/31
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.