Hammerson Plc

JSE:HMN Stock Report

Market Cap: R32.2b

Hammerson Valuation

Is HMN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of HMN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HMN (ZAR65.44) is trading above our estimate of fair value (ZAR32.45)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HMN?

Key metric: As HMN is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for HMN. This is calculated by dividing HMN's market cap by their current revenue.
What is HMN's PS Ratio?
PS Ratio6.2x
SalesUK£229.90m
Market CapUK£1.42b

Price to Sales Ratio vs Peers

How does HMN's PS Ratio compare to its peers?

The above table shows the PS ratio for HMN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average3.8x
VKE Vukile Property Fund
5x1.8%R20.1b
HYP Hyprop Investments
3.6x5.4%R16.3b
RES Resilient REIT
3.2x-9.3%R19.3b
DIB Dipula Income Fund
3.2x-22.1%R4.7b
HMN Hammerson
6.2x2.3%R1.4b

Price-To-Sales vs Peers: HMN is expensive based on its Price-To-Sales Ratio (6.2x) compared to the peer average (3.8x).

Price to Sales Ratio vs Industry

How does HMN's PS Ratio compare vs other companies in the Global Retail REITs Industry?

6 CompaniesPrice / SalesEstimated GrowthMarket Cap
HMN 6.2xIndustry Avg. 6.2xNo. of Companies16PS03.26.49.612.816+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: HMN is expensive based on its Price-To-Sales Ratio (6.2x) compared to the Global Retail REITs industry average (6.1x).

Price to Sales Ratio vs Fair Ratio

What is HMN's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HMN PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio6.2x
Fair PS Ratio7.5x

Price-To-Sales vs Fair Ratio: HMN is good value based on its Price-To-Sales Ratio (6.2x) compared to the estimated Fair Price-To-Sales Ratio (7.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst HMN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentR65.44
R70.18
+7.2%
17.3%R97.18R40.97n/a14
Nov ’25R67.85
R69.23
+2.0%
22.5%R97.85R34.45n/a14
Oct ’25R74.00
R66.98
-9.5%
26.0%R98.37R34.64n/a13
Sep ’25R66.90
R62.10
-7.2%
25.6%R85.83R34.79n/a13
Aug ’25R67.70
R63.11
-6.8%
24.9%R87.29R35.39n/a14
Jul ’25R65.00
R62.15
-4.4%
25.1%R85.96R34.85n/a14
Jun ’25R65.80
R61.38
-6.7%
27.5%R85.93R32.52n/a14
May ’25R63.70
R63.18
-0.8%
27.6%R87.98R33.29n/a14
Apr ’25R70.10
R63.18
-9.9%
27.6%R87.98R33.29n/a14
Mar ’25R61.50
R63.76
+3.7%
29.4%R90.32R31.73n/a14
Feb ’25R62.90
R62.27
-1.0%
27.8%R85.84R31.00n/a15
Jan ’25R68.00
R58.70
-13.7%
30.1%R85.55R30.89n/a15
Dec ’24R65.00
R58.05
-10.7%
31.6%R85.30R28.43n/a15
Nov ’24R50.70
R56.70
+11.8%
31.0%R83.13R27.71R67.8518
Oct ’24R57.50
R58.80
+2.3%
30.9%R86.41R31.20R74.0018
Sep ’24R56.60
R55.94
-1.2%
29.9%R84.11R28.04R66.9018
Aug ’24R61.10
R54.79
-10.3%
29.4%R82.61R27.54R67.7018
Jul ’24R59.90
R58.53
-2.3%
26.0%R85.81R35.76R65.0018
Jun ’24R61.50
R59.62
-3.1%
25.7%R93.81R36.08R65.8019
May ’24R64.90
R57.35
-11.6%
26.8%R89.67R34.49R63.7019
Apr ’24R57.20
R53.49
-6.5%
29.9%R87.79R33.77R70.1019
Mar ’24R64.40
R51.98
-19.3%
29.8%R84.94R32.67R61.5019
Feb ’24R56.50
R48.89
-13.5%
26.1%R82.70R31.81R62.9019
Jan ’24R49.50
R47.45
-4.1%
26.3%R81.09R31.19R68.0019
Dec ’23R51.50
R46.51
-9.7%
27.5%R81.17R31.22R65.0019
Nov ’23R41.30
R43.10
+4.3%
31.5%R78.33R30.13R50.7017

Analyst Forecast: Target price is less than 20% higher than the current share price.

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