📊 HGV Key Takeaways
Is Hilton Grand Vacations Inc. (HGV) a Good Investment?
Hilton Grand Vacations demonstrates revenue growth but faces critical financial stress with interest coverage of 0.9x, indicating operating income insufficient to cover debt obligations. High leverage (3.97x debt/equity) combined with declining net income (-18.2% YoY) despite revenue growth signals eroding profitability and operational challenges that create significant solvency risk.
Hilton Grand Vacations delivers double-digit revenue growth and positive free cash flow, but profitability is thin with declining net income and low returns. Elevated leverage and weak interest coverage limit flexibility and increase sensitivity to rates and cyclical demand. The setup looks balanced until margins expand and leverage moderates.
Why Buy Hilton Grand Vacations Inc. Stock? HGV Key Strengths
- Solid revenue growth of 11.8% YoY demonstrates sustained business demand in leisure travel
- Strong free cash flow generation of $122M with 9.5% FCF margin provides near-term liquidity buffer
- Modest capital expenditure requirements ($6M) reduce reinvestment burden
- Double-digit revenue growth (+11.8% YoY) on a $5.05B base
- Positive free cash flow with 4.6% FCF margin supporting potential deleveraging
- EPS rebound (+97.8% YoY) indicating potential operating leverage
HGV Stock Risks: Hilton Grand Vacations Inc. Investment Risks
- Critical interest coverage ratio of 0.9x means operating income fails to cover interest expense, creating severe solvency concern and limited debt service cushion
- Extreme leverage at 3.97x debt/equity with $4.8B long-term debt leaves minimal financial flexibility for economic downturns or operational disruptions
- Net income declined 18.2% YoY while revenue grew 11.8%, indicating cost inflation outpacing revenue and deteriorating unit economics
- Weak profitability metrics across board (5.1% net margin, 5.5% ROE, 0.6% ROA) limit earnings power and ability to deleverage
- Hospitality sector is cyclically sensitive; any recession would severely stress company given already-inadequate debt coverage
- High leverage (3.53x debt/equity) with weak 2.2x interest coverage
- Thin profitability (3.5% operating margin; 1.6% net margin) vulnerable to shocks
- Net income down 18.2% YoY, questioning growth quality
Key Metrics to Watch
- Interest coverage ratio trend - must move above 1.2x minimum for financial stability
- Operating margin and net income trajectory - reversal of declining profitability trend is essential
- Debt/equity ratio - company must show deleveraging progress or maintain strong FCF generation
- Free cash flow sustainability - verify FCF growth can continue to service debt obligations
- Revenue growth quality - ensure top-line growth is not driven by price increases unsustainable in competitive environment
- Interest coverage
- Operating margin
Hilton Grand Vacations Inc. (HGV) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
HGV Profit Margin, ROE & Profitability Analysis
HGV vs Real Estate Sector: How Hilton Grand Vacations Inc. Compares
How Hilton Grand Vacations Inc. compares to Real Estate sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Hilton Grand Vacations Inc. Stock Overvalued? HGV Valuation Analysis 2026
Based on fundamental analysis, Hilton Grand Vacations Inc. shows some fundamental concerns 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.
Hilton Grand Vacations Inc. Balance Sheet: HGV Debt, Cash & Liquidity
HGV Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Hilton Grand Vacations Inc.'s revenue has grown significantly by 126% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.80 reflects profitable operations.
HGV Revenue Growth, EPS Growth & YoY Performance
HGV Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.0B | -$17.0M | $-0.17 |
| Q3 2025 | $1.2B | $25.0M | $0.26 |
| Q2 2025 | $1.1B | -$2.0M | $-0.02 |
| Q1 2025 | $1.0B | -$4.0M | $-0.04 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Hilton Grand Vacations Inc. Dividends, Buybacks & Capital Allocation
HGV SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Hilton Grand Vacations Inc. (CIK: 0001674168)
📋 Recent SEC Filings
❓ Frequently Asked Questions about HGV
What is the AI rating for HGV?
Hilton Grand Vacations Inc. (HGV) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 71% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are HGV's key strengths?
Claude: Solid revenue growth of 11.8% YoY demonstrates sustained business demand in leisure travel. Strong free cash flow generation of $122M with 9.5% FCF margin provides near-term liquidity buffer. ChatGPT: Double-digit revenue growth (+11.8% YoY) on a $5.05B base. Positive free cash flow with 4.6% FCF margin supporting potential deleveraging.
What are the risks of investing in HGV?
Claude: Critical interest coverage ratio of 0.9x means operating income fails to cover interest expense, creating severe solvency concern and limited debt service cushion. Extreme leverage at 3.97x debt/equity with $4.8B long-term debt leaves minimal financial flexibility for economic downturns or operational disruptions. ChatGPT: High leverage (3.53x debt/equity) with weak 2.2x interest coverage. Thin profitability (3.5% operating margin; 1.6% net margin) vulnerable to shocks.
What is HGV's revenue and growth?
Hilton Grand Vacations Inc. reported revenue of $1.3B.
Does HGV pay dividends?
Hilton Grand Vacations Inc. does not currently pay dividends.
Where can I find HGV SEC filings?
Official SEC filings for Hilton Grand Vacations Inc. (CIK: 0001674168) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HGV's EPS?
Hilton Grand Vacations Inc. has a diluted EPS of $0.79.
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 HGV a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Hilton Grand Vacations Inc. has a SELL rating with 71% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is HGV stock overvalued or undervalued?
Valuation metrics for HGV: ROE of 5.5% (sector avg: 8%), net margin of 5.1% (sector avg: 20%). Compare these metrics with sector averages to assess valuation.
Should I buy HGV stock in 2026?
Our dual AI analysis gives Hilton Grand Vacations Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is HGV's free cash flow?
Hilton Grand Vacations Inc.'s operating cash flow is $128.0M, with capital expenditures of $6.0M. FCF margin is 9.5%.
How does HGV compare to other Real Estate stocks?
Vs Real Estate sector averages: Net margin 5.1% (avg: 20%), ROE 5.5% (avg: 8%), current ratio N/A (avg: 1.5).
Is Hilton Grand Vacations Inc. carrying too much debt?
HGV has a debt-to-equity ratio of 3.97x, which is above the Real Estate sector average of 1.5x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.