Hyatt Hotels Corp (H, Financial) has recently experienced a notable uptick in its stock performance. With a current market capitalization of $14.82 billion, the company's shares are trading at $143.74. Over the past week, Hyatt's stock price has seen a 0.90% gain, and looking at the past three months, there has been an impressive 15.59% gain. According to GuruFocus's valuation metrics, the current GF Value of Hyatt stands at $154.53, slightly above the past GF Value of $153.61. This indicates that the stock is currently Fairly Valued, a positive shift from the previous assessment of a Possible Value Trap, Think Twice.
Introduction to Hyatt Hotels Corp
Hyatt Hotels Corp operates within the dynamic Travel & Leisure industry. The company is known for its diverse portfolio of owned, managed, and franchise properties, which span approximately 20 upscale luxury brands. These include vacation brands like Apple Leisure Group, Hyatt Ziva, and Hyatt Zilara, as well as the full-service lifestyle brand Hyatt Centric, among others. With a strategic acquisition of Two Roads in 2018 and Apple Leisure Group in 2021, Hyatt has bolstered its presence, particularly in the Americas, which accounts for 55% of its total rooms, followed by 26% in the rest of the world, and 19% in the Asia-Pacific region.
Assessing Hyatt's Profitability
Hyatt's Profitability Rank stands at 6/10, reflecting a solid position within the industry. The company's Operating Margin is at 5.34%, which is better than 43.33% of its industry peers. Additionally, Hyatt's Return on Equity (ROE) is at 13.48%, surpassing 72.8% of competitors, while its Return on Assets (ROA) at 3.92% and Return on Invested Capital (ROIC) at 3.88% also outperform a majority of industry peers. Over the past decade, Hyatt has maintained profitability for 8 years, ranking better than 74.32% of its industry counterparts.
Hyatt's Growth Trajectory
The company's Growth Rank is also at 6/10. Hyatt's 3-Year Revenue Growth Rate per Share stands at 3.90%, which is more favorable than 59.01% of the industry. The 5-Year Revenue Growth Rate per Share is at 1.00%, surpassing 66.95% of industry peers. Looking ahead, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at 8.87%, which is better than 59.23% of competitors. The 3-Year EPS without NRI Growth Rate is an impressive 52.60%, outperforming 84.35% of industry peers, and the EPS Growth Rate (Future 3Y To 5Y Est) is estimated at 19.00%, which is better than 40.62% of the industry.
Key Shareholders in Hyatt
Notable investors have taken significant positions in Hyatt, with Ron Baron (Trades, Portfolio) leading the pack holding 5,405,089 shares, representing a 5.24% share percentage. Mason Hawkins (Trades, Portfolio) follows with 800,003 shares, accounting for 0.78% of the shares, and Paul Tudor Jones (Trades, Portfolio) holds 55,459 shares, making up 0.05% of the shares.
Hyatt's Competitive Landscape
Hyatt operates in a competitive market, with H World Group Ltd (HTHT, Financial) having a market cap of $12.35 billion, Wyndham Hotels & Resorts Inc (WH, Financial) at $6.49 billion, and Choice Hotels International Inc (CHH, Financial) at $5.6 billion. These competitors are closely matched in terms of market capitalization, indicating a highly competitive environment within the Travel & Leisure industry.
Conclusion
In summary, Hyatt Hotels Corp's recent stock performance and valuation suggest a company that is currently fairly valued and has shown a strong upward trend in recent months. The company's profitability and growth prospects appear robust, with significant shareholders maintaining confidence in its future. When compared to its competitors, Hyatt's market position remains strong, with a market cap that leads among its closest peers. For value investors, Hyatt presents an interesting case study in balancing growth potential with sound financial health.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
