NYSE:HHC

Stock Analysis Report

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Market Cap

US$5.5b

Last Updated

2021/06/23 07:09 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Moderate growth potential and slightly 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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: HHC's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-2.8%

HHC

0.6%

US Real Estate

-0.1%

US Market


1 Year Return

94.5%

HHC

81.6%

US Real Estate

39.0%

US Market

Return vs Industry: HHC exceeded the US Real Estate industry which returned 82.6% over the past year.

Return vs Market: HHC exceeded the US Market which returned 39% over the past year.


Shareholder returns

HHCIndustryMarket
7 Day-2.8%0.6%-0.1%
30 Day-4.9%1.3%2.6%
90 Day7.5%0.6%8.0%
1 Year94.5%94.5%84.5%81.6%41.2%39.0%
3 Year-24.2%-24.2%33.7%25.2%62.4%52.3%
5 Year-11.1%-11.1%78.1%55.2%132.3%106.2%

Long-Term 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?

26.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HHC ($103.44) is trading below our estimate of fair value ($138.31)

Significantly Below Fair Value: HHC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HHC is poor value based on its PE Ratio (177.6x) compared to the US Real Estate industry average (24.4x).

PE vs Market: HHC is poor value based on its PE Ratio (177.6x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: HHC is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: HHC is overvalued based on its PB Ratio (1.5x) compared to the US Real Estate industry average (1.4x).


Future Growth

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

94.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HHC's forecast earnings growth (94.5% per year) is above the savings rate (2%).

Earnings vs Market: HHC's earnings (94.5% per year) are forecast to grow faster than the US market (15.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if HHC's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if HHC's revenue is forecast to grow faster than 20% 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


Past Performance

How has Howard Hughes performed over the past 5 years?

-47.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HHC has a large one-off loss of $29.9M impacting its March 31 2021 financial results.

Growing Profit Margin: HHC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: HHC's earnings have declined by 47.8% per year over the past 5 years.

Accelerating Growth: HHC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: HHC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Real Estate industry (-11.4%).


Return on Equity

High ROE: HHC's Return on Equity (1.5%) is considered low.


Financial Health

How is Howard Hughes's financial position?


Financial Position Analysis

Short Term Liabilities: HHC's short term assets ($1.7B) exceed its short term liabilities ($795.4M).

Long Term Liabilities: HHC's short term assets ($1.7B) do not cover its long term liabilities ($4.7B).


Debt to Equity History and Analysis

Debt Level: HHC's debt to equity ratio (120.3%) is considered high.

Reducing Debt: HHC's debt to equity ratio has increased from 102.3% to 120.3% over the past 5 years.

Debt Coverage: HHC's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if HHC's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

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


Dividend Yield vs Market

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

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

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

0.5yrs

Average management tenure


CEO

David O'Reilly (46 yo)

0.75

Tenure

US$4,923,118

Compensation

Mr. David R. O'Reilly serves as Chief Executive Officer of The Howard Hughes Corporation since December 01, 2020 and its Director since 2020 and served as its Interim Chief Financial Officer since 2020 unt...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD4.92M) is about average for companies of similar size in the US market ($USD6.67M).

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


Leadership Team

Experienced Management: HHC's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Members

Experienced Board: HHC's board of directors are seasoned and experienced ( 10.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: HHC 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

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$5.483b
  • Shares outstanding: 54.70m
  • Website: https://www.howardhughes.com

Number of Employees


Location

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

Listings


Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/23 07:09
End of Day Share Price2021/06/22 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.