HOWARD HUGHES CORP/THE (HHC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HHC - US44267D1072 - Common Stock
78.76 USD
+0.12 (+0.15%)
78.76 USD
0 (0%)
HHC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 63 industry peers in the Real Estate Management & Development industry. There are concerns on the financial health of HHC while its profitability can be described as average. 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.
1.2 Ratios
- With a decent Return On Assets value of 1.22%, HHC is doing good in the industry, outperforming 65.57% of the companies in the same industry.
- With a decent Return On Equity value of 3.40%, HHC is doing good in the industry, outperforming 73.77% of the companies in the same industry.
- HHC has a better Return On Invested Capital (2.43%) 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 has a Profit Margin of 7.72%. This is in the better half of the industry: HHC outperforms 77.05% of its industry peers.
- In the last couple of years the Profit Margin of HHC has declined.
- HHC has a Operating Margin of 18.08%. This is amongst the best in the industry. HHC outperforms 85.25% of its industry peers.
- HHC's Operating Margin has improved in the last couple of years.
- HHC's Gross Margin of 41.12% is fine compared to the rest of the industry. HHC outperforms 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
- 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.
- HHC's Altman-Z score of 0.66 is on the low side compared to the rest of the industry. HHC is outperformed by 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.
- The Debt to Equity ratio of HHC (1.37) is worse 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
- 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 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
- The earnings per share for HHC have decreased by -8.02% in the last year.
- HHC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.33% yearly.
- 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
- The Earnings Per Share is expected to decrease by -9.33% on average over the next years.
- 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
- 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
- The Price/Earnings ratio is 32.68, which means the current valuation is very expensive for HHC.
- Based on the Price/Earnings ratio, HHC is valued a bit cheaper than the industry average as 70.49% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of HHC to the average of the S&P500 Index (27.33), we can say HHC is valued inline with the index average.
- With a Price/Forward Earnings ratio of 25.48, HHC can be considered very expensive at the moment.
- 80.33% of the companies in the same industry are more expensive than HHC, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 24.12. HHC is around the same levels.
| 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'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% |
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)08-08 2023-08-08/amc
Earnings (Next)10-31 2023-10-31/amc
Inst Owners0.02%
Inst Owner Change0%
Ins Owners4.34%
Ins Owner Change0%
Market Cap3.95B
Revenue(TTM)1.54B
Net Income(TTM)118.96M
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
Graham NumberN/A
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
ROICexgc growth 3Y34.46%
ROICexgc 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%
HOWARD HUGHES CORP/THE / HHC FAQ
Can you provide the ChartMill fundamental rating for HOWARD HUGHES CORP/THE?
ChartMill assigns a fundamental rating of 3 / 10 to HHC.
Can you provide the valuation status for HOWARD HUGHES CORP/THE?
ChartMill assigns a valuation rating of 2 / 10 to HOWARD HUGHES CORP/THE (HHC). This can be considered as Overvalued.
What is the profitability of HHC stock?
HOWARD HUGHES CORP/THE (HHC) has a profitability rating of 6 / 10.
Can you provide the financial health for HHC stock?
The financial health rating of HOWARD HUGHES CORP/THE (HHC) is 1 / 10.
Can you provide the expected EPS growth for HHC stock?
The Earnings per Share (EPS) of HOWARD HUGHES CORP/THE (HHC) is expected to decline by -134.78% in the next year.