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China Lodging Group Limited
HTHT : NASDAQ : Services

$23.91 -0.22 | -0.91%
Today's Range: 23.59 - 24.32
Avg. Daily Volume: 232,100
04/17/14 - 4:00 PM ET

Financial Analysis


CHINA LODGING GROUP LTD -ADR's gross profit margin for the fourth quarter of its fiscal year 2013 has significantly increased when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its industry. CHINA LODGING GROUP LTD -ADR has very weak liquidity. Currently, the Quick Ratio is 0.34 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity decreased from the same period a year ago, despite already having very weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 17.54% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q4 FY13 Q4 FY12
Net Sales ($mil)190.5145.03
EBITDA ($mil)31.5520.86
EBIT ($mil)10.024.97
Net Income ($mil)10.073.14


Balance Sheet Q4 FY13 Q4 FY12
Cash & Equiv. ($mil)66.273.79
Total Assets ($mil)856.51695.04
Total Debt ($mil)0.00.0
Equity ($mil)465.13395.69


Profitability Q4 FY13 Q4 FY12
Gross Profit Margin33.1214.38
EBITDA Margin16.5614.38
Operating Margin5.263.43
Sales Turnover0.80.74
Return on Assets5.394.03
Return on Equity9.937.09
Debt Q4 FY13 Q4 FY12
Current Ratio0.740.86
Debt/Capital0.00.0
Interest Expense0.030.03
Interest Coverage294.68146.12


Share Data Q4 FY13 Q4 FY12
Shares outstanding (mil)61.1261.12
Div / share0.00.0
EPS0.160.05
Book value / share7.616.47
Institutional Own % n/a n/a
Avg Daily Volume257206.0285515.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 81.10 for the Hotels, Restaurants & Leisure industry and a significant premium compared to the S&P 500 average of 18.29. Conducting a second comparison, its price-to-book ratio of 3.17 indicates a premium versus the S&P 500 average of 2.52 and a significant discount versus the industry average of 7.04. The price-to-sales ratio is above the S&P 500 average, but well below the industry average. 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 32.55 Peers 81.10   HTHT 8.33 Peers 25.71

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

HTHT is trading at a significant discount to its peers.

 

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

HTHT is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
HTHT 3.32 Peers 24.50   HTHT 0.05 Peers 1.65

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 3.17 Peers 7.04   HTHT 60.86 Peers 73.01

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 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 2.14 Peers 3.06   HTHT 33.04 Peers 8.04

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

HTHT has a sales growth rate that significantly exceeds its peers.

 

 

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