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On May 11, 2026 Hilton Domestic Operating Company Inc. issued $1.0 billion aggregate principal amount of 5.500% Senior Notes due 2031, with proceeds earmarked for repayment of credit facility borrowings and general corporate purposes.
On May 13, 2026 a new Spark by Hilton property opened near Charlotte Douglas International Airport, adding a 121‑room elevated‑essentials option to Hilton’s portfolio.
Technical Analysis
ADX at 18.17 indicates no dominant trend; the market lacks a strong directional bias even as momentum indicators register shorter-term strength, which suggests price action may remain range‑oriented while directional signals consolidate.
DI+ at 27.73 with a dip‑and‑reversal reads as bullish; DI‑ at 19.12 with a peak‑and‑reversal also reads as bullish, together implying buying pressure outpaced selling pressure over recent sessions and supporting the near‑term upside bias tied to the company’s expansion narrative.
MACD sits at 6.45 above its signal line at 5.19, and the MACD trend shows a dip‑and‑reversal; the cross above the signal line represents a bullish momentum signal that aligns with other short‑term indicators.
MRO at 29.03 registers positive, indicating price currently sits above the model target and therefore carries a higher probability of downward mean reversion; this condition tempers momentum‑driven upside and connects directly to valuation stretch.
RSI at 60.11 with a dip‑and‑reversal reads as bullish momentum without near‑term overbought extremes, which supports continuation of the recent advance while leaving room before overextension.
Price sits above the 20‑day average ($340.12), 50‑day average ($328.68) and 200‑day average ($295.98); the 12‑day EMA shows an increasing trend. These moving‑average relationships support a positive price bias and dovetail with volume modestly above the 10‑day average, indicating participation behind the move.
Ichimoku components place the Tenkan at $340.62 and Kijun at $333.31 with current price above both, consistent with bullish shorter‑term momentum; Bollinger bands show a tightening 20‑day standard deviation, implying reduced volatility and potential for a breakout or mean reversion move in the coming weeks.
Fundamental Analysis
Revenue totaled $2.937 billion with an operating income of $678 million and EBIT of $680 million; YoY revenue growth measures +53.67% while overall revenue growth rate shows -4.86% (different period lenses apply), indicating strong year‑over‑year recovery trends alongside quarter‑to‑quarter variability.
EPS delivered $2.01 versus an estimate of $1.97, an EPS surprise of 2.03% (beat of $0.04). Quarterly improvements supported guidance adjustments reflected in company filings.
Margins remain healthy: EBIT margin registers 23.15%, up 20.33% QoQ and up 12.43% YoY; that margin sits slightly below the industry peer mean of 24.19% but above the industry peer median of 22.75%, indicating margin performance near peer central tendency while still trailing the peer average.
Cash flow metrics show operating cash flow of $618 million and free cash flow of $587 million; free cash flow yield equals 0.83%, marginally below the industry peer mean free cash flow yield of 0.97%, which signals limited current cash‑return efficiency relative to peers despite positive absolute cash generation.
Leverage constitutes the principal fundamental risk: total debt stands at $13.06 billion with net debt of $11.80 billion and debt‑to‑EBITDA at 17.9x; debt‑to‑assets at 79.7% exceeds the industry peer mean of 65.3%. Interest coverage sits at 4.20x, reflecting adequate interest servicing today but leaving less cushion if operating performance weakens.
Return metrics diverge: return on invested capital at 7.79% shows improvement YoY, while return on equity remains negative at -6.52% reflecting negative book equity. Asset turnover at 0.177 is roughly in line with the industry peer mean of 0.178. Balance‑sheet structure and negative tangible equity require continued free cash generation to normalize leverage ratios over time.
Valuation context: price multiples trade at elevated levels—trailing PE ~155x and forward PE ~114x—above the industry peer mean and median multiples, while the WMDST valuation labels the stock as under‑valued based on the model inputs provided; the high multiples reflect strong growth expectations and low share count, offset by material leverage that compresses downside resilience.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-03-31 |
| REPORT DATE: | 2026-04-28 |
| NEXT REPORT DATE: | 2026-07-28 |
| CASH FLOW | Begin Period Cash Flow | $ 970.0 M |
| Operating Cash Flow | $ 618.0 M | |
| Capital Expenditures | $ -31.00 M | |
| Change In Working Capital | $ 171.0 M | |
| Dividends Paid | $ -35.00 M | |
| Cash Flow Delta | $ -351.00 M | |
| End Period Cash Flow | $ 619.0 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 2.9 B | |
| Forward Revenue | $ 1.1 B | |
| COSTS | ||
| Cost Of Revenue | $ 2.1 B | |
| Depreciation | $ 50.0 M | |
| Depreciation and Amortization | $ 50.0 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 2.3 B | |
| PROFITABILITY | ||
| Gross Profit | $ 853.0 M | |
| EBITDA | $ 730.0 M | |
| EBIT | $ 680.0 M | |
| Operating Income | $ 678.0 M | |
| Interest Income | — | |
| Interest Expense | $ 162.0 M | |
| Net Interest Income | $ -162.00 M | |
| Income Before Tax | $ 518.0 M | |
| Tax Provision | $ 135.0 M | |
| Tax Rate | 26.062 % | |
| Net Income | $ 385.0 M | |
| Net Income From Continuing Operations | $ 383.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 1.97 | |
| EPS Actual | $ 2.01 | |
| EPS Difference | $ 0.04 | |
| EPS Surprise | 2.03 % | |
| Forward EPS | $ 2.60 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 16.4 B | |
| Intangible Assets | $ 11.8 B | |
| Net Tangible Assets | $ -17.66 B | |
| Total Current Assets | $ 2.8 B | |
| Cash and Short-Term Investments | $ 564.0 M | |
| Cash | $ 564.0 M | |
| Net Receivables | $ 1.7 B | |
| Inventory | — | |
| Long-Term Investments | $ 399.0 M | |
| LIABILITIES | ||
| Accounts Payable | — | |
| Short-Term Debt | $ 25.0 M | |
| Total Current Liabilities | $ 4.6 B | |
| Net Debt | $ 11.8 B | |
| Total Debt | $ 13.1 B | |
| Total Liabilities | $ 22.3 B | |
| EQUITY | ||
| Total Equity | $ -5.91 B | |
| Retained Earnings | $ -1.16 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ -25.86 | |
| Shares Outstanding | 228.330 M | |
| Revenue Per-Share | $ 12.86 | |
| VALUATION | Market Capitalization | $ 71.1 B |
| Enterprise Value | $ 83.6 B | |
| Enterprise Multiple | 114.522 | |
| Enterprise Multiple QoQ | -7.401 % | |
| Enterprise Multiple YoY | 2.988 % | |
| Enterprise Multiple IPRWA | high: 205.993 HLT: 114.522 mean: 80.525 median: 78.132 low: -109.403 |
|
| EV/R | 28.465 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | -2.775 | |
| Asset To Liability | 0.736 | |
| Debt To Capital | 1.826 | |
| Debt To Assets | 0.797 | |
| Debt To Assets QoQ | 2.101 % | |
| Debt To Assets YoY | 7.622 % | |
| Debt To Assets IPRWA | high: 1.622 HLT: 0.797 mean: 0.652 median: 0.624 low: 0.003 |
|
| Debt To Equity | -2.211 | |
| Debt To Equity QoQ | -8.999 % | |
| Debt To Equity YoY | -18.508 % | |
| Debt To Equity IPRWA | high: 12.878 mean: 0.701 median: 0.695 HLT: -2.211 low: -7.932 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | -12.042 | |
| Price To Book QoQ | -3.307 % | |
| Price To Book YoY | -4.365 % | |
| Price To Book IPRWA | high: 18.76 median: 10.414 mean: 3.994 HLT: -12.042 low: -22.122 |
|
| Price To Earnings (P/E) | 154.937 | |
| Price To Earnings QoQ | 10.672 % | |
| Price To Earnings YoY | 15.435 % | |
| Price To Earnings IPRWA | high: 285.278 HLT: 154.937 median: 108.358 mean: 88.41 low: -170.635 |
|
| PE/G Ratio | -46.044 | |
| Price To Sales (P/S) | 24.211 | |
| Price To Sales QoQ | 11.383 % | |
| Price To Sales YoY | 18.362 % | |
| Price To Sales IPRWA | high: 33.432 median: 25.858 HLT: 24.211 mean: 22.207 low: 0.178 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 114.47 | |
| Forward PE/G | -34.018 | |
| Forward P/S | 62.61 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -2.98 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.177 | |
| Asset Turnover Ratio QoQ | -4.124 % | |
| Asset Turnover Ratio YoY | 7.026 % | |
| Asset Turnover Ratio IPRWA | high: 0.683 mean: 0.178 HLT: 0.177 median: 0.109 low: 0.078 |
|
| Receivables Turnover | 1.741 | |
| Receivables Turnover Ratio QoQ | -5.762 % | |
| Receivables Turnover Ratio YoY | 2.003 % | |
| Receivables Turnover Ratio IPRWA | high: 51.203 mean: 8.078 median: 3.699 HLT: 1.741 low: 1.107 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 52.414 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | — | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 12.259 HLT: 0 mean: -0.665 median: -0.731 low: -10.41 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | -1.646 | |
| CapEx To Revenue | -0.011 | |
| CapEx To Depreciation | -0.62 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 6.4 B | |
| Net Invested Capital | $ 6.5 B | |
| Invested Capital | $ 6.5 B | |
| Net Tangible Assets | $ -17.66 B | |
| Net Working Capital | $ -1.78 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.124 | |
| Current Ratio | 0.608 | |
| Current Ratio QoQ | -8.452 % | |
| Current Ratio YoY | 6.432 % | |
| Current Ratio IPRWA | high: 2.493 mean: 0.997 median: 0.933 HLT: 0.608 low: 0.26 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 17.888 | |
| Cost Of Debt | 0.901 % | |
| Interest Coverage Ratio | 4.198 | |
| Interest Coverage Ratio QoQ | 16.598 % | |
| Interest Coverage Ratio YoY | 9.665 % | |
| Interest Coverage Ratio IPRWA | high: 21.267 mean: 9.29 median: 7.355 HLT: 4.198 low: -13.758 |
|
| Operating Cash Flow Ratio | 0.097 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | — | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 11.0 | |
| Dividend Payout Ratio | 0.091 | |
| Dividend Rate | $ 0.15 | |
| Dividend Yield | 0.0 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -2.319 % | |
| Revenue Growth | -4.859 % | |
| Revenue Growth QoQ | 359.263 % | |
| Revenue Growth YoY | 53.669 % | |
| Revenue Growth IPRWA | high: 40.595 % mean: -4.645 % HLT: -4.859 % median: -7.006 % low: -26.819 % |
|
| Earnings Growth | -3.365 % | |
| Earnings Growth QoQ | -119.966 % | |
| Earnings Growth YoY | 48.042 % | |
| Earnings Growth IPRWA | high: 233.333 % HLT: -3.365 % median: -9.295 % mean: -10.635 % low: -200.0 % |
|
| MARGINS | ||
| Gross Margin | 29.043 % | |
| Gross Margin QoQ | 11.928 % | |
| Gross Margin YoY | 12.296 % | |
| Gross Margin IPRWA | high: 78.305 % mean: 42.974 % median: 40.371 % HLT: 29.043 % low: -0.222 % |
|
| EBIT Margin | 23.153 % | |
| EBIT Margin QoQ | 20.325 % | |
| EBIT Margin YoY | 12.426 % | |
| EBIT Margin IPRWA | high: 45.143 % mean: 24.192 % HLT: 23.153 % median: 22.748 % low: -24.703 % |
|
| Return On Sales (ROS) | 23.085 % | |
| Return On Sales QoQ | 18.379 % | |
| Return On Sales YoY | 12.096 % | |
| Return On Sales IPRWA | high: 44.253 % median: 24.817 % mean: 24.203 % HLT: 23.085 % low: -45.058 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 587.0 M | |
| Free Cash Flow Yield | 0.826 % | |
| Free Cash Flow Yield QoQ | 267.111 % | |
| Free Cash Flow Yield YoY | 10.576 % | |
| Free Cash Flow Yield IPRWA | high: 5.154 % mean: 0.973 % HLT: 0.826 % median: 0.794 % low: -7.886 % |
|
| Free Cash Growth | 288.742 % | |
| Free Cash Growth QoQ | -459.637 % | |
| Free Cash Growth YoY | -1696.053 % | |
| Free Cash Growth IPRWA | high: 371.18 % HLT: 288.742 % median: 5.617 % mean: 5.522 % low: -450.0 % |
|
| Free Cash To Net Income | 1.525 | |
| Cash Flow Margin | 15.015 % | |
| Cash Flow To Earnings | 1.145 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 2.322 % | |
| Return On Assets QoQ | 30.596 % | |
| Return On Assets YoY | 26.059 % | |
| Return On Assets IPRWA | high: 7.852 % mean: 2.482 % median: 2.339 % HLT: 2.322 % low: -1.371 % |
|
| Return On Capital Employed (ROCE) | 5.749 % | |
| Return On Equity (ROE) | -0.065 | |
| Return On Equity QoQ | 18.287 % | |
| Return On Equity YoY | -4.845 % | |
| Return On Equity IPRWA | high: 0.315 median: 0.051 mean: 0.021 HLT: -0.065 low: -0.198 |
|
| DuPont ROE | -6.819 % | |
| Return On Invested Capital (ROIC) | 7.79 % | |
| Return On Invested Capital QoQ | 31.677 % | |
| Return On Invested Capital YoY | 29.942 % | |
| Return On Invested Capital IPRWA | high: 18.09 % HLT: 7.79 % mean: 6.137 % median: 5.912 % low: -2.438 % |
|