HGVHilton Grand Vacations Inc.
Is the business good?
The checks split: earnings fully cash-backed (1.3×), but margins compressing and returns that lean on debt.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 9% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is HGV?
Hilton Grand Vacations Inc. earns 7.2% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 1.8 points below what the capital costs: growth destroys value
- Operating margin
- 9.9%
Operating margin · Resorts & Casinos median 15% · 12 months to Q2 2026
- Cash conversion
- 1.26×
Cash conversion · 0.80× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −12%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | −27% |
| FY2021 | 17% |
| FY2022 | 16% |
| FY2023 | 15% |
| FY2024 | 9.2% |
| FY2025 | 9.1% |
Details›
- Operating margin12 months to Q2 2026
- 9.9%
- Net margin12 months to Q2 2026
- 2.9%
- Free cash flow margin
- 7.8%
- Revenue, trailing twelve months
- $5.28B
- Free cash flow, trailing twelve months
- $413M
- Net income, trailing twelve months
- $151M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 7.2%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.