📊 HLT Key Takeaways
Is Hilton Worldwide Holdings Inc. (HLT) a Good Investment?
Hilton generates strong free cash flow and maintains robust operating margins of 23.1%, but is severely overleveraged with negative stockholders' equity of -$5.9B and critically tight interest coverage of 1.2x. The combination of weak liquidity ratios, zero revenue growth, and minimal operational buffer creates significant financial distress risk despite positive cash generation.
Hilton exhibits strong profitability and cash generation with a low capex, asset-light model, evidenced by a 22.4% operating margin and robust FCF. However, flat YoY growth, negative equity, sub-1.0 liquidity, and meaningful leverage temper the outlook. A hold is warranted pending clearer reacceleration in revenue and progress on balance sheet strength.
Why Buy Hilton Worldwide Holdings Inc. Stock? HLT Key Strengths
- Strong free cash flow generation ($609M, 20.7% FCF margin) provides debt service capacity
- Healthy operating margin (23.1%) demonstrates operational efficiency and pricing power
- Positive operating cash flow of $618M shows underlying business remains cash-generative
- High operating and net margins supported by asset-light model
- Excellent cash conversion (FCF > net income; low capex)
- Adequate interest coverage (4.7x) and scalable fee-based earnings
HLT Stock Risks: Hilton Worldwide Holdings Inc. Investment Risks
- Negative stockholders' equity (-$5.9B) indicates technical insolvency and book value destruction
- Critically low interest coverage (1.2x) leaves virtually no margin for operational deterioration
- Poor liquidity ratios (current 0.61x, quick 0.49x) indicate potential near-term obligation challenges
- Zero revenue and earnings growth with declining EPS (-0.3% YoY) shows stagnant momentum
- Extreme leverage with $12.5B debt against only $2.9B revenue and negative equity base
- Negative stockholders' equity and sub-1.0 liquidity ratios
- High leverage; rising rates or downturn could compress coverage
- Flat revenue and EPS indicate stalled growth momentum
Key Metrics to Watch
- Interest coverage ratio - any decline below 1.2x is critical warning signal
- Free cash flow sustainability - must remain positive to service debt obligations
- Revenue growth acceleration - essential for deleveraging and equity restoration
- Net debt reduction progress - measure of de-risking the capital structure
- Revenue growth (YoY) and FCF margin
- Interest coverage and current ratio
Hilton Worldwide Holdings Inc. (HLT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 20.7% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
HLT Profit Margin, ROE & Profitability Analysis
HLT vs Real Estate Sector: How Hilton Worldwide Holdings Inc. Compares
How Hilton Worldwide Holdings Inc. compares to Real Estate sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Hilton Worldwide Holdings Inc. Stock Overvalued? HLT Valuation Analysis 2026
Based on fundamental analysis, Hilton Worldwide Holdings Inc. 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.
Hilton Worldwide Holdings Inc. Balance Sheet: HLT Debt, Cash & Liquidity
HLT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Hilton Worldwide Holdings Inc.'s revenue has grown significantly by 27% over the 5-year period, indicating strong business expansion. The most recent EPS of $4.33 reflects profitable operations.
HLT Revenue Growth, EPS Growth & YoY Performance
HLT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $2.7B | $300.0M | $1.23 |
| Q3 2025 | $2.9B | $344.0M | $1.38 |
| Q2 2025 | $3.0B | $421.0M | $1.67 |
| Q1 2025 | $2.6B | $265.0M | $1.04 |
| Q3 2024 | $2.7B | $344.0M | $1.38 |
| Q2 2024 | $2.7B | $411.0M | $1.55 |
| Q1 2024 | $2.3B | $206.0M | $0.77 |
| Q3 2023 | $2.4B | $347.0M | $1.26 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Hilton Worldwide Holdings Inc. Dividends, Buybacks & Capital Allocation
HLT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Hilton Worldwide Holdings Inc. (CIK: 0001585689)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| May 18, 2026 | 4 | xslF345X06/wk-form4_1779137657.xml | View → |
| May 18, 2026 | 4 | xslF345X06/wk-form4_1779137634.xml | View → |
| May 18, 2026 | 4 | xslF345X06/wk-form4_1779137614.xml | View → |
| May 18, 2026 | 4 | xslF345X06/wk-form4_1779137590.xml | View → |
| May 18, 2026 | 4 | xslF345X06/wk-form4_1779137570.xml | View → |
❓ Frequently Asked Questions about HLT
What is the AI rating for HLT?
Hilton Worldwide Holdings Inc. (HLT) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are HLT's key strengths?
Claude: Strong free cash flow generation ($609M, 20.7% FCF margin) provides debt service capacity. Healthy operating margin (23.1%) demonstrates operational efficiency and pricing power. ChatGPT: High operating and net margins supported by asset-light model. Excellent cash conversion (FCF > net income; low capex).
What are the risks of investing in HLT?
Claude: Negative stockholders' equity (-$5.9B) indicates technical insolvency and book value destruction. Critically low interest coverage (1.2x) leaves virtually no margin for operational deterioration. ChatGPT: Negative stockholders' equity and sub-1.0 liquidity ratios. High leverage; rising rates or downturn could compress coverage.
What is HLT's revenue and growth?
Hilton Worldwide Holdings Inc. reported revenue of $2.9B.
Does HLT pay dividends?
Hilton Worldwide Holdings Inc. pays dividends, with $35.0M distributed to shareholders in the trailing twelve months.
Where can I find HLT SEC filings?
Official SEC filings for Hilton Worldwide Holdings Inc. (CIK: 0001585689) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HLT's EPS?
Hilton Worldwide Holdings Inc. has a diluted EPS of $1.66.
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 HLT a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Hilton Worldwide Holdings Inc. has a SELL rating with 74% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is HLT stock overvalued or undervalued?
Valuation metrics for HLT: ROE of N/A (sector avg: 8%), net margin of 13.1% (sector avg: 20%). Compare these metrics with sector averages to assess valuation.
Should I buy HLT stock in 2026?
Our dual AI analysis gives Hilton Worldwide Holdings 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 HLT's free cash flow?
Hilton Worldwide Holdings Inc.'s operating cash flow is $618.0M, with capital expenditures of $9.0M. FCF margin is 20.7%.
How does HLT compare to other Real Estate stocks?
Vs Real Estate sector averages: Net margin 13.1% (avg: 20%), ROE N/A (avg: 8%), current ratio 0.61 (avg: 1.5).