📊 H Key Takeaways
Is Hyatt Hotels Corp (H) a Good Investment?
Hyatt Hotels faces deteriorating profitability fundamentals despite 6.8% revenue growth, with net income declining 6.1% YoY and EPS collapsing 104.3% YoY, indicating severe margin compression. The company operates with strained liquidity (0.60x current ratio), elevated leverage (1.14x debt/equity), and weak interest coverage (1.5x), leaving limited financial flexibility for operations or debt service.
Hyatt shows steady top-line growth and positive operating/free cash flow, but profitability is weak with a negative net income and a very thin operating margin. Leverage is moderate while liquidity is tight and interest coverage is only modest, which constrains flexibility if conditions soften. Fundamentals are mixed, warranting a neutral stance until margins and cash conversion improve.
Why Buy Hyatt Hotels Corp Stock? H Key Strengths
- Revenue growth of 6.8% year-over-year demonstrates top-line expansion
- Positive free cash flow of $77.0M and operating cash flow of $100.0M provide near-term liquidity
- Substantial asset base of $13.9B and cash reserves of $593.0M provide operational foundation
- Solid revenue growth (+6.8% YoY)
- Positive operating and free cash flow (FCF margin 2.2%)
- Leverage reasonable (D/E 1.28x) with positive interest coverage (2.1x)
H Stock Risks: Hyatt Hotels Corp Investment Risks
- Net income and EPS declining sharply despite revenue growth signals severe margin compression and operational headwinds
- Current ratio of 0.60x and quick ratio of 0.60x indicate liquidity stress with current liabilities exceeding current assets
- High leverage (1.14x debt/equity) combined with weak interest coverage (1.5x) limits financial flexibility and increases refinancing risk
- Extremely thin profit margins (2.2% net, 3.3% operating) typical of hotel industry but concerning given deteriorating trends
- Abysmal returns (ROE 1.2%, ROA 0.3%) indicate inefficient capital deployment
- Persistent net losses and very thin margins (-0.7% net, 1.1% operating)
- Tight liquidity (current and quick ratio 0.75x)
- Exposure to higher interest burden given modest coverage (2.1x)
Key Metrics to Watch
- Net income and EPS stabilization/improvement trend versus continued decline
- Operating margin expansion to demonstrate pricing power or cost control
- Current ratio improvement to above 1.0x to relieve liquidity pressure
- Interest coverage ratio strengthening to 2.5x+ to reduce refinancing risk
- Free cash flow sustainability and capital expenditure trends
- Operating margin
- Interest coverage ratio
Hyatt Hotels Corp (H) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 4.4% FCF margin may limit capital allocation flexibility. The current ratio below 1.0x warrants monitoring of short-term liquidity.
H Profit Margin, ROE & Profitability Analysis
H vs Real Estate Sector: How Hyatt Hotels Corp Compares
How Hyatt Hotels Corp compares to Real Estate sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Hyatt Hotels Corp Stock Overvalued? H Valuation Analysis 2026
Based on fundamental analysis, Hyatt Hotels Corp has mixed fundamental signals relative to the Real Estate sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Hyatt Hotels Corp Balance Sheet: H Debt, Cash & Liquidity
H Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Hyatt Hotels Corp's revenue has grown significantly by 41% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.05 reflects profitable operations.
H Revenue Growth, EPS Growth & YoY Performance
H Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.7B | $20.0M | $0.19 |
| Q3 2025 | $1.6B | -$32.0M | $-0.34 |
| Q2 2025 | $1.7B | -$3.0M | $-0.03 |
| Q1 2025 | $1.7B | $20.0M | $0.19 |
| Q3 2024 | $1.6B | $68.0M | $0.63 |
| Q2 2024 | $1.7B | $68.0M | $0.63 |
| Q1 2024 | $1.7B | $58.0M | $0.53 |
| Q3 2023 | $1.5B | $28.0M | $0.25 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Hyatt Hotels Corp Dividends, Buybacks & Capital Allocation
H SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Hyatt Hotels Corp (CIK: 0001468174)
📋 Recent SEC Filings
❓ Frequently Asked Questions about H
What is the AI rating for H?
Hyatt Hotels Corp (H) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 69% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are H's key strengths?
Claude: Revenue growth of 6.8% year-over-year demonstrates top-line expansion. Positive free cash flow of $77.0M and operating cash flow of $100.0M provide near-term liquidity. ChatGPT: Solid revenue growth (+6.8% YoY). Positive operating and free cash flow (FCF margin 2.2%).
What are the risks of investing in H?
Claude: Net income and EPS declining sharply despite revenue growth signals severe margin compression and operational headwinds. Current ratio of 0.60x and quick ratio of 0.60x indicate liquidity stress with current liabilities exceeding current assets. ChatGPT: Persistent net losses and very thin margins (-0.7% net, 1.1% operating). Tight liquidity (current and quick ratio 0.75x).
What is H's revenue and growth?
Hyatt Hotels Corp reported revenue of $1.7B.
Does H pay dividends?
Hyatt Hotels Corp pays dividends, with $14.0M distributed to shareholders in the trailing twelve months.
Where can I find H SEC filings?
Official SEC filings for Hyatt Hotels Corp (CIK: 0001468174) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is H's EPS?
Hyatt Hotels Corp has a diluted EPS of $0.40.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is H a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Hyatt Hotels Corp has a SELL rating with 69% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is H stock overvalued or undervalued?
Valuation metrics for H: ROE of 1.2% (sector avg: 8%), net margin of 2.2% (sector avg: 20%). Compare these metrics with sector averages to assess valuation.
Should I buy H stock in 2026?
Our dual AI analysis gives Hyatt Hotels Corp a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is H's free cash flow?
Hyatt Hotels Corp's operating cash flow is $100.0M, with capital expenditures of $23.0M. FCF margin is 4.4%.
How does H compare to other Real Estate stocks?
Vs Real Estate sector averages: Net margin 2.2% (avg: 20%), ROE 1.2% (avg: 8%), current ratio 0.60 (avg: 1.5).