Home Sectors Consumer Cyclical Valuation Today: Hilton Worldwide (NYSE: HLT)

Valuation Today: Hilton Worldwide (NYSE: HLT)

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Hilton Worldwide is part of the travel and leisure industry and is part of the consumer cyclical sector. The company CEO is Christopher J. Nassetta. Hilton Worldwide Inc operates hotels and resorts. The company manages a total or approximately 750,000 rooms across over 10 brands. Some of its brands include Hampton, Hilton, Home2, Curio, Canopy, and Tru.

Previous Intraday Trading Performance:

The HLT stock showed a previous change of -0.83% with an open at 91.19 and a close of 89.91. It reached an intraday high of 91.56 and a low of 89.48.

PR Newswire:  Hilton Celebrates Renewed Partnership With The U.S. State Department’s Global Equality Fund

Liquidity:

The stock has a market cap of $26.2b with 291.1m shares outstanding, of which the float is 286.0m shares. Trading volume reached 2,681,516 shares compared to its average volume of 2,416,279 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, Hilton Worldwide shares returned -1.71% and in the past 30 trading days it returned 1.49%. Over three months, it changed 7.98%. In one year it has changed 10.42% and within that year its 52-week high was 94.64 and its 52-week low was 63.76. HLT stock is 41.01% above its 52 Week Low.

Our calculations show a 200 day moving average of 78.30 and a 50 day moving average of 88.20. Currently HLT stock is trading 14.83% above its 200 day moving average.

Business Wire:  Hilton Domestic Operating Company Inc. Announces Extension of Exchange Offer

Earnings:

The last annual fiscal EPS for the company was reported at 2.5 that ended on 31st of December 2018, which according to the previous close, that is a PE of 35.96. Based on 8 analyst estimates, the consensus EPS for the next quarter is 0.76. The TTM EPS is 2.81, which comes to a TTM PE of 32.00. Historically, the PE high was 77.10 and the PE low was 8.10. If the stock reached its PE low, that would represent a price of 22.76, which is a decrease of -74.69%.

Below was the last reported quarterly diluted earnings per share:

1stQtr of 2019 0.54
4thQtr of 2018 0.75
3rdQtr of 2018 0.54
2ndQtr of 2018 0.71
1stQtr of 2018 0.51

The dividend per share is currently 0.60, which is a dividend yield of 0.67%. Also, the payout ratio is 21.35%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 124.60, which means it is possibly undervalued and has a margin of safety of 27.84%.

Indicators to Watch:

Short-interest was 9,968,059, which was 3.42% of shares outstanding. The short-interest ratio or days-to-cover ratio was 4.18. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 0.87.

Business Wire:  Hilton Domestic Operating Company Inc. Announces Extension of Exchange Offer

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 82.63%, return on assets is 5.23%, profit margin is 21.24%, price-to-sales is 7.33 and price-to-book is 261.69.

Company Scores:

All scores are out of six:
 1  :Valuation Score
 3  :Past Performance Score
 1  :Financial Strength Score
 3  :Future Growth Score
 0  :Dividend Score
 2  :Overall Score

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Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.