Howard Hughes Holdings (HHH) AI Stock Analysis

• Market Cap: $4.92B
• Dividend Yield: N/A
• Average Volume (3M): 360.14K
• Price to Earnings (P/E): 18.1
• Beta (1Y): 1.00
• 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: 391,887
• 30 Day Avg. Volume: 360,140
• 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: 1.47
• Enterprise Value/Revenue: 4.08
• Enterprise Value/Gross Profit: 10.28
• Enterprise Value/Ebitda: 11.11
• 1Y Price Target: $83.33
• Price Target Upside: 0.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 78 Outperform
• Price Target: $87.00 ▲(4.97% Upside)

Howard Hughes Holdings demonstrates strong financial performance and positive technical indicators. The recent earnings call and corporate events further bolster the company's growth prospects. However, increasing debt reliance and potential overbought conditions warrant caution.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability and competitiveness.

Strategic Investments

The strategic investment by Pershing Square strengthens financial resources, enabling HHH to pursue growth opportunities and enhance its market position.

Cash Flow Generation

Strong cash flow generation supports operational efficiency and provides liquidity for future investments, ensuring sustainable business growth.

Negative Factors

Increasing Debt Reliance

Rising debt levels may constrain financial flexibility and increase risk during economic downturns, potentially impacting long-term stability.

Decline in New Home Sales

A decline in new home sales can signal challenges in inventory management and regulatory hurdles, affecting revenue and growth potential.

Retail NOI Decline

Declining retail NOI suggests potential weaknesses in retail operations, which could affect overall profitability and necessitate strategic adjustments.

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 shows strong financial performance with significant revenue growth and improved profitability metrics. The balance sheet indicates moderate leverage, though increasing debt reliance is a concern. Cash flow generation is robust, enhancing 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	201.98M
EBITDA	650.91M	710.44M	-342.20M	556.39M	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	1.01B
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	349.64M	394.45M	-265.82M	323.25M	-285.77M	-74.48M
Operating Cash Flow	361.03M	396.59M	-258.48M	325.25M	-283.96M	-72.87M
Investing Cash Flow	-196.73M	-300.79M	-336.14M	-220.69M	101.46M	-428.55M
Financing Cash Flow	-231.84M	-148.25M	548.75M	-222.26M	156.14M	1.12B

Howard Hughes Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 82.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HHH, the sentiment is Positive. The current price of 82.88 is above the 20-day moving average (MA) of 78.62, above the 50-day MA of 73.80, and above the 200-day MA of 73.18, indicating a bullish trend. The MACD of 2.70 indicates Negative momentum. The RSI at 72.31 is Negative, neither overbought nor oversold. The STOCH value of 80.74 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HHH.

Howard Hughes Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NHI	79 Outperform	3.73B	25.07	10.10%	4.59%	6.87%	7.23%
HHH	78 Outperform	$4.92B	18.10	7.80%	―	62.02%	―
EPR	77 Outperform	4.32B	27.85	7.71%	6.14%	1.37%	-16.66%
RYN	75 Outperform	3.96B	10.98	33.06%	11.29%	9.90%	137.73%
JOE	69 Neutral	2.93B	35.58	11.20%	1.11%	10.09%	16.70%
PCH	59 Neutral	3.08B	75.56	2.17%	4.52%	-1.15%	14.51%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

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.