Five Point Holdings LLC-CL A (NYSE:FPH) – A Strong Contender for CANSLIM Investors

Five Point Holdings LLC-CL A (NYSE:FPH) emerged from our CANSLIM stock screen as a potential candidate for growth-focused investors. The company, which develops master-planned communities, meets several key criteria of the CANSLIM strategy, including strong earnings growth, high relative strength, and improving fundamentals. Below, we examine why FPH stands out.

Why FPH Fits the CANSLIM Strategy

• Earnings Growth (C & A Criteria): FPH reported a staggering 966.7% year-over-year EPS growth in its most recent quarter, far exceeding the CANSLIM minimum of 20%. Revenue growth was also strong at 32.4%, surpassing the 25% threshold. Over the past three years, EPS has grown at an annualized rate of 115.8%, indicating sustained profitability.
• Relative Strength (L Criteria): With a relative strength of 93.77, FPH outperforms nearly 94% of the market, a hallmark of leading stocks favored by CANSLIM investors.
• Institutional Sponsorship (I Criteria): Institutional ownership stands at 60.6%, below the 85% threshold, suggesting room for further institutional buying.
• Debt Management (S Criteria): The company maintains a debt-to-equity ratio of 0.76, well below the CANSLIM-recommended maximum of 2, reflecting prudent financial management.
• Return on Equity (A Criteria): FPH’s ROE of 11.51% exceeds the 10% minimum, indicating efficient use of shareholder capital.

Technical and Fundamental Overview

FPH’s technical rating is a perfect 10/10, supported by strong upward trends in both short and long-term timeframes. The stock is trading near the upper end of its 52-week range, reinforcing its bullish momentum.

Fundamentally, FPH scores 5/10, with strengths in profitability (7/10) and valuation (5/10). Margins are industry-leading, with a 36.96% profit margin and 50.75% gross margin. However, concerns remain around financial health (6/10), particularly its Altman-Z score, which signals some bankruptcy risk.

For a deeper dive, review the full fundamental analysis and technical report.

Our CANSLIM High Growth screener lists more high-growth stocks and is updated daily.

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should always conduct your own analysis before making investment decisions.