HOWARD HUGHES HOLDINGS INC (HHH) Stock Fundamental Analysis
NYSE:HHH - US44267T1025 - Common Stock
76.27 USD
+0.72 (+0.95%)
76.27 USD
0 (0%)
Taking everything into account, HHH scores 5 out of 10 in our fundamental rating. HHH was compared to 65 industry peers in the Real Estate Management & Development industry. HHH has an excellent profitability rating, but there are concerns on its financial health. HHH is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
HHH had positive earnings in the past year.
HHH had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: HHH reported negative net income in multiple years.
In multiple years HHH reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.21%, HHH is in the better half of the industry, outperforming 75.38% of the companies in the same industry.
HHH's Return On Equity of 6.24% is fine compared to the rest of the industry. HHH outperforms 75.38% of its industry peers.
With a decent Return On Invested Capital value of 4.64%, HHH is doing good in the industry, outperforming 72.31% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HHH is below the industry average of 6.48%.
The last Return On Invested Capital (4.64%) for HHH is above the 3 year average (3.36%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.21% | ||
| ROE | 6.24% | ||
| ROIC | 4.64% |
ROA(3y)-0.56%
ROA(5y)-0.28%
ROE(3y)-2.03%
ROE(5y)-1.06%
ROIC(3y)3.36%
ROIC(5y)N/A
1.3 Margins
HHH has a better Profit Margin (12.84%) than 87.69% of its industry peers.
HHH's Profit Margin has improved in the last couple of years.
HHH has a better Operating Margin (30.56%) than 90.77% of its industry peers.
HHH's Operating Margin has improved in the last couple of years.
HHH has a better Gross Margin (45.79%) than 81.54% of its industry peers.
HHH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.56% | ||
| PM (TTM) | 12.84% | ||
| GM | 45.79% |
OM growth 3Y29.45%
OM growth 5Y25.53%
PM growth 3Y42.18%
PM growth 5Y14.69%
GM growth 3Y4.45%
GM growth 5Y3.8%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HHH is destroying value.
HHH has about the same amout of shares outstanding than it did 1 year ago.
HHH has more shares outstanding than it did 5 years ago.
HHH has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.82, we must say that HHH is in the distress zone and has some risk of bankruptcy.
HHH has a Altman-Z score of 0.82. This is comparable to the rest of the industry: HHH outperforms 43.08% of its industry peers.
HHH has a debt to FCF ratio of 20.81. This is a negative value and a sign of low solvency as HHH would need 20.81 years to pay back of all of its debts.
HHH's Debt to FCF ratio of 20.81 is fine compared to the rest of the industry. HHH outperforms 66.15% of its industry peers.
HHH has a Debt/Equity ratio of 1.36. This is a high value indicating a heavy dependency on external financing.
HHH has a Debt to Equity ratio of 1.36. This is in the lower half of the industry: HHH underperforms 67.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.36 | ||
| Debt/FCF | 20.81 | ||
| Altman-Z | 0.82 |
ROIC/WACC0.53
WACC8.83%
2.3 Liquidity
HHH has a Current Ratio of 1.58. This is a normal value and indicates that HHH is financially healthy and should not expect problems in meeting its short term obligations.
HHH has a Current ratio (1.58) which is in line with its industry peers.
HHH has a Quick Ratio of 1.58. This is a normal value and indicates that HHH is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of HHH (1.58) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
HHH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1962.96%, which is quite impressive.
The Earnings Per Share has been growing by 18.29% on average over the past years. This is quite good.
HHH shows a strong growth in Revenue. In the last year, the Revenue has grown by 62.01%.
Measured over the past years, HHH shows a small growth in Revenue. The Revenue has been growing by 6.13% on average per year.
EPS 1Y (TTM)1962.96%
EPS 3Y56.66%
EPS 5Y18.29%
EPS Q2Q%54.76%
Revenue 1Y (TTM)62.01%
Revenue growth 3Y7.03%
Revenue growth 5Y6.13%
Sales Q2Q%-17.81%
3.2 Future
The Earnings Per Share is expected to grow by 12.35% on average over the next years. This is quite good.
Based on estimates for the next years, HHH will show a quite strong growth in Revenue. The Revenue will grow by 10.23% on average per year.
EPS Next Y-52.97%
EPS Next 2Y-2.9%
EPS Next 3Y12.35%
EPS Next 5YN/A
Revenue Next Year-23.19%
Revenue Next 2Y-2.99%
Revenue Next 3Y10.23%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.69 indicates a correct valuation of HHH.
Compared to the rest of the industry, the Price/Earnings ratio of HHH indicates a rather cheap valuation: HHH is cheaper than 86.15% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of HHH to the average of the S&P500 Index (27.13), we can say HHH is valued slightly cheaper.
HHH is valuated rather expensively with a Price/Forward Earnings ratio of 19.88.
HHH's Price/Forward Earnings ratio is rather cheap when compared to the industry. HHH is cheaper than 86.15% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.76, HHH is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.69 | ||
| Fwd PE | 19.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HHH is valued cheaper than 89.23% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HHH is valued cheaper than 83.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.04 | ||
| EV/EBITDA | 11.77 |
4.3 Compensation for Growth
The decent profitability rating of HHH may justify a higher PE ratio.
A more expensive valuation may be justified as HHH's earnings are expected to grow with 12.35% in the coming years.
PEG (NY)N/A
PEG (5Y)0.75
EPS Next 2Y-2.9%
EPS Next 3Y12.35%
5. Dividend
5.1 Amount
No dividends for HHH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
76.27
+0.72 (+0.95%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners94.86%
Inst Owner Change14.76%
Ins Owners0.54%
Ins Owner Change2.56%
Market Cap4.53B
Analysts77.14
Price Target83.3 (9.22%)
Short Float %3.21%
Short Ratio4.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
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)18.55%
Min EPS beat(2)-22.83%
Max EPS beat(2)59.94%
EPS beat(4)3
Avg EPS beat(4)170.58%
Min EPS beat(4)-22.83%
Max EPS beat(4)635.01%
EPS beat(8)6
Avg EPS beat(8)202.22%
EPS beat(12)8
Avg EPS beat(12)130.62%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-3.38%
Min Revenue beat(2)-10.62%
Max Revenue beat(2)3.87%
Revenue beat(4)3
Avg Revenue beat(4)5.37%
Min Revenue beat(4)-10.62%
Max Revenue beat(4)24.1%
Revenue beat(8)6
Avg Revenue beat(8)3.64%
Revenue beat(12)8
Avg Revenue beat(12)2.54%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-1.01%
PT rev (3m)-14.04%
EPS NQ rev (1m)1.89%
EPS NQ rev (3m)N/A
EPS NY rev (1m)20.72%
EPS NY rev (3m)10.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.69 | ||
| Fwd PE | 19.88 | ||
| P/S | 2.56 | ||
| P/FCF | 18.04 | ||
| P/OCF | 8.43 | ||
| P/B | 1.24 | ||
| P/tB | 1.25 | ||
| EV/EBITDA | 11.77 |
EPS(TTM)5.57
EY7.3%
EPS(NY)3.84
Fwd EY5.03%
FCF(TTM)4.23
FCFY5.54%
OCF(TTM)9.05
OCFY11.87%
SpS29.81
BVpS61.36
TBVpS60.79
PEG (NY)N/A
PEG (5Y)0.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.21% | ||
| ROE | 6.24% | ||
| ROCE | 6.02% | ||
| ROIC | 4.64% | ||
| ROICexc | 5.53% | ||
| ROICexgc | 5.61% | ||
| OM | 30.56% | ||
| PM (TTM) | 12.84% | ||
| GM | 45.79% | ||
| FCFM | 14.18% |
ROA(3y)-0.56%
ROA(5y)-0.28%
ROE(3y)-2.03%
ROE(5y)-1.06%
ROIC(3y)3.36%
ROIC(5y)N/A
ROICexc(3y)3.63%
ROICexc(5y)N/A
ROICexgc(3y)3.71%
ROICexgc(5y)N/A
ROCE(3y)4.36%
ROCE(5y)N/A
ROICexcg growth 3Y41.41%
ROICexcg growth 5Y33.21%
ROICexc growth 3Y41.28%
ROICexc growth 5Y33.34%
OM growth 3Y29.45%
OM growth 5Y25.53%
PM growth 3Y42.18%
PM growth 5Y14.69%
GM growth 3Y4.45%
GM growth 5Y3.8%
F-Score7
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.36 | ||
| Debt/FCF | 20.81 | ||
| Debt/EBITDA | 7 | ||
| Cap/Depr | 173.74% | ||
| Cap/Sales | 16.19% | ||
| Interest Coverage | 1.92 | ||
| Cash Conversion | 76.15% | ||
| Profit Quality | 110.37% | ||
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.58 | ||
| Altman-Z | 0.82 |
F-Score7
WACC8.83%
ROIC/WACC0.53
Cap/Depr(3y)180.95%
Cap/Depr(5y)182.44%
Cap/Sales(3y)27.26%
Cap/Sales(5y)34.23%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1962.96%
EPS 3Y56.66%
EPS 5Y18.29%
EPS Q2Q%54.76%
EPS Next Y-52.97%
EPS Next 2Y-2.9%
EPS Next 3Y12.35%
EPS Next 5YN/A
Revenue 1Y (TTM)62.01%
Revenue growth 3Y7.03%
Revenue growth 5Y6.13%
Sales Q2Q%-17.81%
Revenue Next Year-23.19%
Revenue Next 2Y-2.99%
Revenue Next 3Y10.23%
Revenue Next 5YN/A
EBIT growth 1Y254.87%
EBIT growth 3Y38.55%
EBIT growth 5Y33.22%
EBIT Next Year23.7%
EBIT Next 3Y30.18%
EBIT Next 5YN/A
FCF growth 1Y214.91%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y216.12%
OCF growth 3YN/A
OCF growth 5Y13.81%