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The Hongkong and Shanghai Hotels Ltd HKSHY
The Hongkong and Shanghai Hotels HKSHY 66 EBIT is $164 Mil as of Dec. 2025. GuruFocus rates HKSHY with a GF Score™ of 66/100 and a GF Value™ of $14.93 (Modestly Undervalued). The stock has 3 warning signs investors should review.
The Hongkong and Shanghai Hotels's earnings before interest and taxes (EBIT) for the six months ended in Dec. 2025 was $137 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2025 was $164 Mil.
EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. The Hongkong and Shanghai Hotels's annualized ROC % for the quarter that ended in Dec. 2025 was 1.96%. The Hongkong and Shanghai Hotels's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 13.12%.
EBIT is also linked to Joel Greenblatt's definition of earnings yield. The Hongkong and Shanghai Hotels's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 5.32%.
The Hongkong and Shanghai Hotels (OTCPK:HKSHY) EBIT Explanation
1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.
The Hongkong and Shanghai Hotels's annualized ROC % for the quarter that ended in Dec. 2025 is calculated as:
| ROC % (Q: Dec. 2025 ) | ||||||
| = | NOPAT | / | Average Invested Capital | |||
| = | Operating Income * ( 1 - Tax Rate % ) | / | ( (Invested Capital (Q: Jun. 2025 ) | + | Invested Capital (Q: Dec. 2025 )) | / count ) |
| = | 173.762 * ( 1 - 13.71% ) | / | ( (7870.193 | + | 7425.972) | / 2 ) |
| = | 149.9392298 | / | 7648.0825 | |||
| = | 1.96 % |
where
| Invested Capital | (Q: Jun. 2025 ) | |||||||||||
| = | Total Assets | - | Accounts Payable & Accrued Expense | - | Excess Cash | |||||||
| = | Total Assets | - | Accounts Payable & Accrued Expense | - | ( Cash, Cash Equivalents, Marketable Securities | - | max(0, Total Current Liabilities | - | Total Current Assets | + | Cash, Cash Equivalents, Marketable Securities | )) |
| = | 7128.15 | - | 248.707 | - | ( 106.006 | - | max(0, 1438.855 | - | 448.105 | + | 106.006 | )) |
| = | 7870.193 |
| Invested Capital | (Q: Dec. 2025 ) | |||||||||||
| = | Total Assets | - | Accounts Payable & Accrued Expense | - | Excess Cash | |||||||
| = | Total Assets | - | Accounts Payable & Accrued Expense | - | ( Cash, Cash Equivalents, Marketable Securities | - | max(0, Total Current Liabilities | - | Total Current Assets | + | Cash, Cash Equivalents, Marketable Securities | )) |
| = | 7075.236 | - | 238.921 | - | ( 97.933 | - | max(0, 973.422 | - | 383.765 | + | 97.933 | )) |
| = | 7425.972 |
Note: The Operating Income data used here is two times the semi-annual (Dec. 2025) data.
2. Joel Greenblatt's definition of Return on Capital:
The Hongkong and Shanghai Hotels's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 is calculated as:
| ROC (Joel Greenblatt) % | (Q: Dec. 2025 ) | ||||||
| = | EBIT | / | Average of (Net fixed Assets | + | Net Working Capital) | ||
| = | EBIT | / | Average of (Property, Plant and Equipment | + | Net Working Capital) | ||
| Q: Jun. 2025 | Q: Dec. 2025 | ||||||
| = | EBIT | / | ( ( (Property, Plant and Equipment + Net Working Capital) | + | (Property, Plant and Equipment + Net Working Capital) ) | / | count ) |
| = | 274.522 | / | ( ( (2119.231 + max(28.413, 0)) | + | (2037.58 + max(-11.182, 0)) ) | / | 2 ) |
| = | 274.522 | / | ( ( 2147.644 | + | 2037.58 ) | / | 2 ) |
| = | 274.522 | / | 2092.612 | ||||
| = | 13.12 % |
where Working Capital is:
| Working Capital | (Q: Jun. 2025 ) | ||||||||||
| = | (Accounts Receivable | + | Total Inventories | + | Other Current Assets) | - | (Accounts Payable & Accrued Expense | + | Defer. Rev. | + | Other Current Liabilities) |
| = | (46.378 | + | 222.46 | + | 9.8100000000001) | - | (248.707 | + | 0 | + | 1.5280000000002) |
| = | 28.413 |
| Working Capital | (Q: Dec. 2025 ) | ||||||||||
| = | (Accounts Receivable | + | Total Inventories | + | Other Current Assets) | - | (Accounts Payable & Accrued Expense | + | Defer. Rev. | + | Other Current Liabilities) |
| = | (51.794 | + | 175.689 | + | 5.141) | - | (238.921 | + | 0 | + | 4.885) |
| = | -11.182 |
When net working capital is negative, 0 is used.
Note: The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT data.
3. It is also linked to Joel Greenblatt's definition of Earnings Yield:
The Hongkong and Shanghai Hotels's Earnings Yield (Joel Greenblatt) % for today is calculated as:
| Earnings Yield (Joel Greenblatt) % | = | EBIT (TTM) | / | Enterprise Value (Q: Dec. 2025 ) |
| = | 163.763 | / | 3077.813 | |
| = | 5.32 % |
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
The historical data trend for The Hongkong and Shanghai Hotels's EBIT can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
| The Hongkong and Shanghai Hotels Annual Data | |||||||||||||||||||||
| Trend | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | Dec24 | Dec25 | |||||||||||
| EBIT | Get a 7-Day Free Trial |
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-24.49 | -36.61 | 91.04 | 9.13 | 163.99 | |||||||||||||
| The Hongkong and Shanghai Hotels Semi-Annual Data | ||||||||||||||||||||
| Jun16 | Dec16 | Jun17 | Dec17 | Jun18 | Dec18 | Jun19 | Dec19 | Jun20 | Dec20 | Jun21 | Dec21 | Jun22 | Dec22 | Jun23 | Dec23 | Jun24 | Dec24 | Jun25 | Dec25 | |
| EBIT | Get a 7-Day Free Trial |
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49.43 | 8.32 | 0.77 | 26.50 | 137.26 | ||
For the Lodging subindustry, The Hongkong and Shanghai Hotels's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
For the Travel & Leisure industry and Consumer Cyclical sector, The Hongkong and Shanghai Hotels's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where The Hongkong and Shanghai Hotels's EV-to-EBIT falls into.
EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.
EBIT for the trailing twelve months (TTM) ended in Dec. 2025 adds up the semi-annually data reported by the company within the most recent 12 months, which was $164 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Based on GuruFocus' analysis, The Hongkong and Shanghai Hotels stock appears to be undervalued. The current stock price of $13.35 is trading 10.6% below its estimated GF Value™ of $14.93. GuruFocus considers The Hongkong and Shanghai Hotels to be Modestly Undervalued.
Key valuation signals for HKSHY:
No single metric tells the full story. See the HKSHY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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