HOWARD HUGHES CORP/THE (HHC) Stock Fundamental Analysis
NYSE:HHC - US44267D1072 - Common Stock
78.76 USD
+0.12 (+0.15%)
78.76 USD
0 (0%)
Overall HHC gets a fundamental rating of 3 out of 10. We evaluated HHC against 63 industry peers in the Real Estate Management & Development industry. HHC has a medium profitability rating, but doesn't score so well on its financial health evaluation. HHC is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year HHC was profitable.
HHC had a positive operating cash flow in the past year.
Of the past 5 years HHC 4 years were profitable.
The reported operating cash flow has been mixed in the past 5 years: HHC reported negative operating cash flow in multiple years.
1.2 Ratios
The Return On Assets of HHC (1.22%) is better than 65.57% of its industry peers.
HHC's Return On Equity of 3.40% is fine compared to the rest of the industry. HHC outperforms 73.77% of its industry peers.
HHC's Return On Invested Capital of 2.43% is fine compared to the rest of the industry. HHC outperforms 68.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.22% | ||
| ROE | 3.4% | ||
| ROIC | 2.43% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
HHC's Profit Margin of 7.72% is fine compared to the rest of the industry. HHC outperforms 77.05% of its industry peers.
HHC's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 18.08%, HHC belongs to the best of the industry, outperforming 85.25% of the companies in the same industry.
In the last couple of years the Operating Margin of HHC has grown nicely.
The Gross Margin of HHC (41.12%) is better than 72.13% of its industry peers.
In the last couple of years the Gross Margin of HHC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.08% | ||
| PM (TTM) | 7.72% | ||
| GM | 41.12% |
OM growth 3Y28.95%
OM growth 5Y6.8%
PM growth 3Y26.33%
PM growth 5Y-5.6%
GM growth 3Y4.49%
GM growth 5Y1.42%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HHC is destroying value.
The number of shares outstanding for HHC has been reduced compared to 1 year ago.
Compared to 1 year ago, HHC has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.66, we must say that HHC is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.66, HHC is doing worse than 60.66% of the companies in the same industry.
A Debt/Equity ratio of 1.37 is on the high side and indicates that HHC has dependencies on debt financing.
HHC has a worse Debt to Equity ratio (1.37) than 70.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.66 |
ROIC/WACC0.35
WACC6.93%
2.3 Liquidity
A Current Ratio of 1.09 indicates that HHC should not have too much problems paying its short term obligations.
HHC has a Current ratio of 1.09. This is in the lower half of the industry: HHC underperforms 65.57% of its industry peers.
A Quick Ratio of 1.08 indicates that HHC should not have too much problems paying its short term obligations.
HHC has a worse Quick ratio (1.08) than 60.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
HHC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.02%.
Measured over the past years, HHC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.33% on average per year.
Looking at the last year, HHC shows a small growth in Revenue. The Revenue has grown by 1.94% in the last year.
Measured over the past years, HHC shows a small growth in Revenue. The Revenue has been growing by 7.89% on average per year.
EPS 1Y (TTM)-8.02%
EPS 3Y29.57%
EPS 5Y13.33%
EPS Q2Q%-192.86%
Revenue 1Y (TTM)1.94%
Revenue growth 3Y7.34%
Revenue growth 5Y7.89%
Sales Q2Q%-19.3%
3.2 Future
HHC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -9.33% yearly.
HHC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.00% yearly.
EPS Next Y-134.78%
EPS Next 2Y-8.85%
EPS Next 3Y-9.33%
EPS Next 5YN/A
Revenue Next Year-45.87%
Revenue Next 2Y3.86%
Revenue Next 3Y9%
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 decreasing.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 32.68, HHC can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of HHC indicates a somewhat cheap valuation: HHC is cheaper than 70.49% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.08. HHC is valued slightly more expensive when compared to this.
HHC is valuated quite expensively with a Price/Forward Earnings ratio of 25.48.
80.33% of the companies in the same industry are more expensive than HHC, based on the Price/Forward Earnings ratio.
HHC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.67.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.68 | ||
| Fwd PE | 25.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HHC is valued a bit cheaper than the industry average as 78.69% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.49 |
4.3 Compensation for Growth
The decent profitability rating of HHC may justify a higher PE ratio.
HHC's earnings are expected to decrease with -9.33% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.45
EPS Next 2Y-8.85%
EPS Next 3Y-9.33%
5. Dividend
5.1 Amount
No dividends for HHC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
78.76
+0.12 (+0.15%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners0.02%
Inst Owner Change-1.67%
Ins Owners4.34%
Ins Owner Change0%
Market Cap3.95B
Analysts82.22
Price Target109.91 (39.55%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-25.66%
Min EPS beat(2)-53.99%
Max EPS beat(2)2.68%
EPS beat(4)2
Avg EPS beat(4)-12.57%
Min EPS beat(4)-53.99%
Max EPS beat(4)9.44%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.49%
Min Revenue beat(2)-2.49%
Max Revenue beat(2)1.52%
Revenue beat(4)2
Avg Revenue beat(4)0.34%
Min Revenue beat(4)-5.43%
Max Revenue beat(4)7.75%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-3.51%
PT rev (3m)2.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-128.6%
EPS NY rev (1m)-92.44%
EPS NY rev (3m)-92.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-10.11%
Revenue NY rev (1m)-9.45%
Revenue NY rev (3m)-9.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.68 | ||
| Fwd PE | 25.48 | ||
| P/S | 2.56 | ||
| P/FCF | N/A | ||
| P/OCF | 23.2 | ||
| P/B | 1.13 | ||
| P/tB | 1.15 | ||
| EV/EBITDA | 17.49 |
EPS(TTM)2.41
EY3.06%
EPS(NY)3.09
Fwd EY3.92%
FCF(TTM)-4.36
FCFYN/A
OCF(TTM)3.4
OCFY4.31%
SpS30.76
BVpS69.91
TBVpS68.69
PEG (NY)N/A
PEG (5Y)2.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.22% | ||
| ROE | 3.4% | ||
| ROCE | N/A | ||
| ROIC | 2.43% | ||
| ROICexc | 2.54% | ||
| ROICexgc | 2.59% | ||
| OM | 18.08% | ||
| PM (TTM) | 7.72% | ||
| GM | 41.12% | ||
| FCFM | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y34.46%
ROICexcg growth 5Y6.35%
ROICexc growth 3Y34.66%
ROICexc growth 5Y6.93%
OM growth 3Y28.95%
OM growth 5Y6.8%
PM growth 3Y26.33%
PM growth 5Y-5.6%
GM growth 3Y4.49%
GM growth 5Y1.42%
F-Score5
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 10.17 | ||
| Cap/Depr | 187.16% | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 0.66 |
F-Score5
WACC6.93%
ROIC/WACC0.35
Cap/Depr(3y)191.31%
Cap/Depr(5y)416.72%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-8.02%
EPS 3Y29.57%
EPS 5Y13.33%
EPS Q2Q%-192.86%
EPS Next Y-134.78%
EPS Next 2Y-8.85%
EPS Next 3Y-9.33%
EPS Next 5YN/A
Revenue 1Y (TTM)1.94%
Revenue growth 3Y7.34%
Revenue growth 5Y7.89%
Sales Q2Q%-19.3%
Revenue Next Year-45.87%
Revenue Next 2Y3.86%
Revenue Next 3Y9%
Revenue Next 5YN/A
EBIT growth 1Y-4.33%
EBIT growth 3Y38.42%
EBIT growth 5Y15.23%
EBIT Next Year-11.94%
EBIT Next 3Y10.96%
EBIT Next 5YN/A
FCF growth 1Y45.56%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y413.68%
OCF growth 3Y16.13%
OCF growth 5Y14.45%