NYSE · Consumer Cyclical

Hilton Worldwide Holdings Inc.

HLT · Lodging

$348.84

▼ -0.46 (-0.13%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

B⤢

Gross Profit Margin 29.0%

Operating Margin 23.1%

Net Income Margin 13.1%

Fin. Health

F⤢

Years to Pay Off Debt 33.9 yrs

Working Capital vs Long-Term Debt -$14.1B

Working Capital -$1.8B

Valuation

D⤢

Price-to-Book N/A (neg. equity)

Cash Flow

A⤢

Free Cash Flow $587M

CapEx % of Net Income 8.1%

Owner Earnings $466M

Profitability

Gross Profit Margin 29.0%

Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.

Operating Margin 23.1%

Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.

Net Income Margin 13.1%

Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.

Financial Health

Years to Pay Off Debt 33.9 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt -$14.1B

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital -$1.8B

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Cash Flow

Free Cash Flow $587M

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 8.1%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $466M

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About Hilton Worldwide Holdings Inc.

Hilton Worldwide Holdings Inc., a hospitality company, engages in managing, franchising, and leasing hotels and resorts. It operates in two segments, Management and Franchise, and Ownership. The company engages in the hotel management and licensing of its brand names, trademarks, and service marks. It operates a brand portfolio of luxury, lifestyle, full service, focused service, all-suites hotel, and timeshare under the Waldorf Astoria Hotels & Resorts, LXR Hotels & Resorts, Conrad Hotels & Resorts, Signia by Hilton, NoMad, Canopy by Hilton, Graduate by Hilton, Tempo by Hilton, Motto by Hilton, Hilton Hotels & Resorts, DoubleTree by Hilton, Curio Collection by Hilton, Tapestry Collection by Hilton, Outset Collection by Hilton, Embassy Suites by Hilton, Homewood Suites by Hilton, Home2 Suites by Hilton, LivSmart Studios by Hilton, Hilton Garden Inn, Hampton by Hilton, Tru by Hilton, Spark by Hilton, Hilton Grand Vacations, Small Luxury Hotels of the World, AutoCamp, and Hilton Honors brand names. The company has operations in North America, South America, and Central America, including various Caribbean nations; Europe, the Middle East, and Africa; and the Asia Pacific. Hilton Worldwide Holdings Inc. was founded in 1919 and is headquartered in McLean, Virginia.

Market Data

Market Cap $79.4B

Enterprise Value $92.3B

P/E (TTM) 53.26

Dividend Yield 0.17%

Exchange NYSE

Key Margins

Gross Profit 29.0%

Operating Margin 23.1%

Net Margin 13.1%

Company Info

Sector Consumer Cyclical

Industry Lodging

Employees 182000

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Hilton Worldwide Holdings Inc. at $348.84.

The business passes only 2 of 7 of Graham's defensive criteria — well below his required standard.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics

Income Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Gross Profit %	29.0%▲	25.9%•	N/A
Operating Margin %	23.1%▲	19.5%•	N/A
Net Income %	13.1%▲	9.6%•	N/A
Diluted EPS	1.66▲	1.27•	N/A

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Total Assets	$16.4B	$16.8B	N/A
Total Debt	$13.1B▼	$13.1B•	N/A
Working Capital	-$1.8B▼	-$1.5B•	N/A
Years to Pay Debt	33.92	44.08	N/A

Cash Flow Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Free Cash Flow	$587M▲	$151M•	N/A
Owner Earnings	$466M	$396M	N/A
CapEx % of Net Income	8.1%	17.5%	N/A

Income Statement

	2026	2025
Tax Effect Of Unusual Items	-1,303	-916
Tax Rate For Calcs	0	0
Normalized EBITDA	735,000	644,000
Total Unusual Items	-5,000	-3,000
Total Unusual Items Excluding Goodwill	-5,000	-3,000
Net Income From Continuing Operation Net Minority Interest	385,000	297,000
Reconciled Depreciation	50,000	47,000
Reconciled Cost Of Revenue	2,084,000	2,286,000
EBITDA	730,000	641,000
EBIT	680,000	594,000
Net Interest Income	-162,000	-165,000
Interest Expense	162,000	165,000
Normalized Income	388,697	299,084
Net Income From Continuing And Discontinued Operation	385,000	297,000
Total Expenses	2,259,000	2,485,000
Total Operating Income As Reported	678,000	602,000
Diluted Average Shares	232,000	234,000
Basic Average Shares	229,000	232,000
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	385,000	297,000
Net Income Common Stockholders	385,000	297,000
Net Income	385,000	297,000
Minority Interests	2,000	-1,000
Net Income Including Noncontrolling Interests	383,000	298,000
Net Income Continuous Operations	383,000	298,000
Tax Provision	135,000	131,000
Pretax Income	518,000	429,000
Other Income Expense	2,000	-8,000
Other Non Operating Income Expenses	7,000	-5,000
Gain On Sale Of Security	-5,000	-3,000
Net Non Operating Interest Income Expense	-162,000	-165,000
Interest Expense Non Operating	162,000	165,000
Operating Income	678,000	602,000
Operating Expense	175,000	199,000
Other Operating Expenses	22,000	57,000
Depreciation Amortization Depletion Income Statement	50,000	47,000
Depreciation And Amortization In Income Statement	50,000	47,000
Selling General And Administration	103,000	95,000
General And Administrative Expense	103,000	95,000
Other Gand A	103,000	95,000
Gross Profit	853,000	801,000
Cost Of Revenue	2,084,000	2,286,000
Total Revenue	2,937,000	3,087,000
Operating Revenue	1,116,000	1,215,000

Balance Sheet

	2026	2025	2024
Treasury Shares Number	109,274	106,541
Ordinary Shares Number	228,330	230,433
Share Issued	337,604	336,974
Net Debt	11,795,000	11,445,000
Total Debt	13,058,000	13,093,000
Tangible Book Value	-17,665,000	-17,169,000
Invested Capital	6,454,000	6,975,000
Working Capital	-1,784,000	-1,512,000
Net Tangible Assets	-17,665,000	-17,169,000
Capital Lease Obligations	699,000	730,000
Common Stock Equity	-5,905,000	-5,388,000
Total Capitalization	6,429,000	6,950,000
Total Equity Gross Minority Interest	-5,867,000	-5,346,000
Minority Interest	38,000	42,000
Stockholders Equity	-5,905,000	-5,388,000
Gains Losses Not Affecting Retained Earnings	-745,000	-729,000
Other Equity Adjustments	-745,000	-729,000
Treasury Stock	15,259,000	14,428,000
Retained Earnings	-1,158,000	-1,508,000
Additional Paid In Capital	11,254,000	11,274,000
Capital Stock	3,000	3,000
Common Stock	3,000	3,000
Total Liabilities Net Minority Interest	22,252,000	22,120,000
Total Non Current Liabilities Net Minority Interest	17,696,000	17,612,000
Other Non Current Liabilities	2,688,000	2,574,000
Employee Benefits			17,000
Non Current Pension And Other Postretirement Benefit Plans			17,000
Tradeand Other Payables Non Current			618,000
Non Current Deferred Liabilities	1,975,000	1,970,000
Non Current Deferred Revenue	1,697,000	1,648,000
Non Current Deferred Taxes Liabilities	278,000	322,000
Long Term Debt And Capital Lease Obligation	13,033,000	13,068,000
Long Term Capital Lease Obligation	699,000	730,000
Long Term Debt	12,334,000	12,338,000
Long Term Provisions			158,000
Current Liabilities	4,556,000	4,508,000
Other Current Liabilities	1,310,000	2,583,000
Current Deferred Liabilities	845,000	858,000
Current Deferred Revenue	845,000	858,000
Current Debt And Capital Lease Obligation	25,000	25,000
Current Capital Lease Obligation			117,000
Current Debt	25,000	25,000
Other Current Borrowings			535,000
Pensionand Other Post Retirement Benefit Plans Current		666,000	637,000
Current Provisions			114,000
Payables And Accrued Expenses	2,376,000	376,000
Payables		376,000	409,000
Accounts Payable		376,000	409,000
Total Assets	16,385,000	16,774,000
Total Non Current Assets	13,613,000	13,778,000
Other Non Current Assets	399,000	484,000
Non Current Deferred Assets	233,000	252,000
Non Current Deferred Taxes Assets	233,000	252,000
Goodwill And Other Intangible Assets	11,760,000	11,781,000
Other Intangible Assets	6,690,000	6,700,000
Goodwill	5,070,000	5,081,000
Net PPE	1,221,000	1,261,000
Accumulated Depreciation		-486,000	-499,000
Gross PPE	1,221,000	1,747,000
Construction In Progress		57,000	65,000
Other Properties	1,221,000	903,000
Machinery Furniture Equipment		385,000	375,000
Buildings And Improvements		394,000	368,000
Land And Improvements		8,000	8,000
Current Assets	2,772,000	2,996,000
Other Current Assets	203,000	117,000
Restricted Cash	55,000	52,000
Prepaid Assets	266,000	219,000
Receivables	1,684,000	1,690,000
Accounts Receivable	1,684,000	1,690,000
Allowance For Doubtful Accounts Receivable	-166,000	-163,000
Gross Accounts Receivable	1,850,000	1,853,000
Cash Cash Equivalents And Short Term Investments	564,000	918,000
Cash And Cash Equivalents	564,000	918,000

Cash Flow

	2026	2025	2024
Free Cash Flow	587,000	151,000
Repurchase Of Capital Stock	-821,000	-779,000
Repayment Of Debt	-8,000	-509,000
Issuance Of Debt		1,000,000	0
Capital Expenditure	-31,000	-52,000
Interest Paid Supplemental Data	143,000	186,000
Income Tax Paid Supplemental Data	41,000	358,000
End Cash Position	619,000	970,000
Beginning Cash Position	970,000	1,126,000
Effect Of Exchange Rate Changes	-7,000	-3,000
Changes In Cash	-344,000	-153,000
Financing Cash Flow	-923,000	-296,000
Cash Flow From Continuing Financing Activities	-923,000	-296,000
Net Other Financing Charges	-70,000	-2,000
Proceeds From Stock Option Exercised	11,000	29,000
Cash Dividends Paid	-35,000	-35,000
Common Stock Dividend Paid		-35,000	-37,000
Net Common Stock Issuance	-821,000	-779,000
Common Stock Payments	-821,000	-779,000
Net Issuance Payments Of Debt	-8,000	491,000
Net Long Term Debt Issuance	-8,000	491,000
Long Term Debt Payments	-8,000	-509,000
Long Term Debt Issuance		1,000,000	0
Investing Cash Flow	-39,000	-60,000
Cash Flow From Continuing Investing Activities	-39,000	-60,000
Net Other Investing Changes	-11,000
Net Investment Purchase And Sale	3,000	-2,000
Sale Of Investment	3,000	-2,000
Purchase Of Investment
Net Business Purchase And Sale		-3,000	0
Purchase Of Business		-3,000	0
Capital Expenditure Reported	-31,000	-52,000
Operating Cash Flow	618,000	203,000
Cash Flow From Continuing Operating Activities	618,000	203,000
Change In Working Capital	171,000	4,000
Change In Other Working Capital	63,000	239,000
Change In Other Current Liabilities	108,000	-335,000
Other Non Cash Items	-11,000	-218,000
Stock Based Compensation	45,000	35,000
Deferred Tax	-25,000	34,000
Deferred Income Tax	-25,000	34,000
Depreciation Amortization Depletion	50,000	47,000
Depreciation And Amortization	50,000	47,000
Operating Gains Losses	5,000	3,000
Net Foreign Currency Exchange Gain Loss	5,000	3,000
Net Income From Continuing Operations	383,000	298,000

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $2.7B ▲ $2.9B +9.0%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Gross Margin

Prior year: 25.9% ▲ 29.0% +3.2pp

Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.

Operating Margin

Prior year: 25.2% ▲ 23.1% -2.1pp

Graham: operating margin reflects true business economics before financing. Trend matters as much as level.

Net Margin

Prior year: 11.1% ▲ 13.1% +2.0pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$2.9B/qtr (≈$11.7B ann.)

vs > $1.5B annualised revenue

❌ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

0.61x current ratio

vs ≥ 2.0x

✅ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

$587M

vs Positive

Operating Cash Flow

$618M

Latest quarter · Buffett's cash reality check

ROIC

4.5%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

⚠ Negative Net Assets

Net Assets: -$5.9B

⚠ Negative Net Assets — total liabilities exceed total assets on paper. This is common in companies that aggressively return capital via buybacks and dividends (Apple, McDonald's, Domino's). It does not indicate insolvency if the business generates strong, consistent free cash flow. Focus on FCF and earnings power rather than balance sheet book value for these companies.

⚠️ Revenue grew vs prior year but operating margin contracted. Possible explanations: deliberate investment in growth (hiring, marketing, R&D), input cost inflation, or pricing pressure from competition. Buffett distinguishes between spending that builds moat vs. spending that doesn't.

Peers & Industry

No auto-detected peers for Lodging. You can manually compare HLT against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

2.17%

Low — management has little skin in the game

Return on Assets (ROA)

2.3%

Fair — average asset utilization

Share Buybacks (Latest Year)

$3.2B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

-0.3% YoY

Debt is declining — management is deleveraging

Leadership Team

Christopher Nassetta

President, CEO & Director

Age 62

Pay: $4,574,717

1.188% of net income

Kevin Jacobs

Executive VP & Chief Financial Officer

Age 53

Pay: $2,189,785

0.569% of net income

Christopher Silcock

President of Global Brands and Commercial Services

Age 53

Pay: $2,140,968

0.556% of net income

Charlie Ruehr

Vice President of Corporate Finance & Investor Relations

Frank Passanante

Senior Vice President of Group Sales

Top Institutional Holders

Institution	% Owned	Shares
Blackrock Inc.	9.30%	21,177,712
Vanguard Capital Management LLC	6.55%	14,901,164
FMR, LLC	5.13%	11,672,214
JPMORGAN CHASE & CO	4.58%	10,435,071
State Street Corporation	4.12%	9,376,837
Vanguard Portfolio Management LLC	3.39%	7,711,318
Principal Financial Group, Inc.	2.90%	6,603,112
Geode Capital Management, LLC	2.88%	6,552,947

⚠️ Current ratio below 1 — liquidity risk

Risk Analysis

Beta (Market Risk)

1.05

Moderate volatility — moves slightly more than market

Short Interest

2.8% of float

Low short interest — market is not heavily bearish

Current Ratio

0.61x

Weak liquidity — current liabilities exceed current assets

52-Week Price Range

Low: $243.53 Current: $348.84 High: $358.00

Currently at 92% of 52-week range

Hilton Worldwide Holdings Inc.

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarter vs Same Quarter Last Year

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis