Is the business good?
How good a business is HLT?
Hilton Worldwide earns 38% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
38%
Return on invested capital · cost of capital 9.0% · 29 points above what the capital costs: growth creates value
- Cash conversion
- 1.28×
Cash conversion · 1.42× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −4.2%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | −9.7% |
| FY2021 | 17% |
| FY2022 | 24% |
| FY2023 | 22% |
| FY2024 | 21% |
| FY2025 | 22% |
Details›
- Free cash flow, trailing twelve months
- $2.03B
- Net income, trailing twelve months
- $1.58B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 38%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.