H World Group Limited (HTHT) AI Stock Analysis

H World Group Limited, formerly known as Huazhu Group Limited, develops and operates a diverse hotel portfolio primarily across the People's Republic of China, with its headquarters in Shanghai. The company operates through leased, owned, manachised, and franchised arrangements. Its brand portfolio includes HanTing Hotel, Ni Hao Hotel, Hi Inn, Elan Hotel, Zleep Hotels, Ibis Hotel, JI Hotel, Orange Hotel, Starway Hotel, Ibis Styles Hotel, CitiGO Hotel, Crystal Orange Hotel, IntercityHotel, Manxin Hotel, Mercure Hotel, Madison Hotel, Novotel Hotel, Joya Hotel, Blossom House, Steigenberger Hotels & Resorts, MAXX by Steigenberger, Jaz in the City, Grand Mercure, Steigenberger Icon, and Song Hotels, serving diverse domestic and international traveler segments.

H World Group grew its revenue from $12.79B in FY2021 to $24.62B in FY2025, achieving a 5-year revenue CAGR of 19.3%. Over this period, net income improved from -$465.0M in FY2021 to $4.94B in FY2025, while operating margin expanded from 1.3% to 25.4%. In FY2025, gross margin stood at 39.4% and net margin reached 20.1%. For the trailing twelve months ended June 30, 2026, revenue totaled $26.60B with an operating margin of 31.1% and EPS of $1.34. In the latest quarter ended June 30, 2026, quarterly revenue grew 10.8% year-over-year, while quarterly earnings fell 1.0%.

As of June 30, 2026, H World Group held $15.71B in cash and short-term investments against total debt of $34.25B, resulting in net debt of $18.53B. Shareholders' equity was $14.08B, and total assets stood at $63.64B, with a current ratio of 1.21 and a debt-to-equity ratio of 2.43. During FY2025, the company generated $8.15B in operating cash flow and $7.34B in free cash flow. It allocated $815.2M to capital expenditures, $761.7M to share buybacks, and $3.80B to dividends paid.

HTHT trades at a trailing P/E of 34.7x and a forward P/E of 35.3x, both above the median of its US-listed Consumer Cyclical peers (18.0x trailing and 14.1x forward). Its EV/EBITDA stands at 12.3x compared to the peer median of 11.1x, while its price-to-sales ratio of 0.6x sits below the peer median of 0.7x. The company carries an enterprise value of $16.42B and a PEG ratio of 0.27. Over the past 1 year, the stock returned 30.9%, outperforming the S&P 500's 16.8% return, though its 5-year return of 10.9% trailed the S&P 500's 83.0%.

H World Group pays a semiannual dividend with an annual forward dividend of $2.17, representing a dividend yield of 4.67% and a payout ratio of 16.9%. The company has paid dividends for 5 consecutive years, with an annualized 5-year dividend growth rate of 39.2%. Its last ex-dividend date was September 8, 2026.

Wall Street coverage includes 15 Strong Buy and 3 Buy ratings, with 0 Hold, Sell, or Strong Sell ratings. The mean price target of $61.68 represents 32.6% upside from the last close of $46.50. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $27.13B and EPS of $18.37, representing 18.2% earnings growth. Over the last 4 quarters, the company beat EPS estimates 2 times. The next earnings date is November 16, 2026.

This page is an AI-written research summary of H World Group Limited (HTHT). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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