NYSE:HHC

Stock Analysis Report

Executive Summary

The Howard Hughes Corporation owns, manages, and develops commercial, residential, and hospitality operating properties in the United States.

Snowflake

Fundamentals

Questionable track record and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: HHC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.7%

HHC

1.7%

US Real Estate

0.7%

US Market


1 Year Return

-0.04%

HHC

11.8%

US Real Estate

12.9%

US Market

Return vs Industry: HHC underperformed the US Real Estate industry which returned 11.8% over the past year.

Return vs Market: HHC underperformed the US Market which returned 12.9% over the past year.


Shareholder returns

HHCIndustryMarket
7 Day1.7%1.7%0.7%
30 Day-12.7%6.1%4.4%
90 Day-15.5%9.5%7.0%
1 Year-0.04%-0.04%12.7%11.8%15.4%12.9%
3 Year1.3%1.3%33.7%30.4%49.1%39.5%
5 Year-26.7%-26.7%10.7%7.2%62.7%44.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

42.18x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HHC ($109.89) is trading above our estimate of fair value ($100.97)

Significantly Below Fair Value: HHC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HHC is poor value based on its PE Ratio (42.2x) compared to the Real Estate industry average (25.7x).

PE vs Market: HHC is poor value based on its PE Ratio (42.2x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: HHC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: HHC is good value based on its PB Ratio (1.5x) compared to the US Real Estate industry average (1.5x).


Next Steps

Future Growth

How is Howard Hughes forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-30.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HHC's earnings are forecast to decline over the next 3 years (-30.4% per year).

Earnings vs Market: HHC's earnings are forecast to decline over the next 3 years (-30.4% per year).

High Growth Earnings: HHC's earnings are forecast to decline over the next 3 years.

Revenue vs Market: HHC's revenue is expected to decline over the next 3 years (-41.6% per year).

High Growth Revenue: HHC's revenue is forecast to decline over the next 3 years (-41.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if HHC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Howard Hughes performed over the past 5 years?

10.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HHC has high quality earnings.

Growing Profit Margin: HHC's current net profit margins (7.6%) are lower than last year (18.7%).


Past Earnings Growth Analysis

Earnings Trend: HHC has become profitable over the past 5 years, growing earnings by 10.5% per year.

Accelerating Growth: HHC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HHC had negative earnings growth (-33.5%) over the past year, making it difficult to compare to the Real Estate industry average (-25.2%).


Return on Equity

High ROE: HHC's Return on Equity (3.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Howard Hughes's financial position?


Financial Position Analysis

Short Term Liabilities: HHC's short term assets ($1.4B) exceeds its short term liabilities ($699.5M)

Long Term Liabilities: HHC's short term assets (1.4B) do not cover its long term liabilities (3.9B)


Debt to Equity History and Analysis

Debt Level: HHC's debt to equity ratio (108.7%) is considered high

Reducing Debt: HHC's debt to equity ratio has increased from 85.8% to 108.7% over the past 5 years.

Debt Coverage: HHC's debt is not well covered by operating cash flow (13.3%).

Interest Coverage: HHC's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet

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

Debt Coverage by Assets: HHC's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.6%industryaverage2.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate HHC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate HHC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HHC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HHC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HHC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

7.8yrs

Average management tenure


CEO

Paul Layne (61yo)

0.08yrs

Tenure

US$5,821,128

Compensation

Mr. Paul H. Layne has been the Chief Executive Officer and Director at Howard Hughes Corporation since October 21, 2019 and served as its President of Central Region until October 2019. He served as the Ex ...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD5.82M) is about average for companies of similar size in the US market ($USD5.11M).

Compensation vs Earnings: Insufficient data to compare Paul's compensation with company performance.


Management Age and Tenure

7.8yrs

Average Tenure

57yo

Average Age

Experienced Management: HHC's management team is seasoned and experienced (7.8 years average tenure).


Board Age and Tenure

9.0yrs

Average Tenure

61yo

Average Age

Experienced Board: HHC's board of directors are considered experienced (9 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$428,87012 Nov 19
Adam Flatto
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$107.31
BuyUS$323,52012 Nov 19
R. Sellers
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$107.84
SellUS$73,93907 Jan 19
Kevin Orrock
EntityIndividual
Shares771
Max PriceUS$95.90
BuyUS$92,73126 Dec 18
Michael Slosser
EntityIndividual
Shares1,000
Max PriceUS$92.90
BuyUS$18,36026 Dec 18
Sarah Vasquez
EntityIndividual
Role
Chief Operating Officer
Executive VP of Management & Operations
Shares200
Max PriceUS$91.80
BuyUS$500,39418 Dec 18
Grant Herlitz
EntityIndividual
Shares5,091
Max PriceUS$98.29
BuyUS$199,32018 Dec 18
Simon Treacy
EntityIndividual
Role
Senior Key Executive
President of Hawaii
Shares2,070
Max PriceUS$96.29
BuyUS$109,88029 Nov 18
Jeffrey Furber
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$109.88

Ownership Breakdown

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


Management Team

  • David Striph (60yo)

    Executive Vice President of Investor Relations

    • Tenure: 8.5yrs
  • Paul Layne (61yo)

    CEO & Director

    • Tenure: 0.08yrs
    • Compensation: US$5.82m
  • David O'Reilly (45yo)

    Chief Financial Officer

    • Tenure: 3.1yrs
    • Compensation: US$2.28m
  • Reuben Davidsohn (46yo)

    Chief Administrative Officer

    • Tenure: 7.8yrs
    • Compensation: US$2.48m
  • Simon Treacy (50yo)

    President of Hawaii

    • Tenure: 0yrs
    • Compensation: US$5.58m
  • Peter Riley (63yo)

    Senior Executive VP

    • Tenure: 8.5yrs
    • Compensation: US$1.94m
  • Chris Curry (57yo)

    EVP of Development

    • Tenure: 9yrs
    • Compensation: US$2.19m
  • Sarah Vasquez (57yo)

    Executive VP of Management & Operations

    • Tenure: 0yrs
  • Cristina Carlson

    Vice President of Corporate Communications & Public Relations

    • Tenure: 0yrs
  • Carlos Olea

    Chief Accounting Officer

    • Tenure: 1.2yrs

Board Members

  • Mary Tighe (71yo)

    Independent Director

    • Tenure: 8.1yrs
    • Compensation: US$232.88k
  • Bill Ackman (53yo)

    Independent Chairman of the Board

    • Tenure: 9yrs
  • R. Sellers (62yo)

    Independent Director

    • Tenure: 9yrs
    • Compensation: US$256.25k
  • Allen Model (73yo)

    Independent Director

    • Tenure: 9yrs
    • Compensation: US$228.38k
  • Beth Kaplan (61yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: US$214.00k
  • Jeff Furber (60yo)

    Independent Director

    • Tenure: 9yrs
    • Compensation: US$238.00k
  • Paul Layne (61yo)

    CEO & Director

    • Tenure: 0.08yrs
    • Compensation: US$5.82m
  • Steve Shepsman (67yo)

    Independent Director

    • Tenure: 9yrs
    • Compensation: US$281.00k
  • Adam Flatto (56yo)

    Independent Director

    • Tenure: 9yrs
    • Compensation: US$234.88k

Company Information

The Howard Hughes Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Howard Hughes Corporation
  • Ticker: HHC
  • Exchange: NYSE
  • Founded: 2010
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: US$4.682b
  • Shares outstanding: 42.61m
  • Website: https://www.howardhughes.com

Number of Employees


Location

  • The Howard Hughes Corporation
  • 13355 Noel Road
  • 22nd Floor
  • Dallas
  • Texas
  • 75240
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HHCNYSE (New York Stock Exchange)YesCommon StockUSUSDNov 2010
HHEDB (Deutsche Boerse AG)YesCommon StockDEEURNov 2010
HHC *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNNov 2010

Biography

The Howard Hughes Corporation owns, manages, and develops commercial, residential, and hospitality operating properties in the United States. It operates through three segments: Operating Assets, Master Pl ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/17 00:44
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
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.