Fact based stock research
Howard Hughes (NYSE:HHC)
US44267D1072
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Howard Hughes stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 32 (worse than 68% compared with investment alternatives), Howard Hughes (Real Estate Development, USA) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Howard Hughes are low in value (priced high) with a consolidated Value Rank of 28 (worse than 72% of alternatives), show below-average growth (Growth Rank of 38), and are riskily financed (Safety Rank of 30), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 32, is a hold recommendation based on Howard Hughes's financial characteristics. As the company Howard Hughes's key financial metrics all exhibit below-average performance, such as low value (Obermatt Value Rank of 28), low growth (Obermatt Growth Rank of 38), and risky financing practices (Obermatt Safety Rank of 30), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. Such poor financial performance sometimes indicates that the company's business is all concentrated in some distant future. This is sometimes the case for high-tech or biotechnology companies. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and risky today. In such cases, the Obermatt Method has limited value as it is based on facts we can observe today. If the facts are all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that should only amount to a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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Country | USA |
Industry | Real Estate Development |
Index | Employee Focus US, Energy Efficient, Low Waste, R/E USA |
Size class | Large |
This stock has achievements: Top 10 Stock.
14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Howard Hughes
RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
VALUE | ||||||||
VALUE | 7 |
|
19 |
|
36 |
|
28 |
|
GROWTH | ||||||||
GROWTH | 84 |
|
93 |
|
67 |
|
38 |
|
SAFETY | ||||||||
SAFETY | 14 |
|
30 |
|
30 |
|
30 |
|
SENTIMENT | ||||||||
SENTIMENT | n/a |
|
3 |
|
18 |
|
new | |
360° VIEW | ||||||||
360° VIEW | n/a |
|
25 |
|
10 |
|
new |
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 32 (worse than 68% compared with investment alternatives), Howard Hughes (Real Estate Development, USA) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Howard Hughes are low in value (priced high) with a consolidated Value Rank of 28 (worse than 72% of alternatives), show below-average growth (Growth Rank of 38), and are riskily financed (Safety Rank of 30), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 32, is a hold recommendation based on Howard Hughes's financial characteristics. As the company Howard Hughes's key financial metrics all exhibit below-average performance, such as low value (Obermatt Value Rank of 28), low growth (Obermatt Growth Rank of 38), and risky financing practices (Obermatt Safety Rank of 30), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. Such poor financial performance sometimes indicates that the company's business is all concentrated in some distant future. This is sometimes the case for high-tech or biotechnology companies. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and risky today. In such cases, the Obermatt Method has limited value as it is based on facts we can observe today. If the facts are all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that should only amount to a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
VALUE | ||||||||
VALUE | 7 |
|
19 |
|
36 |
|
28 |
|
GROWTH | ||||||||
GROWTH | 84 |
|
93 |
|
67 |
|
38 |
|
SAFETY | ||||||||
SAFETY | 14 |
|
30 |
|
30 |
|
30 |
|
COMBINED | ||||||||
COMBINED | 10 |
|
32 |
|
32 |
|
32 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 28 (worse than 72% compared with alternatives), Howard Hughes shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half above average for Howard Hughes. Price-to-Sales (P/S) is 51, which means that the stock price compared with what market professionals expect for future sales is lower than for 51% of comparable companies, indicating a good value concerning Howard Hughes's revenue size. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio), which is more favorable than for 67% of alternatives (33% of peers have a higher ratio). But expected dividend yields with a Dividend Yield rank of 1 are lower than average (dividends are expected to be lower than 99% of other stocks) while the Price to Profit ratio (or Price to Earnings (P/E) ratio) is higher than average with a Price-to-Profit Rank of 8, making the stock more expensive compared with the company's expected profit levels. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 28, is a hold recommendation based on Howard Hughes's stock price compared with the company's operational size and dividend yields. Low profits and low dividends as seen here for Howard Hughes may indicate a restructuring phase. This could be transitory, making the company a good value when profits recover and dividends return to higher levels. If the stock price is compared with the size indicators for revenue and invested capital, it is on the lower side, making this stock a good value investment (apart from current profit and dividend expectations). We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more
VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
PRICE VS. REVENUES (P/S) | ||||||||
PRICE VS. REVENUES (P/S) | 56 |
|
26 |
|
46 |
|
51 |
|
PRICE VS. PROFITS (P/E) | ||||||||
PRICE VS. PROFITS (P/E) | 11 |
|
19 |
|
37 |
|
8 |
|
PRICE VS. CAPITAL (Market-to-Book) | ||||||||
PRICE VS. CAPITAL (Market-to-Book) | 38 |
|
74 |
|
70 |
|
67 |
|
DIVIDEND YIELD | ||||||||
DIVIDEND YIELD | 1 |
|
1 |
|
1 |
|
1 |
|
CONSOLIDATED RANK: VALUE | ||||||||
CONSOLIDATED RANK: VALUE | 7 |
|
19 |
|
36 |
|
28 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 38 (better than 38% compared with alternatives), Howard Hughes shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Howard Hughes. Profit Growth has a rank of 94, which means that currently professionals expect the company to grow its profits more than 94% of its competitors. This is a good sign for shareholders, which is confirmed by an above-average Stock Returns rank of 54 (above 54% of alternative investments). But Sales Growth has a below the median rank of 1, which means that, currently, professionals expect the company to grow less than 99% of its competitors, and Capital Growth also has a lower rank of 46. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 38, is a hold recommendation for growth and momentum investors. Because revenues and invested capital are the more solid growth indicators, the positive development on the profit side is less relevant. It may have been caused by cost-cutting, which may be a negative growth indicator. Finally, the above-average stock returns recently are a thing of the past and not a good indicator of future returns. Investors should be confident that the cost-cutting initiative leading to higher profits is to benefit the company's future. If not, there is little growth momentum, and investment is only advisable if the Value Ranks suggest a good investment timing for Howard Hughes. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more
GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
REVENUE GROWTH | ||||||||
REVENUE GROWTH | 56 |
|
68 |
|
100 |
|
1 |
|
PROFIT GROWTH | ||||||||
PROFIT GROWTH | 93 |
|
92 |
|
4 |
|
94 |
|
CAPITAL GROWTH | ||||||||
CAPITAL GROWTH | n/a |
|
100 |
|
100 |
|
46 |
|
STOCK RETURNS | ||||||||
STOCK RETURNS | 74 |
|
37 |
|
39 |
|
54 |
|
CONSOLIDATED RANK: GROWTH | ||||||||
CONSOLIDATED RANK: GROWTH | 84 |
|
93 |
|
67 |
|
38 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 30 (better than 30% compared with alternatives), the company Howard Hughes has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Howard Hughes is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with all three metrics below average for Howard Hughes. Liquidity is at 23, meaning that the company generates less profit to service its debt than 77% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 31, meaning the company has an above-average debt-to-equity ratio. It has more debt than 69% of its competitors. Finally, Refinancing is at a rank of 35 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 65% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 30 (worse than 70% compared with alternatives), Howard Hughes has a financing structure that is riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing. Investors should look at Obermatt’s Value, Growth, and Sentiment Ranks to confirm a very positive outlook or be careful with investing in stocks of Howard Hughes because it may suffer significantly in case of future difficulties. ...read more
SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
LEVERAGE | ||||||||
LEVERAGE | 35 |
|
40 |
|
36 |
|
31 |
|
REFINANCING | ||||||||
REFINANCING | 43 |
|
35 |
|
35 |
|
35 |
|
LIQUIDITY | ||||||||
LIQUIDITY | 5 |
|
13 |
|
42 |
|
23 |
|
CONSOLIDATED RANK: SAFETY | ||||||||
CONSOLIDATED RANK: SAFETY | 14 |
|
30 |
|
30 |
|
30 |
|
Sentiment Metrics in Detail
SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
ANALYST OPINIONS | ||||||||
ANALYST OPINIONS | n/a |
|
94 |
|
87 |
|
new | |
OPINIONS CHANGE | ||||||||
OPINIONS CHANGE | n/a |
|
4 |
|
11 |
|
new | |
PRO HOLDINGS | ||||||||
PRO HOLDINGS | n/a |
|
5 |
|
1 |
|
new | |
MARKET PULSE | ||||||||
MARKET PULSE | n/a |
|
12 |
|
22 |
|
new | |
CONSOLIDATED RANK: SENTIMENT | ||||||||
CONSOLIDATED RANK: SENTIMENT | n/a |
|
3 |
|
18 |
|
new |
Free stock analysis by the purely fact based Obermatt Method for Howard Hughes from November 14, 2024.
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