NEW YORK (TheStreet) -- Hyatt Hotels Corp. (H) - Get Report shares are getting pressured, down 0.83% to $48.95 on Thursday morning, after the hotel operator yesterday said its payment processing system was infected with malware.
The investigation is still ongoing and the company did not specify how many of the chain's 627 hotels were affected or whether the attackers were successful in stealing payment information.
"As always, customers should review their payment card account statements closely and report any unauthorized charges to their card issuer immediately," Hyatt said.
The company did note that the attack was discovered on November 30 and added that it was strengthening the security of its systems, Reuters reported.
This is the fourth major hotel operator since October to report a breach.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate HYATT HOTELS CORP as a Buy with a ratings score of B-. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The current debt-to-equity ratio, 0.33, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.01, which illustrates the ability to avoid short-term cash problems.
- Net operating cash flow has significantly increased by 94.49% to $212.00 million when compared to the same quarter last year. In addition, HYATT HOTELS CORP has also vastly surpassed the industry average cash flow growth rate of 7.39%.
- H, with its decline in revenue, slightly underperformed the industry average of 1.3%. Since the same quarter one year prior, revenues slightly dropped by 4.6%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Hotels, Restaurants & Leisure industry and the overall market, HYATT HOTELS CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- You can view the full analysis from the report here: H