HGV - Embedded Expectations Analysis - 2020 07 30
Hilton Grand Vacations Inc. (HGV:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) earnings, with a 43.9x Uniform P/E. Even at these levels, the market has bearish expectations for the firm, and management may be concerned about their future projects, liquidity position, and business positioningSpecifically, management may be concerned about the future sales value of their large projects in Maui, Ka Haku, Quin, and Ocean Tower. Additionally, they may be concerned about the coronavirus impact on their operations and their customers' ability to pay loans, and management may be exaggerating their liquidity position. Moreover, they may lack confidence in their ability to position the business better after the pandemic and improve EBITDA margins. Additionally, they may be exaggerating the timeline of their sales center reopening and their ability to close a private securitization deal
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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