Recent News
On November 5, 2025 the company scheduled its third-quarter 2025 earnings release for November 17, 2025. On November 17, 2025 H World Group reported Q3 2025 results showing revenue of RMB7.0 billion, adjusted EBITDA of about RMB2.5 billion and continued network expansion including roughly 749 new hotels; the company highlighted strong growth in manachised and franchised revenue. On January 7, 2026 an analyst house adjusted its rating to a hold and published revised price-target commentary.
Technical Analysis
Directional indicators: ADX at 16.06 indicates no established trend, while DI+ at 19.5 has peak-and-reversed and DI- at 20.74 has dip-and-reversed; those DI moves imply directional pressure toward the downside and reduce the probability of sustained upside continuation relative to current valuation.
MACD shows a peak-and-reversal with MACD at 0.19 beneath the signal line at 0.52; momentum has rolled over and the indicator points to decreasing bullish momentum versus the recent price plateau.
MRO stands at 17.45 and is positive but decreasing; the positive reading indicates price sits above the model target and, given the falling MRO, suggests mean reversion pressure that favors a near-term decrease toward fair-value references embedded in the valuation.
RSI equals 57.6 and is decreasing; the oscillator no longer supports fresh upside extension and aligns with other momentum measures indicating eroding short-term strength.
Price vs moving averages and cloud: the last close of $48.17 sits below the 20‑day average ($49.04) and below short-term EMA peaks that have reversed, while remaining above the 200‑day average ($38.87); that profile favors longer-term strength but near-term consolidation or pullback toward the 20‑50 day band.
Bands, volatility and volume: Bollinger bands compress modestly (upper ~ $50.23, lower ~ $47.86) and 1‑day volume exceeded the 10‑day average, indicating episodic trading interest but low realized volatility; the technical set-up points to a contained downward correction rather than a trend breakout.
Fundamental Analysis
Profitability and margins: EBIT of $2,229,000,000 and EBITDA of $2,548,000,000 produce an EBIT margin of 32.02%, which sits above the industry peer mean of 26.54% and above the industry peer median of 24.46% while remaining inside the industry peer range. Quarterly change in EBIT margin declined by 7.27% QoQ, though YoY the EBIT margin expanded by 18.62%.
Top-line and growth: total revenue equals $6,961,000,000 with YoY revenue growth of 74.11% and a QoQ revenue contraction of 56.43%; the strong annual expansion contrasts with the quarter-to-quarter pullback and requires monitoring for persistence of revenue conversion into operating profits.
Cash flow and liquidity: operating cash flow reached $1,697,000,000 and free cash flow totaled $1,493,000,000, implying a free-cash-flow yield of 1.26%. Cash and short-term investments stand at $13,156,000,000, providing liquidity cushion, while the current ratio of 0.85 and quick ratio of 0.84 indicate working-capital pressure relative to near-term liabilities.
Leverage and coverage: total debt equals $37,161,000,000 with debt-to-equity of 3.13x and debt-to-EBITDA of 14.58x; interest coverage near 25.92x reflects strong earnings relative to interest expense, but leverage metrics materially exceed typical conservative ranges and rose year-over-year (debt-to-equity up ~41.5% YoY), increasing sensitivity to operational shocks.
Returns and efficiency: return on equity at 12.37% and return on assets at 2.29% show profitable capital deployment on an ROE basis while asset turnover remains low at 0.108 (asset turnover below the industry peer mean of 0.209), indicating capital intensity in the business model and scope for improved asset utilization.
Earnings and valuation signals: reported EPS $4.76 matched the estimate ($4.76) with an EPS surprise of 0.10%. Trailing P/E equals 8.09 while forward P/E sits near 69.23, reflecting a gap between trailing profitability and muted forward earnings expectations embedded in consensus forecasts; WMDST values the stock as over‑valued based on the current set of cash flow, leverage and forward earnings metrics.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-11-17 |
| NEXT REPORT DATE: | 2026-02-16 |
| CASH FLOW | Begin Period Cash Flow | $ 10.5 B |
| Operating Cash Flow | $ 1.7 B | |
| Capital Expenditures | $ -204.00 M | |
| Change In Working Capital | $ -240.00 M | |
| Dividends Paid | $ -1.77 B | |
| Cash Flow Delta | $ -3.25 B | |
| End Period Cash Flow | $ 7.3 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 7.0 B | |
| Forward Revenue | $ 2.2 B | |
| COSTS | ||
| Cost Of Revenue | $ 4.1 B | |
| Depreciation | $ 319.0 M | |
| Depreciation and Amortization | $ 319.0 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 4.9 B | |
| PROFITABILITY | ||
| Gross Profit | $ 2.9 B | |
| EBITDA | $ 2.5 B | |
| EBIT | $ 2.2 B | |
| Operating Income | $ 2.0 B | |
| Interest Income | $ 60.0 M | |
| Interest Expense | $ 86.0 M | |
| Net Interest Income | $ -26.00 M | |
| Income Before Tax | $ 2.1 B | |
| Tax Provision | $ 648.0 M | |
| Tax Rate | 30.238 % | |
| Net Income | $ 1.5 B | |
| Net Income From Continuing Operations | $ 1.5 B | |
| EARNINGS | ||
| EPS Estimate | $ 4.76 | |
| EPS Actual | $ 4.76 | |
| EPS Difference | $ 0.00 | |
| EPS Surprise | 0.1 % | |
| Forward EPS | $ 0.60 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 63.6 B | |
| Intangible Assets | $ 10.7 B | |
| Net Tangible Assets | $ 1.2 B | |
| Total Current Assets | $ 15.5 B | |
| Cash and Short-Term Investments | $ 13.2 B | |
| Cash | $ 7.1 B | |
| Net Receivables | $ 972.0 M | |
| Inventory | $ 61.0 M | |
| Long-Term Investments | $ 1.6 B | |
| LIABILITIES | ||
| Accounts Payable | $ 915.0 M | |
| Short-Term Debt | $ 6.0 B | |
| Total Current Liabilities | $ 18.3 B | |
| Net Debt | — | |
| Total Debt | $ 37.2 B | |
| Total Liabilities | $ 51.5 B | |
| EQUITY | ||
| Total Equity | $ 11.9 B | |
| Retained Earnings | $ 2.4 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 3.86 | |
| Shares Outstanding | 3.077 B | |
| Revenue Per-Share | $ 2.26 | |
| VALUATION | Market Capitalization | $ 118.5 B |
| Enterprise Value | $ 142.5 B | |
| Enterprise Multiple | 55.927 | |
| Enterprise Multiple QoQ | 9.087 % | |
| Enterprise Multiple YoY | 12.493 % | |
| Enterprise Multiple IPRWA | high: 189.281 mean: 77.704 median: 68.864 HTHT: 55.927 low: -31.078 |
|
| EV/R | 20.472 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 5.349 | |
| Asset To Liability | 1.233 | |
| Debt To Capital | 0.758 | |
| Debt To Assets | 0.585 | |
| Debt To Assets QoQ | 0.29 % | |
| Debt To Assets YoY | 3966.273 % | |
| Debt To Assets IPRWA | high: 1.606 median: 0.734 mean: 0.718 HTHT: 0.585 low: 0.003 |
|
| Debt To Equity | 3.128 | |
| Debt To Equity QoQ | 0.651 % | |
| Debt To Equity YoY | 4154.665 % | |
| Debt To Equity IPRWA | high: 13.542 HTHT: 3.128 mean: -0.337 median: -1.275 low: -13.223 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 9.975 | |
| Price To Book QoQ | 15.781 % | |
| Price To Book YoY | 10.108 % | |
| Price To Book IPRWA | high: 22.128 HTHT: 9.975 median: 0.913 mean: -0.955 low: -22.92 |
|
| Price To Earnings (P/E) | 8.091 | |
| Price To Earnings QoQ | 2.706 % | |
| Price To Earnings YoY | -76.239 % | |
| Price To Earnings IPRWA | high: 357.224 mean: 104.776 median: 93.318 HTHT: 8.091 low: -85.409 |
|
| PE/G Ratio | 0.66 | |
| Price To Sales (P/S) | 17.023 | |
| Price To Sales QoQ | 4.482 % | |
| Price To Sales YoY | -0.218 % | |
| Price To Sales IPRWA | high: 30.539 median: 18.759 mean: 17.558 HTHT: 17.023 low: 0.325 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 69.233 | |
| Forward PE/G | 5.645 | |
| Forward P/S | 63.437 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 0.054 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.108 | |
| Asset Turnover Ratio QoQ | 6.645 % | |
| Asset Turnover Ratio YoY | 4.831 % | |
| Asset Turnover Ratio IPRWA | high: 0.723 mean: 0.209 median: 0.165 HTHT: 0.108 low: 0.056 |
|
| Receivables Turnover | 7.658 | |
| Receivables Turnover Ratio QoQ | 1.295 % | |
| Receivables Turnover Ratio YoY | 1.221 % | |
| Receivables Turnover Ratio IPRWA | high: 44.676 mean: 9.56 HTHT: 7.658 median: 2.76 low: 1.042 |
|
| Inventory Turnover | 66.049 | |
| Inventory Turnover Ratio QoQ | 5.622 % | |
| Inventory Turnover Ratio YoY | 7.792 % | |
| Inventory Turnover Ratio IPRWA | HTHT: 66.049 high: 62.262 median: 36.65 mean: 32.856 low: 0.468 |
|
| Days Sales Outstanding (DSO) | 11.916 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | -7.942 | |
| Cash Conversion Cycle Days QoQ | 3.595 % | |
| Cash Conversion Cycle Days YoY | -16.811 % | |
| Cash Conversion Cycle Days IPRWA | high: 77.037 mean: 4.232 median: 4.037 HTHT: -7.942 low: -73.834 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | -2.506 | |
| CapEx To Revenue | -0.029 | |
| CapEx To Depreciation | -0.639 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 12.6 B | |
| Net Invested Capital | $ 18.6 B | |
| Invested Capital | $ 18.6 B | |
| Net Tangible Assets | $ 1.2 B | |
| Net Working Capital | $ -2.78 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.719 | |
| Current Ratio | 0.848 | |
| Current Ratio QoQ | 4.919 % | |
| Current Ratio YoY | -3.286 % | |
| Current Ratio IPRWA | high: 3.125 mean: 1.013 median: 1.0 HTHT: 0.848 low: 0.031 |
|
| Quick Ratio | 0.845 | |
| Quick Ratio QoQ | 4.922 % | |
| Quick Ratio YoY | -3.107 % | |
| Quick Ratio IPRWA | high: 3.071 median: 0.991 mean: 0.946 HTHT: 0.845 low: 0.027 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 14.584 | |
| Cost Of Debt | 0.16 % | |
| Interest Coverage Ratio | 25.919 | |
| Interest Coverage Ratio QoQ | 6.291 % | |
| Interest Coverage Ratio YoY | 14.763 % | |
| Interest Coverage Ratio IPRWA | high: 37.175 HTHT: 25.919 mean: 5.749 median: 5.363 low: -5.084 |
|
| Operating Cash Flow Ratio | 0.095 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 21.353 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 0.829 | |
| Dividend Payout Ratio | 1.206 | |
| Dividend Rate | $ 0.58 | |
| Dividend Yield | 0.015 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -1.894 % | |
| Revenue Growth | 8.326 % | |
| Revenue Growth QoQ | -56.431 % | |
| Revenue Growth YoY | 74.111 % | |
| Revenue Growth IPRWA | high: 15.034 % HTHT: 8.326 % median: 1.195 % mean: 1.054 % low: -13.106 % |
|
| Earnings Growth | 12.264 % | |
| Earnings Growth QoQ | -82.719 % | |
| Earnings Growth YoY | -116.696 % | |
| Earnings Growth IPRWA | high: 114.563 % HTHT: 12.264 % mean: 5.168 % median: 0.94 % low: -175.0 % |
|
| MARGINS | ||
| Gross Margin | 41.646 % | |
| Gross Margin QoQ | 0.082 % | |
| Gross Margin YoY | 1.506 % | |
| Gross Margin IPRWA | high: 86.593 % mean: 42.235 % HTHT: 41.646 % median: 40.094 % low: 8.241 % |
|
| EBIT Margin | 32.021 % | |
| EBIT Margin QoQ | -7.272 % | |
| EBIT Margin YoY | 18.618 % | |
| EBIT Margin IPRWA | high: 52.4 % HTHT: 32.021 % mean: 26.542 % median: 24.455 % low: -25.213 % |
|
| Return On Sales (ROS) | 29.421 % | |
| Return On Sales QoQ | 5.797 % | |
| Return On Sales YoY | 8.987 % | |
| Return On Sales IPRWA | high: 47.382 % HTHT: 29.421 % mean: 27.167 % median: 24.789 % low: -27.119 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 1.5 B | |
| Free Cash Flow Yield | 1.26 % | |
| Free Cash Flow Yield QoQ | -46.588 % | |
| Free Cash Flow Yield YoY | -6.667 % | |
| Free Cash Flow Yield IPRWA | high: 10.115 % mean: 1.377 % HTHT: 1.26 % median: 1.118 % low: -12.37 % |
|
| Free Cash Growth | -39.555 % | |
| Free Cash Growth QoQ | -106.314 % | |
| Free Cash Growth YoY | 46.668 % | |
| Free Cash Growth IPRWA | high: 271.747 % mean: 51.699 % median: 29.31 % HTHT: -39.555 % low: -516.758 % |
|
| Free Cash To Net Income | 1.016 | |
| Cash Flow Margin | 24.953 % | |
| Cash Flow To Earnings | 1.182 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 2.289 % | |
| Return On Assets QoQ | -6.342 % | |
| Return On Assets YoY | 11.932 % | |
| Return On Assets IPRWA | high: 8.233 % mean: 2.997 % median: 2.639 % HTHT: 2.289 % low: -8.455 % |
|
| Return On Capital Employed (ROCE) | 4.926 % | |
| Return On Equity (ROE) | 0.124 | |
| Return On Equity QoQ | -2.676 % | |
| Return On Equity YoY | 17.84 % | |
| Return On Equity IPRWA | high: 0.405 HTHT: 0.124 mean: 0.009 median: -0.016 low: -0.352 |
|
| DuPont ROE | 12.225 % | |
| Return On Invested Capital (ROIC) | 8.375 % | |
| Return On Invested Capital QoQ | 0.528 % | |
| Return On Invested Capital YoY | -144.336 % | |
| Return On Invested Capital IPRWA | high: 14.004 % HTHT: 8.375 % mean: 6.734 % median: 6.625 % low: -1.956 % |
|