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Our History On January 3, 2017, HGV became an independent publicly traded company as a result of Hilton Worldwide Holdings Inc.'s ( Hilton ) tax-free spin-off of each of HGV and Park Hotels & Resorts Inc. ( Park ). HGV's common stock is listed on the New York Stock Exchange under the symbol HGV.
Operating margin is thin at 0.39%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue growth slowed to 0.0%, essentially flat. Margins also contracted 1.4pp. This is a business that needs a catalyst.
Free cash flow declined 14% versus the prior year, cash generation momentum has weakened. Net debt of $4.39B represents 19.1x FCF, leverage limits flexibility.
Profitability & Returns
Revenue (TTM)
$4.73B
Net Income (TTM)
$164M
▲ +72.3% YoY
Op. Margin
1.92%
▼ -1.4pp YoY
ROIC
1.18%
▼ -0.9pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$328M
▼ -13.9% YoY
Op. Cash Flow (TTM)
$390M
▼ -2.9% YoY
Net Debt
$4.58B
Cash & Equiv.
$261M
5Y CAGR: +48.7%
5Y CAGR: +26.5%
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