Fundamental Analysis of HUDSON PACIFIC PROPERTIES IN(NYSE:HPP) stock

Fundamental Rating

Taking everything into account, HPP scores 2 out of 10 in our fundamental rating. HPP was compared to 127 industry peers in the Diversified REITs industry. HPP has a bad profitability rating. Also its financial health evaluation is rather negative. HPP does not seem to be growing, but still is valued expensively.

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1. Profitability

1.1 Basic Checks

In the past year HPP has reported negative net income.

In the past year HPP had a positive cash flow from operations.

In multiple years HPP reported negative net income over the last 5 years.

Each year in the past 5 years HPP had a positive operating cash flow.

1.2 Ratios

With a Return On Assets value of -2.32%, HPP is not doing good in the industry: 78.23% of the companies in the same industry are doing better.

Looking at the Return On Equity, with a value of -6.24%, HPP is doing worse than 74.19% of the companies in the same industry.

The Return On Invested Capital of HPP (0.30%) is worse than 89.52% of its industry peers.

Measured over the past 3 years, the Average Return On Invested Capital for HPP is in line with the industry average of 2.95%.

		Industry Rank	Sector Rank
ROA	-2.32%
ROE	-6.24%
ROIC	0.3%

ROA(3y)-0.95%

ROA(5y)-0.46%

ROE(3y)-2.6%

ROE(5y)-1.31%

ROIC(3y)1.05%

ROIC(5y)1.26%

1.3 Margins

Looking at the Operating Margin, with a value of 3.05%, HPP is doing worse than 89.52% of the companies in the same industry.

HPP's Operating Margin has declined in the last couple of years.

HPP has a worse Gross Margin (52.70%) than 80.65% of its industry peers.

HPP's Gross Margin has declined in the last couple of years.

		Industry Rank	Sector Rank
OM	3.05%
PM (TTM)	N/A
GM	52.7%

OM growth 3Y-42.29%

OM growth 5Y-31.64%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y-5.66%

GM growth 5Y-3.58%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HPP is destroying value.

Compared to 1 year ago, HPP has more shares outstanding

Compared to 5 years ago, HPP has more shares outstanding

The debt/assets ratio for HPP has been reduced compared to a year ago.

2.2 Solvency

A Debt/Equity ratio of 1.30 is on the high side and indicates that HPP has dependencies on debt financing.

HPP has a Debt to Equity ratio (1.30) which is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Debt/Equity	1.3
Debt/FCF	N/A
Altman-Z	N/A

ROIC/WACC0.05

WACC5.5%

2.3 Liquidity

HPP has a Current Ratio of 0.53. This is a bad value and indicates that HPP is not financially healthy enough and could expect problems in meeting its short term obligations.

The Current ratio of HPP (0.53) is worse than 81.45% of its industry peers.

A Quick Ratio of 0.53 indicates that HPP may have some problems paying its short term obligations.

With a Quick ratio value of 0.53, HPP is not doing good in the industry: 80.65% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Current Ratio	0.53
Quick Ratio	0.53

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The earnings per share for HPP have decreased strongly by -79.49% in the last year.

Looking at the last year, HPP shows a decrease in Revenue. The Revenue has decreased by -7.20% in the last year.

Measured over the past years, HPP shows a small growth in Revenue. The Revenue has been growing by 5.51% on average per year.

EPS 1Y (TTM)-79.49%

EPS 3YN/A

EPS 5YN/A

EPS growth Q2Q66.67%

Revenue 1Y (TTM)-7.2%

Revenue growth 3Y5.76%

Revenue growth 5Y5.51%

Revenue growth Q2Q-17.22%

3.2 Future

HPP is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -19.07% yearly.

HPP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.22% yearly.

EPS Next Y-111.14%

EPS Next 2Y-32.49%

EPS Next 3Y-19.07%

EPS Next 5YN/A

Revenue Next Year-2.4%

Revenue Next 2Y2.08%

Revenue Next 3Y1.22%

Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

HPP reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.

Also next year HPP is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	N/A

4.2 Price Multiples

80.65% of the companies in the same industry are more expensive than HPP, based on the Enterprise Value to EBITDA ratio.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	10.98

4.3 Compensation for Growth

HPP's earnings are expected to decrease with -19.07% in the coming years. This may justify a cheaper valuation.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y-32.49%

EPS Next 3Y-19.07%

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5. Dividend

5.1 Amount

HPP has a Yearly Dividend Yield of 6.35%, which is a nice return.

The stock price of HPP dropped by -31.04% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.

HPP's Dividend Yield is a higher than the industry average which is at 5.85.

Compared to an average S&P500 Dividend Yield of 2.41, HPP pays a better dividend.

		Industry Rank	Sector Rank
Dividend Yield	6.35%

5.2 History

The dividend of HPP decreases each year by -13.01%.

HPP has been paying a dividend for at least 10 years, so it has a reliable track record.

Dividend Growth(5Y)-13.01%

Div Incr Years0

Div Non Decr Years0

5.3 Sustainability

The earnings of HPP are negative and hence is the payout ratio. HPP will probably not be able to sustain this dividend level.

The Dividend Rate of HPP has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.

DP-39.42%

EPS Next 2Y-32.49%

EPS Next 3Y-19.07%

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HUDSON PACIFIC PROPERTIES IN

NYSE:HPP (5/3/2024, 7:04:00 PM)

Premarket: 5.53 +0.02 (+0.36%)

5.51

+0.07 (+1.29%)

Chartmill FA Rating

GICS SectorReal Estate

GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)

GICS IndustryDiversified REITs

Earnings (Last)

Earnings (Next)

Inst Owners

Inst Owner Change

Ins Owners

Ins Owner Change

Market Cap777.68M

Analysts

Price Target

Dividend

		Industry Rank	Sector Rank
Dividend Yield	6.35%

Dividend Growth(5Y)

Div Incr Years

Div Non Decr Years

Ex-Date

Surprises & Revisions

EPS beat(2)

Avg EPS beat(2)

Min EPS beat(2)

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Revenue beat(2)

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Revenue beat(4)

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Revenue beat(8)

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Revenue beat(12)

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Revenue beat(16)

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PT rev (1m)

PT rev (3m)

EPS NQ rev (1m)

EPS NQ rev (3m)

EPS NY rev (1m)

EPS NY rev (3m)

Revenue NQ rev (1m)

Revenue NQ rev (3m)

Revenue NY rev (1m)

Revenue NY rev (3m)

Valuation

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	N/A
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA

EPS(TTM)

EPS(NY)

Fwd EY

FCF(TTM)

FCFY

OCF(TTM)

OCFY

SpS

BVpS

TBVpS

PEG (NY)N/A

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	-2.32%
ROE	-6.24%
ROCE
ROIC
ROICexc
ROICexgc
OM	3.05%
PM (TTM)	N/A
GM	52.7%
FCFM

ROA(3y)

ROA(5y)

ROE(3y)

ROE(5y)

ROIC(3y)

ROIC(5y)

ROICexc(3y)

ROICexc(5y)

ROICexgc(3y)

ROICexgc(5y)

ROCE(3y)

ROCE(5y)

ROICexcg growth 3Y

ROICexcg growth 5Y

ROICexc growth 3Y

ROICexc growth 5Y

OM growth 3Y

OM growth 5Y

PM growth 3Y

PM growth 5Y

GM growth 3Y

GM growth 5Y

F-Score

Asset Turnover0.11

Health

		Industry Rank	Sector Rank
Debt/Equity	1.3
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio	0.53
Quick Ratio	0.53
Altman-Z

F-Score

WACC

ROIC/WACC

Cap/Depr(3y)

Cap/Depr(5y)

Cap/Sales(3y)

Cap/Sales(5y)

Profit Quality(3y)

Profit Quality(5y)

Growth

EPS 1Y (TTM)-79.49%

EPS 3YN/A

EPS 5Y

EPS growth Q2Q

EPS Next Y-111.14%

EPS Next 2Y

EPS Next 3Y

EPS Next 5Y

Revenue 1Y (TTM)-7.2%

Revenue growth 3Y5.76%

Revenue growth 5Y

Revenue growth Q2Q

Revenue Next Year

Revenue Next 2Y

Revenue Next 3Y

Revenue Next 5Y

EBIT growth 1Y

EBIT growth 3Y

EBIT growth 5Y

EBIT Next Year

EBIT Next 3Y

EBIT Next 5Y

FCF growth 1Y

FCF growth 3Y

FCF growth 5Y

OCF growth 1Y

OCF growth 3Y

OCF growth 5Y

HUDSON PACIFIC PROPERTIES IN (HPP)

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

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3. Growth

3.1 Past

3.2 Future

3.3 Evolution

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4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

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5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

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