Hilton Grand Vacations (HGV) AI Stock Analysis

• Market Cap: $3.86B
• Dividend Yield: N/A
• Average Volume (3M): 1.28M
• Price to Earnings (P/E): 80.7
• Beta (1Y): 1.32
• Revenue Growth: 13.01%
• EPS Growth: -59.35%
• Country: US
• Employees: 21,800
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.54
• Shares Outstanding: 89,049,614
• 10 Day Avg. Volume: 1,305,697
• 30 Day Avg. Volume: 1,276,214
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.73
• Enterprise Value/Revenue: 2.11
• Enterprise Value/Gross Profit: 5.19
• Enterprise Value/Ebitda: 13.85
• 1Y Price Target: $54.63
• Price Target Upside: 16.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 70 Outperform
• Price Target: $51.00 ▲(9.11% Upside)

Hilton Grand Vacations' overall stock score is driven by strong financial performance and positive earnings call sentiment, highlighting robust revenue growth and strategic initiatives. However, the high P/E ratio suggests potential overvaluation, and technical indicators show mixed signals. The company's commitment to shareholder returns and successful financial transactions are positive, but challenges in profitability and market softness need attention.

Positive Factors

Financial Performance

The company's consolidated revenue exceeded expectations, coming in at $1,284 million compared to the Street's $1,276.4 million.

Growth Potential

The bull case surrounding Bluegreen upgrade sales is fully underway, indicating increased potential for growth.

Negative Factors

Cost Pressures

There are a few cost considerations in 2025, including a significant step-up in the license fee and elevated maintenance fees, which present a near-term headwind to rentals expense.

Operational Challenges

The last 3 quarters have been tumultuous, with the sales force stretched in many situations, affecting efficiency and closing rates.

Hilton Grand Vacations Business Overview & Revenue Model

Company Description

Hilton Grand Vacations Inc., a timeshare company, develops, markets, sells, and manages vacation ownership resorts primarily under the Hilton Grand Vacations brand. The company operates in two segments, Real Estate Sales and Financing, and Resort Operations and Club Management. It sells vacation ownership intervals and vacation ownership interests; manages resorts and clubs; operates points-based vacation clubs and resort amenities; and finances and services loans provided to consumers for their timeshare purchases. The company also manages and operates the points-based Hilton Grand Vacations Club and Hilton Club exchange programs, and Diamond Clubs, which provide exchange, leisure travel, and reservation services to approximately 333,000 members, as well as engages in the rental of inventory made available due to ownership exchanges through its club programs. As of December 31, 2021, it had 154 properties located in the United States. The company was founded in 1992 and is headquartered in Orlando, Florida.

How the Company Makes Money

Hilton Grand Vacations primarily generates revenue through the sale of vacation ownership interests (VOIs) and vacation club memberships. Customers purchase these interests, which allow them to access a range of vacation properties and experiences. In addition to direct sales, HGV earns revenue from annual maintenance fees paid by owners to cover the costs of property upkeep and management. The company also benefits from the rental of unsold inventory, as well as transaction fees from members who wish to exchange their vacation times through external exchange programs. Significant partnerships with travel companies and marketing affiliates also contribute to HGV's earnings by expanding its customer base and enhancing its visibility in the market.

Hilton Grand Vacations Financial Statement Overview

Summary

Hilton Grand Vacations demonstrates strong revenue growth and efficient operational management, although it faces challenges in maintaining its net profit margin. The balance sheet is robust with no debt and a moderate equity ratio, though ROE has slightly declined. Cash flows are well-managed, showing stability and effective cash conversion. Overall, the company is in a strong financial position but should focus on improving profitability metrics.

Income Statement

The company shows a strong revenue growth with a TTM (Trailing-Twelve-Months) revenue increase of 25.23% compared to the previous year. The gross profit margin is impressive at 58.41%, indicating efficient cost management. However, the net profit margin decreased to 4.50% from 7.87% in the prior year, suggesting some challenges in maintaining profitability. The EBIT margin stands at 12.39% while the EBITDA margin is at 14.73%, both indicating solid operational efficiency.

Balance Sheet

Hilton Grand Vacations has a strong equity position with a debt-to-equity ratio of 0.00, reflecting zero total debt, which is excellent for financial stability. The equity ratio is at 15.31%, indicating a moderate reliance on equity financing. The return on equity has decreased to 12.79% from 14.80% the previous year, showing a decrease in efficiency in generating profits from shareholder equity.

Cash Flow

Operating cash flow remained stable with a slight decrease compared to the previous year, but the free cash flow increased by 1.27%, indicating effective cash management. The operating cash flow to net income ratio is robust at 1.38, suggesting strong cash generation relative to net income. The free cash flow to net income ratio stands at 1.07, reflecting adequate cash coverage for net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.00B	4.98B	3.98B	3.83B	2.33B	894.00M
Gross Profit	2.03B	1.33B	1.23B	1.27B	855.00M	152.00M
EBITDA	762.00M	733.00M	840.00M	954.00M	624.00M	-192.00M
Net Income	182.00M	47.00M	313.00M	352.00M	176.00M	-201.00M
Balance Sheet
Total Assets	11.74B	11.44B	8.69B	8.00B	8.01B	3.13B
Cash, Cash Equivalents and Short-Term Investments	269.00M	328.00M	589.00M	223.00M	432.00M	428.00M
Total Debt	7.17B	7.02B	4.59B	3.85B	4.33B	1.99B
Total Liabilities	10.10B	9.55B	6.57B	5.85B	6.02B	2.76B
Stockholders Equity	1.49B	1.75B	2.12B	2.15B	1.99B	374.00M
Cash Flow
Free Cash Flow	113.00M	183.00M	237.00M	650.00M	129.00M	48.00M
Operating Cash Flow	234.00M	309.00M	312.00M	747.00M	168.00M	79.00M
Investing Cash Flow	-121.00M	-1.57B	-158.00M	-97.00M	-1.63B	-33.00M
Financing Cash Flow	-146.00M	1.16B	183.00M	-782.00M	1.64B	328.00M

Hilton Grand Vacations Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 46.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HGV, the sentiment is Positive. The current price of 46.74 is above the 20-day moving average (MA) of 45.48, above the 50-day MA of 44.88, and above the 200-day MA of 40.65, indicating a bullish trend. The MACD of -0.33 indicates Positive momentum. The RSI at 56.48 is Neutral, neither overbought nor oversold. The STOCH value of 48.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HGV.

Hilton Grand Vacations Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HGV	70 Outperform	$3.86B	80.74	3.35%	―	13.01%	-59.35%
MTN	70 Outperform	$5.84B	20.11	30.55%	5.45%	2.38%	6.01%
VAC	70 Neutral	$2.61B	11.33	10.67%	3.95%	7.70%	63.61%
Sector *	67 Neutral	¥282.84B	15.30	6.82%	2.46%	5.05%	-19.57%
MGM	65 Neutral	$9.99B	20.01	17.34%	―	0.89%	-31.56%

Hilton Grand Vacations Corporate Events

Hilton Grand Vacations Enters Underwriting Agreement with Apollo

On August 12, 2025, Hilton Grand Vacations Inc. and affiliates of Apollo Global Management entered into an Underwriting Agreement with Wells Fargo Securities for the sale of 7,000,000 shares of common stock, with an option for an additional 1,050,000 shares, which was fully exercised on August 13, 2024. The offering, expected to close on August 14, 2025, includes a share repurchase by Hilton Grand Vacations of 933,488 shares, with no proceeds from the sale going to the company, as all shares are sold by the selling stockholders.