China Lodging Group Ltd

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HTHT : NASDAQ : Services
$43.86 up 0.44 | 1.00%
Today's Range: 43.27 - 44.36
Avg. Daily Volume: 228,100
08/24/16 - 3:59 PM ET

Financial Analysis


CHINA LODGING GROUP LTD -ADR's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. CHINA LODGING GROUP LTD -ADR has average liquidity. Currently, the Quick Ratio is 1.03 which shows that technically this company has the 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 34.26% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)249.31235.12
EBITDA ($mil)66.6858.81
EBIT ($mil)40.3531.95
Net Income ($mil)47.4724.06


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)432.32187.88
Total Assets ($mil)1433.061058.26
Total Debt ($mil)92.816.05
Equity ($mil)741.67552.4


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin37.0836.78
EBITDA Margin26.7425.01
Operating Margin16.1813.59
Sales Turnover0.650.82
Return on Assets7.165.15
Return on Equity13.849.88
Debt Q2 FY16 Q2 FY15
Current Ratio1.251.09
Debt/Capital0.110.03
Interest Expense0.530.03
Interest Coverage75.711183.26


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)62.7262.69
Div / share0.00.0
EPS0.670.37
Book value / share11.838.81
Institutional Own % n/a n/a
Avg Daily Volume228099.0215280.0

Valuation


BUY. The current P/E ratio indicates a discount compared to an average of 31.03 for the Hotels, Restaurants & Leisure industry and a premium compared to the S&P 500 average of 25.30. Conducting a second comparison, its price-to-book ratio of 3.63 indicates a premium versus the S&P 500 average of 2.83 and a significant discount versus the industry average of 40.41. The current price-to-sales ratio is well above the S&P 500 average, but 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 28.22 Peers 31.03   HTHT NA Peers 14.46

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 3.65 Peers 25.37   HTHT 0.03 Peers 2.85

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 3.63 Peers 40.41   HTHT 80.95 Peers 31.54

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
HTHT 2.88 Peers 2.88   HTHT 8.17 Peers 5.70

Average. 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 valuation on par with 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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