📊 HGV Key Takeaways
Is Hilton Grand Vacations Inc. (HGV) a Good Investment?
HGV demonstrates solid revenue growth at +11.8% YoY and generates healthy free cash flow of $230M, but concerning margin compression—net income declined 18.2% YoY despite revenue gains—combined with high leverage (3.53x debt/equity) and weak interest coverage (2.2x) creates financial vulnerability. Deteriorating profitability despite top-line expansion signals operational challenges that require close monitoring.
Hilton Grand Vacations delivers double-digit revenue growth and positive free cash flow, but profitability is thin with declining net income and low returns. Elevated leverage and weak interest coverage limit flexibility and increase sensitivity to rates and cyclical demand. The setup looks balanced until margins expand and leverage moderates.
Why Buy Hilton Grand Vacations Inc. Stock? HGV Key Strengths
- Strong revenue growth of 11.8% YoY demonstrates sustained market demand
- Positive operating cash flow of $300M and free cash flow of $230M indicate the business generates cash
- Modest capital intensity with CapEx of only $70M enables FCF of 4.6% margin
- Double-digit revenue growth (+11.8% YoY) on a $5.05B base
- Positive free cash flow with 4.6% FCF margin supporting potential deleveraging
- EPS rebound (+97.8% YoY) indicating potential operating leverage
HGV Stock Risks: Hilton Grand Vacations Inc. Investment Risks
- Net income declined 18.2% YoY despite 11.8% revenue growth, indicating significant margin compression and cost control issues
- High leverage at 3.53x debt/equity combined with interest coverage of only 2.2x creates vulnerability to earnings deterioration or economic downturn
- Extremely thin profit margins (1.6% net, 3.5% operating) provide minimal buffer against further cost pressures, revenue challenges, or interest rate increases
- High leverage (3.53x debt/equity) with weak 2.2x interest coverage
- Thin profitability (3.5% operating margin; 1.6% net margin) vulnerable to shocks
- Net income down 18.2% YoY, questioning growth quality
Key Metrics to Watch
- Operating margin trend and cost structure dynamics—margin compression is the primary concern
- Debt reduction progress and interest coverage ratio—any further deterioration signals distress
- Free cash flow sustainability and working capital management—must remain positive to service $4.5B debt
- Interest coverage
- Operating margin
Hilton Grand Vacations Inc. (HGV) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 4.6% FCF margin may limit capital allocation flexibility. The current ratio below 1.0x warrants monitoring of short-term liquidity.
HGV Profit Margin, ROE & Profitability Analysis
HGV vs Real Estate Sector: How Hilton Grand Vacations Inc. Compares
How Hilton Grand Vacations Inc. compares to Real Estate sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Hilton Grand Vacations Inc. Stock Overvalued? HGV Valuation Analysis 2026
Based on fundamental analysis, Hilton Grand Vacations Inc. shows some fundamental concerns relative to the Real Estate sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Hilton Grand Vacations Inc. Balance Sheet: HGV Debt, Cash & Liquidity
HGV Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Hilton Grand Vacations Inc.'s revenue has grown significantly by 126% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.80 reflects profitable operations.
HGV Revenue Growth, EPS Growth & YoY Performance
HGV Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.2B | $25.0M | $0.26 |
| Q2 2025 | $1.1B | -$2.0M | $-0.02 |
| Q1 2025 | $1.0B | -$4.0M | $-0.04 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Hilton Grand Vacations Inc. Dividends, Buybacks & Capital Allocation
HGV SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Hilton Grand Vacations Inc. (CIK: 0001674168)
📋 Recent SEC Filings
❓ Frequently Asked Questions about HGV
What is the AI rating for HGV?
Hilton Grand Vacations Inc. (HGV) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 62% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are HGV's key strengths?
Claude: Strong revenue growth of 11.8% YoY demonstrates sustained market demand. Positive operating cash flow of $300M and free cash flow of $230M indicate the business generates cash. ChatGPT: Double-digit revenue growth (+11.8% YoY) on a $5.05B base. Positive free cash flow with 4.6% FCF margin supporting potential deleveraging.
What are the risks of investing in HGV?
Claude: Net income declined 18.2% YoY despite 11.8% revenue growth, indicating significant margin compression and cost control issues. High leverage at 3.53x debt/equity combined with interest coverage of only 2.2x creates vulnerability to earnings deterioration or economic downturn. ChatGPT: High leverage (3.53x debt/equity) with weak 2.2x interest coverage. Thin profitability (3.5% operating margin; 1.6% net margin) vulnerable to shocks.
What is HGV's revenue and growth?
Hilton Grand Vacations Inc. reported revenue of $5.0B.
Does HGV pay dividends?
Hilton Grand Vacations Inc. does not currently pay dividends.
Where can I find HGV SEC filings?
Official SEC filings for Hilton Grand Vacations Inc. (CIK: 0001674168) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HGV's EPS?
Hilton Grand Vacations Inc. has a diluted EPS of $0.89.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is HGV a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Hilton Grand Vacations Inc. has a HOLD rating with 62% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is HGV stock overvalued or undervalued?
Valuation metrics for HGV: ROE of 6.3% (sector avg: 8%), net margin of 1.6% (sector avg: 20%). Compare these metrics with sector averages to assess valuation.
Should I buy HGV stock in 2026?
Our dual AI analysis gives Hilton Grand Vacations Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is HGV's free cash flow?
Hilton Grand Vacations Inc.'s operating cash flow is $300.0M, with capital expenditures of $70.0M. FCF margin is 4.6%.
How does HGV compare to other Real Estate stocks?
Vs Real Estate sector averages: Net margin 1.6% (avg: 20%), ROE 6.3% (avg: 8%), current ratio N/A (avg: 1.5).
Is Hilton Grand Vacations Inc. carrying too much debt?
HGV has a debt-to-equity ratio of 3.53x, which is above the Real Estate sector average of 1.5x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.