H World Group's (NASDAQ:HTHT) Earnings Offer More Than Meets The Eye

Simply Wall St.11-24

The market seemed underwhelmed by last week's earnings announcement from H World Group Limited (NASDAQ:HTHT) despite the healthy numbers. We did some digging, and we think that investors are missing ...

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We did some digging, and we think that investors are missing ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/consumer-services/nasdaq-htht/h-world-group/news/h-world-groups-nasdaqhtht-earnings-offer-more-than-meets-the\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>H World Group's (NASDAQ:HTHT) Earnings Offer More Than Meets The Eye</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nH World Group's (NASDAQ:HTHT) Earnings Offer More Than Meets The Eye\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-11-24 18:32 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/consumer-services/nasdaq-htht/h-world-group/news/h-world-groups-nasdaqhtht-earnings-offer-more-than-meets-the><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The market seemed underwhelmed by last week's earnings announcement from H World Group Limited (NASDAQ:HTHT) despite the healthy numbers.  We did some digging, and we think that investors are missing ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/consumer-services/nasdaq-htht/h-world-group/news/h-world-groups-nasdaqhtht-earnings-offer-more-than-meets-the\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":".IXIC","symbol_name":"NASDAQ Composite","start_time":0,"source_url":"https://simplywall.st/stocks/us/consumer-services/nasdaq-htht/h-world-group/news/h-world-groups-nasdaqhtht-earnings-offer-more-than-meets-the","article_id":"2585466625","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/4212000-choice2-main-header/1585186722257"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/consumer-services/nasdaq-htht/h-world-group/news/h-world-groups-nasdaqhtht-earnings-offer-more-than-meets-the","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2585466625","pubTimestamp":1763980331,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"The market seemed underwhelmed by last week's earnings announcement from H World Group Limited ( NASDAQ:HTHT ) despite...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{".IXIC":"NASDAQ Composite","HTHT":"华住"},"translate_title":"H World Group（纳斯达克：HTHT）的盈利报价超出了人们的预期","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{".IXIC":1.5,"HTHT":1.5},"content_text":"The market seemed underwhelmed by last week's earnings announcement from H World Group Limited (NASDAQ:HTHT) despite the healthy numbers.  We did some digging, and we think that investors are missing some encouraging factors in the underlying numbers.    This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.NasdaqGS:HTHT Earnings and Revenue History November 24th 2025 Advertisement Zooming In On H World Group's Earnings  Many investors haven't heard of the accrual ratio from cashflow, but it is actually a useful measure of how well a company's profit is backed up by free cash flow (FCF) during a given period.  In plain english, this ratio subtracts FCF from net profit, and divides that number by the company's average operating assets over that period.  This ratio tells us how much of a company's profit is not backed by free cashflow.  As a result, a negative accrual ratio is a positive for the company, and a positive accrual ratio is a negative.  That is not intended to imply we should worry about a positive accrual ratio, but it's worth noting where the accrual ratio is rather high.  To quote a 2014 paper by Lewellen and Resutek, \"firms with higher accruals tend to be less profitable in the future\".  For the year to September 2025, H World Group had an accrual ratio of -0.38.   That indicates that its free cash flow quite significantly exceeded its statutory profit.    To wit, it produced free cash flow of CN¥6.8b during the period, dwarfing its reported profit of CN¥3.96b.    H World Group shareholders are no doubt pleased that free cash flow improved over the last twelve months.   That might leave you wondering what analysts are forecasting in terms of future profitability.  Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates.   Our Take On H World Group's Profit Performance As we discussed above, H World Group's accrual ratio indicates strong conversion of profit to free cash flow, which is a positive for the company.      Because of this, we think H World Group's underlying earnings potential is as good as, or possibly even better, than the statutory profit makes it seem!     And the EPS is up 8.0% over the last twelve months.     At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly.    In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved.    At Simply Wall St, we found 1 warning sign for H World Group and we think they deserve your attention.   Today we've zoomed in on a single data point to better understand the nature of H World Group's profit.   But there is always more to discover if you are capable of focussing your mind on minutiae.  For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying.  While it might take a little research on your behalf, you may find this free  collection of companies boasting high return on equity, or  this list of stocks with significant insider holdings to be useful.  Valuation is complex, but we're here to simplify it.Discover if H World Group might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"dataReport","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.35.9","shortVersion":"4.35.9","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2585466625","isCrawlerRequest":true}