HOWARD HUGHES HOLDINGS INC (HHH) Stock Fundamental Analysis
NYSE:HHH - New York Stock Exchange, Inc. - US44267T1025 - Common Stock - Currency: USD
Taking everything into account, HHH scores 5 out of 10 in our fundamental rating. HHH was compared to 64 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 not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year HHH was profitable.
HHH had a positive operating cash flow in the past year.
In multiple years HHH reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: HHH reported negative operating cash flow in multiple years.
1.2 Ratios
HHH has a Return On Assets of 2.81%. This is in the better half of the industry: HHH outperforms 76.56% of its industry peers.
HHH has a Return On Equity of 9.35%. This is amongst the best in the industry. HHH outperforms 84.38% of its industry peers.
HHH has a better Return On Invested Capital (5.19%) than 75.00% of its industry peers.
HHH had an Average Return On Invested Capital over the past 3 years of 3.36%. This is below the industry average of 5.67%.
The last Return On Invested Capital (5.19%) for HHH is above the 3 year average (3.36%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.81% | ||
| ROE | 9.35% | ||
| ROIC | 5.19% |
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 (14.27%) than 82.81% of its industry peers.
In the last couple of years the Profit Margin of HHH has grown nicely.
HHH's Operating Margin of 29.53% is amongst the best of the industry. HHH outperforms 90.63% of its industry peers.
In the last couple of years the Operating Margin of HHH has grown nicely.
HHH has a Gross Margin of 44.59%. This is in the better half of the industry: HHH outperforms 78.13% of its industry peers.
HHH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.53% | ||
| PM (TTM) | 14.27% | ||
| GM | 44.59% |
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.
The number of shares outstanding for HHH has been increased compared to 5 years ago.
Compared to 1 year ago, HHH has a worse debt to assets ratio.
2.2 Solvency
HHH has an Altman-Z score of 0.75. This is a bad value and indicates that HHH is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of HHH (0.75) is comparable to the rest of the industry.
HHH has a debt to FCF ratio of 198.75. This is a negative value and a sign of low solvency as HHH would need 198.75 years to pay back of all of its debts.
With a Debt to FCF ratio value of 198.75, HHH perfoms like the industry average, outperforming 59.38% of the companies in the same industry.
A Debt/Equity ratio of 1.73 is on the high side and indicates that HHH has dependencies on debt financing.
The Debt to Equity ratio of HHH (1.73) is worse than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.73 | ||
| Debt/FCF | 198.75 | ||
| Altman-Z | 0.75 |
ROIC/WACC0.72
WACC7.18%
2.3 Liquidity
A Current Ratio of 0.97 indicates that HHH may have some problems paying its short term obligations.
HHH has a Current ratio of 0.97. This is in the lower half of the industry: HHH underperforms 70.31% of its industry peers.
A Quick Ratio of 0.97 indicates that HHH may have some problems paying its short term obligations.
HHH has a worse Quick ratio (0.97) than 64.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
HHH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1885.19%, 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 92.65%.
HHH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.13% yearly.
EPS 1Y (TTM)1885.19%
EPS 3Y56.66%
EPS 5Y18.29%
EPS Q2Q%4.76%
Revenue 1Y (TTM)92.65%
Revenue growth 3Y7.03%
Revenue growth 5Y6.13%
Sales Q2Q%-17.81%
3.2 Future
Based on estimates for the next years, HHH will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.38% on average per year.
HHH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.23% yearly.
EPS Next Y-61.04%
EPS Next 2Y-13%
EPS Next 3Y15.38%
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.26 indicates a correct valuation of HHH.
HHH's Price/Earnings ratio is rather cheap when compared to the industry. HHH is cheaper than 84.38% of the companies in the same industry.
HHH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.48.
With a Price/Forward Earnings ratio of 23.08, HHH is valued on the expensive side.
HHH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HHH is cheaper than 79.69% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.04. HHH is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.26 | ||
| Fwd PE | 23.08 |
4.2 Price Multiples
84.38% of the companies in the same industry are more expensive than HHH, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, HHH is valued a bit cheaper than 60.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 159.86 | ||
| EV/EBITDA | 12.59 |
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 15.38% in the coming years.
PEG (NY)N/A
PEG (5Y)0.73
EPS Next 2Y-13%
EPS Next 3Y15.38%
5. Dividend
5.1 Amount
HHH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
71.09
+0.79 (+1.12%)
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 Change0.05%
Ins Owners0.54%
Ins Owner Change2.56%
Market Cap4.22B
Analysts77.14
Price Target84.15 (18.37%)
Short Float %3.32%
Short Ratio4.06
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)2
Avg EPS beat(2)35.07%
Min EPS beat(2)10.2%
Max EPS beat(2)59.94%
EPS beat(4)4
Avg EPS beat(4)196.49%
Min EPS beat(4)10.2%
Max EPS beat(4)635.01%
EPS beat(8)6
Avg EPS beat(8)198.32%
EPS beat(12)9
Avg EPS beat(12)149.71%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)4.01%
Min Revenue beat(2)3.87%
Max Revenue beat(2)4.16%
Revenue beat(4)4
Avg Revenue beat(4)10.22%
Min Revenue beat(4)3.87%
Max Revenue beat(4)24.1%
Revenue beat(8)7
Avg Revenue beat(8)5.15%
Revenue beat(12)9
Avg Revenue beat(12)6.67%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-13.16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)7.53%
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 | 13.26 | ||
| Fwd PE | 23.08 | ||
| P/S | 2.31 | ||
| P/FCF | 159.86 | ||
| P/OCF | 12.31 | ||
| P/B | 1.51 | ||
| P/tB | 1.53 | ||
| EV/EBITDA | 12.59 |
EPS(TTM)5.36
EY7.54%
EPS(NY)3.08
Fwd EY4.33%
FCF(TTM)0.44
FCFY0.63%
OCF(TTM)5.77
OCFY8.12%
SpS30.77
BVpS46.95
TBVpS46.36
PEG (NY)N/A
PEG (5Y)0.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.81% | ||
| ROE | 9.35% | ||
| ROCE | 6.74% | ||
| ROIC | 5.19% | ||
| ROICexc | 5.53% | ||
| ROICexgc | 5.64% | ||
| OM | 29.53% | ||
| PM (TTM) | 14.27% | ||
| GM | 44.59% | ||
| FCFM | 1.45% |
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-Score6
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.73 | ||
| Debt/FCF | 198.75 | ||
| Debt/EBITDA | 6.77 | ||
| Cap/Depr | 182.78% | ||
| Cap/Sales | 17.32% | ||
| Interest Coverage | 1.85 | ||
| Cash Conversion | 48.11% | ||
| Profit Quality | 10.13% | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 0.75 |
F-Score6
WACC7.18%
ROIC/WACC0.72
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)1885.19%
EPS 3Y56.66%
EPS 5Y18.29%
EPS Q2Q%4.76%
EPS Next Y-61.04%
EPS Next 2Y-13%
EPS Next 3Y15.38%
EPS Next 5YN/A
Revenue 1Y (TTM)92.65%
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 1Y510.8%
EBIT growth 3Y38.55%
EBIT growth 5Y33.22%
EBIT Next Year23.7%
EBIT Next 3Y30.18%
EBIT Next 5YN/A
FCF growth 1Y123.64%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y21.68%
OCF growth 3YN/A
OCF growth 5Y13.81%