HGV - Embedded Expectations Analysis - 2020 04 03
ï€ Hilton Grand Vacations Inc. (HGV:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) earnings, with a 13.1x Uniform P/E. At these levels, the market has bearish expectations for the firm, and management is concerned about their cost initiatives, product mix, and growthï€ Specifically, management is confident that Quin's transition to a timeshare property will continue to be a drag on growth. In addition, they may lack confidence in their ability to sustain low product costs, remain disciplined about costs as they capitalize on guest experience initiatives, and sustain the proportion of fee-for-service in their product mix. Moreover, they may have concerns about the marketability of their mid-tier products, the impact of ASC 606 on revenue and costs, and their ability to sustain share repurchases. Furthermore, they may have concerns about the potential of recent cost efficiency initiatives
Hilton Grand Vacations is a timeshare company engaged in developing, marketing, selling and managing timeshare resorts under the Hilton Grand Vacations brand. The company's operations mainly consist of: selling vacation ownership intervals for it and third parties; financing and servicing loans provided to consumers for their timeshare purchases; operating resorts; and managing its points-based Hilton Grand Vacations Club and Hilton Club exchange program. The company has properties located in vacation destinations such as the Orlando, Las Vegas, Hawaiian Islands, New York City, Washington D.C. and South Carolina. The company's segments are: real estate sales and financing and resort operations and club management.
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