NYSE:H

Stock Analysis Report

Executive Summary

Hyatt Hotels Corporation, a hospitality company, develops, owns, operates, manages, franchises, licenses, or provides services to hotels, resorts, and other properties.


Snowflake Analysis

Undervalued with mediocre balance sheet.


Similar Companies

Share Price & News

How has Hyatt Hotels's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-18.8%

H

-15.8%

US Hospitality

-2.8%

US Market


1 Year Return

-47.9%

H

-52.8%

US Hospitality

-15.9%

US Market

Return vs Industry: H exceeded the US Hospitality industry which returned -52.8% over the past year.

Return vs Market: H underperformed the US Market which returned -15.9% over the past year.


Shareholder returns

HIndustryMarket
7 Day-18.8%-15.8%-2.8%
30 Day-42.3%-40.8%-18.8%
90 Day-54.4%-55.9%-24.0%
1 Year-47.4%-47.9%-51.5%-52.8%-14.2%-15.9%
3 Year-23.6%-25.1%-40.9%-44.9%9.9%2.8%
5 Year-31.1%-32.4%-37.8%-44.7%27.2%13.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Hyatt Hotels 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: H ($39.92) is trading below our estimate of fair value ($144.62)

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


Price To Earnings Ratio

PE vs Industry: H is good value based on its PE Ratio (5.5x) compared to the Hospitality industry average (11.5x).

PE vs Market: H is good value based on its PE Ratio (5.5x) compared to the US market (12.2x).


Price to Earnings Growth Ratio

PEG Ratio: H's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: H is good value based on its PB Ratio (1x) compared to the US Hospitality industry average (1.2x).


Next Steps

Future Growth

How is Hyatt Hotels forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

-97.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: H's earnings are forecast to decline over the next 3 years (-97.9% per year).

Earnings vs Market: H's earnings are forecast to decline over the next 3 years (-97.9% per year).

High Growth Earnings: H's earnings are forecast to decline over the next 3 years.

Revenue vs Market: H's revenue (18.5% per year) is forecast to grow faster than the US market (7% per year).

High Growth Revenue: H's revenue (18.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: H's Return on Equity is forecast to be low in 3 years time (3.4%).


Next Steps

Past Performance

How has Hyatt Hotels performed over the past 5 years?

26.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: H has a large one-off gain of $804.0M impacting its December 31 2019 financial results.

Growing Profit Margin: H's current net profit margins (29.9%) are lower than last year (30.8%).


Past Earnings Growth Analysis

Earnings Trend: H's earnings have grown significantly by 26.3% per year over the past 5 years.

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

Earnings vs Industry: H had negative earnings growth (-0.4%) over the past year, making it difficult to compare to the Hospitality industry average (1.6%).


Return on Equity

High ROE: H's Return on Equity (19.3%) is considered low.


Next Steps

Financial Health

How is Hyatt Hotels's financial position?


Financial Position Analysis

Short Term Liabilities: H's short term assets ($1.7B) exceed its short term liabilities ($1.1B).

Long Term Liabilities: H's short term assets ($1.7B) do not cover its long term liabilities ($3.4B).


Debt to Equity History and Analysis

Debt Level: H's debt to equity ratio (40.6%) is considered high.

Reducing Debt: H's debt to equity ratio has increased from 30% to 40.6% over the past 5 years.

Debt Coverage: H's debt is well covered by operating cash flow (24.6%).

Interest Coverage: H's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: H's debt is covered by short term assets (assets are 1.1x debt).


Next Steps

Dividend

What is Hyatt Hotels's current dividend yield, its reliability and sustainability?

2.00%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: H's dividend (2%) isn’t notable compared to the bottom 25% of dividend payers in the US market (2.07%).

High Dividend: H's dividend (2%) is low compared to the top 25% of dividend payers in the US market (5.82%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, H has been paying a dividend for less than 10 years.

Growing Dividend: H's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (10.4%), H's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: H's dividends in 3 years are forecast to be covered by earnings (54% payout ratio).


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Mark Hoplamazian (56yo)

13.33s

Tenure

US$12,460,429

Compensation

Mr. Mark Samuel Hoplamazian has served as President and Chief Executive Officer since December 2006 and as Director since November 2006 of Hyatt Hotels Corporation (“Hyatt Hotels”). He serves as Chief Exec ...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD12.46M) is above average for companies of similar size in the US market ($USD5.71M).

Compensation vs Earnings: Mark's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Pritzker
Executive Chairman of the Board15.67yrsUS$5.08mno data
Mark Hoplamazian
President13.33yrsUS$12.46m0.34% $13.6m
Joan Bottarini
Executive VP & CFO1.42yrsUS$1.08m0.0084% $338.5k
H. Floyd
Executive VP & Global President of Operations5.67yrsUS$3.99m0.044% $1.8m
Mark Vondrasek
Executive VP & Chief Commercial Officer2.58yrsUS$2.80m0.0025% $102.3k
Elizabeth Bauer
Senior VP2.67yrsno data0.0031% $123.7k
Bradley O'Bryan
Senior VP of Investor Relations & Corporate Finance and Treasurerno datano data0.012% $490.1k
Alex Zoghlin
Global Head of Data Strategyno datano datano data
Margaret Egan
Executive VP2.5yrsno data0.0031% $127.0k
Deborah Goetz
Senior Vice President of Corporate Marketing and Global Communications5yrsno datano data

2.7yrs

Average Tenure

50yo

Average Age

Experienced Management: H's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thomas Pritzker
Executive Chairman of the Board15.67yrsUS$5.08mno data
Mark Hoplamazian
President13.33yrsUS$12.46m0.34% $13.6m
Richard Tuttle
Independent Director15.33yrsUS$255.05k0.025% $1.0m
Michael Rocca
Independent Director12.08yrsUS$243.79k0.017% $694.8k
Cary McMillan
Independent Director6.83yrsUS$256.26k0.0018% $71.6k
Mackey McDonald
Independent Director10.83yrsUS$250.70k0.034% $1.4m
Susan Kronick
Independent Director10.83yrsUS$254.41k0.037% $1.5m
Pamela Nicholson
Independent Director6.08yrsUS$235.05k0.0030% $120.1k
James Wooten
Independent Director8.83yrsUS$250.05k0.0076% $305.3k
Jason Pritzker
Director6.08yrsUS$231.29k0.0014% $56.2k

10.8yrs

Average Tenure

65.5yo

Average Age

Experienced Board: H's board of directors are seasoned and experienced ( 10.8 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.


Top Shareholders

Company Information

Hyatt Hotels Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hyatt Hotels Corporation
  • Ticker: H
  • Exchange: NYSE
  • Founded: 1957
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: US$4.044b
  • Shares outstanding: 101.30m
  • Website: https://www.hyatt.com

Number of Employees


Location

  • Hyatt Hotels Corporation
  • 150 North Riverside Plaza
  • 8th Floor
  • Chicago
  • Illinois
  • 60606
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HNYSE (New York Stock Exchange)YesClass A Common StockUSUSDNov 2009
1HTADB (Deutsche Boerse AG)YesClass A Common StockDEEURNov 2009
1HTABRSE (Berne Stock Exchange)YesClass A Common StockCHCHFNov 2009

Biography

Hyatt Hotels Corporation, a hospitality company, develops, owns, operates, manages, franchises, licenses, or provides services to hotels, resorts, and other properties. It operates through four segments: Owned and Leased Hotels, Americas Management and Franchising, ASPAC Management and Franchising, and EAME/SW Asia Management and Franchising. The company operates its properties under the Park Hyatt, Miraval, Grand Hyatt, Alila, Andaz, The Unbound Collection by Hyatt, Destination, Hyatt Regency, Hyatt, Hyatt Ziva, Hyatt Zilara, Thompson Hotels, Hyatt Centric, Caption by Hyatt, Hyatt House, Hyatt Place, tommie, Hyatt Residence Club, Hyatt Residences, Exhale, World of Hyatt, and Hyatt Resorts brands. As of December 31, 2019, its hotel portfolio consisted of 913 hotels in 65 countries. It primarily serves corporations; national, state, and regional associations; specialty market accounts, including social, government, military, educational, religious, and fraternal accounts; travel agency and luxury organizations; and a group of individual consumers. Hyatt Hotels Corporation has a strategic alliance with Small Luxury Hotels to provide benefits to the members of World of Hyatt loyalty program by providing additional stay opportunities at luxury hotels primarily in Europe. The company was formerly known as Global Hyatt Corporation and changed its name to Hyatt Hotels Corporation in June 2009. Hyatt Hotels Corporation was founded in 1957 and is headquartered in Chicago, Illinois. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 00:26
End of Day Share Price2020/04/03 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.