NasdaqGS:HTHT

Stock Analysis Report

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

Fundamentals

High growth potential and slightly overvalued.


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


Market Performance


7 Day Return

6.7%

HTHT

1.8%

US Hospitality

1.0%

US Market


1 Year Return

39.5%

HTHT

7.5%

US Hospitality

8.0%

US Market

Return vs Industry: HTHT exceeded the US Hospitality industry which returned 7.5% over the past year.

Return vs Market: HTHT exceeded the US Market which returned 8% over the past year.


Shareholder returns

HTHTIndustryMarket
7 Day6.7%1.8%1.0%
30 Day4.8%-1.7%-0.07%
90 Day6.4%-5.0%-1.0%
1 Year41.0%39.5%10.1%7.5%10.4%8.0%
3 Year226.4%221.0%44.0%34.5%46.2%36.7%
5 Year476.4%455.4%41.4%25.7%64.3%46.2%

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

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: HTHT ($36.34) is trading below our estimate of fair value ($89.59)

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


Price To Earnings Ratio

PE vs Industry: HTHT is poor value based on its PE Ratio (75.2x) compared to the Hospitality industry average (22.2x).

PE vs Market: HTHT is poor value based on its PE Ratio (75.2x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: HTHT is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: HTHT is overvalued based on its PB Ratio (10.5x) compared to the US Hospitality industry average (2.2x).


Next Steps

Future Growth

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

27.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HTHT's forecast earnings growth (27.1% per year) is above the savings rate (2.7%).

Earnings vs Market: HTHT's earnings (27.1% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: HTHT's revenue (13.1% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: HTHT's revenue (13.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HTHT's Return on Equity is forecast to be high in 3 years time (27.1%)


Next Steps

Past Performance

How has Huazhu Group performed over the past 5 years?

25.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HTHT's earnings have grown significantly by 25% per year over the past 5 years.

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

Earnings vs Industry: HTHT had negative earnings growth (-16.7%) over the past year, making it difficult to compare to the Hospitality industry average (-14.8%).


Return on Equity

High ROE: HTHT's Return on Equity (13.5%) is considered low.


Return on Assets

ROA vs Industry: HTHT's Return on Assets is below or equal to the Hospitality industry average last year.


Return on Capital Employed

ROCE Improving: HTHT's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Huazhu Group's financial position?


Financial Position Analysis

Short Term Liabilities: HTHT's short term assets (CN¥5.5B) do not cover its short term liabilities (CN¥10.4B)

Long Term Liabilities: HTHT's short term assets (5.5B) do not cover its long term liabilities (26.1B)


Debt to Equity History and Analysis

Debt Level: HTHT's debt to equity ratio (128.5%) is considered high

Reducing Debt: HTHT's debt to equity ratio has increased from 10% to 128.5% over the past 5 years.

Debt Coverage: HTHT's debt is well covered by operating cash flow (33.3%).

Interest Coverage: HTHT's interest payments on its debt are well covered by EBIT (15.1x coverage).


Balance Sheet

Inventory Level: HTHT has a high level of physical assets or inventory.

Debt Coverage by Assets: HTHT's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

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

0.88%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years1.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: HTHT's dividend (0.88%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: HTHT's dividend (0.88%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (68.4%), HTHT's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HTHT's dividends in 3 years are forecast to be well covered by earnings (25.9% payout ratio).


Next Steps

Management

What is the CEO of Huazhu Group's salary, the management and board of directors tenure and is there insider trading?

3.6yrs

Average management tenure


CEO

Jenny Zhang (45yo)

4.4yrs

Tenure

0

Ms. Min Zhang, also known as Jenny, has been the Chief Executive Officer of Huazhu Group Limited (formerly known as, China Lodging Group) since May 26, 2015. Ms. Zhang was an Advisory Board Member at Accor ...


Management Age and Tenure

3.6yrs

Average Tenure

49.5yo

Average Age

Experienced Management: HTHT's management team is considered experienced (3.6 years average tenure).


Board Age and Tenure

4.6yrs

Average Tenure

51.5yo

Average Age

Experienced Board: HTHT's board of directors are considered experienced (4.6 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Qi Ji (52yo)

    Founder & Executive Chairman of the Board

    • Tenure: 12.7yrs
  • John Wu (51yo)

    Co-Founder & Independent Director

    • Tenure: 12.8yrs
  • Tong Tong Zhao (52yo)

    Co-Founder & Independent Director

    • Tenure: 12.7yrs
  • Jenny Zhang (45yo)

    Chief Executive Officer

    • Tenure: 4.4yrs
  • Yu Ida

    Senior Manager of Investor Relations

    • Tenure: 0yrs
  • Hui Jin (41yo)

    President

    • Tenure: 3.3yrs
  • Yuewu Rong

    Legal Director

    • Tenure: 0yrs
  • Nee Chuan Teo (48yo)

    Chief Financial Officer

    • Tenure: 3.6yrs

Board Members

  • Sébastien Bazin (58yo)

    Director

    • Tenure: 3.8yrs
  • Qi Ji (52yo)

    Founder & Executive Chairman of the Board

    • Tenure: 12.7yrs
  • John Wu (51yo)

    Co-Founder & Independent Director

    • Tenure: 12.8yrs
  • Jian Shang (51yo)

    Independent Director

    • Tenure: 5.4yrs
  • Tong Tong Zhao (52yo)

    Co-Founder & Independent Director

    • Tenure: 12.7yrs
  • Cindy Wang (44yo)

    Director

    • Tenure: 1.8yrs
  • Gaurav Bhushan (47yo)

    Alternate Director

    • Tenure: 3.6yrs
  • Shangzhi Zhang (65yo)

    Director

    • Tenure: 3.3yrs

Company Information

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


Key Information

  • Name: Huazhu Group Limited
  • Ticker: HTHT
  • Exchange: NasdaqGS
  • Founded: 2005
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: US$10.317b
  • Shares outstanding: 283.89m
  • 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 ADR 1 ORD SHSUSUSDMar 2010
CL4ADB (Deutsche Boerse AG)YesSPONSORED ADR 1 ORD SHSDEEURMar 2010
HTHT NBMV (Bolsa Mexicana de Valores)YesSPONSORED ADR 1 ORD SHSMXMXNMar 2010
0A2ILSE (London Stock Exchange)YesSPONSORED ADR 1 ORD SHSGBUSDMar 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 00:17
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.