Hilton Worldwide Holdings (HLT) AI Stock Analysis

• Market Cap: $50.04B
• Dividend Yield: 0.29%
• Average Volume (3M): 2.37M
• Price to Earnings (P/E): 34.0
• Beta (1Y): 0.92
• Revenue Growth: 9.17%
• EPS Growth: 42.78%
• Country: US
• Employees: 181,000
• Sector: Consumer Cyclical
• Sector Strength: 63
• Industry: Travel Lodging
• EPS (TTM): 6.14
• Shares Outstanding: 239,614,010
• 10 Day Avg. Volume: 2,652,029
• 30 Day Avg. Volume: 2,366,007
• PEG Ratio: 0.80
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.94
• Price to Cash Flow (P/CF): 23.70
• P/FCF Ratio: 20.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $261.00
• Price Target Upside: 24.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

Hilton's overall score reflects strong financial performance driven by revenue growth and cash flow, despite concerns about negative equity. The company's solid earnings outlook and strategic expansions, coupled with the positive board change, further support the stock's prospects. However, technical analysis and valuation concerns suggest caution regarding short-term price movements.

Positive Factors

Room Stock Growth

Largest upcoming net unit growth in the sector with pipeline rooms accounting for approximately 39% of Hilton's existing room stock.

Share Repurchase

Recent expansion of share repurchase authorization to approximately 10% of market cap.

Negative Factors

Business Travel Volatility

Hilton has higher dependency on business travelers to drive demand, which is generally more volatile and dependent on macroeconomic conditions.

Valuation Concerns

Growth baked into stretched valuations at 20.9x forward, which is higher than the 5-year average.

Hilton Worldwide Holdings Business Overview & Revenue Model

Company Description

Hilton Worldwide Holdings Inc., a hospitality company, owns, leases, manages, develops, and franchises hotels and resorts. It operates through two segments, Management and Franchise, and Ownership. The company engages in the hotel management and licensing of its brands. It operates hotels under the Waldorf Astoria Hotels & Resorts, LXR Hotels & Resorts, Conrad Hotels & Resorts, Canopy by Hilton, Tempo by Hilton, Motto by Hilton, Signia by Hilton, Hilton Hotels & Resorts, Curio Collection by Hilton, DoubleTree by Hilton, Tapestry Collection by Hilton, Embassy Suites by Hilton, Hilton Garden Inn, Hampton by Hilton, Tru by Hilton, Homewood Suites by Hilton, Home2 Suites by Hilton, and Hilton Grand Vacations. The company operates in North America, South America, and Central America, including various Caribbean nations; Europe, the Middle East, and Africa; and the Asia Pacific. As of February 16, 2022, the company had approximately 6,800 properties with 1 million rooms in 122 countries and territories. Hilton Worldwide Holdings Inc. was founded in 1919 and is headquartered in McLean, Virginia.

How the Company Makes Money

Hilton Worldwide Holdings makes money primarily through three key revenue streams: hotel management fees, franchise fees, and direct hotel ownership. As a major player in the hospitality industry, Hilton enters into management agreements with property owners, earning fees for managing the day-to-day operations of the hotels. Additionally, the company generates substantial revenue through franchise agreements, where it licenses its brands to independent hotel owners in exchange for a fee, allowing widespread brand presence without owning the properties outright. Lastly, Hilton owns a smaller portfolio of hotel properties, directly earning revenue from hotel room bookings, food and beverage sales, and other guest services. Key partnerships with travel agencies, loyalty programs, and corporate clients also contribute to its revenue growth, enhancing brand recognition and customer loyalty.

Hilton Worldwide Holdings Financial Statement Overview

Summary

Hilton's financial performance is marked by strong revenue growth and robust cash flow generation, with a notable increase in revenue and improved EBIT margin. However, the balance sheet presents concerns due to negative stockholders' equity, offsetting some of the financial strengths.

Income Statement

Hilton Worldwide Holdings demonstrated strong financial performance with a consistent increase in revenue from $9.45 billion in 2019 to $11.17 billion in 2024, reflecting a robust revenue growth trajectory. The EBIT margin improved over the years, reaching 21.2% in 2024, indicating efficient cost management. However, the net profit margin showed some variability, achieving 13.7% in 2024, which is healthy but impacted by past fluctuations.

Balance Sheet

The balance sheet presents a mixed picture. While the company has effectively reduced total debt to zero in 2024, negative stockholders' equity poses a risk, reflecting accumulated losses or high dividend payouts. The absence of debt improves the debt-to-equity ratio, but the negative equity ratio suggests potential vulnerabilities in capital structure.

Cash Flow

Cash flow statements are a strong point for Hilton, with a significant increase in free cash flow from $0.62 billion in 2020 to $2.01 billion in 2024. The operating cash flow to net income ratio is robust, exceeding 1, indicating strong cash generation relative to reported profits. This positive free cash flow trend supports operational and financial flexibility.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
11.17B	10.23B	8.77B	5.79B	4.31B
	Gross Profit
3.06B	2.93B	2.70B	1.66B	583.00M
	EBIT
2.37B	2.23B	2.09B	1.01B	-121.00M
	EBITDA
2.50B	2.41B	2.27B	1.22B	-164.00M
	Net Income Common Stockholders
1.53B	1.14B	1.25B	410.00M	-720.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
53.00M	800.00M	1.21B	1.43B	3.22B
	Total Assets
16.52B	15.40B	15.51B	15.44B	16.75B
	Total Debt
12.00B	10.12B	9.69B	9.78B	11.63B
	Net Debt
10.70B	9.32B	8.48B	8.35B	8.41B
	Total Liabilities
20.21B	17.75B	16.61B	16.26B	18.24B
	Stockholders Equity
-3.73B	-2.36B	-1.10B	-821.00M	-1.49B
Cash Flow		Free Cash Flow
2.01B	1.70B	1.58B	30.00M	616.00M
	Operating Cash Flow
2.01B	1.95B	1.68B	109.00M	708.00M
	Investing Cash Flow
-446.00M	-305.00M	-123.00M	-57.00M	-107.00M
	Financing Cash Flow
-1.04B	-2.04B	-1.76B	-1.79B	2.03B

Hilton Worldwide Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 208.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HLT, the sentiment is Negative. The current price of 208.85 is below the 20-day moving average (MA) of 228.92, below the 50-day MA of 247.99, and below the 200-day MA of 235.17, indicating a bearish trend. The MACD of -6.49 indicates Negative momentum. The RSI at 37.51 is Neutral, neither overbought nor oversold. The STOCH value of 43.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HLT.

Hilton Worldwide Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HLT	72 Outperform	$50.04B	34.01	-41.19%	0.29%	9.17%	42.78%
WH	72 Outperform	$6.38B	22.83	41.40%	1.88%	―	6.40%
H	64 Neutral	$10.48B	8.67	36.45%	0.55%	-6.41%	511.40%
IHG	62 Neutral	$15.38B	25.95	-27.16%	1.52%	6.34%	-11.99%
CHH	60 Neutral	$5.77B	19.90	-661.94%	0.93%	2.63%	23.39%
Sector *	59 Neutral	$11.20B	10.09	-1.41%	3.96%	1.31%	-16.95%
MAR	55 Neutral	$59.09B	25.77	-144.82%	1.17%	5.85%	-18.43%

Hilton Worldwide Holdings Corporate Events

Hilton Announces Board Changes with Mayer Nomination

On March 4, 2025, Hilton Worldwide Holdings announced the retirement of Judith A. McHale from its Board of Directors, effective May 13, 2025, after nearly 12 years of service. The company expressed gratitude for her contributions, particularly in the Audit and Compensation committees. Simultaneously, Hilton nominated Marissa A. Mayer, a renowned technology entrepreneur and former CEO of Yahoo!, to stand for election to the board at the upcoming annual meeting. Mayer’s extensive experience in technology and leadership is expected to support Hilton’s growth as the company navigates new technological opportunities.