NYSE:HLT

Stock Analysis Report

Executive Summary

Hilton Worldwide Holdings Inc., a hospitality company, owns, leases, manages, develops, and franchises hotels and resorts.


Snowflake Analysis

Solid track record with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

9.2%

HLT

11.8%

US Hospitality

12.5%

US Market


1 Year Return

-17.8%

HLT

-43.4%

US Hospitality

-12.7%

US Market

Return vs Industry: HLT exceeded the US Hospitality industry which returned -43.4% over the past year.

Return vs Market: HLT underperformed the US Market which returned -12.7% over the past year.


Shareholder returns

HLTIndustryMarket
7 Day9.2%11.8%12.5%
30 Day-28.9%-35.7%-14.7%
90 Day-37.7%-47.3%-21.5%
1 Year-17.3%-17.8%-41.9%-43.4%-10.9%-12.7%
3 Year22.8%20.0%-30.6%-35.3%12.6%5.4%
5 Year18.8%-22.2%-24.2%-32.5%31.9%17.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Hilton Worldwide Holdings undervalued compared to its fair value and its price relative to the market?

10.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HLT ($69.15) is trading below our estimate of fair value ($77.12)

Significantly Below Fair Value: HLT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: HLT is poor value based on its PE Ratio (22.5x) compared to the Hospitality industry average (12.3x).

PE vs Market: HLT is poor value based on its PE Ratio (22.5x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: HLT is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: HLT has negative assets, so we can't compare its PB Ratio to the US Hospitality industry average.


Next Steps

Future Growth

How is Hilton Worldwide Holdings forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

6.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HLT's forecast earnings growth (6.7% per year) is above the savings rate (1.7%).

Earnings vs Market: HLT's earnings (6.7% per year) are forecast to grow slower than the US market (12.3% per year).

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

Revenue vs Market: HLT's revenue (22.7% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: HLT's revenue (22.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if HLT's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Hilton Worldwide Holdings performed over the past 5 years?

10.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HLT has high quality earnings.

Growing Profit Margin: HLT's current net profit margins (23.4%) are higher than last year (20.8%).


Past Earnings Growth Analysis

Earnings Trend: HLT's earnings have grown by 10.4% per year over the past 5 years.

Accelerating Growth: HLT's earnings growth over the past year (15.3%) exceeds its 5-year average (10.4% per year).

Earnings vs Industry: HLT earnings growth over the past year (15.3%) exceeded the Hospitality industry 1.6%.


Return on Equity

High ROE: HLT's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Hilton Worldwide Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: HLT has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: HLT has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: HLT has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: HLT's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: HLT's debt is not well covered by operating cash flow (17.9%).

Interest Coverage: HLT's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet

Inventory Level: HLT has a low level of unsold assets or inventory.

Debt Coverage by Assets: HLT has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

What is Hilton Worldwide Holdings's current dividend yield, its reliability and sustainability?

0.87%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HLT's dividend (0.87%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: HLT's dividend (0.87%) is low compared to the top 25% of dividend payers in the US market (5.49%).


Stability and Growth of Payments

Stable Dividend: HLT is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: HLT is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: HLT is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HLT'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?

5.5yrs

Average management tenure


CEO

Chris Nassetta (56yo)

12.25s

Tenure

US$19,790,569

Compensation

Mr. Christopher J. Nassetta, also known as Chris, is the President, Chief Executive Officer and Director of Hilton Domestic Operating Company Inc. Mr. Christopher J. Nassetta, also known as Chris, serves a ...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD19.79M) is above average for companies of similar size in the US market ($USD11.74M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Christopher Nassetta
President12.25yrsUS$19.79m1.06% $204.3m
Kevin Jacobs
Former Executive VP & CFO6.58yrsUS$4.61m0.076% $14.6m
Kristin Campbell
Executive VP8.75yrsUS$3.36m0.068% $13.0m
Ian Carter
Executive VP and President of Global Development7.42yrsUS$3.75m0.22% $41.6m
Michael Duffy
Senior VP & Chief Accounting Officer4.5yrsno data0.010% $1.9m
Noelle Eder
Executive VP and Chief Information & Digital Officer2yrsno datano data
Jill Slattery
Directorno datano datano data
Katherine Fallon
Executive Vice President of Global Communications & External Affairsno datano datano data
Greg Hartmann
Senior Vice President of Luxury2.92yrsno datano data
Kellyn Kenny
Senior VP & Chief Marketing Officer2.17yrsno datano data

5.5yrs

Average Tenure

49yo

Average Age

Experienced Management: HLT's management team is seasoned and experienced (5.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Christopher Nassetta
President12.25yrsUS$19.79m1.06% $204.3m
Mark Wang
CEO, President & Director of Hilton Grand Vacations Incno dataUS$3.71mno data
John Schreiber
Independent Director13.17yrsUS$269.98k0.0037% $711.8k
Jonathan Gray
Chairman of the Board10.17yrsno datano data
Douglas Steenland
Independent Director11.17yrsUS$333.23k0.0020% $379.9k
Judith McHale
Independent Director7.17yrsUS$286.98k0.00078% $149.6k
Raymond Mabus
Independent Director2.5yrsUS$278.01k0.0019% $358.8k
Charlene Begley
Independent Director2.92yrsUS$305.32k0.0022% $425.9k
Elizabeth Smith
Independent Director6.25yrsUS$274.98k0.00078% $149.6k
Melanie Healey
Independent Director2.5yrsUS$263.73k0.0019% $374.1k

7.2yrs

Average Tenure

60yo

Average Age

Experienced Board: HLT's board of directors are considered experienced (7.2 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 Worldwide Holdings Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hilton Worldwide Holdings Inc.
  • Ticker: HLT
  • Exchange: NYSE
  • Founded: 1919
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: US$19.186b
  • Shares outstanding: 277.45m
  • Website: https://www.hilton.com

Number of Employees


Location

  • Hilton Worldwide Holdings Inc.
  • 7930 Jones Branch Drive
  • Suite 1100
  • McLean
  • Virginia
  • 22102
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HLTNYSE (New York Stock Exchange)YesCommon SharesUSUSDDec 2013
HI91DB (Deutsche Boerse AG)YesCommon SharesDEEURDec 2013
HLT *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNDec 2013
0J5ILSE (London Stock Exchange)YesCommon SharesGBUSDDec 2013
HI91BRSE (Berne Stock Exchange)YesCommon SharesCHCHFDec 2013
HLTWWBAG (Wiener Boerse AG)YesCommon SharesATEURDec 2013
H1LT34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 2 COMBRBRLDec 2019

Biography

Hilton Worldwide Holdings Inc., a hospitality company, owns, leases, manages, develops, and franchises hotels and resorts. It operates through two segments, Management and Franchise, and Ownership. The company engages in the hotel management and licensing of its brands. It operates hotels under the Waldorf Astoria Hotels & Resorts, LXR Hotels & Resorts, Conrad Hotels & Resorts, Canopy by Hilton, Signia by Hilton, Hilton Hotels & Resorts, Curio Collection by Hilton, DoubleTree by Hilton, Tapestry Collection by Hilton, Embassy Suites by Hilton, Motto by Hilton, Hilton Garden Inn, Hampton by Hilton, Tru by Hilton, Homewood Suites by Hilton, Home2 Suites by Hilton, Hilton Grand Vacations, and Tempo by Hilton brands. The company operates in North America, South America, and Central America, including various Caribbean nations; Europe, the Middle East, and Africa; and the Asia Pacific. As of February 21, 2020, the company had approximately 6,100 properties with approximately 971,000 rooms in 119 countries and territories. Hilton Worldwide Holdings Inc. was founded in 1919 and is headquartered in McLean, Virginia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 02:44
End of Day Share Price2020/03/27 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.