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Hilton Worldwide (HLT) Stock Analysis

Here is a fundamental analysis of Hilton Worldwide (HLT), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.

Performance

Cumulative Growth

HLT
GSPC
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Hilton Worldwide (HLT) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Hilton Worldwide (HLT) and S&P 500 (GSPC). Returns over one year are annualized.

Performance at a Glance

Hilton Worldwide (HLT) metric values compared with Consumer Services industry-group medians
MetricCurrent stock: HLTIndustry group median
1-Year Return38.36%1.05%

Risk

Drawdown

HLT
GSPC
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Hilton Worldwide (HLT) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Risk at a Glance

Hilton Worldwide (HLT) metric values compared with Consumer Services industry-group medians
MetricCurrent stock: HLTIndustry group median
1-Year Volatility23.17%44.02%
Beta1.041.03

Company Profile

Company profile fields for Hilton Worldwide (HLT)
Profile ItemHLT
NameHilton Worldwide Holdings Inc.
Country/RegionUnited States
GICS SectorConsumer Discretionary
GICS Industry GroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
GICS Sub-IndustryHotels, Resorts & Cruise Lines
Market Capitalization78.75 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateDecember 12, 2013
Security TypeCommon Stock

Valuation

Price-to-Earnings Ratio (TTM)

Hilton Worldwide (HLT) trades at P/E ratio of 52.74, in the richer earnings-multiple quartile for its industry. That premium needs support from growth, durable earnings, or stronger business quality.

HLT

Consumer Services industry group

52.74

Group distribution
Max
71.36
HLT
52.74
Q3
40.24
Median
22.08
Q1
17.04
Min
3.87
Largest peers
SBUX
78.66
HLT
52.74
MAR
42.19
ABNB
32.66
MCD
23.48
BKNG
21.73
RCL
17.95
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Where Hilton Worldwide (HLT) stands on P/E ratio within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

Price-to-Sales Ratio (TTM)

Hilton Worldwide (HLT) trades at 15.53 on P/S ratio, above the industry benchmark range. The stock is being valued at an unusually rich price per dollar of trailing revenue.

HLT

Consumer Services industry group

15.53

Group distribution
HLT
15.53
Max
6.59
Q3
3.16
Median
1.68
Q1
0.87
Min
0.06
Largest peers
HLT
15.53
MAR
14.78
MCD
7.37
ABNB
6.21
BKNG
4.62
RCL
4.29
SBUX
3.05
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Where Hilton Worldwide (HLT) stands on P/S ratio within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

Price-to-Book Ratio (MRQ)

Hilton Worldwide (HLT) has negative P/B ratio of -13.38, which means reported book equity is negative. Price-to-book breaks down in this situation and should not be used as a valuation signal.

HLT

Consumer Services industry group

-13.38

Group distribution
Max
13.42
Q3
6.34
Median
2.54
Q1
1.07
Min
-5.84
HLT
-13.38
Largest peers
ABNB
10.31
RCL
8.05
HLT
-13.38
SBUX
-13.87
BKNG
-14.75
MAR
-26.04
MCD
-157.35
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Where Hilton Worldwide (HLT) stands on P/B ratio within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

Valuation at a Glance

Hilton Worldwide (HLT) metric values compared with Consumer Services industry-group medians
MetricCurrent stock: HLTIndustry group median
Price-to-Earnings Ratio (TTM)52.7422.08
Price-to-Sales Ratio (TTM)15.531.68
Price-to-Book Ratio (MRQ)-13.382.54
Free Cash Flow Yield2.14%4.08%

Profitability

Return on Equity (TTM)

No usable ROE is available for Hilton Worldwide (HLT) this period, so the shareholder-equity return read is skipped.

HLT

Consumer Services industry group

--

Group distribution
Max
52.89%
Q3
29.07%
Median
12.44%
Q1
3.56%
Min
-26.11%
HLT
--
Largest peers
RCL
49.58%
ABNB
32.33%
HLT
--
MCD
--
BKNG
--
SBUX
--
MAR
--
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Hilton Worldwide (HLT) doesn’t report ROE this period; the box shows the Consumer Services group’s distribution and the dots its largest members.

Net Profit Margin (TTM)

Hilton Worldwide (HLT) keeps 30.41% of revenue as net profit on net margin, above the industry benchmark range. That is unusually strong bottom-line conversion, though tax effects, asset sales, or other one-off gains should be checked before treating it as durable.

HLT

Consumer Services industry group

30.41%

Group distribution
HLT
30.41%
Max
24.47%
Q3
12.35%
Median
6.13%
Q1
1.16%
Min
-15.48%
Largest peers
MAR
35.97%
MCD
31.62%
HLT
30.41%
RCL
24.36%
BKNG
22.23%
ABNB
19.90%
SBUX
3.89%
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Where Hilton Worldwide (HLT) stands on net margin within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

Operating Profit Margin (TTM)

Hilton Worldwide (HLT) turns 57.36% of revenue into operating profit on operating margin, above the industry benchmark range. Core operations are retaining an unusually large share before interest and taxes, which points to pricing power or tight cost control if the margin is sustainable.

HLT

Consumer Services industry group

57.36%

Group distribution
HLT
57.36%
Max
44.25%
Q3
20.10%
Median
11.37%
Q1
3.21%
Min
-20.31%
Largest peers
MAR
59.01%
HLT
57.36%
MCD
44.25%
RCL
26.17%
BKNG
25.04%
SBUX
8.42%
ABNB
3.21%
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Where Hilton Worldwide (HLT) stands on operating margin within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

Profitability at a Glance

Hilton Worldwide (HLT) metric values compared with Consumer Services industry-group medians
MetricCurrent stock: HLTIndustry group median
Return on Equity (TTM)--12.44%
Return on Assets (TTM)10.86%5.05%
Net Profit Margin (TTM)30.41%6.13%
Operating Profit Margin (TTM)57.36%11.37%
Gross Profit Margin (TTM)78.51%44.16%

Financial Strength

Current Ratio (MRQ)

Hilton Worldwide (HLT) has current ratio of 0.61, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.

HLT

Consumer Services industry group

0.61

Group distribution
Max
3.05
Q3
1.72
Median
0.99
Q1
0.69
HLT
0.61
Min
0.20
Largest peers
ABNB
1.44
MCD
1.14
BKNG
1.06
SBUX
0.92
HLT
0.61
MAR
0.46
RCL
0.20
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Where Hilton Worldwide (HLT) stands on current ratio within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

Debt-to-Equity Ratio (MRQ)

No usable debt-to-equity ratio is available for Hilton Worldwide (HLT) this period, so the balance-sheet leverage read is skipped.

HLT

Consumer Services industry group

--

Group distribution
Max
7.23
Q3
3.20
Median
1.27
Q1
0.35
Min
0.01
HLT
--
Largest peers
RCL
2.17
ABNB
0.33
HLT
--
MCD
--
BKNG
--
SBUX
--
MAR
--
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Hilton Worldwide (HLT) doesn’t report debt-to-equity ratio this period; the box shows the Consumer Services group’s distribution and the dots its largest members.

Financial Strength at a Glance

Hilton Worldwide (HLT) metric values compared with Consumer Services industry-group medians
MetricCurrent stock: HLTIndustry group median
Current Ratio (MRQ)0.610.99
Debt-to-Equity Ratio (MRQ)--1.27
Net Debt / EBITDA4.163.48

Dividends

Dividend Yield (TTM)

Hilton Worldwide (HLT) has dividend yield of 0.17%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.

HLT

Consumer Services industry group

0.17%

Group distribution
Max
4.72%
Q3
1.94%
HLT
0.17%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
MCD
2.61%
SBUX
2.41%
RCL
1.70%
BKNG
0.97%
MAR
0.73%
HLT
0.17%
ABNB
0.00%
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Where Hilton Worldwide (HLT) stands on dividend yield within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Hilton Worldwide (HLT) has payout ratio of 9.16%, within the industry’s typical payout band. The dividend shares profits with investors while leaving earnings coverage that looks normal for the peer group.

HLT

Consumer Services industry group

9.16%

Group distribution
Max
86.96%
Q3
34.83%
HLT
9.16%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
SBUX
187.79%
MCD
59.85%
MAR
28.06%
RCL
25.93%
BKNG
20.73%
HLT
9.16%
ABNB
0.00%
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Where Hilton Worldwide (HLT) stands on payout ratio within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

Dividends at a Glance

Hilton Worldwide (HLT) metric values compared with Consumer Services industry-group medians
MetricCurrent stock: HLTIndustry group median
Dividend Yield (TTM)0.17%0.00%
Dividend Payout Ratio (TTM)9.16%0.00%