Hudson Pacific Properties, Inc. Fundamental Analysis (NYSE: HPP-PC)
Hudson Pacific Properties, Inc. Fundamental Analysis (NYSE: HPP-PC)
Hudson Pacific Properties, Inc. (NYSE: HPP-PC) shows weak financial fundamentals with a PE ratio of -1.60, profit margin of -68.54%, and ROE of -18.64%. The company generates $4.8B in annual revenue with weak year-over-year growth of -1.30%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -55.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HPP-PC's fundamental strength across five key dimensions:
Efficiency Score
WeakHPP-PC struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHPP-PC trades at attractive valuation levels.
Growth Score
ModerateHPP-PC shows steady but slowing expansion.
Financial Health Score
ModerateHPP-PC shows balanced financial health with some risks.
Profitability Score
WeakHPP-PC struggles to sustain strong margins.
Key Financial Metrics
Is HPP-PC Expensive or Cheap?
P/E Ratio
HPP-PC trades at -1.60 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, HPP-PC's PEG of -0.02 indicates potential undervaluation.
Price to Book
The market values Hudson Pacific Properties, Inc. at 0.32 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 39.61 times EBITDA. This signals the market has high growth expectations.
How Well Does HPP-PC Make Money?
Net Profit Margin
For every $100 in sales, Hudson Pacific Properties, Inc. keeps $-68.54 as profit after all expenses.
Operating Margin
Core operations generate -0.25 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-18.64 in profit for every $100 of shareholder equity.
ROA
Hudson Pacific Properties, Inc. generates $-7.77 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hudson Pacific Properties, Inc. produces operating cash flow of $757.92M, showing steady but balanced cash generation.
Free Cash Flow
Hudson Pacific Properties, Inc. generates strong free cash flow of $660.70M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.74 in free cash annually.
FCF Yield
HPP-PC converts 14.73% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-1.60
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.32
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.94
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.33
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.39
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.19
vs 25 benchmark
ROA
Return on assets percentage
-0.08
vs 25 benchmark
ROCE
Return on capital employed
-0.00
vs 25 benchmark
How HPP-PC Stacks Against Its Sector Peers
| Metric | HPP-PC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -1.60 | 23.75 | Better (Cheaper) |
| ROE | -18.64% | 762.00% | Weak |
| Net Margin | -68.54% | 2564.00% | Weak |
| Debt/Equity | 1.33 | -36.86 (disorted) | Distorted |
| Current Ratio | 1.39 | 38.40 | Neutral |
| ROA | -7.77% | 255.00% | Weak |
HPP-PC outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hudson Pacific Properties, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-49.50%
Industry Style: Income, Inflation Hedge, REIT
DecliningEPS CAGR
-13365.64%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
-80.39%
Industry Style: Income, Inflation Hedge, REIT
Declining