Financial Modeling Prep·2025-11-17 19:00Core Insights - H World Group Limited (NASDAQ:HTHT) is a significant player in the global hotel industry, operating over 12,700 hotels with more than 1.2 million rooms, focusing on manachised and franchised hotels which have shown substantial growth [1] Financial Performance - For the quarter ending September 2025, HTHT reported earnings per share (EPS) of $0.66, surpassing the estimated $0.64, marking a 4.69% earnings surprise [2][6] - The company's revenue for the same quarter was approximately $977.7 million, exceeding the estimated $882 million, representing a 3.50% revenue surprise [3][6] - HTHT has consistently exceeded EPS estimates, achieving this in two of the last four quarters, with the previous quarter's EPS reported at $0.59, beating expectations by 5.36% [2] Growth Metrics - Revenue from manachised and franchised hotels increased by 27.2% year-over-year to RMB 3.3 billion, indicating strong demand and improved operating efficiency [4][6] - Adjusted EBITDA rose significantly to RMB 2.5 billion from RMB 2.1 billion year-over-year, reflecting the effectiveness of the asset-light model [4] Market Valuation - The company's price-to-earnings (P/E) ratio is approximately 25.39, with a price-to-sales ratio of about 3.94 [5] - The enterprise value to sales ratio stands at 5.08, and the enterprise value to operating cash flow ratio is around 16.16 [5] - The debt-to-equity ratio is approximately 3.11, and the current ratio is around 0.81, indicating potential liquidity challenges [5]