HOWARD HUGHES HOLDINGS INC (HHH) Stock Fundamental Analysis
NYSE:HHH - New York Stock Exchange, Inc. - US44267T1025 - Common Stock - Currency: USD
Overall HHH gets a fundamental rating of 5 out of 10. We evaluated HHH against 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 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
Looking at the Return On Assets, with a value of 2.81%, HHH belongs to the top of the industry, outperforming 81.54% of the companies in the same industry.
Looking at the Return On Equity, with a value of 9.35%, HHH belongs to the top of the industry, outperforming 87.69% of the companies in the same industry.
HHH has a better Return On Invested Capital (5.19%) than 76.92% 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 5.55%.
The 3 year average ROIC (3.36%) for HHH is below the current ROIC(5.19%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 14.27%, HHH belongs to the top of the industry, outperforming 87.69% of the companies in the same industry.
HHH's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 29.53%, HHH belongs to the top of the industry, outperforming 95.38% of the companies in the same industry.
In the last couple of years the Operating Margin of HHH has grown nicely.
The Gross Margin of HHH (44.59%) is better than 78.46% 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.
The number of shares outstanding for HHH remains at a similar level compared to 1 year ago.
The number of shares outstanding for HHH has been increased compared to 5 years ago.
HHH has a worse debt/assets ratio than last year.
2.2 Solvency
HHH has an Altman-Z score of 0.67. This is a bad value and indicates that HHH is not financially healthy and even has some risk of bankruptcy.
HHH has a Altman-Z score (0.67) which is in line with its industry peers.
The Debt to FCF ratio of HHH is 198.75, which is on the high side as it means it would take HHH, 198.75 years of fcf income to pay off all of its debts.
HHH has a Debt to FCF ratio (198.75) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.73 is on the high side and indicates that HHH has dependencies on debt financing.
HHH has a Debt to Equity ratio of 1.73. This is in the lower half of the industry: HHH underperforms 75.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.73 | ||
| Debt/FCF | 198.75 | ||
| Altman-Z | 0.67 |
ROIC/WACC0.67
WACC7.79%
2.3 Liquidity
HHH has a Current Ratio of 0.97. This is a bad value and indicates that HHH is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of HHH (0.97) is worse than 70.77% of its industry peers.
HHH has a Quick Ratio of 0.97. This is a bad value and indicates that HHH is not financially healthy enough and could expect problems in meeting its short term obligations.
HHH has a Quick ratio of 0.97. This is in the lower half of the industry: HHH underperforms 64.62% 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 1088.89%, which is quite impressive.
Measured over the past years, HHH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.29% on average per year.
HHH shows a strong growth in Revenue. In the last year, the Revenue has grown by 82.93%.
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)1088.89%
EPS 3Y56.66%
EPS 5Y18.29%
EPS Q2Q%119.81%
Revenue 1Y (TTM)82.93%
Revenue growth 3Y7.03%
Revenue growth 5Y6.13%
Sales Q2Q%16.47%
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 15.38% yearly.
Based on estimates for the next years, HHH will show a quite strong growth in Revenue. The Revenue will grow by 11.00% on average per year.
EPS Next Y-57.44%
EPS Next 2Y-3.4%
EPS Next 3Y15.38%
EPS Next 5YN/A
Revenue Next Year-20.9%
Revenue Next 2Y-0.72%
Revenue Next 3Y11%
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
The Price/Earnings ratio is 12.48, which indicates a correct valuation of HHH.
Based on the Price/Earnings ratio, HHH is valued cheaper than 84.62% of the companies in the same industry.
HHH is valuated cheaply when we compare the Price/Earnings ratio to 25.82, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 17.55 indicates a rather expensive valuation of HHH.
HHH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HHH is cheaper than 80.00% of the companies in the same industry.
HHH is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.48 | ||
| Fwd PE | 17.55 |
4.2 Price Multiples
84.62% of the companies in the same industry are more expensive than HHH, based on the Enterprise Value to EBITDA ratio.
HHH's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 127.2 | ||
| EV/EBITDA | 11.41 |
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 15.38% in the coming years.
PEG (NY)N/A
PEG (5Y)0.68
EPS Next 2Y-3.4%
EPS Next 3Y15.38%
5. Dividend
5.1 Amount
HHH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
66.64
-0.42 (-0.63%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners96.55%
Inst Owner Change-3.4%
Ins Owners0.9%
Ins Owner Change21.14%
Market Cap3.36B
Analysts80
Price Target96.9 (45.41%)
Short Float %2.72%
Short Ratio3.22
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)5.17%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)17.47%
EPS NY rev (3m)61.79%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)4.92%
Revenue NY rev (3m)5.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.48 | ||
| Fwd PE | 17.55 | ||
| P/S | 1.84 | ||
| P/FCF | 127.2 | ||
| P/OCF | 9.8 | ||
| P/B | 1.2 | ||
| P/tB | 1.22 | ||
| EV/EBITDA | 11.41 |
EPS(TTM)5.34
EY8.01%
EPS(NY)3.8
Fwd EY5.7%
FCF(TTM)0.52
FCFY0.79%
OCF(TTM)6.8
OCFY10.21%
SpS36.25
BVpS55.31
TBVpS54.61
PEG (NY)N/A
PEG (5Y)0.68
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 | 0.67 |
F-Score6
WACC7.79%
ROIC/WACC0.67
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)1088.89%
EPS 3Y56.66%
EPS 5Y18.29%
EPS Q2Q%119.81%
EPS Next Y-57.44%
EPS Next 2Y-3.4%
EPS Next 3Y15.38%
EPS Next 5YN/A
Revenue 1Y (TTM)82.93%
Revenue growth 3Y7.03%
Revenue growth 5Y6.13%
Sales Q2Q%16.47%
Revenue Next Year-20.9%
Revenue Next 2Y-0.72%
Revenue Next 3Y11%
Revenue Next 5YN/A
EBIT growth 1Y510.8%
EBIT growth 3Y38.55%
EBIT growth 5Y33.22%
EBIT Next Year16.14%
EBIT Next 3YN/A
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%