NYSE:HGV

Stock Analysis Report

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

Undervalued with moderate growth potential.


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: HGV has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.5%

HGV

-1.6%

US Hospitality

-1.1%

US Market


1 Year Return

-3.5%

HGV

4.1%

US Hospitality

17.9%

US Market

Return vs Industry: HGV underperformed the US Hospitality industry which returned 4% over the past year.

Return vs Market: HGV underperformed the US Market which returned 18% over the past year.


Shareholder returns

HGVIndustryMarket
7 Day-4.5%-1.6%-1.1%
30 Day-6.7%-1.4%1.4%
90 Day-9.5%3.2%6.9%
1 Year-3.5%-3.5%6.8%4.1%20.3%17.9%
3 Year5.0%5.0%33.5%24.6%47.8%38.3%
5 Yearn/a45.0%29.6%71.9%53.0%

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

Valuation

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

46.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HGV ($31.5) is trading below our estimate of fair value ($59.32)

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


Price To Earnings Ratio

PE vs Industry: HGV is good value based on its PE Ratio (10.9x) compared to the Hospitality industry average (23.7x).

PE vs Market: HGV is good value based on its PE Ratio (10.9x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: HGV is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: HGV is overvalued based on its PB Ratio (5.4x) compared to the US Hospitality industry average (2.2x).


Next Steps

Future Growth

How is Hilton Grand Vacations forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

12.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HGV's forecast earnings growth (12.7% per year) is above the savings rate (1.7%).

Earnings vs Market: HGV's earnings (12.7% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: HGV's earnings are forecast to grow, but not significantly.

Revenue vs Market: HGV's revenue (9.8% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: HGV's revenue (9.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HGV's Return on Equity is forecast to be high in 3 years time (31.5%)


Next Steps

Past Performance

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

16.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HGV has high quality earnings.

Growing Profit Margin: HGV's current net profit margins (14.3%) are lower than last year (21.7%).


Past Earnings Growth Analysis

Earnings Trend: HGV's earnings have grown by 16.6% per year over the past 5 years.

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

Earnings vs Industry: HGV had negative earnings growth (-26.9%) over the past year, making it difficult to compare to the Hospitality industry average (-8.2%).


Return on Equity

High ROE: Whilst HGV's Return on Equity (53.44%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Hilton Grand Vacations's financial position?


Financial Position Analysis

Short Term Liabilities: HGV's short term assets ($2.0B) exceed its short term liabilities ($278.0M).

Long Term Liabilities: HGV's short term assets ($2.0B) do not cover its long term liabilities ($2.3B).


Debt to Equity History and Analysis

Debt Level: HGV's debt to equity ratio (325.9%) is considered high.

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

Debt Coverage: HGV's debt is not well covered by operating cash flow (12%).

Interest Coverage: HGV's interest payments on its debt are well covered by EBIT (10x coverage).


Balance Sheet

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

Debt Coverage by Assets: HGV's debt is covered by short term assets (assets are 1.3x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage3.1%forecastin3Years0%

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if HGV'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 HGV's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Mark Wang (62yo)

3.1yrs

Tenure

US$7,141,693

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 ($USD7.14M) is above average for companies of similar size in the US market ($USD4.87M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mark Wang
President3.1yrsUS$7.14m0.29% $7.8m
Daniel Mathewes
Executive VP & CFO1.3yrsUS$644.91k0.023% $630.0k
Gordon Gurnik
Executive VP & COO1.2yrsUS$2.50m0.060% $1.6m
Allen Klingsick
Senior VP & Chief Accounting Officer3.1yrsUS$1.06m0.0096% $259.3k
Dennis DeLorenzo
Executive VP & Chief Sales Officer3.2yrsUS$2.43m0.028% $743.9k
Sherri Silver
Executive VP & Chief Marketing Officer2.5yrsUS$2.58m0.0044% $119.0k
Erin Day
Vice President of Corporate Finance and Strategic Planning0yrsno datano data
Rich Jackson
Chief Information Officer & Senior VP0yrsno datano data
Robert LaFleur
Head of Investor Relations0yrsno datano data
Charles Corbin
Executive VP3.3yrsUS$2.14m0.068% $1.8m

3.1yrs

Average Tenure

56yo

Average Age

Experienced Management: HGV's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Wang
President3.1yrsUS$7.14m0.29% $7.8m
Paul Whetsell
Independent Director3.1yrsUS$229.99k0.015% $413.8k
Pamela Patsley
Independent Director3.2yrsUS$229.99k0.0095% $256.3k
Leonard Potter
Chairman3.1yrsUS$344.99k0.080% $2.1m
David Johnson
Independent Director3.1yrsUS$224.99k0.050% $1.4m
Mark Lazarus
Independent Director3.1yrsUS$209.99k0.0095% $256.3k
Brenda Bacon
Independent Director3.1yrsUS$219.99k0.0095% $256.3k

3.1yrs

Average Tenure

62yo

Average Age

Experienced Board: HGV's board of directors are considered experienced (3.1 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

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


Key Information

  • Name: Hilton Grand Vacations Inc.
  • Ticker: HGV
  • Exchange: NYSE
  • Founded: 1992
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: US$2.692b
  • Shares outstanding: 85.47m
  • Website: https://www.hgv.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
HIEBRSE (Berne Stock Exchange)YesNew Common StockCHCHFDec 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 309,000 members, as well as engages in the rental of inventory made available due to ownership exchanges through its club programs. As of December 31, 2018, it had 54 resorts comprising 8,888 units located in the Hawaiian Islands, New York City, Orlando, 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 Analysis2020/02/23 02:46
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
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.