H World Group Limited
Find Ratings ReportsH WORLD GROUP LIMITED's gross profit margin for the third quarter of its fiscal year 2023 has significantly increased when compared to the same period a year ago. The company grew its sales and net income significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the subsector when comparing revenue growth, but not when comparing net income growth. H WORLD GROUP LIMITED has weak liquidity. Currently, the Quick Ratio is 0.66 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.
At the same time, stockholders' equity ("net worth") has greatly increased by 61.38% 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 FY23 | Q3 FY22 |
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Net Sales ($mil) | 861.0 | 521.56 |
EBITDA ($mil) | 299.0 | 110.29 |
EBIT ($mil) | 251.0 | 66.23 |
Net Income ($mil) | 183.0 | -92.54 |
Balance Sheet | Q3 FY23 | Q3 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 1150.0 | 1002.5 |
Total Assets ($mil) | 8604.0 | 8628.75 |
Total Debt ($mil) | 5260.0 | 6337.29 |
Equity ($mil) | 1969.0 | 1220.09 |
Profitability | Q3 FY23 | Q3 FY22 |
---|---|---|
Gross Profit Margin | 48.2 | 36.13 |
EBITDA Margin | 34.72 | 21.14 |
Operating Margin | 29.15 | 12.7 |
Sales Turnover | 0.33 | 0.23 |
Return on Assets | 5.04 | -3.6 |
Return on Equity | 22.04 | -25.47 |
Debt | Q3 FY23 | Q3 FY22 |
---|---|---|
Current Ratio | 0.73 | 0.7 |
Debt/Capital | 0.73 | 0.84 |
Interest Expense | 12.0 | 11.04 |
Interest Coverage | 20.92 | 6.0 |
Share Data | Q3 FY23 | Q3 FY22 |
---|---|---|
Shares outstanding (mil) | 318.77 | 310.93 |
Div / share | 0.0 | 0.0 |
EPS | 0.56 | -0.3 |
Book value / share | 6.18 | 3.92 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 1869809.0 | 1294248.0 |
HOLD. H WORLD GROUP LIMITED's P/E ratio indicates a discount compared to an average of 29.44 for the Accommodation subsector and a value on par with the S&P 500 average of 27.95. To use another comparison, its price-to-book ratio of 6.26 indicates a significant premium versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 9.62. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average. Upon assessment of these and other key valuation criteria, H WORLD GROUP LIMITED proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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HTHT 29.30 | Peers 29.44 | HTHT NA | Peers 21.25 | |||||||||||||||||||||
Average. An average P/E ratio can signify an subsector 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. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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HTHT 2.96 | Peers 23.10 | HTHT NM | Peers 0.87 | |||||||||||||||||||||
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. |
Neutral. 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's negative PEG ratio makes this valuation measure meaningless. |
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Price/Book |
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Earnings Growth |
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HTHT 6.26 | Peers 9.62 | HTHT 230.69 | Peers 89.27 | |||||||||||||||||||||
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. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. HTHT is expected to have an earnings growth rate that significantly exceeds its peers. |
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Price/Sales |
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Sales Growth |
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HTHT 4.37 | Peers 5.10 | HTHT 42.80 | Peers 38.74 | |||||||||||||||||||||
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 discount to its subsector on this measurement. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. HTHT has a sales growth rate that exceeds its peers. |
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