Hilton Worldwide Holdings (HLT) AI Stock Analysis

• Market Cap: $63.11B
• Dividend Yield: 0.23%
• Average Volume (3M): 1.93M
• Price to Earnings (P/E): 41.9
• Beta (1Y): 0.96
• Revenue Growth: 7.43%
• EPS Growth: 38.52%
• Country: US
• Employees: 181,000
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Travel Lodging
• EPS (TTM): 1.72
• Shares Outstanding: 237,699,740
• 10 Day Avg. Volume: 2,741,189
• 30 Day Avg. Volume: 1,926,800
• PEG Ratio: 0.13
• Price to Book (P/B): -31.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.01
• Enterprise Value/Market Cap: 0.69
• Enterprise Value/Revenue: 0.98
• Enterprise Value/Gross Profit: 14.27
• Enterprise Value/Ebitda: 4.31
• 1Y Price Target: $250.36
• Price Target Upside: -6.92% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 65 Neutral
• Price Target: $289.00 ▲(7.45%Upside)

Hilton Worldwide Holdings exhibits strong revenue growth and an expanding development pipeline, but faces challenges such as high leverage and an overbought stock condition. Valuation suggests the stock may be overpriced with a low dividend yield, while earnings call insights reveal mixed performance in key segments.

Positive Factors

Brand Positioning and Growth

HLT's strengthening brand positioning, development momentum and capital allocation strategies, which is expected to continue compounding growth ongoing in the future.

Business Model Resilience

The resilience of the asset-light business model is once again on show, as Hilton is trimming its EBITDA estimate by just 1% and was even able to raise its EPS outlook.

Efficiency and Technology

AI technology is driving greater efficiencies across operations, including revenue management and customer service.

Negative Factors

Business Travel Dependency

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

US Market Performance

US RevPAR slowdown led to a downgrade of Q2/FY expectations, with RevPAR now expected to be flat for Q2 and less than 1% for H2.

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. (HLT) is a leading global hospitality company, offering a comprehensive portfolio of 18 world-class brands comprising over 7,000 properties across 123 countries and territories. The company's brands range from luxury and full-service hotels and resorts to extended-stay suites and focused-service hotels. Hilton aims to provide exceptional guest experiences through its flagship Hilton Hotels & Resorts, along with other well-known brands such as Waldorf Astoria, Conrad, DoubleTree, and Hampton by Hilton.

How the Company Makes Money

Hilton Worldwide Holdings makes money primarily through three key revenue streams: hotel ownership, management and franchise fees, and timeshare operations. The majority of Hilton's earnings come from management and franchise fees, where the company charges hotel owners a percentage of the revenue generated by properties operated under its brands. This asset-light model allows Hilton to expand its global presence with relatively low capital expenditure. In addition, Hilton generates revenue from owned and leased hotels, where it directly operates properties, and through its Hilton Grand Vacations timeshare business, which involves selling vacation ownership interests and providing related management services. The company's earnings are further enhanced by strategic partnerships, such as loyalty programs and co-branded credit cards, which drive customer engagement and brand loyalty.

Hilton Worldwide Holdings Financial Statement Overview

Summary

Hilton Worldwide Holdings shows strong revenue growth and profitability metrics, indicating effective management. However, high leverage and negative equity present potential risks. The company generates strong cash flows, though financial flexibility could be improved by reducing debt levels.

Income Statement

Hilton Worldwide Holdings has shown robust revenue growth over the past few years, with a notable TTM (Trailing-Twelve-Months) revenue increase of 10.5% from 2023 to 2025. The gross profit margin has remained strong, consistently above 25%, indicating effective cost management. The net profit margin has also improved, reflecting better operational efficiency. These positive trends suggest strong performance in the income statement.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio due to negative equity, which is a potential risk. However, the company maintains substantial assets, providing some stability. The return on equity (ROE) is not calculable due to negative equity, but the negative equity trend needs addressing to improve financial health. Overall, the balance sheet presents a mixed picture with both strengths in asset base and weaknesses in leverage.

Cash Flow

Cash flow analysis shows steady growth in free cash flow, with a TTM increase of 5.5% compared to the previous year. The operating cash flow to net income ratio is healthy, indicating strong cash generation from operations. Despite these strengths, high financing cash outflows suggest significant debt servicing costs. Overall, the cash flow statement is positive, but financial flexibility could be improved.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.30B	11.17B	10.23B	8.77B	5.79B	4.31B
Gross Profit	3.03B	3.06B	2.93B	2.70B	1.66B	583.00M
EBITDA	2.55B	2.50B	2.41B	2.27B	1.22B	-164.00M
Net Income	1.57B	1.53B	1.14B	1.25B	410.00M	-715.00M
Balance Sheet
Total Assets	16.04B	16.52B	15.40B	15.51B	15.44B	16.75B
Cash, Cash Equivalents and Short-Term Investments	731.00M	1.30B	800.00M	1.21B	1.43B	3.22B
Total Debt	11.88B	12.00B	10.12B	9.69B	9.78B	11.63B
Total Liabilities	20.38B	20.21B	17.75B	16.61B	16.26B	18.24B
Stockholders Equity	-4.38B	-3.73B	-2.36B	-1.10B	-821.00M	-1.49B
Cash Flow
Free Cash Flow	1.92B	1.81B	1.70B	1.58B	30.00M	616.00M
Operating Cash Flow	2.12B	2.01B	1.95B	1.68B	109.00M	708.00M
Investing Cash Flow	-469.00M	-446.00M	-305.00M	-123.00M	-57.00M	-107.00M
Financing Cash Flow	-2.26B	-1.04B	-2.04B	-1.76B	-1.79B	2.03B

Hilton Worldwide Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 268.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HLT, the sentiment is Positive. The current price of 268.96 is above the 20-day moving average (MA) of 253.32, above the 50-day MA of 245.04, and above the 200-day MA of 242.56, indicating a bullish trend. The MACD of 4.98 indicates Negative momentum. The RSI at 72.02 is Negative, neither overbought nor oversold. The STOCH value of 96.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HLT.

Hilton Worldwide Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
H	75 Outperform	$13.30B	18.06	22.31%	0.43%	-7.38%	19.62%
MAR	72 Outperform	$76.16B	31.67	-144.82%	0.98%	5.45%	-9.50%
WH	67 Neutral	$6.30B	19.46	53.31%	2.00%	4.79%	48.48%
IHG	66 Neutral	$17.69B	29.77	-27.16%	3.95%	6.34%	-11.99%
HLT	65 Neutral	$63.11B	41.88	-41.19%	0.23%	7.43%	38.52%
CHH	65 Neutral	$6.04B	19.78	-661.94%	0.91%	2.75%	40.83%
Sector *	62 Neutral	$16.65B	11.16	-7.38%	3.11%	1.59%	-23.30%

Hilton Worldwide Holdings Corporate Events

Hilton Shareholders Approve Key Charter Amendments

At the recent Annual Meeting, Hilton Worldwide Holdings‘ stockholders voted on several key proposals. Directors were elected for a term expiring in 2026, and Ernst & Young LLP was ratified as the independent registered public accounting firm for fiscal year 2025. Additionally, stockholders approved amendments to the company’s charter, including eliminating the supermajority requirement for by-law amendments and limiting liability for certain officers.

The most recent analyst rating on (HLT) stock is a Buy with a $256.00 price target. To see the full list of analyst forecasts on Hilton Worldwide Holdings stock, see the HLT Stock Forecast page.