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China Lodging Group Ltd
HTHT : NASDAQ : Services
$24.00 | %
Today's Range: 23.89 - 24.26
Avg. Daily Volume: 91,100
12/19/14 - 4:00 PM ET

Financial Analysis


CHINA LODGING GROUP LTD -ADR's gross profit margin for the third quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. CHINA LODGING GROUP LTD -ADR has weak liquidity. Currently, the Quick Ratio is 0.56 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has increased by 16.62% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q3 FY14 Q3 FY13
Net Sales ($mil)229.98188.25
EBITDA ($mil)57.9846.77
EBIT ($mil)33.827.01
Net Income ($mil)24.5620.46


Balance Sheet Q3 FY14 Q3 FY13
Cash & Equiv. ($mil)148.3360.53
Total Assets ($mil)1007.15793.47
Total Debt ($mil)48.880.2
Equity ($mil)518.72444.76


Profitability Q3 FY14 Q3 FY13
Gross Profit Margin39.4838.68
EBITDA Margin25.2124.84
Operating Margin14.714.35
Sales Turnover0.780.81
Return on Assets5.214.95
Return on Equity10.128.83
Debt Q3 FY14 Q3 FY13
Current Ratio0.90.79
Debt/Capital0.090.0
Interest Expense0.10.03
Interest Coverage325.04844.06


Share Data Q3 FY14 Q3 FY13
Shares outstanding (mil)61.8961.12
Div / share0.00.0
EPS0.390.33
Book value / share8.387.28
Institutional Own % n/a n/a
Avg Daily Volume88934.0123202.0

Valuation


BUY. The current P/E ratio indicates a discount compared to an average of 30.12 for the Hotels, Restaurants & Leisure industry and a premium compared to the S&P 500 average of 19.74. To use another comparison, its price-to-book ratio of 2.76 indicates valuation on par with the S&P 500 average of 2.73 and a significant discount versus the industry average of 12.62. The price-to-sales ratio is similar to the S&P 500 average, but it is significantly below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, CHINA LODGING GROUP LTD -ADR proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
HTHT 27.86 Peers 30.12   HTHT NA Peers 26.02

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

HTHT is trading at a valuation on par with its peers.

 

Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.

Ratio not available.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
HTHT 3.70 Peers 29.09   HTHT 0.04 Peers 1.22

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

HTHT is trading at a significant discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

HTHT trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
HTHT 2.76 Peers 12.62   HTHT 31.74 Peers 2992.27

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

HTHT is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, HTHT is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
HTHT 1.82 Peers 2.94   HTHT 22.55 Peers 21.24

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

HTHT is trading at a significant discount to its industry on this measurement.

 

Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

HTHT is keeping pace with its peers on the basis of sales growth.

 

 

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