What is PPHE Hotel Group Financial Strength?
PPHE Hotel Group has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
PPHE Hotel Group Ltd displays poor financial strength. Usually, this is caused by too much debt for the company.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:
1. The debt burden that the company has as measured by its
Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3.
Altman Z-Score.
PPHE Hotel Group's Interest Coverage for the quarter that ended in Dec. 2023 was 3.29.
PPHE Hotel Group's debt to revenue ratio for the quarter that ended in Dec. 2023 was 2.49.
As of today, PPHE Hotel Group's Altman Z-Score is 0.75.
Competitive Comparison of PPHE Hotel Group's Financial Strength
For the Lodging subindustry, PPHE Hotel Group's Financial Strength, along with its competitors' market caps and Financial Strength 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.
PPHE Hotel Group's Financial Strength Distribution in the Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, PPHE Hotel Group's Financial Strength distribution charts can be found below:
* The bar in red indicates where PPHE Hotel Group's Financial Strength falls into.
PPHE Hotel Group Financial Strength Calculation
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors
A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
PPHE Hotel Group's Interest Expense for the
months ended in Dec. 2023 was £-17.6 Mil. Its Operating Income for the
months ended in Dec. 2023 was £57.9 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was £1,118.5 Mil.
PPHE Hotel Group's Interest Coverage for the quarter that ended in Dec. 2023 is
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. PPHE Hotel Group Ltd interest coverage is 2.33, which is low.
2. Debt to revenue ratio. The lower, the better.
PPHE Hotel Group's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is
3. Altman Z-Score.
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
PPHE Hotel Group has a Z-score of 0.75, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 0.75 is in distress zone. This implies bankruptcy possibility in the next two years.
* 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.
PPHE Hotel Group (LSE:PPH) Business Description
Traded in Other Exchanges
Address
Radarweg 60, Motion Building, 9th Floor, Amsterdam, NH, NLD, 1043 NT
PPHE Hotel Group Ltd engages in providing hospitality services. The company owns, manages and franchises hotels and resort properties in the United Kingdom, the Netherlands, Croatia, Germany, and Hungary. These properties are operated under the brands, Park Plaza Hotels & Resorts and art'otel in the form of hotels, restaurants, bars and spas and Holmes Hotel London. The group's activities are divided into two segments Owned Hotel Operations segment and the Management Activities segment. PPHE generates most of its revenues across the United Kingdom through hotel operations, management fees derived from hotels managed by the group, and marketing fees.
PPHE Hotel Group (LSE:PPH) Headlines
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