Howard Hughes Holdings (HHH) AI Stock Analysis

• Market Cap: $4.73B
• Dividend Yield: N/A
• Average Volume (3M): 376.50K
• Price to Earnings (P/E): 17.4
• Beta (1Y): 1.05
• Revenue Growth: 62.02%
• EPS Growth: N/A
• Country: US
• Employees: 545
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Diversified
• EPS (TTM): -0.22
• Shares Outstanding: 59,398,914
• 10 Day Avg. Volume: 369,374
• 30 Day Avg. Volume: 376,495
• PEG Ratio: -0.14
• Price to Book (P/B): 1.39
• Price to Sales (P/S): 2.20
• P/FCF Ratio: 9.77
• Enterprise Value/Market Cap: 1.53
• Enterprise Value/Revenue: 4.08
• Enterprise Value/Gross Profit: 10.28
• Enterprise Value/Ebitda: 11.11
• 1Y Price Target: $88.50
• Price Target Upside: 10.93% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 72 Outperform
• Price Target: $94.00 ▲(17.82% Upside)

Howard Hughes Holdings demonstrates solid profitability and operational efficiency, supported by positive earnings call insights and strong technical indicators. However, high leverage and declining revenue growth are concerns. The stock is fairly valued, with strategic initiatives providing a positive outlook.

Positive Factors

Cash Flow Growth

Strong free cash flow growth indicates improved cash generation capabilities, enhancing the company's ability to reinvest in growth opportunities and maintain financial flexibility.

Strategic Initiatives

The planned insurance acquisition aims to grow intrinsic value per share, leveraging investment operations similar to Berkshire Hathaway, which could enhance long-term shareholder value.

Operational Performance

Record land sales and increased cash flow guidance highlight strong operational performance, suggesting effective execution of business strategies and potential for sustained profitability.

Negative Factors

High Leverage

High leverage poses risks to financial stability, potentially limiting the company's ability to invest in growth and manage economic downturns effectively.

Declining Revenue Growth

Declining revenue growth can impact long-term profitability and market competitiveness, suggesting challenges in maintaining sales momentum and market share.

Retail NOI Decline

A decline in retail NOI reflects challenges in the retail segment, potentially affecting overall profitability and indicating issues in tenant retention or market demand.

Howard Hughes Holdings Business Overview & Revenue Model

Company Description

Howard Hughes Holdings (HHH) is a diversified real estate development and management company based in the United States. It operates primarily in the residential, commercial, and mixed-use sectors, focusing on creating master-planned communities, retail properties, and office spaces. The company's portfolio includes notable projects such as the Woodlands in Texas and the Seaport District in New York City, which exemplify its commitment to innovative and sustainable urban development.

How the Company Makes Money

Howard Hughes Holdings generates revenue through a variety of streams related to its real estate operations. Key revenue sources include the sale of residential properties, leasing of commercial and retail spaces, and management fees from its developments. The company also benefits from partnerships with local governments and other developers, which can facilitate access to land and resources. Additionally, HHH engages in strategic joint ventures to enhance its project financing and expand its market reach, thereby contributing to its overall earnings.

Howard Hughes Holdings Financial Statement Overview

Summary

Howard Hughes Holdings exhibits strong financial performance with notable revenue growth and improved profitability metrics. The balance sheet reflects moderate leverage, but increasing debt reliance could be a concern. Cash flow generation is solid, reinforcing the company's liquidity and operational efficiency.

Income Statement

The company's revenue has shown a strong growth trajectory, with a significant increase observed in the latest TTM compared to previous years. Gross profit margin and net profit margin have improved, indicating better cost management. EBIT and EBITDA margins are healthy, reflecting solid operational efficiency. However, past volatility in net income highlights some historical instability.

Balance Sheet

Howard Hughes Holdings maintains a moderate debt-to-equity ratio, which indicates a balanced approach to leveraging. Return on Equity (ROE) has improved, showing better profitability relative to equity. However, the equity ratio has been decreasing over the years, suggesting increasing reliance on debt financing, which could pose risks in downturns.

Cash Flow

Cash flow analysis reveals a robust operating cash flow to net income ratio, highlighting efficient cash generation from operations. Free cash flow growth is promising, suggesting improved liquidity. The free cash flow to net income ratio is favorable, indicating effective cash management. However, historically fluctuating cash flows may signal potential volatility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.77B	1.75B	1.02B	1.61B	1.43B	699.49M
Gross Profit	703.72M	731.95M	433.97M	633.62M	500.01M	210.15M
EBITDA	650.91M	710.44M	-342.20M	539.82M	399.26M	358.20M
Net Income	227.48M	197.70M	-551.77M	184.53M	56.10M	-26.15M
Balance Sheet
Total Assets	10.30B	9.21B	9.58B	9.60B	9.58B	9.14B
Cash, Cash Equivalents and Short-Term Investments	1.44B	596.08M	631.55M	626.65M	843.21M	1.24B
Total Debt	5.23B	5.13B	5.35B	4.80B	4.66B	4.36B
Total Liabilities	6.59B	6.37B	6.52B	6.00B	5.85B	5.43B
Stockholders Equity	3.64B	2.78B	2.99B	3.54B	3.71B	3.71B
Cash Flow
Free Cash Flow	526.71M	394.45M	-265.82M	323.25M	-285.77M	-74.48M
Operating Cash Flow	538.30M	396.59M	-258.48M	325.25M	-283.96M	-72.87M
Investing Cash Flow	-255.81M	-307.25M	-336.14M	-220.69M	9.40M	-444.78M
Financing Cash Flow	610.74M	-148.25M	548.75M	-222.26M	156.14M	1.12B

Howard Hughes Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 79.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HHH, the sentiment is Neutral. The current price of 79.78 is below the 20-day moving average (MA) of 81.44, above the 50-day MA of 78.61, and above the 200-day MA of 73.23, indicating a neutral trend. The MACD of 0.27 indicates Positive momentum. The RSI at 47.57 is Neutral, neither overbought nor oversold. The STOCH value of 26.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HHH.

Howard Hughes Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HHH	72 Outperform	$4.73B	17.43	7.80%	―	62.02%	―
SBRA	71 Outperform	$4.27B	23.41	6.66%	6.62%	6.89%	240.70%
JOE	69 Neutral	$2.82B	34.24	11.44%	1.16%	10.09%	16.70%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
NSA	59 Neutral	$4.37B	51.95	6.19%	7.07%	-7.33%	-66.93%
SLG	52 Neutral	$4.08B	663.10	0.63%	5.85%	7.66%	―
MAC	51 Neutral	$4.49B	―	-19.00%	3.94%	4.53%	40.88%

Howard Hughes Holdings Corporate Events

Howard Hughes Holdings Secures Major Investment from Pershing Square

Howard Hughes Holdings Inc. reported its second-quarter 2025 results, highlighting strong demand and record pricing for its master planned community land, alongside solid performance in operating assets. The company announced a significant investment from Pershing Square, which purchased $900 million of newly issued HHH stock, positioning Howard Hughes to transform into a diversified holding company. Despite a net loss from continuing operations, the company raised its full-year guidance for adjusted operating cash flow and expects record earnings before taxes from its master planned communities. The strategic developments at Ward Village and other areas are anticipated to drive future growth, supported by strong leasing rates and a robust pipeline of condo tower completions.

Howard Hughes Holdings Announces Board Member Departures

On June 27, 2025, Howard Hughes Holdings Inc. announced that two members of its Board of Directors, Beth Kaplan and Steven Shepsman, will not stand for re-election at the 2025 Annual Meeting of Stockholders. Their decision was not due to any disagreements with the company’s operations, policies, or practices. The company is actively searching for qualified candidates to fill the upcoming vacancies on the board.

Howard Hughes Holdings President Announces Retirement

Howard Hughes Holdings Inc. announced that its President, L. Jay Cross, will retire on June 30, 2025, ahead of the expiration of his employment agreement on December 1, 2025. As part of a Separation and Release Agreement, Mr. Cross will receive his base salary through December 1, 2025, a bonus, and a discretionary cash payment, along with full vesting of certain stock awards. Additionally, the company has set September 30, 2025, as the date for its 2025 annual meeting of stockholders, with August 4, 2025, as the record date for stockholders eligible to vote. Deadlines for stockholder proposals and nominations for the meeting have been established, ensuring compliance with regulatory requirements.