Check Before You Invest : Howard Hotels Ltd

Snapshot

Q.1 Which industry/sub-sector does Howard Hotels Ltd belong to?

Howard Hotels Ltd belongs to the Travel & Hospitality sector, operating specifically within the Hotel, Resort & Restaurants segment.

Q.2 Is Howard Hotels Ltd a good quality company?

Howard Hotels Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Howard Hotels Ltd undervalued or overvalued?

Howard Hotels Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Howard Hotels Ltd a good buy now?

Howard Hotels Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Howard Hotels Ltd?

Howard Hotels Ltd revenue growth is 22.9% for FY-2025, which is above its 5-year CAGR of 10.72%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Howard Hotels Ltd?

Howard Hotels Ltd Return on capital employed is 6.28% for FY-2025, which is in line with its 5-year historical median of 6.28%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Howard Hotels Ltd?

Howard Hotels Ltd Return on Asset is 2.19%, which is in line with its 5-year historical median of 2.19%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Howard Hotels Ltd?

Howard Hotels Ltd Return on equity is 3.79% for FY-2025, which is in line with its 5-year historical median of 3.79%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Howard Hotels Ltd?

Howard Hotels Ltd Cash conversion cycle is -4 days, above its 5-year historical median of -11 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.83	0.71
ROE	3.79	3.79
ROCE	6.28	6.28
Cash Conversion Cycle	-4 days	-11 days

Q.6 Gross Profit margin of Howard Hotels Ltd?

Howard Hotels Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.5% for FY-2025, which is in line with its 5-year median of 9.5%, indicating stable margins.

Q.7 Operating Profit Margin of Howard Hotels Ltd?

Howard Hotels Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 11.12% for FY-2025, which is in line with its 5-year median of 11.12% indicating stable margins.

Q.8 Net Profit Margin of Howard Hotels Ltd?

Howard Hotels Ltd Net Profit Margin is 2.64% for FY-2025, is in line with with its 5-year median of 2.64%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	9.5	9.5
Operating Profit Margin	11.12	11.12
Net Profit Margin	2.64	2.64

Q.9 Debt to Equity ratio of Howard Hotels Ltd?

Howard Hotels Ltd Debt-to-Equity ratio is 0.40, which is above with the industry average of 0.21, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Howard Hotels Ltd?

Howard Hotels Ltd Debt to cash flow from operations is 2.22, which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Howard Hotels Ltd?

Promoters hold 60.83% of the Howard Hotels Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Howard Hotels Ltd vs industry peers?

Howard Hotels Ltd revenue CAGR is 10.72%, compared to the industry median CAGR of 7.44%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	22.9	7.4
Gross Profit Growth	-19	14.7
Operating Profit Growth	-3.2	14.7
Net Profit Growth	-54.7	18.8

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.83	0.32
ROE	3.79	4.28
ROCE	6.28	6.32
Cash Conversion Cycle (days)	-3.79	-1

Valuation & price assessment

Q.1 Stock return of Howard Hotels Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 13.3% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	13.3%	37%	40.4%	0.8%

Q.3 Valuation ratios of Howard Hotels Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	50.77	22.10	32.23
Price to Book	1.96	1.48	1.82
Price to Sales	1.4	1.52	5.80
EV to EBITDA	11.73	12.56	17.27

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