H World Group Limited (1179.HK) stock analysis

In our weekly check, H World Group Limited is graded B (A to F). Of 24 checks on debt, profit, cash flow and trend: 20 pass, warnings: 2, red flags: 2.

About H World Group Limited

H World Group Limited is a Consumer Cyclical company (Travel Lodging) based in China, listed on HKSE as 1179.HK.

What our checks show for 1179.HK

Red flags

• Net debt is 2.3x a year of EBITDA (debt/equity 2.43). That limits room in a downturn and raises refinancing risk.
• The stock has fallen as much as 63% from a peak. Would you have held through that?

Warning signs

• The dividend takes 92% of profit: little cushion if profit falls.
• The stock is still below its previous peak.

Strengths

• Operating profit covers interest 24 times over.
• The net margin rose by 22.2 points over 5 years, to 18.9%.
• The gross margin is 42.1% and has risen by 30.4 points: pricing power is holding.
• Operating cash flow is 1.74x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 13.7% a year over the next years.
• Analysts expect the net margin to improve by 4.7 points from today's 18.9%.

Next earnings report: 2026-11-25

Similar companies

MAR · HLT · IHG · H · INDHOTEL.NS

Questions

What grade does H World Group Limited (1179.HK) have?

In our weekly check, H World Group Limited is graded B (A to F). Of 24 checks on debt, profit, cash flow and trend: 20 pass, warnings: 2, red flags: 2. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 1179.HK stock?

This week's biggest flags for H World Group Limited: High debt, Deep past fall, Dividend stretched. In total 4 of 24 checks show a warning or a red flag.

What does H World Group Limited do?

H World Group Limited is a Consumer Cyclical company (Travel Lodging) based in China, listed on HKSE as 1179.HK.

When does H World Group Limited report earnings next?

The next earnings report is expected on 2026-11-25. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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