Hilton Inc has roughly 2.4
B in cash with 408
M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 8.62.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Hilton has an asset utilization ratio of 5.07 percent. This implies that the company is making $0.0507 for each dollar of assets. An increasing asset utilization means that Hilton Inc is more efficient with each dollar of assets it utilizes for everyday operations.
Investing in Hilton Worldwide, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Hilton Worldwide along with other instruments in the same portfolio. Using conventional
technical analysis and
fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Hilton Worldwide's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Hilton Worldwide. Your research has to be compared to or analyzed against Hilton Worldwide's peers to derive any actionable benefits. When done correctly, Hilton Worldwide's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Hilton Worldwide Holdings.
How important is Hilton Worldwide's Liquidity
Hilton Worldwide
financial leverage refers to using borrowed capital as a funding source to finance Hilton Worldwide Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Hilton Worldwide financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Hilton Worldwide's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Hilton Worldwide's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Hilton Worldwide's total debt and its cash.
Hilton Worldwide Gross Profit
Hilton Worldwide Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Hilton Worldwide previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Hilton Worldwide Gross Profit growth over the last 10 years. Please check Hilton Worldwide's
gross profit and other
fundamental indicators for more details.
Hilton Worldwide Correlation with Peers
Investors in Hilton can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Hilton Worldwide Holdings. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Hilton Worldwide and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Hilton is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with
your current brokerage. Please check
volatility of Hilton for more details
An Additional Perspective On Hilton Worldwide Holdings
We consider Hilton very steady.
Hilton Inc holds Efficiency (Sharpe) Ratio of 0.0519, which attests that the entity had 0.0519% of return per unit of risk over the last 3 months. Our standpoint towards determining the volatility of a stock is to use all available market data together with stock-specific
technical indicators that cannot be
diversified away. We have found twenty-eight
technical indicators for Hilton Inc, which you can use to evaluate the future volatility of the firm. Please check out Hilton Market Risk Adjusted Performance of 0.0302,
risk adjusted performance of 0.0218, and Downside Deviation of 1.6 to validate if the risk estimate we provide is consistent with the expected return of 0.091%.
Over 3 percent gain for Hilton. What does it mean for private investors?
Newest maximum drawdown is at 6.3. Hilton Inc has relatively low volatility with skewness of -0.02 and kurtosis of -0.34. However, we advise all investors to independently investigate Hilton Inc to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Hilton's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Hilton's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Our Takeaway on Hilton Investment
Whereas some other companies under the lodging industry are still a bit expensive, Hilton may offer a potential longer-term growth to private investors. The inconsistency in the assessment between current Hilton valuation and our trade advice on Hilton is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Hilton.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Hilton Worldwide Holdings. Please refer to our
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