Halmont Properties (HMT) AI Stock Analysis

• Market Cap: C$157.83M
• Dividend Yield: N/A
• Average Volume (3M): 5.61K
• Price to Earnings (P/E): 8.6
• Beta (1Y): 1.05
• Revenue Growth: 70.08%
• EPS Growth: -20.96%
• Country: CA
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): 0.01
• Shares Outstanding: 83,940,000
• 10 Day Avg. Volume: 72
• 30 Day Avg. Volume: 5,611
• PEG Ratio: 0.00
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 3.29
• P/FCF Ratio: 33.55
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: C$1.00 ▼(-4.76% 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.

Positive Factors

Revenue Growth

Consistent revenue growth and high margins indicate a strong market position and effective business strategy, supporting long-term expansion.

Profitability

High profitability margins reflect efficient operations and a competitive advantage, enhancing the company's ability to reinvest in growth opportunities.

Balance Sheet Health

A stable balance sheet with moderate leverage provides financial flexibility and reduces risk, supporting sustainable operations and growth.

Negative Factors

Earnings Growth

Negative earnings growth suggests challenges in profitability and could hinder the company's ability to attract investment and sustain growth.

Debt Levels

Rising debt levels can strain financial resources and increase risk, potentially impacting long-term financial stability and growth.

Cash Flow Management

Declining free cash flow growth indicates potential liquidity issues, which could limit the company's ability to fund operations and investments.

Halmont Properties Business Overview & Revenue Model

Company Description

Halmont Properties (HMT) is a real estate investment and development company specializing in the acquisition, management, and redevelopment of properties primarily in urban areas. The company focuses on residential and commercial sectors, offering a range of services including property management, leasing, and investment consultation. HMT aims to enhance property values through strategic renovations and sustainable practices, contributing to community development while delivering attractive returns for its investors.

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 shows strong profitability with high margins and stable revenue growth. The balance sheet is solid with moderate leverage, but cash flow management is a concern due to a significant decline in free cash flow growth. Managing debt and improving cash conversion are crucial for future financial health.

Income Statement

Halmont Properties demonstrates strong profitability with a high gross profit margin of 87.67% and a net profit margin of 57.38% for TTM. The company has shown consistent revenue growth, with a 4.63% increase in the latest TTM period. EBIT and EBITDA margins remain robust at 83.86%, indicating efficient operations. However, the slight decline in gross profit margin compared to previous periods suggests potential cost pressures.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.63, indicating moderate leverage. Return on equity is healthy at 9.59%, showcasing effective use of equity capital. The equity ratio stands at 54.37%, suggesting a solid equity base. However, the increase in total debt over the years could pose future risks if not managed carefully.

Cash Flow

Cash flow analysis reveals challenges, with a significant decline in free cash flow growth rate by 92.72% in the TTM period. The operating cash flow to net income ratio is low at 0.17, indicating potential issues in converting income to cash. Despite this, the free cash flow to net income ratio remains stable at 1.0, suggesting that free cash flow aligns with net income.

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: Positive
• Last Price: 1.05
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:HMT, the sentiment is Positive. The current price of 1.05 is above the 20-day moving average (MA) of 1.02, above the 50-day MA of 1.04, and above the 200-day MA of 1.01, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 56.32 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:HMT.

Halmont Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HMT	76 Outperform	C$157.83M	8.58	8.49%	―	70.08%	-20.96%
WFC	70 Outperform	C$513.38M	16.67	16.84%	―	2.59%	23.96%
GDC	69 Neutral	C$187.51M	5.54	12.71%	―	7.07%	-3.06%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
MRD	60 Neutral	C$466.23M	7.99	4.72%	2.97%	29.55%	425.60%
TNT.UN	53 Neutral	C$123.86M	-4.32	-7.68%	5.72%	-5.17%	-187.42%
BRE	47 Neutral	$126.99M	-6.40	―	10.59%	58.15%	-235.04%

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.