HOWARD HUGHES CORP/THE (HHC)
US44267D1072 - Common Stock
HHC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 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. While showing a medium growth rate, HHC is valued expensive at the moment.
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
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.
HHC has a Return On Equity of 3.40%. This is in the better half of the industry: HHC outperforms 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
With a decent Profit Margin value of 7.72%, HHC is doing good in the industry, outperforming 77.05% of the companies in the same industry.
In the last couple of years the Profit Margin of HHC has declined.
Looking at the Operating Margin, with a value of 18.08%, HHC belongs to the top of the industry, outperforming 85.25% of the companies in the same industry.
HHC's Operating Margin has improved in the last couple of years.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HHC is destroying value.
HHC has less shares outstanding than it did 1 year ago.
The number of shares outstanding for HHC has been increased compared to 5 years 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.
HHC has a worse Altman-Z score (0.66) than 60.66% of its industry peers.
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.
HHC has a Quick ratio of 1.08. This is in the lower half of the industry: HHC underperforms 60.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
The earnings per share for HHC have decreased by -8.02% in the last year.
The Earnings Per Share has been growing by 13.33% on average over the past years. This is quite good.
HHC shows a small growth in Revenue. In the last year, the Revenue has grown by 1.94%.
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 growth Q2Q-192.86%
Revenue 1Y (TTM)1.94%
Revenue growth 3Y7.34%
Revenue growth 5Y7.89%
Revenue growth 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.
The Revenue is expected to grow by 9.00% on average over the next years. This is quite good.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 32.68 indicates a quite expensive valuation of HHC.
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.
When comparing the Price/Earnings ratio of HHC to the average of the S&P500 Index (28.02), we can say HHC is valued inline with the index average.
A Price/Forward Earnings ratio of 25.48 indicates a quite expensive valuation of HHC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HHC indicates a rather cheap valuation: HHC is cheaper than 80.33% of the companies listed in the same industry.
HHC's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 20.58.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.68 | ||
| Fwd PE | 25.48 |
4.2 Price Multiples
HHC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HHC is 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
HHC has a very decent profitability rating, which 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
HHC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
HOWARD HUGHES CORP/THE
NYSE:HHC (8/11/2023, 7:04:00 PM)
After market: 78.76 0 (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 Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.95B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.68 | ||
| Fwd PE | 25.48 | ||
| 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)N/A
PEG (5Y)2.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.22% | ||
| ROE | 3.4% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.08% | ||
| PM (TTM) | 7.72% | ||
| GM | 41.12% | ||
| 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 Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.08 | ||
| 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)-8.02%
EPS 3Y29.57%
EPS 5Y
EPS growth Q2Q
EPS Next Y-134.78%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.94%
Revenue growth 3Y7.34%
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