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Huazhu Group

DB:CL4A
Snowflake Description

High growth potential with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CL4A
DB
$8B
Market Cap
  1. Home
  2. DE
  3. Consumer Services
Company description

Huazhu Group Limited, together with its subsidiaries, develops leased and owned, manachised, and franchised hotels primarily in the People’s Republic of China. The last earnings update was 10 days ago. More info.


Add to Portfolio Compare Print
  • Huazhu Group has significant price volatility in the past 3 months.
CL4A Share Price and Events
7 Day Returns
0%
DB:CL4A
-6.8%
DE Hospitality
-0.6%
DE Market
1 Year Returns
-28.9%
DB:CL4A
-48.1%
DE Hospitality
-20.9%
DE Market
CL4A Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Huazhu Group (CL4A) 0% -13.1% -26.5% -28.9% 81.9% 437.1%
DE Hospitality -6.8% -31.3% -57.6% -48.1% -63.2% -70.6%
DE Market -0.6% -18.6% -26.2% -20.9% -25.8% -31.8%
1 Year Return vs Industry and Market
  • CL4A outperformed the Hospitality industry which returned -48.1% over the past year.
  • CL4A underperformed the Market in Germany which returned -20.9% over the past year.
Price Volatility
CL4A
Industry
5yr Volatility vs Market

Value

 Is Huazhu Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Huazhu Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Huazhu Group.

DB:CL4A Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.7%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:CL4A
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 6.3%
Hospitality Unlevered Beta Simply Wall St/ S&P Global 0.78
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.782 (1 + (1- 25%) (66.36%))
1.115
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.11
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (1.115 * 6.33%)
6.67%

Discounted Cash Flow Calculation for DB:CL4A using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Huazhu Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:CL4A DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 6.67%)
2020 1,049.00 Analyst x2 983.44
2021 3,658.50 Analyst x2 3,215.51
2022 5,475.50 Analyst x2 4,511.73
2023 9,515.44 Analyst x1 7,350.59
2024 12,809.15 Est @ 34.61% 9,276.55
2025 15,897.81 Est @ 24.11% 10,793.86
2026 18,562.62 Est @ 16.76% 11,815.50
2027 20,718.94 Est @ 11.62% 12,363.85
2028 22,379.47 Est @ 8.01% 12,520.14
2029 23,608.81 Est @ 5.49% 12,382.45
Present value of next 10 years cash flows CN¥85,213.00
DB:CL4A DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CN¥23,608.81 × (1 + -0.39%) ÷ (6.67% – -0.39%)
CN¥333,278.56
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥333,278.56 ÷ (1 + 6.67%)10
CN¥174,799.40
DB:CL4A Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥85,213.00 + CN¥174,799.40
CN¥260,012.40
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥260,012.40 / 283.89
CN¥915.89
DB:CL4A Discount to Share Price
Calculation Result
Exchange Rate CNY/USD
(Reporting currency to currency of NasdaqGS:HTHT)
0.141
Value per Share
(USD)
= Value per Share in CNY x Exchange Rate (CNY/USD)
= CN¥915.89 x 0.141
$129.17
Non-primary Listing Adjustment Factor 1 share in DB:CL4A represents 0.93105x of NasdaqGS:HTHT
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.93105x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 129.17 x 0.93105
€120.26
Value per share (EUR) From above. €120.26
Current discount Discount to share price of €26.60
= -1 x (€26.60 - €120.26) / €120.26
77.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Huazhu Group is available for.
Intrinsic value
>50%
Share price is €26.6 vs Future cash flow value of €120.26
Current Discount Checks
For Huazhu Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Huazhu Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Huazhu Group's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Huazhu Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Huazhu Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:CL4A PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in CNY CN¥6.22
NasdaqGS:HTHT Share Price ** NasdaqGS (2020-04-03) in USD $28.57
NasdaqGS:HTHT Share Price converted to CNY reporting currency Exchange rate (USD/ CNY) 7.091 CN¥202.58
Germany Hospitality Industry PE Ratio Median Figure of 9 Publicly-Listed Hospitality Companies 21.1x
Germany Market PE Ratio Median Figure of 401 Publicly-Listed Companies 16.57x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Huazhu Group.

DB:CL4A PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:HTHT Share Price ÷ EPS (both in CNY)

= 202.58 ÷ 6.22

32.56x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Huazhu Group is overvalued based on earnings compared to the DE Hospitality industry average.
  • Huazhu Group is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Huazhu Group's expected growth come at a high price?
Raw Data
DB:CL4A PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 32.56x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
24.4%per year
Europe Hospitality Industry PEG Ratio Median Figure of 63 Publicly-Listed Hospitality Companies 0.96x
Germany Market PEG Ratio Median Figure of 256 Publicly-Listed Companies 1.17x

*Line of best fit is calculated by linear regression .

DB:CL4A PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 32.56x ÷ 24.4%

1.33x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Huazhu Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Huazhu Group's assets?
Raw Data
DB:CL4A PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in CNY CN¥25.87
NasdaqGS:HTHT Share Price * NasdaqGS (2020-04-03) in USD $28.57
NasdaqGS:HTHT Share Price converted to CNY reporting currency Exchange rate (USD/ CNY) 7.091 CN¥202.58
Germany Hospitality Industry PB Ratio Median Figure of 12 Publicly-Listed Hospitality Companies 1.73x
Germany Market PB Ratio Median Figure of 572 Publicly-Listed Companies 1.44x
DB:CL4A PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:HTHT Share Price ÷ Book Value per Share (both in CNY)

= 202.58 ÷ 25.87

7.83x

* Primary Listing of Huazhu Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Huazhu Group is overvalued based on assets compared to the DE Hospitality industry average.
X
Value checks
We assess Huazhu Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check)
  5. Huazhu Group has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Huazhu Group expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
24.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Huazhu Group expected to grow at an attractive rate?
  • Huazhu Group's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Huazhu Group's earnings growth is expected to exceed the Germany market average.
  • Huazhu Group's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:CL4A Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:CL4A Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 24.4%
DB:CL4A Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 17.2%
Germany Hospitality Industry Earnings Growth Rate Market Cap Weighted Average 28.9%
Germany Hospitality Industry Revenue Growth Rate Market Cap Weighted Average 4%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.1%
Germany Market Revenue Growth Rate Market Cap Weighted Average 3.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:CL4A Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:CL4A Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 22,262 4,721 1
2022-12-31 18,845 4,976 2,940 7
2021-12-31 16,406 4,453 2,260 11
2020-12-31 11,802 2,897 512 11
2020-04-05
DB:CL4A Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2019-12-31 11,212 3,293 1,769
2019-09-30 10,983 731
2019-06-30 10,697 968
2019-03-31 10,359 693
2018-12-31 10,063 3,049 716
2018-09-30 9,640 3,045 1,361
2018-06-30 9,179 3,021 1,162
2018-03-31 8,706 2,687 1,204
2017-12-31 8,229 2,453 1,228
2017-09-30 7,640 2,344 1,127
2017-06-30 7,047 2,073 962
2017-03-31 6,715 1,927 888

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Huazhu Group's earnings are expected to grow significantly at over 20% yearly.
  • Huazhu Group's revenue is expected to grow by 17.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:CL4A Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from Huazhu Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:CL4A Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 15.51 15.51 15.51 1.00
2022-12-31 9.99 12.25 7.09 5.00
2021-12-31 7.87 12.09 4.15 8.00
2020-12-31 1.72 3.71 -0.74 8.00
2020-04-05
DB:CL4A Past Financials Data
Date (Data in CNY Millions) EPS *
2019-12-31 6.22
2019-09-30 2.58
2019-06-30 3.42
2019-03-31 2.45
2018-12-31 2.54
2018-09-30 4.84
2018-06-30 4.14
2018-03-31 4.30
2017-12-31 4.40
2017-09-30 4.05
2017-06-30 3.46
2017-03-31 3.20

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Huazhu Group is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Huazhu Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Huazhu Group has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Huazhu Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Huazhu Group's growth in the last year to its industry (Hospitality).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Huazhu Group has delivered over 20% year on year earnings growth in the past 5 years.
  • Huazhu Group's 1-year earnings growth exceeds its 5-year average (147.1% vs 22.5%)
  • Huazhu Group's earnings growth has exceeded the DE Hospitality industry average in the past year (147.1% vs -36.8%).
Earnings and Revenue History
Huazhu Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Huazhu Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:CL4A Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 11,212.00 1,769.00 1,989.00
2019-09-30 10,983.50 731.05 1,805.94
2019-06-30 10,696.72 967.57 1,673.78
2019-03-31 10,359.00 693.00 1,541.00
2018-12-31 10,063.00 716.00 1,454.00
2018-09-30 9,639.88 1,361.38 1,460.49
2018-06-30 9,179.46 1,161.89 1,289.01
2018-03-31 8,705.94 1,204.37 1,243.64
2017-12-31 8,229.00 1,228.00 1,135.80
2017-09-30 7,639.55 1,127.43 906.70
2017-06-30 7,046.97 961.99 795.77
2017-03-31 6,714.71 887.85 740.99
2016-12-31 6,573.00 782.00 773.00
2016-09-30 6,375.03 749.52 689.99
2016-06-30 6,201.40 679.30 690.24
2016-03-31 6,002.24 512.98 693.46
2015-12-31 5,774.62 436.60 690.14
2015-09-30 5,564.55 412.68 712.57
2015-06-30 5,351.87 338.63 739.41
2015-03-31 5,141.08 313.69 733.30
2014-12-31 4,964.73 307.35 715.70
2014-09-30 4,788.71 319.05 684.43
2014-06-30 4,547.87 294.37 640.21
2014-03-31 4,335.71 266.46 633.67
2013-12-31 4,168.63 279.86 634.17
2013-09-30 3,931.61 239.51 620.78
2013-06-30 3,678.58 210.39 598.86

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Huazhu Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • Huazhu Group used its assets less efficiently than the DE Hospitality industry average last year based on Return on Assets.
  • Huazhu Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Huazhu Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Huazhu Group has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Huazhu Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Huazhu Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Huazhu Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Huazhu Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Huazhu Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Huazhu Group Company Filings, last reported 3 months ago.

DB:CL4A Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 7,500.00 16,583.00 6,142.00
2019-09-30 7,501.00 8,711.00 4,076.00
2019-06-30 7,137.00 9,168.00 3,422.00
2019-03-31 6,546.00 10,020.00 3,924.00
2018-12-31 6,319.00 9,767.00 4,351.00
2018-09-30 7,402.81 9,239.77 4,017.15
2018-06-30 6,705.97 8,274.25 4,255.46
2018-03-31 6,504.08 8,527.81 3,658.37
2017-12-31 6,234.00 5,053.00 3,605.00
2017-09-30 6,311.18 3,716.66 3,440.84
2017-06-30 6,047.72 3,820.76 2,980.38
2017-03-31 5,592.15 296.67 2,375.49
2016-12-31 5,416.16 298.29 3,235.01
2016-09-30 5,252.64 287.15 3,046.58
2016-06-30 4,938.40 616.70 2,512.65
2016-03-31 4,692.76 600.89 1,861.76
2015-12-31 3,440.75 348.62 1,744.25
2015-09-30 3,493.45 594.81 1,271.09
2015-06-30 3,426.41 99.49 1,164.86
2015-03-31 3,245.88 0.00 703.56
2014-12-31 3,218.71 0.00 835.48
2014-09-30 3,193.45 300.00 910.42
2014-06-30 2,987.18 300.00 685.14
2014-03-31 2,832.12 300.00 476.71
2013-12-31 2,827.79 7.11 397.44
2013-09-30 2,746.66 1.23 366.19
2013-06-30 2,603.30 1.24 306.06
  • Huazhu Group's level of debt (221.1%) compared to net worth is high (greater than 40%).
  • Unable to establish if Huazhu Group's debt level has increased without past 5-year debt data.
  • Debt is not well covered by operating cash flow (19.9%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 13.6x coverage).
X
Financial health checks
We assess Huazhu Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Huazhu Group has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Huazhu Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.15%
Current annual income from Huazhu Group dividends. Estimated to be 1.16% next year.
If you bought €2,000 of Huazhu Group shares you are expected to receive €23 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Huazhu Group's pays a lower dividend yield than the bottom 25% of dividend payers in Germany (1.7%).
  • Huazhu Group's dividend is below the markets top 25% of dividend payers in Germany (4.86%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:CL4A Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
Germany Hospitality Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 11.3%
Germany Market Average Dividend Yield Market Cap Weighted Average of 316 Stocks 3.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 4.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:CL4A Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 2.50 1.00
2022-12-31 2.58 6.00
2021-12-31 3.03 10.00
2020-12-31 1.40 9.00
2020-04-05
DB:CL4A Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2020-01-03 2.332 1.025
2018-12-13 2.272 0.980

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • It is too early to tell whether Huazhu Group has stable dividend payments.
  • Huazhu Group only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of Huazhu Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.2x coverage).
X
Income/ dividend checks
We assess Huazhu Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Huazhu Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Huazhu Group has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Huazhu Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Qi Ji
COMPENSATION CN¥0
AGE 52
TENURE AS CEO 0.4 years
CEO Bio

Mr. Qi Ji has been an Executive Chairman of Huazhu Group Limited (formerly known as, China Lodging Group) since February 2007 and has been its Chief Executive Officer since November 8, 2019. He serves as the Chairman, Chief Executive Officer and President of Hanting Hotels Inc. Mr. Ji is a Co-Founder of Huazhu Group Limited (formerly known as, China Lodging Group) and served as its Chief Executive Officer since January 3, 2012 until May 2015. He served as the Chief Executive Officer of Huazhu Group Limited (formerly known as, China Lodging Group) from 2007 to August 2009. He co-founded Home Inns & Hotels Management Inc., or Home Inns and served as its Chief Executive Officer from January 2001 to January 2005. He co-founded Ctrip.com International Ltd. in 1999 and served as its Chief Executive Officer and President until December 2001. Prior to Ctrip, Mr. Ji served as the Chief Executive Officer of Shanghai Sunflower High-Tech Group, which he founded in 1997. He headed the East China Division of Beijing Zhonghua Yinghua Intelligence System Co., Ltd. from 1995 to 1997. He has been an Independent Director of Ctrip.com International Ltd. since June 1999. He has been the Member of the Board of Directors of UBOX International Holdings Co., Limited since 2012. He served as an Independent Director of Taomee Holdings Ltd. since June 2011. He served as a Director of Home Inns & Hotels Management Inc., from 2002 to January 2005. Mr. Ji received both his Master's and Bachelor's degrees from Shanghai Jiao Tong University, and EMBA from Cheung Kong Graduate School of Business.

CEO Compensation
  • Insufficient data for Qi to compare compensation growth.
  • Insufficient data for Qi to establish whether their remuneration is reasonable compared to companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Huazhu Group management team in years:

1.3
Average Tenure
51
Average Age
  • The average tenure for the Huazhu Group management team is less than 2 years, this suggests a new team.
Management Team

Qi Ji

TITLE
Founder
AGE
52
TENURE
0.4 yrs

John Wu

TITLE
Co-Founder & Independent Director
AGE
51

Tong Tong Zhao

TITLE
Co-Founder & Independent Director
AGE
52

Hui Jin

TITLE
Co-President
AGE
41
TENURE
1.3 yrs

Xinxin Liu

TITLE
Co-President
TENURE
1.3 yrs

Nee Chuan Teo

TITLE
Chief Financial Officer
AGE
48
TENURE
4.1 yrs

Yu Ida

TITLE
Senior Manager of Investor Relations

Yuewu Rong

TITLE
Legal Director
Board of Directors Tenure

Average tenure and age of the Huazhu Group board of directors in years:

4.3
Average Tenure
51
Average Age
  • The tenure for the Huazhu Group board of directors is about average.
Board of Directors

Jenny Zhang

TITLE
Executive Vice-Chairlady
AGE
45
TENURE
0.4 yrs

Qi Ji

TITLE
Founder
AGE
52
TENURE
13.2 yrs

John Wu

TITLE
Co-Founder & Independent Director
AGE
51
TENURE
13.3 yrs

Tong Tong Zhao

TITLE
Co-Founder & Independent Director
AGE
52
TENURE
13.2 yrs

Jian Shang

TITLE
Independent Director
AGE
51
TENURE
5.9 yrs

Sébastien Bazin

TITLE
Director
AGE
58
TENURE
4.3 yrs

Shangzhi Zhang

TITLE
Director
AGE
65
TENURE
3.8 yrs

Cindy Wang

TITLE
Director
AGE
44
TENURE
2.3 yrs

Gaurav Bhushan

TITLE
Alternate Director
AGE
47
TENURE
4.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess Huazhu Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Huazhu Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Huazhu Group Limited, together with its subsidiaries, develops leased and owned, manachised, and franchised hotels primarily in the People’s Republic of China. It operates hotels under its own brands, such as Hi Inn, HanTing Hotel, Elan Hotel, Orange Hotel, HanTing Premium, Starway Hotel, JI Hotel, Orange Hotel Select, Manxin Hotel, Crystal Orange Hotel, Joya Hotel, and Blossom Hill Hotels & Resorts. The company also operates hotels under brand franchise agreements that include Ibis, Ibis Styles, Mercure, Novotel, and Grand Mercure. As of March 31, 2019, it had 4,396 hotels with 439,614 rooms. The company was formerly known as China Lodging Group, Limited and changed its name to Huazhu Group Limited in June 2018. Huazhu Group Limited was founded in 2005 and is headquartered in Shanghai, the People’s Republic of China.

Details
Name: Huazhu Group Limited
CL4A
Exchange: DB
Founded: 2005
$7,517,869,785
283,891,034
Website: http://www.huazhu.com
Address: Huazhu Group Limited
No. 2266 Hongqiao Road,
Changning District,
Shanghai,
200336,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS HTHT SPONSORED ADR 1 ORD SHS Nasdaq Global Select US USD 26. Mar 2010
DB CL4A SPONSORED ADR 1 ORD SHS Deutsche Boerse AG DE EUR 26. Mar 2010
LSE 0A2I SPONSORED ADR 1 ORD SHS London Stock Exchange GB USD 26. Mar 2010
BMV HTHT N SPONSORED ADR 1 ORD SHS Bolsa Mexicana de Valores MX MXN 26. Mar 2010
Number of employees
Current staff
Staff numbers
15,699
Huazhu Group employees.
Industry
Hotels, Resorts and Cruise Lines
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/05 22:05
End of day share price update: 2020/04/03 00:00
Last estimates confirmation: 2020/04/01
Last earnings filing: 2020/03/26
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.