Previous Close | $273.42 |
Intrinsic Value | $87.84 |
Upside potential | -68% |
Data is not available at this time.
Hilton Worldwide Holdings Inc. operates as a leading global hospitality company, managing a diverse portfolio of hotel brands across luxury, full-service, and limited-service segments. The company primarily generates revenue through franchise fees, management contracts, and owned/leased hotels, leveraging its asset-light strategy to minimize capital intensity. Hilton's brands, including Waldorf Astoria, Conrad, and Hampton by Hilton, cater to distinct customer segments, reinforcing its competitive positioning in both leisure and business travel markets. The company's global footprint spans over 120 countries, supported by a robust loyalty program (Hilton Honors) that drives repeat business and direct bookings. Hilton benefits from economies of scale and brand recognition, enabling it to command premium pricing and maintain strong relationships with property owners. Its focus on digital innovation and sustainability further enhances its market appeal, aligning with evolving consumer preferences for seamless and eco-conscious travel experiences.
Hilton reported revenue of $11.17 billion for FY 2024, with net income of $1.54 billion, reflecting a net margin of approximately 13.8%. Diluted EPS stood at $6.20, demonstrating strong profitability. Operating cash flow was robust at $2.01 billion, highlighting efficient cash generation from core operations. The absence of capital expenditures suggests a disciplined approach to reinvestment, consistent with its asset-light model.
Hilton's earnings power is underscored by its high-margin franchise and management fee streams, which require minimal capital investment. The company's asset-light structure enhances return on invested capital (ROIC), though specific ROIC figures are unavailable. Its ability to convert earnings into operating cash flow (approximately 131% of net income) indicates strong capital efficiency and liquidity management.
Hilton's balance sheet shows $1.30 billion in cash and equivalents against $12.00 billion in total debt, indicating a leveraged but manageable position. The debt level reflects strategic financing for growth and shareholder returns. Liquidity appears adequate, with no immediate refinancing risks evident. The absence of capital expenditures further supports financial flexibility.
Hilton's growth is driven by global unit expansion and RevPAR (revenue per available room) recovery post-pandemic. The company paid a dividend of $0.60 per share, signaling a commitment to shareholder returns, though the payout ratio remains conservative at ~9.7% of net income. Future growth may prioritize share repurchases and strategic investments in digital and sustainability initiatives.
Hilton's valuation reflects its premium brand portfolio and asset-light model, trading at a P/E multiple of approximately 25x based on FY 2024 EPS. Market expectations likely incorporate steady RevPAR growth and margin expansion, though macroeconomic risks (e.g., travel demand volatility) could weigh on sentiment. The company's loyalty program and global scale provide valuation support.
Hilton's strategic advantages include its strong brand equity, scalable franchise model, and loyalty program. The outlook remains positive, supported by pent-up travel demand and urbanization trends. Risks include geopolitical disruptions and labor cost pressures. The company's focus on digital transformation and sustainability positions it well for long-term growth in the evolving hospitality landscape.
Company filings (10-K), investor presentations
show cash flow forecast
Fiscal year | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | 2031 | 2032 | 2033 | 2034 | 2035 | 2036 | 2037 | 2038 | 2039 | 2040 | 2041 | 2042 | 2043 | 2044 | 2045 | 2046 | 2047 | 2048 | 2049 | |
INCOME STATEMENT | ||||||||||||||||||||||||||
Revenue growth rate, % | NaN | |||||||||||||||||||||||||
Revenue, $ | NaN | |||||||||||||||||||||||||
Variable operating expenses, $m | NaN | |||||||||||||||||||||||||
Fixed operating expenses, $m | NaN | |||||||||||||||||||||||||
Total operating expenses, $m | NaN | |||||||||||||||||||||||||
Operating income, $m | NaN | |||||||||||||||||||||||||
EBITDA, $m | NaN | |||||||||||||||||||||||||
Interest expense (income), $m | NaN | |||||||||||||||||||||||||
Earnings before tax, $m | NaN | |||||||||||||||||||||||||
Tax expense, $m | NaN | |||||||||||||||||||||||||
Net income, $m | NaN | |||||||||||||||||||||||||
BALANCE SHEET | ||||||||||||||||||||||||||
Cash and short-term investments, $m | NaN | |||||||||||||||||||||||||
Total assets, $m | NaN | |||||||||||||||||||||||||
Adjusted assets (=assets-cash), $m | NaN | |||||||||||||||||||||||||
Average production assets, $m | NaN | |||||||||||||||||||||||||
Working capital, $m | NaN | |||||||||||||||||||||||||
Total debt, $m | NaN | |||||||||||||||||||||||||
Total liabilities, $m | NaN | |||||||||||||||||||||||||
Total equity, $m | NaN | |||||||||||||||||||||||||
Debt-to-equity ratio | NaN | |||||||||||||||||||||||||
Adjusted equity ratio | NaN | |||||||||||||||||||||||||
CASH FLOW | ||||||||||||||||||||||||||
Net income, $m | NaN | |||||||||||||||||||||||||
Depreciation, amort., depletion, $m | NaN | |||||||||||||||||||||||||
Funds from operations, $m | NaN | |||||||||||||||||||||||||
Change in working capital, $m | NaN | |||||||||||||||||||||||||
Cash from operations, $m | NaN | |||||||||||||||||||||||||
Maintenance CAPEX, $m | NaN | |||||||||||||||||||||||||
New CAPEX, $m | NaN | |||||||||||||||||||||||||
Total CAPEX, $m | NaN | |||||||||||||||||||||||||
Free cash flow, $m | NaN | |||||||||||||||||||||||||
Issuance/(repurchase) of shares, $m | NaN | |||||||||||||||||||||||||
Retained Cash Flow, $m | NaN | |||||||||||||||||||||||||
Pot'l extraordinary dividend, $m | NaN | |||||||||||||||||||||||||
Cash available for distribution, $m | NaN | |||||||||||||||||||||||||
Discount rate, % | NaN | |||||||||||||||||||||||||
PV of cash for distribution, $m | NaN | |||||||||||||||||||||||||
Current shareholders' claim on cash, % | NaN |