Huazhu Group (NasdaqGS:HTHT) - Share price, News & Analysis

HTHT fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	5/6
Past Performance	0/6
Financial Health	1/6
Dividends	0/6

HTHT Stock Overview

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

Rewards

Trading at 57.9% below our estimate of its fair value

Earnings are forecast to grow 86.93% per year

Risk Analysis

Volatile share price over the past 3 months

Huazhu Group Competitors

Airbnb

NasdaqGS:ABNB

US$72.1b

Marriott International

NasdaqGS:MAR

US$51.7b

Hilton Worldwide Holdings

NYSE:HLT

US$36.8b

Hyatt Hotels

NYSE:H

US$9.1b

Price History & Performance

Summary of all time highs, changes and price drops for Huazhu Group
Historical stock prices
Current Share Price	US$28.21
52 Week High	US$59.86
52 Week Low	US$21.98
Beta	1.32
1 Month Change	-5.65%
3 Month Change	-33.76%
1 Year Change	-49.86%
3 Year Change	-8.62%
5 Year Change	42.40%
Change since IPO	710.63%

Recent News & Updates

Apr 29

These 4 Measures Indicate That Huazhu Group (NASDAQ:HTHT) Is Using Debt Extensively

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Mar 25

Returns On Capital At Huazhu Group (NASDAQ:HTHT) Paint A Concerning Picture

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Shareholder Returns

	HTHT	US Hospitality	US Market
7D	-0.8%	-1.0%	-0.5%
1Y	-49.9%	-25.7%	-12.3%

Return vs Industry: HTHT underperformed the US Hospitality industry which returned -24.5% over the past year.

Return vs Market: HTHT underperformed the US Market which returned -12.9% over the past year.

Price Volatility

Is HTHT's price volatile compared to industry and market?
HTHT volatility
HTHT Average Weekly Movement	16.2%
Hospitality Industry Average Movement	9.2%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	2.9%

Stable Share Price: HTHT is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 16% a week.

Volatility Over Time: HTHT's weekly volatility has increased from 10% to 16% over the past year.

About the Company

Founded	Employees	CEO	Website
2005	24,384	Hui Jin	https://www.huazhu.com

Huazhu Group Limited, together with its subsidiaries, develops leased and owned, manachised, and franchised hotels primarily in the People’s Republic of China. The company operates hotels under its own brands, such as HanTing Hotel, Ni Hao Hotel, Hi Inn, Elan Hotel, Zleep Hotels, Ibis Hotel, JI Hotel, Orange Hotel, Starway Hotel, Ibis Styles Hotel, Crystal Orange Hotel, IntercityHotel, Manxin Hotel, Mercure Hotel, Madison Hotel, Novotel Hotel, Joya Hotel, Blossom House, Steigenberger Hotels & Resorts, MAXX by Steigenberger, Jaz in the City, and Grand Mercure. As of December 31, 2021, it operated 7,830 hotels with 753,216 rooms.

Huazhu Group Fundamentals Summary

How do Huazhu Group's earnings and revenue compare to its market cap?
HTHT fundamental statistics
Market Cap	CN¥60.37b
Earnings (TTM)	-CN¥465.00m
Revenue (TTM)	CN¥12.79b

4.7x

P/S Ratio

-129.8x

P/E Ratio

Is HTHT overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
HTHT income statement (TTM)
Revenue	CN¥12.79b
Cost of Revenue	CN¥11.28b
Gross Profit	CN¥1.50b
Other Expenses	CN¥1.97b
Earnings	-CN¥465.00m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

May 30, 2022

Earnings per share (EPS)	-1.44
Gross Margin	11.76%
Net Profit Margin	-3.64%
Debt/Equity Ratio	88.7%

How did HTHT perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: HTHT ($28.21) is trading below our estimate of fair value ($66.98)

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

Price To Earnings Ratio

PE vs Industry: HTHT is unprofitable, so we can't compare its PE Ratio to the US Hospitality industry average.

PE vs Market: HTHT is unprofitable, so we can't compare its PE Ratio to the US market.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HTHT's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: HTHT is overvalued based on its PB Ratio (5.5x) compared to the US Hospitality industry average (2.5x).

Future Growth

How is Huazhu Group forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

86.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: HTHT is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: HTHT is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: HTHT's is expected to become profitable in the next 3 years.

Revenue vs Market: HTHT's revenue (18.1% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: HTHT's revenue (18.1% 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 (23.2%)

Past Performance

How has Huazhu Group performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-38.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HTHT is currently unprofitable.

Growing Profit Margin: HTHT is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: HTHT is unprofitable, and losses have increased over the past 5 years at a rate of 38.9% per year.

Accelerating Growth: Unable to compare HTHT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: HTHT is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (157.9%).

Return on Equity

High ROE: HTHT has a negative Return on Equity (-4.35%), as it is currently unprofitable.

Financial Health

How is Huazhu Group's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: HTHT's short term assets (CN¥9.6B) do not cover its short term liabilities (CN¥15.3B).

Long Term Liabilities: HTHT's short term assets (CN¥9.6B) do not cover its long term liabilities (CN¥36.9B).

Debt to Equity History and Analysis

Debt Level: HTHT's net debt to equity ratio (18.9%) is considered satisfactory.

Reducing Debt: HTHT's debt to equity ratio has increased from 5.5% to 88.7% over the past 5 years.

Debt Coverage: HTHT's debt is not well covered by operating cash flow (13.7%).

Interest Coverage: Insufficient data to determine if HTHT's interest payments on its debt are well covered by EBIT.

Balance Sheet

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.09%

Forecast Dividend Yield

Dividend Yield vs Market

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

High Dividend: Unable to evaluate HTHT'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 HTHT's dividends per share have been stable in the past.

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

Earnings Payout to Shareholders

Earnings Coverage: HTHT is not paying a notable dividend for the US market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as HTHT has not reported any payouts.

Discover strong dividend paying companies

Management

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

1.3yrs

Average management tenure

CEO

Hui Jin (43 yo)

0.58

Tenure

Mr. Hui Jin serves as Chief Executive Officer of Huazhu Group Limited since October 1, 2021. He served as President of Huazhu Group Limited until October 1, 2021. He served as Co-President of Huazhu Group...

Leadership Team

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

Board Members

Experienced Board: HTHT's board of directors are considered experienced (7 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.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/05/24 00:00
End of Day Share Price	2022/05/23 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31