Hyatt Hotels Corp

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H : NYSE : Services
$55.24 up 0.39 | 0.71%
Today's Range: 55.05 - 55.64
Avg. Daily Volume: 727400.0
07/25/17 - 4:02 PM ET

Financial Analysis


HYATT HOTELS CORP's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. HYATT HOTELS CORP has weak liquidity. Currently, the Quick Ratio is 0.86 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has decreased by 7.05% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)1187.01089.0
EBITDA ($mil)171.0149.0
EBIT ($mil)80.068.0
Net Income ($mil)70.034.0


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)590.01008.0
Total Assets ($mil)7763.07899.0
Total Debt ($mil)1744.01706.0
Equity ($mil)3714.03996.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin22.7521.76
EBITDA Margin14.413.68
Operating Margin6.746.24
Sales Turnover0.580.55
Return on Assets3.091.72
Return on Equity6.463.4
Debt Q1 FY17 Q1 FY16
Current Ratio0.951.44
Debt/Capital0.320.3
Interest Expense21.017.0
Interest Coverage3.814.0


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)125.46134.79
Div / share0.00.0
EPS0.540.25
Book value / share29.629.65
Institutional Own % n/a n/a
Avg Daily Volume719887.0682298.0

Valuation


BUY. The current P/E ratio indicates a discount compared to an average of 36.66 for the Hotels, Restaurants & Leisure industry and a premium compared to the S&P 500 average of 24.66. To use another comparison, its price-to-book ratio of 1.87 indicates a discount versus the S&P 500 average of 3.07 and a significant discount versus the industry average of 10.48. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, HYATT HOTELS CORP 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
H 30.60 Peers 36.66   H 12.16 Peers 19.65

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

H is trading at a 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.

H 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
H 37.68 Peers 24.85   H NM Peers 3.10

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

H is trading at a significant premium 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.

H's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
H 1.87 Peers 10.48   H 88.54 Peers 117.69

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.

H 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, H 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
H 1.54 Peers 3.35   H 3.75 Peers 4.04

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.

H 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.

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

 

 

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