HGV – Market expectations are for Uniform ROA to decline to new lows, but management is excited about their data systems and confident about their interest rates and contract sales

• Hilton Grand Vacations Inc. (HGV:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 16.6x Uniform P/E. At these levels, the market has bearish expectations for the firm, but management generated an excitement marker when talking about their data systems, and they are confident about their interest rates and contract sales
• Specifically, management generated an excitement marker when saying they are working to improve their data and systems. In addition, they are confident their income interest rate increased and that their lower rates on bond issuances reflect the credit market’s appreciation of their assets’ fundamental strength. Moreover, they are confident they will see momentum build in their contract sales and that it is important for them to be smart about their capital deployment.