NYSE:HLT

Stock Analysis Report

Executive Summary

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

Snowflake

Limited growth with questionable track record.


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


Market Performance


7 Day Return

-1.2%

HLT

0.03%

US Hospitality

0.4%

US Market


1 Year Return

34.1%

HLT

8.9%

US Hospitality

13.1%

US Market

Return vs Industry: HLT exceeded the US Hospitality industry which returned 8.9% over the past year.

Return vs Market: HLT exceeded the US Market which returned 13.1% over the past year.


Shareholder returns

HLTIndustryMarket
7 Day-1.2%0.03%0.4%
30 Day6.7%3.7%4.0%
90 Day5.1%6.0%7.4%
1 Year35.0%34.1%11.8%8.9%15.6%13.1%
3 Year98.6%32.6%35.4%25.9%48.2%38.6%
5 Year95.2%28.0%35.5%20.9%62.6%44.6%

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?

30.48x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HLT ($97.76) is trading above our estimate of fair value ($75.88)

Significantly Below Fair Value: HLT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HLT is poor value based on its PE Ratio (30.5x) compared to the Hospitality industry average (22.2x).

PE vs Market: HLT is poor value based on its PE Ratio (30.5x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: HLT is poor value based on its PEG Ratio (4.1x)


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 15 analysts?

7.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HLT's forecast earnings growth (7.4% per year) is above the savings rate (2.7%).

Earnings vs Market: HLT's earnings (7.4% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: HLT's revenue (8.2% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: HLT's revenue (8.2% per year) is forecast to grow slower 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?

10.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HLT has high quality earnings.

Growing Profit Margin: HLT's current net profit margins (24.7%) are lower than last year (35.5%).


Past Earnings Growth Analysis

Earnings Trend: HLT's earnings have grown by 10.3% per year over the past 5 years.

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

Earnings vs Industry: HLT had negative earnings growth (-26.7%) over the past year, making it difficult to compare to the Hospitality industry average (-15%).


Return on Equity

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


Return on Assets


Return on Capital Employed


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 well covered by operating cash flow (20.2%).

Interest Coverage: HLT's interest payments on its debt are well covered by EBIT (4x 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?

0.61%

Current Dividend Yield


Dividend Yield vs Market

company0.6%marketbottom25%1.4%markettop25%3.7%industryaverage3.1%forecastin3Years0.6%

Current dividend yield vs market & industry

Notable Dividend: HLT's dividend (0.61%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: HLT's dividend (0.61%) is low compared to the top 25% of dividend payers in the US market (3.66%).


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

What is the CEO of Hilton Worldwide Holdings's salary, the management and board of directors tenure and is there insider trading?

5.2yrs

Average management tenure


CEO

Chris Nassetta (56yo)

11.9yrs

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 ($USD19.79M) is above average for companies of similar size in the US market ($USD10.97M).

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


Management Age and Tenure

5.2yrs

Average Tenure

49yo

Average Age

Experienced Management: HLT's management team is seasoned and experienced (5.2 years average tenure).


Board Age and Tenure

6.8yrs

Average Tenure

60yo

Average Age

Experienced Board: HLT's board of directors are considered experienced (6.8 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.


Recent Insider Transactions

SellUS$2,006,83206 May 19
Ian Carter
EntityIndividual
Role
Senior Key Executive
Executive VP and President of Global Development
Shares21,700
Max PriceUS$92.67
SellUS$4,310,95520 Feb 19
Kevin Jacobs
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares53,023
Max PriceUS$81.45
SellUS$1,661,95520 Feb 19
Kristin Campbell
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares20,452
Max PriceUS$81.29

Ownership Breakdown

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


Management Team

  • Chris Nassetta (56yo)

    President

    • Tenure: 11.9yrs
    • Compensation: US$19.79m
  • Ian Carter (58yo)

    Executive VP and President of Global Development

    • Tenure: 7.1yrs
    • Compensation: US$3.75m
  • Jon Witter (49yo)

    Executive VP & Chief Customer Officer

    • Tenure: 2.6yrs
    • Compensation: US$4.61m
  • Kevin Jacobs (47yo)

    Executive VP & CFO

    • Tenure: 6.3yrs
    • Compensation: US$4.61m
  • Kristin Campbell (58yo)

    Executive VP

    • Tenure: 8.4yrs
    • Compensation: US$3.36m
  • Katrina Jones

    Senior Vice President of Executive Communications

    • Tenure: 0yrs
  • Greg Hartmann

    Senior Vice President of Luxury

    • Tenure: 2.6yrs
  • Mike Duffy (39yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 4.2yrs
  • Noelle Eder (49yo)

    Executive VP and Chief Information & Digital Officer

    • Tenure: 1.7yrs
  • Jill Slattery

    Director

    • Tenure: 0yrs

Board Members

  • John Schreiber (73yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: US$269.98k
  • Jon Gray (50yo)

    Chairman of the Board

    • Tenure: 9.8yrs
  • Chris Nassetta (56yo)

    President

    • Tenure: 11.9yrs
    • Compensation: US$19.79m
  • Doug Steenland (68yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: US$333.23k
  • Judith McHale (72yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$286.98k
  • Raymond Mabus (70yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$278.01k
  • Charlene Begley (52yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$305.32k
  • Liz Smith (56yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: US$274.98k
  • Mark Wang (62yo)

    CEO, President & Director of Hilton Grand Vacations Inc

    • Tenure: 0yrs
    • Compensation: US$3.71m
  • Melanie Healey (58yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$263.73k

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$27.584b
  • Shares outstanding: 282.16m
  • 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
HLTWWBAG (Wiener Boerse AG)YesCommon SharesATEURDec 2013

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 com ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/14 01:08
End of Day Share Price2019/11/13 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.