HOWARD HUGHES CORP/THE (HHC) Stock Fundamental Analysis
NYSE:HHC - New York Stock Exchange, Inc. - US44267D1072 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to HHC. HHC was compared to 66 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
HHC had positive earnings in the past year.
HHC had a positive operating cash flow in the past year.
Of the past 5 years HHC 4 years were profitable.
In multiple years HHC reported negative operating cash flow during the last 5 years.
1.2 Ratios
HHC's Return On Assets of 1.22% is fine compared to the rest of the industry. HHC outperforms 65.57% of its industry peers.
The Return On Equity of HHC (3.40%) is better than 73.77% of its industry peers.
The Return On Invested Capital of HHC (2.43%) is better than 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.
HHC has a better Operating Margin (18.08%) than 85.25% of its industry peers.
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.
HHC's Gross Margin has been stable in the last couple of years.
| 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
HHC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for HHC has been reduced compared to 1 year ago.
HHC has a worse debt/assets ratio than last year.
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.
With a Altman-Z score value of 0.66, HHC is not doing good in the industry: 60.66% of the companies in the same industry are doing better.
HHC has a Debt/Equity ratio of 1.37. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.37, HHC is not doing good in the industry: 70.49% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.66 |
ROIC/WACC0.35
WACC6.93%
2.3 Liquidity
HHC has a Current Ratio of 1.09. This is a normal value and indicates that HHC is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.09, HHC is not doing good in the industry: 65.57% of the companies in the same industry are doing better.
A Quick Ratio of 1.08 indicates that HHC should not have too much problems paying its short term obligations.
The Quick ratio of HHC (1.08) is worse 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%.
The Earnings Per Share has been growing by 13.33% on average over the past years. This is quite good.
The Revenue has been growing slightly by 1.94% in the past year.
The Revenue has been growing slightly by 7.89% on average over the past years.
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
Based on estimates for the next years, HHC will show a decrease in Earnings Per Share. The EPS will decrease by -9.33% on average per year.
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
Based on the Price/Earnings ratio of 32.68, the valuation of HHC can be described as expensive.
HHC's Price/Earnings ratio is a bit cheaper when compared to the industry. HHC is cheaper than 70.49% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.05. HHC is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 25.48, HHC can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, HHC is valued cheaper than 80.33% of the companies in the same industry.
HHC is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.07, which is the current average of the S&P500 Index.
| 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 78.69% of the companies in the same industry.
| 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.
A cheap valuation may be justified as HHC's earnings are expected to decrease with -9.33% in the coming years.
PEG (NY)N/A
PEG (5Y)2.45
EPS Next 2Y-8.85%
EPS Next 3Y-9.33%
5. Dividend
5.1 Amount
HHC does not give a dividend.
| 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 Change0%
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%