LSE:HMSO

Stock Analysis Report

Executive Summary

We create vibrant, continually evolving spaces, in and around thriving cities, where people and brands want to be.

Snowflake

Fundamentals

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has Hammerson's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

15.6%

HMSO

6.6%

GB REITs

1.9%

GB Market


1 Year Return

-29.8%

HMSO

7.1%

GB REITs

2.4%

GB Market

Return vs Industry: HMSO underperformed the UK REITs industry which returned 7.1% over the past year.

Return vs Market: HMSO underperformed the UK Market which returned 2.4% over the past year.


Shareholder returns

HMSOIndustryMarket
7 Day15.6%6.6%1.9%
30 Day15.5%8.0%-1.1%
90 Day12.9%7.5%-1.8%
1 Year-23.1%-29.8%12.1%7.1%7.4%2.4%
3 Year-33.1%-44.7%27.6%9.5%18.2%3.7%
5 Year-32.5%-47.5%39.8%11.9%35.7%6.1%

Price Volatility Vs. Market

How volatile is Hammerson's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hammerson undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: HMSO (£3.1) is trading below our estimate of fair value (£6.21)

Significantly Undervalued: HMSO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HMSO is unprofitable, so we can't compare its PE Ratio to the REITs industry average.

PE vs Market: HMSO is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate HMSO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HMSO is good value based on its PB Ratio (0.5x) compared to the GB REITs industry average (0.9x).


Next Steps

Future Growth

How is Hammerson forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

74.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HMSO is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.2%).

Earnings vs Market: HMSO is forecast to become profitable over the next 3 year, which is considered above average market growth.

High Growth Earnings: HMSO's loss is forecast to worsen by 0% next year.

Revenue vs Market: HMSO's revenue is expected to decline over the next 3 years (-4.3% per year).

High Growth Revenue: HMSO's revenue is forecast to decline over the next 3 years (-4.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: HMSO's Return on Equity is forecast to be low in 3 years time (6.6%).


Next Steps

Past Performance

How has Hammerson performed over the past 5 years?

-46.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HMSO is unprofitable, and losses have increased over the past 5 years at a rate of -46% per year.

Accelerating Growth: Unable to compare HMSO's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: HMSO is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (-16.8%).


Return on Equity

High ROE: HMSO has a negative Return on Equity (-12.9%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: HMSO is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: HMSO is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Hammerson's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: HMSO has a high level of physical assets or inventory.

Debt Coverage by Assets: HMSO's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: HMSO's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if HMSO has a sufficient allowance for bad loans.

Low Risk Liabilities: HMSO reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if HMSO has an acceptable proportion of non-loan assets held.

Low Risk Deposits: HMSO has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if HMSO has an appropriate level of bad loans.


Next Steps

Dividend

What is Hammerson's current dividend yield, its reliability and sustainability?

8.35%

Current Dividend Yield


Dividend Yield vs Market

company8.4%marketbottom25%2.0%markettop25%5.4%industryaverage4.0%forecastin3Years8.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: HMSO's dividend (8.35%) is higher than the bottom 25% of dividend payers in the UK market (2%).

High Dividend: HMSO's dividend (8.35%) is in the top 25% of dividend payers in the UK market (5.42%)

Stable Dividend: HMSO's dividend payments have been volatile in the past 10 years.

Growing Dividend: HMSO's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (192.4%), HMSO's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HMSO's dividends in 3 years are forecast to be covered by earnings (88.6% payout ratio).


Next Steps

Management

What is the CEO of Hammerson's salary, the management and board of directors tenure and is there insider trading?

5.1yrs

Average management tenure


CEO

David Atkins (53yo)

10yrs

Tenure

UK£1,155,000

Compensation

Mr. David John Atkins, BSc, MRICS, has been Chief Executive Officer of Hammerson PLC since October 1, 2009 and served as its Managing Director of UK Retail since January 1, 2007. Mr. Atkins served as the P ...


CEO Compensation Analysis

Compensation vs. Market: David's total compensation ($USD1.48M) is about average for companies of similar size in the UK market ($USD2.30M).

Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.1yrs

Average Tenure

53yo

Average Age

Experienced Management: HMSO's management team is seasoned and experienced (5.1 years average tenure).


Board Age and Tenure

3.9yrs

Average Tenure

57yo

Average Age

Experienced Board: HMSO's board of directors are considered experienced (3.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£50,16714 May 19
David Atkins
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares17,000
Max PriceUK£2.95

Ownership Breakdown


Management Team

  • Timon Drakesmith (53yo)

    Executive Officer

    • Tenure: 0yrs
    • Compensation: UK£785.00k
  • Sarah Booth (52yo)

    General Counsel & Company Secretary

    • Tenure: 9.6yrs
  • Peter William Cole (60yo)

    Consultant

    • Tenure: 0.5yrs
    • Compensation: UK£986.00k
  • Jean-Philippe Mouton (57yo)

    Managing Director of France

    • Tenure: 10.8yrs
    • Compensation: UK£769.00k
  • David Atkins (53yo)

    CEO & Director

    • Tenure: 10yrs
    • Compensation: UK£1.16m
  • Simon Travis

    Group Investment Director & MD of Premium Outlets

    • Tenure: 0yrs
  • Stephen Brown

    Group Marketing & Communications Director

    • Tenure: 1.8yrs
  • Howard Ebison

    UK & Ireland Operations Director

    • Tenure: 0.08yrs
  • Mark Duhig

    Human Resources Director

    • Tenure: 5.1yrs
  • James Lenton (44yo)

    CFO & Director

    • Tenure: 0.08yrs

Board Members

  • Adam Metz (58yo)

    Non-Executive Director

    • Tenure: 0.3yrs
  • Pierre Bruno Bouchut (64yo)

    Non-Executive Director

    • Tenure: 4.7yrs
    • Compensation: UK£92.00k
  • David Tyler (66yo)

    Independent Chairman of the Board

    • Tenure: 6.4yrs
    • Compensation: UK£343.00k
  • Gwyn Burr (56yo)

    Senior Independent Director

    • Tenure: 0.8yrs
    • Compensation: UK£83.00k
  • David Atkins (53yo)

    CEO & Director

    • Tenure: 10yrs
    • Compensation: UK£1.16m
  • Andrew Formica (48yo)

    Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: UK£66.00k
  • Judy Gibbons (62yo)

    Non-Executive Director

    • Tenure: 8.4yrs
    • Compensation: UK£73.00k
  • Carol Welch

    Non-Executive Director

    • Tenure: 0.6yrs
  • James Lenton (44yo)

    CFO & Director

    • Tenure: 0.08yrs

Company Information

Hammerson plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hammerson plc
  • Ticker: HMSO
  • Exchange: LSE
  • Founded: 2008
  • Industry: Retail REITs
  • Sector: Real Estate
  • Market Cap: UK£2.371b
  • Shares outstanding: 764.79m
  • Website: https://www.hammerson.com

Number of Employees


Location

  • Hammerson plc
  • Kings Place
  • 90 York Way
  • London
  • East Lothian
  • N1 9GE
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HMSN.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
HMSOLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
H2VDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
HMSOLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
HMNJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARJan 1992

Biography

We create vibrant, continually evolving spaces, in and around thriving cities, where people and brands want to be. We seek to deliver value for all our stakeholders and to create a positive and sustainable ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 20:47
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.