HOWARD HUGHES HOLDINGS INC (HHH) Stock Fundamental Analysis
USA - NYSE:HHH - US44267T1025 - Common Stock
80.56 USD
+0.78 (+0.98%)
80.56 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to HHH. HHH was compared to 64 industry peers in the Real Estate Management & Development industry. While HHH has a great profitability rating, there are quite some concerns on its financial health. HHH is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
HHH had positive earnings in the past year.
In the past year HHH had a positive cash flow from operations.
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
HHH has a better Return On Assets (2.21%) than 75.00% of its industry peers.
HHH's Return On Equity of 6.24% is fine compared to the rest of the industry. HHH outperforms 75.00% of its industry peers.
With a decent Return On Invested Capital value of 4.64%, HHH is doing good in the industry, outperforming 70.31% 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 6.26%.
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's Profit Margin of 12.84% is amongst the best of the industry. HHH outperforms 85.94% of its industry peers.
In the last couple of years the Profit Margin of HHH has grown nicely.
HHH has a Operating Margin of 30.56%. This is amongst the best in the industry. HHH outperforms 92.19% of its industry peers.
In the last couple of years the Operating Margin of HHH has grown nicely.
HHH has a better Gross Margin (45.79%) than 81.25% 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.
Compared to 5 years ago, HHH has more shares outstanding
HHH has a worse debt/assets ratio than last year.
2.2 Solvency
HHH has an Altman-Z score of 0.84. This is a bad value and indicates that HHH is not financially healthy and even has some risk of bankruptcy.
HHH's Altman-Z score of 0.84 is on the low side compared to the rest of the industry. HHH is outperformed by 62.50% of its industry peers.
The Debt to FCF ratio of HHH is 20.81, which is on the high side as it means it would take HHH, 20.81 years of fcf income to pay off all of its debts.
HHH has a better Debt to FCF ratio (20.81) than 65.63% 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 worse Debt to Equity ratio (1.36) than 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.36 | ||
| Debt/FCF | 20.81 | ||
| Altman-Z | 0.84 |
ROIC/WACC0.58
WACC8%
2.3 Liquidity
A Current Ratio of 1.58 indicates that HHH should not have too much problems paying its short term obligations.
HHH has a Current ratio (1.58) which is in line with its industry peers.
A Quick Ratio of 1.58 indicates that HHH should not have too much problems paying 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.
HHH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.29% yearly.
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
HHH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.12% yearly.
Based on estimates for the next years, HHH will show a quite strong growth in Revenue. The Revenue will grow by 11.22% on average per year.
EPS Next Y-50.65%
EPS Next 2Y1.84%
EPS Next 3Y16.12%
EPS Next 5YN/A
Revenue Next Year-20.85%
Revenue Next 2Y-2.11%
Revenue Next 3Y11.22%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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
With a Price/Earnings ratio of 14.46, HHH is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of HHH indicates a rather cheap valuation: HHH is cheaper than 85.94% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of HHH to the average of the S&P500 Index (27.69), we can say HHH is valued slightly cheaper.
A Price/Forward Earnings ratio of 19.08 indicates a rather expensive valuation of HHH.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HHH indicates a rather cheap valuation: HHH is cheaper than 85.94% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.18, HHH is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.46 | ||
| Fwd PE | 19.08 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HHH is valued cheaper than 87.50% of the companies in the same industry.
HHH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HHH is cheaper than 85.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.06 | ||
| EV/EBITDA | 12.13 |
4.3 Compensation for Growth
HHH has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as HHH's earnings are expected to grow with 16.12% in the coming years.
PEG (NY)N/A
PEG (5Y)0.79
EPS Next 2Y1.84%
EPS Next 3Y16.12%
5. Dividend
5.1 Amount
HHH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
80.56
+0.78 (+0.98%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners105.4%
Inst Owner Change0.11%
Ins Owners0.54%
Ins Owner Change2.66%
Market Cap4.79B
Analysts80
Price Target83.3 (3.4%)
Short Float %3.11%
Short Ratio5.07
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)0%
PT rev (3m)-1.01%
EPS NQ rev (1m)22.84%
EPS NQ rev (3m)25.17%
EPS NY rev (1m)4.92%
EPS NY rev (3m)26.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)23.88%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.46 | ||
| Fwd PE | 19.08 | ||
| P/S | 2.7 | ||
| P/FCF | 19.06 | ||
| P/OCF | 8.9 | ||
| P/B | 1.31 | ||
| P/tB | 1.33 | ||
| EV/EBITDA | 12.13 |
EPS(TTM)5.57
EY6.91%
EPS(NY)4.22
Fwd EY5.24%
FCF(TTM)4.23
FCFY5.25%
OCF(TTM)9.05
OCFY11.24%
SpS29.81
BVpS61.36
TBVpS60.79
PEG (NY)N/A
PEG (5Y)0.79
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 | 0.84 |
F-Score7
WACC8%
ROIC/WACC0.58
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-50.65%
EPS Next 2Y1.84%
EPS Next 3Y16.12%
EPS Next 5YN/A
Revenue 1Y (TTM)62.01%
Revenue growth 3Y7.03%
Revenue growth 5Y6.13%
Sales Q2Q%-17.81%
Revenue Next Year-20.85%
Revenue Next 2Y-2.11%
Revenue Next 3Y11.22%
Revenue Next 5YN/A
EBIT growth 1Y254.87%
EBIT growth 3Y38.55%
EBIT growth 5Y33.22%
EBIT Next Year30.82%
EBIT Next 3Y36.16%
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%