Hilton Worldwide Holdings (HLT) AI Stock Analysis

• Market Cap: $59.73B
• Dividend Yield: 0.22%
• Average Volume (3M): 1.89M
• Price to Earnings (P/E): 37.2
• Beta (1Y): 0.97
• Revenue Growth: 6.68%
• EPS Growth: 48.03%
• Country: US
• Employees: 181,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Lodging
• EPS (TTM): 2.11
• Shares Outstanding: 232,435,170
• 10 Day Avg. Volume: 1,949,077
• 30 Day Avg. Volume: 1,893,047
• PEG Ratio: 0.94
• Price to Book (P/B): -16.41
• Price to Sales (P/S): 5.47
• P/FCF Ratio: 33.70
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 6.20
• Enterprise Value/Gross Profit: 22.30
• Enterprise Value/Ebitda: 26.36
• 1Y Price Target: $284.23
• Price Target Upside: 10.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 63 Neutral
• Price Target: $278.00 ▲(8.19% Upside)

Hilton Worldwide Holdings demonstrates strong financial recovery and robust cash flow management, which are significant strengths. However, high leverage and a high P/E ratio pose risks. The earnings call highlights resilience and strategic growth, but technical indicators suggest potential bearish momentum. Overall, Hilton's stock presents a mixed outlook with both opportunities and challenges.

Positive Factors

Strong Cash Flow Management

Hilton's robust cash flow management ensures liquidity and financial stability, supporting long-term investments and shareholder returns.

Robust Development Pipeline

A strong development pipeline indicates Hilton's strategic expansion and market penetration, enhancing future revenue potential and competitive positioning.

Innovative Technology Integration

Advanced technology integration enhances operational efficiency and customer experience, providing a competitive edge in the hospitality industry.

Negative Factors

High Leverage

High leverage can constrain financial flexibility and increase risk, potentially impacting Hilton's ability to invest in growth and weather economic downturns.

RevPAR Challenges

Declining RevPAR indicates potential challenges in maintaining pricing power and occupancy rates, affecting revenue growth and profitability.

Pressure on U.S. Business Segments

Pressure on U.S. business segments suggests potential headwinds in key markets, impacting overall performance and growth prospects.

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 generates revenue primarily through its hotel operations, which include management and franchise fees, as well as owned and leased properties. The company earns management and franchise fees from its network of hotels, which are calculated based on a percentage of the hotels' revenues, supplemented by additional fees for services such as marketing and technology support. Significant revenue is also derived from owned and leased hotels, where Hilton retains a larger share of revenue after covering operational expenses. Additionally, the company benefits from loyalty programs, particularly the Hilton Honors program, which fosters customer retention and drives repeat bookings. Strategic partnerships with travel and tourism companies, as well as corporate clients, further enhance Hilton's revenue streams by increasing occupancy rates and average daily rates (ADR) across its portfolio.

Hilton Worldwide Holdings Financial Statement Overview

Summary

Hilton shows strong financial performance with robust revenue growth and profitability margins. However, the high debt-to-equity ratio and negative stockholders' equity pose financial risks.

Income Statement

Hilton has demonstrated strong revenue growth with a noticeable increase in total revenue from $8.77 billion in 2022 to $11.48 billion in TTM (Trailing-Twelve-Months) 2025, indicating a robust recovery and expansion trajectory. The gross profit margin remains healthy at approximately 30.31%, and the net profit margin also shows solid performance at 13.84%. The company has managed to maintain strong EBIT and EBITDA margins of 21.13% and 16.85%, respectively, over the TTM period. Hilton's profitability margins reflect efficient cost management and strong operational performance.

Balance Sheet

Hilton's balance sheet reveals a high debt-to-equity ratio due to substantial negative stockholders' equity, primarily driven by high total debt levels of $11.69 billion as of TTM 2025. The equity ratio is negative, indicating a high leverage situation which can pose risks in adverse economic conditions. However, the company's return on equity is not calculable due to negative equity, but the net income remains strong, suggesting effective utilization of assets to generate profits.

Cash Flow

The cash flow statement highlights a solid operating cash flow of $2.36 billion in the TTM period, showing a consistent increase from previous years. Free cash flow is also robust at $2.19 billion, demonstrating efficient capital expenditure management and strong cash-generating capability. The free cash flow to net income ratio is favorable, indicating that Hilton effectively converts profits into cash flows. However, the operating cash flow to net income ratio suggests room for improvement in cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.73B	11.17B	10.23B	8.77B	5.79B	4.31B
Gross Profit	3.26B	3.06B	2.93B	2.70B	1.66B	583.00M
EBITDA	2.76B	2.50B	2.30B	2.31B	1.15B	-164.00M
Net Income	1.67B	1.53B	1.14B	1.25B	410.00M	-715.00M
Balance Sheet
Total Assets	16.64B	16.52B	15.40B	15.51B	15.44B	16.75B
Cash, Cash Equivalents and Short-Term Investments	1.06B	1.30B	800.00M	1.21B	1.43B	3.22B
Total Debt	12.35B	12.00B	10.12B	9.69B	9.78B	11.63B
Total Liabilities	21.53B	20.21B	17.75B	16.61B	16.26B	18.24B
Stockholders Equity	-4.93B	-3.73B	-2.36B	-1.10B	-821.00M	-1.49B
Cash Flow
Free Cash Flow	2.34B	1.81B	1.70B	1.58B	30.00M	616.00M
Operating Cash Flow	2.51B	2.01B	1.95B	1.68B	109.00M	708.00M
Investing Cash Flow	-209.00M	-446.00M	-305.00M	-123.00M	-57.00M	-107.00M
Financing Cash Flow	-2.82B	-1.04B	-2.04B	-1.76B	-1.79B	2.03B

Hilton Worldwide Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 256.96
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 256.96 is below the 20-day moving average (MA) of 262.76, below the 50-day MA of 266.98, and above the 200-day MA of 254.04, indicating a neutral trend. The MACD of -1.06 indicates Positive momentum. The RSI at 41.24 is Neutral, neither overbought nor oversold. The STOCH value of 12.06 is Positive, 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
HTHT	―	$11.65B	24.04	30.38%	4.61%	4.43%	1.61%
WH	―	$5.55B	16.91	57.98%	2.19%	3.38%	38.04%
H	―	$13.17B	32.54	11.66%	0.44%	0.74%	-54.42%
HLT	―	$59.73B	37.24	―	0.22%	6.68%	48.03%
MAR	―	$70.74B	29.40	―	1.00%	5.12%	-11.48%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
IHG	―	$18.29B	25.31	―	1.42%	8.89%	23.20%

Hilton Worldwide Holdings Corporate Events

Hilton Worldwide Reports Strong Q3 2025 Results

Hilton Worldwide Holdings Inc., a leading global hospitality company, operates a diverse portfolio of 25 brands across 9,000 properties in 141 countries, offering accommodations and services in the hospitality sector. The company is renowned for its commitment to hospitality and innovative guest experiences.

Hilton’s Earnings Call: Resilient Performance Amid Challenges

Hilton Worldwide Holdings Inc. recently held its earnings call, revealing a resilient financial performance and strong shareholder returns, despite facing challenges in key markets like China and the U.S. The company highlighted its robust development pipeline and successful technology integration, which are set to drive future growth.