HOWARD HUGHES CORP/THE (HHC) Stock Fundamental Analysis

NYSE:HHC • US44267D1072

78.76 USD
+0.12 (+0.15%)
At close: Aug 11, 2023
78.76 USD
0 (0%)
After Hours: 8/11/2023, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to HHC. HHC was compared to 63 industry peers in the Real Estate Management & Development industry. While HHC is still in line with the averages on profitability rating, there are concerns on its financial health. HHC is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

5

1. Profitability

1.1 Basic Checks

  • In the past year HHC was profitable.
  • In the past year HHC had a positive cash flow from operations.
HHC Yearly Net Income VS EBIT VS OCF VS FCFHHC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 0 -500M -1B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 1.22%, HHC is in the better half of the industry, outperforming 65.57% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 3.40%, HHC is in the better half of the industry, outperforming 73.77% of the companies in the same industry.
  • HHC has a Return On Invested Capital of 2.43%. This is in the better half of the industry: HHC outperforms 68.85% of its industry peers.
Industry RankSector 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
HHC Yearly ROA, ROE, ROICHHC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 0 2 4 6

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.
  • 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.
  • In the last couple of years the Operating Margin of HHC has grown nicely.
  • Looking at the Gross Margin, with a value of 41.12%, HHC is in the better half of the industry, outperforming 72.13% of the companies in the same industry.
  • HHC's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
HHC Yearly Profit, Operating, Gross MarginsHHC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 0 20 40

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ROAROEROICOperating and Profit MarginShow most profitable peers

1

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.
  • Compared to 1 year ago, HHC has a worse debt to assets ratio.
HHC Yearly Shares OutstandingHHC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 10M 20M 30M 40M 50M
HHC Yearly Total Debt VS Total AssetsHHC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2B 4B 6B 8B

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.
  • The Debt to Equity ratio of HHC (1.37) is worse than 70.49% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.37
Debt/FCF N/A
Altman-Z 0.66
ROIC/WACC0.35
WACC6.93%
HHC Yearly LT Debt VS Equity VS FCFHHC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 0 1B -1B 2B 3B 4B

2.3 Liquidity

  • A Current Ratio of 1.09 indicates that HHC should not have too much problems paying its short term obligations.
  • HHC's Current ratio of 1.09 is on the low side compared to the rest of the industry. HHC is outperformed by 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 Quick ratio of 1.08. This is in the lower half of the industry: HHC underperforms 60.66% of its industry peers.
Industry RankSector Rank
Current Ratio 1.09
Quick Ratio 1.08
HHC Yearly Current Assets VS Current LiabilitesHHC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 500M 1B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. Growth

3.1 Past

  • The earnings per share for HHC have decreased by -8.02% in the last year.
  • 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.
  • The Revenue has been growing slightly by 1.94% in the past 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

  • 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.
  • Based on estimates for the next years, HHC will show a quite strong growth in Revenue. The Revenue will grow by 9.00% on average per year.
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.
HHC Yearly Revenue VS EstimatesHHC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B
HHC Yearly EPS VS EstimatesHHC Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2 4 6

More info and screens

Find the best growth stocksShow best growing peers

2

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 26.99. 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.
  • 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 28.06.
Industry RankSector Rank
PE 32.68
Fwd PE 25.48
HHC Price Earnings VS Forward Price EarningsHHC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 RankSector Rank
P/FCF N/A
EV/EBITDA 17.49
HHC Per share dataHHC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

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%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • HHC does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

HOWARD HUGHES CORP/THE

NYSE:HHC (8/11/2023, 8:04:00 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)08-08
Earnings (Next)10-31
Inst Owners0.02%
Inst Owner Change-0.85%
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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.