Halmont Properties (HMT) AI Stock Analysis

• Market Cap: C$157.83M
• Dividend Yield: N/A
• Average Volume (3M): 2.31K
• Price to Earnings (P/E): 8.6
• Beta (1Y): 0.75
• Revenue Growth: 70.26%
• EPS Growth: -21.05%
• Country: CA
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): 0.02
• Shares Outstanding: 83,940,000
• 10 Day Avg. Volume: 320
• 30 Day Avg. Volume: 2,305
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$1.00
• Price Target Upside: -1.96% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: C$1.00 ▼(-1.96% Downside)

Halmont Properties' strong profitability and attractive valuation are key strengths, supported by positive technical indicators. However, challenges in cash flow management and the absence of dividend yield are notable risks. The overall score reflects a balanced view of these factors, with profitability and valuation being the most significant contributors.

Halmont Properties Business Overview & Revenue Model

Company Description

Halmont Properties Corporation invests in real assets in Canada. The company invests in commercial, residential, and forest properties; and provides investment management services for the property and infrastructure sectors. As of December 31, 2021, its property portfolio comprises six heritage commercial buildings; 75% interest in the ground and second-floor premises of a residential condominium complex; 40% equity interest in Haliburton Forest & Wildlife Reserve Limited; 60% net profit partnership interest in the redevelopment of the peripheral lands of the Muskoka Grandview Resort in Huntsville, Ontario. The company was formerly known as H.A.L. Concepts, Ltd. and changed its name to Halmont Properties Corporation in February 2007. Halmont Properties Corporation was incorporated in 2000 and is headquartered in Toronto, Canada.

How the Company Makes Money

Halmont Properties generates revenue primarily through several key streams: rental income from its portfolio of residential and commercial properties, profits from property sales following redevelopment, and property management fees charged to clients for overseeing their real estate investments. Additionally, the company may engage in joint ventures with other real estate firms or investors, sharing in the profits generated from these collaborations. Strategic partnerships with construction companies and urban planners also facilitate cost-effective property enhancements, further boosting the company's profitability.

Halmont Properties Financial Statement Overview

Summary

Halmont Properties demonstrates strong revenue and profit growth, supported by high margins. While the balance sheet reveals significant leverage, it is counterbalanced by a solid ROE and stable equity ratio. Cash flow conversions from net income are areas for improvement, but overall, the company is positioned well in the real estate development sector. The component scores are: Income Statement (85), Balance Sheet (70), Cash Flow (60).

Income Statement

Halmont Properties shows robust revenue growth from $14.9M to $32.0M (114.5% increase) between 2023 and 2024. The gross profit margin is exceptionally high at 94.57%, and the net profit margin is solid at 53.26%. EBIT and EBITDA margins are both strong at 91.03%. This indicates efficient operations and strong pricing power.

Balance Sheet

The company maintains a high debt-to-equity ratio of 0.70, reflecting significant leverage. However, the return on equity (ROE) is impressive at 7.89%, indicating good profitability from its equity base. The equity ratio is stable at 52.54%, suggesting a balanced capital structure between debt and equity.

Cash Flow

Free cash flow growth is modest, following a slight increase from $2.71M to $3.14M (15.88%). The operating cash flow to net income ratio is 0.18, and the free cash flow to net income ratio is also 0.18, indicating room for improvement in translating profits into cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	34.22M	32.03M	14.93M	19.51M	13.49M	11.22M
Gross Profit	30.00M	30.29M	13.63M	17.81M	11.99M	9.66M
EBITDA	28.69M	29.15M	7.77M	16.45M	11.64M	8.89M
Net Income	19.63M	17.06M	17.26M	9.82M	7.25M	5.62M
Balance Sheet
Total Assets	411.23M	411.77M	253.57M	224.03M	265.82M	220.19M
Cash, Cash Equivalents and Short-Term Investments	10.97M	8.63M	0.00	72.09M	87.00K	64.00K
Total Debt	140.61M	150.56M	71.37M	56.97M	110.08M	101.11M
Total Liabilities	160.05M	168.38M	81.25M	68.77M	119.50M	109.67M
Stockholders Equity	223.58M	216.34M	148.50M	132.66M	124.58M	93.33M
Cash Flow
Free Cash Flow	890.00K	3.14M	2.71M	845.00K	-5.58M	19.34M
Operating Cash Flow	890.00K	3.14M	2.71M	845.00K	1.99M	1.14M
Investing Cash Flow	-20.25M	-104.41M	-9.59M	55.46M	-37.94M	-6.26M
Financing Cash Flow	21.79M	101.53M	6.88M	-56.39M	35.97M	5.13M

Halmont Properties Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:HMT, the sentiment is Negative. The current price of 1.02 is below the 20-day moving average (MA) of 1.08, below the 50-day MA of 1.08, and above the 200-day MA of 0.96, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 21.65 is Positive, neither overbought nor oversold. The STOCH value of 10.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:HMT.

Halmont Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GDC	77 Outperform	C$213.07M	5.72	14.86%	5.01%	18.60%	48.05%
HMT	76 Outperform	C$157.83M	8.58	8.50%	―	70.26%	-21.05%
WFC	67 Neutral	C$461.74M	14.99	15.15%	―	2.59%	23.96%
MRD	64 Neutral	C$467.12M	48.23	0.78%	2.97%	14.27%	-86.95%
TNT.UN	54 Neutral	C$129.17M	-4.50	-5.04%	4.36%	-6.99%	34.15%
BRE	49 Neutral	C$145.10M	-7.32	21.32%	9.10%	184.78%	-222.63%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Halmont Properties Corporate Events

Halmont Properties Reports Year-End Results and Strategic Acquisitions

Halmont Properties Corporation reported a slight decrease in net income for the year ended December 31, 2024, with $18.39 million compared to $18.49 million in the previous year. The company completed a significant transition of its commercial property and forest asset portfolio, doubling its equity base and increasing the book value of its shares. Key transactions included acquiring interests in properties in Toronto and expanding investments in forest properties, enhancing its long-term growth strategy. Additionally, Halmont issued $50 million in Series II convertible preferred shares to support future investments, and plans to repurchase shares if they trade below book value.

Spark’s Take on TSE:HMT Stock

According to Spark, TipRanks’ AI Analyst, TSE:HMT is a Outperform.

Halmont Properties shows strong profitability and a solid valuation, driving a positive outlook for the stock. Technical indicators also suggest a positive trend, although there is some caution due to potential overbought conditions. The lack of earnings call insights or significant corporate events means these areas do not impact the score. Challenges with revenue consistency and cash flow management are areas to watch but do not significantly detract from the overall positive assessment.

To see Spark’s full report on TSE:HMT stock, click here.

Halmont Properties Announces Share Repurchase Plan

Halmont Properties Corporation has announced the approval of its plan to repurchase up to 4,642,598 multiple voting shares, representing 10% of its public float, through a normal course issuer bid. This initiative, facilitated by RBC Capital Markets, is set to run from March 4, 2025, to March 3, 2026, and is seen as a strategic move to utilize funds effectively and benefit shareholders by potentially increasing the value of remaining shares.