Recent News
On February 11, 2026 H World Group announced the launch of a new economy brand, Hanting Inn, aimed at conversion-led, lower-investment rollouts into lower-tier cities to accelerate asset-light expansion. On February 15, 2026 independent coverage highlighted Hanting Inn’s design for faster openings and leverage of the company’s loyalty ecosystem. On December 21, 2025 an analyst note reported a downgrade to a “hold” by one research provider.
Technical Analysis
Directional indicators and ADX: ADX at 26.72 registers an emerging-to-strong trend; DI+ shows a dip-and-reversal at 29.11, which carries a bullish implication, while DI- declined to 14.66, reinforcing the directional bias.
MACD and signal: MACD stands at 1.47 and rises above the signal line at 1.21, representing bullish momentum and a continuation bias for price in the near term.
MRO: MRO measures 32.17 and registered a dip-and-reversal; that positive MRO implies price sits above the model target and introduces a measurable mean-reversion risk even while momentum indicators run bullish.
RSI and momentum breadth: RSI at 62.57 and rising indicates sustained buying pressure without extreme overbought conditions; momentum metrics favor further advance but allow for intermittent pullbacks.
Moving averages, Bollinger and Ichimoku context: Last close $56.06 trades above the 20-day average ($53.62), 50-day average ($50.21) and 200-day average ($40.36), signaling price strength across horizons. Price cleared the 1x upper Bollinger band ($54.88) and sits just below the 2x upper band ($56.15), suggesting intraday over-extension. Ichimoku lines place price above Tenkan ( $53.24 ) and Kijun ( $51.73 ), consistent with trend-following breadth.
Volume and volatility: Recent volume (2.80M) exceeded the 10-day average (1.61M), supporting the move; 42-day and 52-week volatility remain low at about 2%, aligning with steady trend development rather than erratic swings.
Fundamental Analysis
Profitability and margins: EBIT reached $2,229,000,000 and EBIT margin equals 32.02%, above the industry peer mean of 26.54% and above the industry peer median of 24.46%, indicating superior operating profitability versus the peer range. Operating margin at 29.42% and gross margin at 41.65% further reflect structural margin strength.
Top-line and growth: Total revenue totaled $6,961,000,000 with reported revenue growth of 8.33% and a year-over-year revenue growth metric of 74.11%; that YoY figure denotes a large comp or discrete-period effect and contrasts with the trailing growth rate. QoQ revenue dynamics show a sharp contraction in the most recent quarter (quarterly revenue growth down 56.43%), which suggests short-term timing effects despite the larger annual expansion.
Cash flow and balance sheet: Cash and short-term investments total $13,156,000,000 with operating cash flow $1,697,000,000 and free cash flow $1,493,000,000. Cash conversion cycle sits at negative 7.94 days, reflecting efficient working-capital dynamics. Total debt equals $37,161,000,000, producing a debt-to-assets ratio of 58.47% and debt-to-EBITDA of 14.58, with interest coverage near 25.92x—interest obligations remain well covered but leverage measures appear elevated on an absolute basis.
Earnings and consensus: Reported EPS matched the estimate at $4.76 (EPS surprise ratio ~0.1%), and forward EPS sits near $0.61, producing a forward P/E near 69.23x; trailing P/E registers about 8.09x. Price-to-book at 9.97 stands well above the industry peer median of 0.91, signaling a premium on tangible equity relative to peers.
Valuation summary: WMDST values the stock as over-valued, driven by a premium price-to-book multiple and elevated enterprise multiple (enterprise multiple ~55.93). Strong margin performance and cash balances support fundamentals, while leverage levels and elevated relative multiples justify the over-valued determination.
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 | $ 0.61 | |
| 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 % |
|