Howard Hughes Holdings (HHH) AI Stock Analysis

• Market Cap: $3.50B
• Dividend Yield: N/A
• Average Volume (3M): 678.31K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 1.04
• Revenue Growth: 82.64%
• EPS Growth: N/A
• Country: US
• Employees: 545
• Sector: Real Estate
• Sector Strength: 69
• Industry: Real Estate - Diversified
• EPS (TTM): 0.21
• Shares Outstanding: 50,391,130
• 10 Day Avg. Volume: 421,146
• 30 Day Avg. Volume: 678,308
• PEG Ratio: 0.08
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.38
• Enterprise Value/Market Cap: 2.24
• Enterprise Value/Revenue: 1.34
• Enterprise Value/Gross Profit: 11.23
• Enterprise Value/Ebitda: 3.62
• 1Y Price Target: $82.33
• Price Target Upside: 18.65% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 74 Outperform
• Price Target: $77.00 ▲(10.97%Upside)

Howard Hughes Holdings earns a solid score of 74, driven by strong financial performance and positive earnings outlook. The strategic shift with Pershing Square adds to growth prospects, although increasing debt reliance and mixed technical indicators temper the overall score.

Positive Factors

Financial Performance

New home sales accelerated with a 6.0% increase sequentially.

Strategic Transformation

Pershing Square completed the first step of its transformation from a unique but undervalued land developer into a diversified holding company, with the ambition of becoming the next Berkshire Hathaway.

Negative Factors

Financial Risks

The increase in leverage to 58.0% net debt/TEV as part of the transaction may pose financial risks.

Market Uncertainty

No update was provided on Pershing Square's merger proposal, leaving uncertainty in the market.

Howard Hughes Holdings Business Overview & Revenue Model

Company Description

Howard Hughes Holdings Inc., together with its subsidiaries, operates as a real estate development company in the United States. It operates in four segments: Operating Assets; Master Planned Communities (MPCs); Seaport; and Strategic Developments. The Operating Assets segment consists of developed or acquired retail, office, and multi-family properties along with other retail investments. Its MPCs segment develops, sells, and leases residential and commercial land designated for long-term community development projects in and around Las Vegas, Nevada; Houston, Texas; and Phoenix, Arizona. The Seaport segment is involved in the landlord operations, managed businesses, and events and sponsorships services of its restaurant, retail, and entertain properties in Pier 17, New York City; Historic Area/Uplands; and Tin Building, as well as in 250 Water Street and in the Jean-Georges restaurants. The Strategic Development segment develops and redevelops residential condominiums and commercial properties. It serves homebuilders. Howard Hughes Holdings Inc. was founded in 2010 and is headquartered in The Woodlands, Texas.

How the Company Makes Money

Howard Hughes Holdings generates revenue through multiple streams. Primarily, it earns income from the sale of residential properties within its master-planned communities, which are designed to offer a blend of residential, commercial, and recreational spaces. Additionally, the company generates significant revenue from leasing commercial spaces in its developed properties, including office, retail, and hospitality spaces. The company's property management services also contribute to its revenue by offering management for residential and commercial properties. Furthermore, Howard Hughes Holdings benefits from strategic partnerships and joint ventures that enhance its development capabilities and expand its market reach.

Howard Hughes Holdings Financial Statement Overview

Summary

Howard Hughes Holdings displays strong financial performance with significant revenue growth and improved profitability metrics. The company maintains moderate leverage, though increasing debt reliance could be a risk. Solid cash flow generation supports its 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
1.83B	1.75B	1.02B	1.61B	1.43B	699.49M
	Gross Profit
699.04M	731.95M	433.97M	633.62M	500.01M	201.98M
	EBIT
571.51M	559.92M	-528.21M	369.13M	241.87M	-119.56M
	EBITDA
699.07M	668.16M	-342.20M	556.39M	399.26M	358.20M
	Net Income Common Stockholders
260.71M	197.70M	-551.77M	184.53M	56.10M	-26.15M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
493.66M	596.08M	631.55M	626.65M	843.21M	1.01B
	Total Assets
9.29B	9.21B	9.58B	9.60B	9.58B	9.14B
	Total Debt
5.25B	5.13B	5.35B	4.80B	4.66B	4.36B
	Net Debt
4.76B	4.54B	4.72B	4.17B	3.82B	3.34B
	Total Liabilities
6.43B	6.37B	6.52B	6.00B	5.85B	5.43B
	Stockholders Equity
2.79B	2.78B	2.99B	3.54B	3.71B	3.71B
Cash Flow		Free Cash Flow
306.40M	394.45M	-265.82M	323.25M	-285.77M	-74.48M
	Operating Cash Flow
344.02M	396.59M	-258.48M	325.25M	-283.96M	-72.87M
	Investing Cash Flow
-291.92M	-300.79M	-336.14M	-220.69M	101.46M	-428.55M
	Financing Cash Flow
-105.72M	-148.25M	548.75M	-222.26M	156.14M	1.12B

Howard Hughes Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 69.39
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 69.39 is above the 20-day moving average (MA) of 68.64, above the 50-day MA of 68.10, and below the 200-day MA of 74.93, indicating a neutral trend. The MACD of 0.21 indicates Negative momentum. The RSI at 51.63 is Neutral, neither overbought nor oversold. The STOCH value of 77.25 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
EPR	77 Outperform	$4.30B	34.46	6.25%	6.26%	0.69%	-19.22%
HHH	74 Outperform	$3.50B	13.29	10.15%	―	82.64%	―
JOE	72 Outperform	$2.68B	34.59	10.96%	1.21%	1.25%	-4.31%
NHI	72 Outperform	$3.31B	22.51	10.56%	5.08%	7.44%	4.23%
PCH	66 Neutral	$3.07B	64.61	2.31%	4.60%	10.86%	6.72%
RYN	64 Neutral	$3.65B	10.07	18.78%	4.65%	12.61%	111.99%
Sector *	61 Neutral	$2.83B	10.72	0.40%	6.10%	5.80%	-21.26%

Howard Hughes Holdings Corporate Events

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.

The most recent analyst rating on (HHH) stock is a Buy with a $81.00 price target. To see the full list of analyst forecasts on Howard Hughes Holdings stock, see the HHH Stock Forecast page.

Howard Hughes Holdings Reports Strong Q1 2025 Results

Howard Hughes Holdings Inc. reported strong financial results for the first quarter of 2025, with net income from continuing operations reaching $0.21 per diluted share, a significant improvement from the previous year’s loss. The company achieved a record quarterly net operating income of $72 million, driven by robust performance in office and multifamily segments, and saw a 161% increase in MPC earnings before taxes due to substantial land sales. Additionally, a $900 million investment by Pershing Square is set to transform Howard Hughes into a diversified holding company, enhancing its growth prospects and liquidity.

Howard Hughes Holdings Announces Strategic Shift with Pershing Square

On May 5, 2025, Howard Hughes Holdings Inc. announced a strategic shift to become a diversified holding company, following a significant investment from Pershing Square Holdco, L.P. Pershing Square purchased 9 million shares of Howard Hughes for $900 million, representing a 48% premium over the previous closing price, and now owns 46.9% of the company. This investment is expected to enhance Howard Hughes’ financial flexibility and credit profile, allowing it to acquire controlling interests in high-quality public and private companies. Bill Ackman, CEO of Pershing Square, has been appointed Executive Chairman of Howard Hughes, with Ryan Israel assuming the role of Chief Investment Officer. The transaction, approved by Howard Hughes’ Special Committee, is anticipated to create long-term value for stakeholders by leveraging Pershing Square’s expertise and resources.

Howard Hughes Extends Standstill Agreement with Pershing Square

Howard Hughes Holdings Inc. announced an extension of its standstill agreement with Pershing Square Capital Management L.P. until May 30, 2025. The company has engaged Morgan Stanley as a financial advisor and Hogan Lovells US LLP and Richards, Layton & Finger, P.A. as legal counsel to assist in the ongoing discussions, though no specific outcomes are assured.

Howard Hughes Extends Standstill Agreement with Pershing Square

On April 14, 2025, Howard Hughes Holdings Inc. announced the extension of its standstill agreement with Pershing Square Capital Management L.P. until April 30, 2025. The company has engaged Morgan Stanley as a financial advisor and Hogan Lovells US LLP and Richards, Layton & Finger, P.A. as legal counsel to the Special Committee of the Board of Directors. This extension indicates ongoing negotiations, but there is no assurance of any particular outcome, impacting the company’s strategic positioning and stakeholder interests.

Howard Hughes Extends Standstill Agreement with Pershing Square

On April 7, 2025, Howard Hughes Holdings Inc. announced an extension of its standstill agreement with Pershing Square Capital Management L.P. until April 15, 2025. The company has engaged Morgan Stanley as a financial advisor and Hogan Lovells US LLP and Richards, Layton & Finger, P.A. as legal counsel for the Special Committee of the Board of Directors. The impact of this extension on the company’s operations and industry positioning remains uncertain, as Howard Hughes Holdings has not committed to any specific outcomes from discussions with Pershing Square.

Howard Hughes Holdings Announces Leadership Changes

On April 1, 2025, Howard Hughes Holdings Inc. announced amendments to the employment agreements of its executive officers, including David R. O’Reilly, Carlos Olea, and Joseph Valane. These amendments revise the definition of ‘Good Reason,’ introduce the term ‘Transaction,’ and extend the terms of O’Reilly’s and Olea’s agreements to December 31, 2028. Additionally, O’Reilly’s annual target Long-Term Incentive Plan award is increased to $4.5 million. On April 2, 2025, the company and its President, L. Jay Cross, agreed not to renew his employment agreement upon its expiration on December 1, 2025, marking a significant leadership change.