Hilton HLT
Hilton operates hotels and resorts globally under franchise and management agreements, generating revenue from fees. Hilton shows weak financial health (score 5.38) with a net debt/EBITDA of 4.21, but its quality is excellent (score 7.86) with operating margins of 63%. Valuation is demanding (P/E 46.1) and growth is moderate (2.5%).
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Hilton operates hotels and resorts globally under franchise and management agreements, generating revenue from fees. Hilton shows weak financial health (score 5.38) with a net debt/EBITDA of 4.21, but its quality is excellent (score 7.86) with operating margins of 63%. Valuation is demanding (P/E 46.1) and growth is moderate (2.5%).
Score by category
| Category | Score |
|---|---|
| Financial health | 4.8 |
| Quality / Moat | 7.9 |
| Valuation | 3.2 |
| Growth | 5.9 |
| Dividend | 2.7 |
| Momentum | 6.4 |
| Risk & Context | 5.6 |
OVERALL SCORE: 5.4/10
Context and risks
The rise in 10-year Treasury yields (5.17%) and the long duration of Hilton's business (P/E 46.1) pressure its valuation. However, the strength of the dollar (DXY 101.09) could affect demand for international travel to the US, a risk to its occupancy.
News considered in the analysis
- Hilton Worldwide Holdings (HLT) Leans Into Sports Tourism While Fair Value Stays In View — La estrategia de turismo deportivo es un motor de crecimiento moderado, pero el impacto en beneficios es incierto y ya está parcialmente descontado.
- Hilton Worldwide Holdings (HLT) Debuts Football Legacy Suite Ahead Of Los Angeles Super Bowl LXI — La iniciativa de la suite para el Super Bowl es un evento puntual que puede impulsar ingresos y visibilidad de marca, con impacto positivo en el corto plazo.
- 3 Consumer Stocks That Concern Us — La preocupación genérica sobre el consumo discrecional es un viento en contra, pero no es específica de Hilton y su impacto es incierto.
- Is Booking's Slowdown A Pause Or Its New Pace? — La desaceleración de Booking, un competidor clave, sugiere una posible debilidad en la demanda de viajes, lo que podría afectar a Hilton.
- Marriott (MAR) vs Hilton (HLT): Which is a Better Stock to Buy — Comparación genérica entre competidores sin información nueva o material.
Verdict: Hold, given the balance between its strong quality and demanding valuation, with risks from rising rates.
Main risk: High leverage (Net Debt/EBITDA 4.21) and sensitivity to interest rates, which could pressure its valuation and increase the cost of its debt.
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