Hilton Worldwide Holdings Inc. (NYSE: HLT)

Sector: Consumer Cyclical Industry: Lodging CIK: 0001585689
Market Cap 74.93 Bn
P/B -13.91
P/E 51.43
P/S 6.22
ROIC (Qtr) 24.71
Div Yield % 0.19
Rev 1y % (Qtr) 10.92
Total Debt (Qtr) 13.09 Bn
Debt/Equity (Qtr) -2.43
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About

Hilton Worldwide Holdings Inc., or Hilton, is a prominent player in the hospitality industry, with its stock symbol HLT. The company operates a vast network of 7,530 properties spread across 126 countries and territories, offering a range of services that cater to the needs of business and leisure travelers alike. Hilton's primary business activities revolve around managing and franchising hotels, as well as owning and leasing properties. The company's revenue generation is multifaceted, with management and franchise fees, nightly hotel room sales,...

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Investment thesis

Bull case

  • Healthy cash reserves of 970M provide 38.80x coverage of short-term debt 25M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 2.13B provides exceptional 532.25x coverage of minority interest expenses 4M, showing strong core operations.
  • Operating cash flow of 2.13B provides strong 12.52x coverage of stock compensation 170M, indicating sustainable incentive practices.
  • Robust free cash flow of 1.94B exceeds capital expenditure of 185M by 10.51x, indicating strong organic growth funding capability.
  • Strong operating cash flow of 2.13B provides 5.42x coverage of SG&A expenses 393M, showing efficient operational cost management.

Bear case

  • Operating cash flow of 2.13B barely covers its investment activities of (190M), with a coverage ratio of -11.21, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 2.13B provides thin coverage of dividend payments of (143M) with a -14.89 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 970M provide limited coverage of acquisition spending of (7M), which is -138.57x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 2.13B provides insufficient coverage of deferred revenue obligations of 2.51B, which is 0.85x, raising concerns about future service delivery capabilities.
  • High financing cash flow of (2.35B) relative to working capital of (1.51B), which is 1.55x suggests concerning dependence on external funding for operational needs.

Product and Service Breakdown of Revenue (2025)

Product and Service Breakdown of Revenue (2025)

Peer comparison

Companies in the Lodging
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MAR Marriott International Inc /Md/ 98.24 Bn 37.77 3.75 17.08 Bn
2 HLT Hilton Worldwide Holdings Inc. 74.93 Bn 51.43 6.22 13.09 Bn
3 HTHT H World Group Ltd 16.57 Bn 29.82 4.76 5.22 Bn
4 H Hyatt Hotels Corp 16.03 Bn -308.35 2.26 4.56 Bn
5 WH Wyndham Hotels & Resorts, Inc. 7.74 Bn 49.28 3.77 2.63 Bn
6 CHH Choice Hotels International Inc /De 6.15 Bn 28.50 5.74 2.03 Bn
7 ATAT Atour Lifestyle Holdings Ltd 5.47 Bn 31.48 5.16 0.23 Bn
8 CVEO Civeo Corp 0.40 Bn -13.95 0.64 0.20 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 5.14 1.88
EV to Cash from Ops. EV/CFO 40.47 35.03
EV to Debt EV to Debt 6.58 3.56
EV to EBIT EV/EBIT 32.05 8.28
EV to EBITDA EV/EBITDA 30.02 15.04
EV to Free Cash Flow [EV/FCF] EV/FCF 44.32 42.92
EV to Market Cap EV to Market Cap 1.15 0.84
EV to Revenue EV/Rev 7.16 0.57
Price to Book Value [P/B] P/B -13.91 -4.94
Price to Earnings [P/E] P/E 51.43 -9.64
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 10.19 1.70
Dividend Payout Ratio % Div Payout % (Qtr) 9.70 7.38
Dividend per Basic Share Div per Share (Qtr) 0.60 0.85
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 7.17 7.54
Interest Coverage Int. cover (Qtr) 4.34 -155,266.31
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 6.57 -4.84
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -29.51 122.26
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 -2.25
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -6.52 -107.49
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 14.07 3.84
EBIT Growth (1y) % EBIT 1y % (Qtr) 14.48 12.05
EBT Growth (1y) % EBT 1y % (Qtr) 16.25 2.05
EPS Growth (1y) % EPS 1y % (Qtr) -0.32 -10.22
FCF Growth (1y) % FCF 1y % (Qtr) 7.11 -17.22
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 10.84 5.20
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.72 0.47
Cash Payout Ratio Cash Payout (Qtr) 0.06 0.13
Cash Ratio Cash Ratio (Qtr) 0.22 0.54
Current Ratio Curr Ratio (Qtr) 0.67 1.20
Debt to Equity Ratio Debt/Equity (Qtr) -2.43 1.44
Interest Cover Ratio Int Coverage (Qtr) 4.34 -155,266.31
Times Interest Earned Times Interest Earned (Qtr) 4.34 -155,266.31
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 23.80 -228.61
EBIT Margin % EBIT Margin % (Qtr) 22.33 -214.73
EBT Margin % EBT Margin % (Qtr) 17.18 -246.57
Gross Margin % Gross Margin % (Qtr) 28.20 36.71
Net Profit Margin % Net Margin % (Qtr) 12.10 -250.50