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 Analysis

Established dividend payer and fair value.


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

Stable Share Price: HMSO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.5%

HMSO

1.5%

GB REITs

1.7%

GB Market


1 Year Return

-76.6%

HMSO

-17.9%

GB REITs

-21.8%

GB Market

Return vs Industry: HMSO underperformed the UK REITs industry which returned -24.4% over the past year.

Return vs Market: HMSO underperformed the UK Market which returned -25.9% over the past year.


Shareholder returns

HMSOIndustryMarket
7 Day-0.5%1.5%1.7%
30 Day-57.8%-17.8%-12.0%
90 Day-73.1%-25.7%-25.3%
1 Year-75.4%-76.6%-14.7%-17.9%-17.9%-21.8%
3 Year-84.5%-86.9%-6.3%-18.5%-11.8%-22.8%
5 Year-85.9%-88.8%-6.4%-23.9%0.1%-22.4%

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

Below Fair Value: HMSO (£0.54) is trading below our estimate of fair value (£3.07)

Significantly Below Fair Value: 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

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 (0.1x) compared to the GB REITs industry average (0.7x).


Next Steps

Future Growth

How is Hammerson forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

74.0%

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 (0.5%).

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

High Growth Earnings: HMSO's is expected to become profitable in the next 3 years.

Revenue vs Market: HMSO's revenue is expected to decline over the next 3 years (-8.2% per year).

High Growth Revenue: HMSO's revenue is forecast to decline over the next 3 years (-8.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HMSO's Return on Equity is forecast to be low in 3 years time (4.5%).


Next Steps

Past Performance

How has Hammerson performed over the past 5 years?

-56.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HMSO is currently unprofitable.

Growing Profit Margin: HMSO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HMSO is unprofitable, and losses have increased over the past 5 years at a rate of -56.9% 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 (-21.6%).


Return on Equity

High ROE: HMSO has a negative Return on Equity (-13.15%), as it is currently unprofitable.


Next Steps

Financial Health

How is Hammerson's financial position?


Financial Position Analysis

Short Term Liabilities: HMSO's short term assets (£612.5M) exceed its short term liabilities (£218.8M).

Long Term Liabilities: HMSO's short term assets (£612.5M) do not cover its long term liabilities (£2.7B).


Debt to Equity History and Analysis

Debt Level: HMSO's debt to equity ratio (58.9%) is considered high.

Reducing Debt: HMSO's debt to equity ratio has increased from 45.3% to 58.9% over the past 5 years.

Debt Coverage: HMSO's debt is not well covered by operating cash flow (6.5%).

Interest Coverage: HMSO is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

33.64%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HMSO's dividend (48.03%) is higher than the bottom 25% of dividend payers in the UK market (2.66%).

High Dividend: HMSO's dividend (48.03%) is in the top 25% of dividend payers in the UK market (7.4%)


Stability and Growth of Payments

Stable Dividend: HMSO's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (164.2%), 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 (62.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

David Atkins (53yo)

10.5s

Tenure

UK£1,465,000

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 ($USD1.79M) is above average for companies of similar size in the UK market ($USD1.01M).

Compensation vs Earnings: David's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
David Atkins
CEO & Director10.5yrsUK£1.47m0.11% £637.2k
James Lenton
CFO & Director0.58yrUK£538.05kno data
Howard Ebison
UK & Ireland Operations Director0.58yrno datano data
Simon Travis
Group Investment Director & MD of Premium Outletsno datano datano data
Alice Darwall
General Counsel & Company Secretary0.083yrno datano data
Stephen Brown
Group Marketing & Communications Director2.33yrsno datano data
Mark Duhig
Human Resources Director5.58yrsno datano data
Jean-Philippe Mouton
Managing Director of France11.25yrsUK£745.00k0.059% £348.7k
Louise Ellison
Group Head of Sustainability6.58yrsno datano data
Simon Betty
Managing Director of City Quarters & Developments Concept0.17yrno datano data

2.3yrs

Average Tenure

53yo

Average Age

Experienced Management: HMSO's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Atkins
CEO & Director10.5yrsUK£1.47m0.11% £637.2k
James Lenton
CFO & Director0.58yrUK£538.05kno data
Adam Metz
Non-Executive Director0.75yrUK£94.00k0.012% £71.6k
Pierre Bruno Bouchut
Non-Executive Director5.17yrsUK£89.00k0.0027% £15.6k
David Tyler
Independent Chairman of the Board6.92yrsUK£346.00k0.017% £98.1k
Gwyneth Burr
Senior Independent Director1.25yrsUK£91.00k0.00068% £4.0k
Mahkâmeh Brunel
Non-Executive Director0.33yrUK£7.00kno data
Andrew Formica
Non-Executive Director4.42yrsUK£67.00k0.0057% £33.9k
Judith Gibbons
Non-Executive Director8.92yrsUK£73.00k0.00054% £3.2k
Carol Welch
Non-Executive Director1.08yrsUK£55.00k0.00098% £5.8k

2.8yrs

Average Tenure

57yo

Average Age

Experienced Board: HMSO's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: HMSO insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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£589.168m
  • Shares outstanding: 765.15m
  • 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 impact for generations to come. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 22:54
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.