HANNON ARMSTRONG SUSTAINABLE (HASI)
US41068X1000 - Common Stock
Overall HASI gets a fundamental rating of 6 out of 10. We evaluated HASI against 64 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. While HASI has a great profitability rating, there are some minor concerns on its financial health. HASI is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year HASI was profitable.
HASI had a positive operating cash flow in the past year.
Each year in the past 5 years HASI has been profitable.
Each year in the past 5 years HASI had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.26%, HASI belongs to the top of the industry, outperforming 89.06% of the companies in the same industry.
Looking at the Return On Equity, with a value of 7.06%, HASI belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
HASI's Return On Invested Capital of 0.54% is in line compared to the rest of the industry. HASI outperforms 56.25% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HASI is in line with the industry average of 1.59%.
The last Return On Invested Capital (0.54%) for HASI is above the 3 year average (0.41%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.26% | ||
| ROE | 7.06% | ||
| ROIC | 0.54% |
ROA(3y)2.05%
ROA(5y)2.37%
ROE(3y)5.9%
ROE(5y)6.61%
ROIC(3y)0.41%
ROIC(5y)0.59%
1.3 Margins
HASI has a Profit Margin of 46.21%. This is amongst the best in the industry. HASI outperforms 95.31% of its industry peers.
In the last couple of years the Profit Margin of HASI has grown nicely.
With a Operating Margin value of 12.94%, HASI perfoms like the industry average, outperforming 59.38% of the companies in the same industry.
HASI's Operating Margin has declined in the last couple of years.
HASI has a Gross Margin of 46.54%. This is in the better half of the industry: HASI outperforms 75.00% of its industry peers.
HASI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.94% | ||
| PM (TTM) | 46.21% | ||
| GM | 46.54% |
OM growth 3Y-8.9%
OM growth 5Y-3.62%
PM growth 3Y1.95%
PM growth 5Y10.11%
GM growth 3Y-2.79%
GM growth 5Y0.75%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HASI is destroying value.
HASI has more shares outstanding than it did 1 year ago.
HASI has more shares outstanding than it did 5 years ago.
The debt/assets ratio for HASI is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.40, we must say that HASI is in the distress zone and has some risk of bankruptcy.
With an excellent Altman-Z score value of 0.40, HASI belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
HASI has a debt to FCF ratio of 42.61. This is a negative value and a sign of low solvency as HASI would need 42.61 years to pay back of all of its debts.
The Debt to FCF ratio of HASI (42.61) is comparable to the rest of the industry.
A Debt/Equity ratio of 2.03 is on the high side and indicates that HASI has dependencies on debt financing.
The Debt to Equity ratio of HASI (2.03) is better than 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.03 | ||
| Debt/FCF | 42.61 | ||
| Altman-Z | 0.4 |
ROIC/WACC0.09
WACC6.16%
2.3 Liquidity
A Current Ratio of 1.15 indicates that HASI should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.15, HASI is doing good in the industry, outperforming 79.69% of the companies in the same industry.
A Quick Ratio of 1.15 indicates that HASI should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.15, HASI is doing good in the industry, outperforming 79.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
HASI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.25%.
The Earnings Per Share has been growing by 9.72% on average over the past years. This is quite good.
Looking at the last year, HASI shows a very strong growth in Revenue. The Revenue has grown by 33.42%.
The Revenue has been growing by 18.07% on average over the past years. This is quite good.
EPS 1Y (TTM)6.25%
EPS 3Y12.07%
EPS 5Y9.72%
EPS growth Q2Q12.77%
Revenue 1Y (TTM)33.42%
Revenue growth 3Y19.62%
Revenue growth 5Y18.07%
Revenue growth Q2Q48.49%
3.2 Future
Based on estimates for the next years, HASI will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.20% on average per year.
The Revenue is expected to grow by 22.69% on average over the next years. This is a very strong growth
EPS Next Y12.4%
EPS Next 2Y10.89%
EPS Next 3Y10.2%
EPS Next 5YN/A
Revenue Next Year34.83%
Revenue Next 2Y25.35%
Revenue Next 3Y22.69%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
HASI is valuated reasonably with a Price/Earnings ratio of 11.50.
The rest of the industry has a similar Price/Earnings ratio as HASI.
Compared to an average S&P500 Price/Earnings ratio of 25.20, HASI is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.23, the valuation of HASI can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HASI is on the same level as its industry peers.
HASI is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.5 | ||
| Fwd PE | 10.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HASI is valued a bit cheaper than the industry average as 64.06% of the companies are valued more expensively.
HASI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.67 | ||
| EV/EBITDA | 159.46 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of HASI may justify a higher PE ratio.
PEG (NY)0.93
PEG (5Y)1.18
EPS Next 2Y10.89%
EPS Next 3Y10.2%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.82%, HASI is a good candidate for dividend investing.
With a Dividend Yield of 6.82, HASI pays less dividend than the industry average, which is at 13.26. 96.88% of the companies listed in the same industry pay a better dividend than HASI!
HASI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.82% |
5.2 History
The dividend of HASI has a limited annual growth rate of 4.47%.
HASI has been paying a dividend for at least 10 years, so it has a reliable track record.
HASI has decreased its dividend in the last 3 years.
Dividend Growth(5Y)4.47%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
HASI pays out 108.11% of its income as dividend. This is not a sustainable payout ratio.
The dividend of HASI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP108.11%
EPS Next 2Y10.89%
EPS Next 3Y10.2%
HANNON ARMSTRONG SUSTAINABLE
NYSE:HASI (4/25/2024, 5:40:00 PM)
After market: 25.42 0 (0%)25.42
-0.52 (-2%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.86B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.82% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.5 | ||
| Fwd PE | 10.23 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.93
PEG (5Y)1.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.26% | ||
| ROE | 7.06% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.94% | ||
| PM (TTM) | 46.21% | ||
| GM | 46.54% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.03 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)6.25%
EPS 3Y12.07%
EPS 5Y
EPS growth Q2Q
EPS Next Y12.4%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)33.42%
Revenue growth 3Y19.62%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y