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Five Point Holdings Llc (FPH)
NYSE:FPH
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Five Point Holdings
(NYSE:FPH)
71Outperform
Five Point Holdings (FPH) vs. S&P 500 (SPY)
Market Cap
$569.07M
Dividend YieldN/A
Average Volume (3M)208.57K
Price to Earnings (P/E)5.5
Beta (1Y)1.16
Revenue Growth12.37%
EPS Growth50.04%
CountryUS
Employees88
SectorReal Estate
Sector Strength65
IndustryReal Estate - Development
Share Statistics
EPS (TTM)0.96
Shares Outstanding69,478,340
10 Day Avg. Volume156,866
30 Day Avg. Volume208,574
Financial Highlights & Ratios
PEG Ratio0.11
Price to Book (P/B)N/A
Price to Sales (P/S)3.38
Price to Cash Flow (P/CF)1.10
P/FCF Ratio1.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering1
Five Point Holdings Business Overview & Revenue Model
Company DescriptionFive Point Holdings, LLC is a leading real estate development company based in the United States. The company specializes in the development of large-scale mixed-use planned communities in coastal California. These communities are designed to include residential, commercial, retail, educational, and recreational elements to create a comprehensive living and working environment. Five Point Holdings is known for its commitment to sustainability and innovation in community planning.
How the Company Makes MoneyFive Point Holdings makes money primarily through the development and sale of residential and commercial real estate properties within its master-planned communities. Key revenue streams include the sale of residential lots to homebuilders, commercial land sales, and development fees. The company may also generate income through property leasing and management services. Strategic partnerships with homebuilders, commercial developers, and local government entities play a significant role in the successful execution and financial viability of its projects.
Five Point Holdings Financial Statement Overview
Summary
Five Point Holdings has shown significant improvement in revenue and profitability in the latest year compared to previous years. The most recent annual report indicates a gross profit margin of 100% due to the entirety of revenue being converted to gross profit, and a strong net profit margin of approximately 97.7%. The company has experienced solid revenue growth, particularly notable from 2022 to 2023, suggesting a positive trajectory in their financial performance. However, the absence of EBITDA in the latest year limits the analysis of operational efficiency.Income Statement
Five Point Holdings has shown significant improvement in revenue and profitability in the latest year compared to previous years. The most recent annual report indicates a gross profit margin of 100% due to the entirety of revenue being converted to gross profit, and a strong net profit margin of approximately 97.7%. The company has experienced solid revenue growth, particularly notable from 2022 to 2023, suggesting a positive trajectory in their financial performance. However, the absence of EBITDA in the latest year limits the analysis of operational efficiency.75
Positive
Balance Sheet
The balance sheet of Five Point Holdings reflects a strong equity position, with stockholders' equity making up a substantial portion of total assets. The company has a debt-free balance sheet as of the latest report, which significantly reduces financial risk and enhances stability. The equity ratio is robust, indicating a solid foundation for growth. Additionally, the return on equity has improved remarkably, reflecting efficient utilization of equity to generate profits.80
Positive
Cash Flow
The cash flow statement indicates a healthy free cash flow and a positive operating cash flow in the latest report, which suggests strong cash generation capabilities. However, the free cash flow has decreased compared to the previous year, indicating potential volatility in cash management. The operating cash flow to net income ratio remains positive, showing efficient conversion of profits into cash.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 237.93M | 211.73M | 42.69M | 224.39M | 153.62M | Gross Profit |
| 118.83M | 77.74M | 15.20M | 80.10M | 42.25M | EBIT |
| 0.00 | 26.25M | -36.90M | -23.00M | -55.39M | EBITDA |
| 86.96M | 46.10M | -22.20M | 2.98M | -27.11M | Net Income Common Stockholders |
| 68.30M | 55.39M | -34.77M | 13.31M | 1.09M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 430.88M | 353.80M | 131.77M | 265.46M | 298.14M | Total Assets |
| 3.08B | 2.97B | 2.89B | 2.94B | 2.96B | Total Debt |
| 525.74M | 692.54M | 620.65M | 619.12M | 617.58M | Net Debt |
| 94.86M | 337.75M | 488.88M | 353.65M | 319.44M | Total Liabilities |
| 896.32M | 962.18M | 992.74M | 1.02B | 1.05B | Stockholders Equity |
| 1.87B | 678.05M | 618.13M | 634.42M | 617.67M |
| Cash Flow | Free Cash Flow | |||
| 115.18M | 154.12M | -188.38M | -81.57M | -80.65M | Operating Cash Flow |
| 115.99M | 154.12M | -188.30M | -81.42M | -78.50M | Investing Cash Flow |
| 70.06M | 77.11M | 63.99M | 75.31M | 52.94M | Financing Cash Flow |
| -108.98M | -9.20M | -9.72M | -26.58M | -23.54M |
Five Point Holdings Technical Analysis
Negative
5.27
Price Trends
5.62
Negative
4.72
Positive
4.05
Positive
Market Momentum
-0.04
Positive
45.20
Neutral
25.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FPH, the sentiment is Negative. The current price of 5.27 is below the 20-day moving average (MA) of 5.44, below the 50-day MA of 5.62, and above the 200-day MA of 4.05, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 45.20 is Neutral, neither overbought nor oversold. The STOCH value of 25.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FPH.
Five Point Holdings Risk Analysis
Five Point Holdings disclosed 37 risk factors in its most recent earnings report. Five Point Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Five Point Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $40.06B | 8.98 | 19.35% | 1.10% | 2.12% | 1.63% | |
74 Outperform | $20.77B | 7.01 | 27.40% | 0.81% | 11.74% | 25.66% | |
71 Outperform | $569.07M | 5.49 | 9.58% | ― | 12.37% | 50.04% | |
69 Neutral | $10.50B | 7.27 | 20.38% | 0.87% | 5.86% | 12.20% | |
68 Neutral | $30.16B | 8.36 | 14.99% | 1.75% | 2.06% | -3.67% | |
66 Neutral | $4.15B | 7.09 | 15.60% | 1.71% | 5.54% | 11.25% | |
61 Neutral | $4.72B | 17.64 | -3.07% | 10.89% | 5.99% | -21.86% |
* Real Estate Sector Average
Performance Comparison
FPH
Five Point Holdings
5.27
2.19
71.10%
DHI
DR Horton
127.97
-28.42
-18.17%
KBH
KB Home
58.93
-8.32
-12.37%
LEN
Lennar
115.66
-41.84
-26.57%
PHM
PulteGroup
104.33
-10.46
-9.11%
TOL
Toll Brothers
106.91
-18.21
-14.55%
Five Point Holdings Earnings Call Summary
Earnings Call Date: Jan 23, 2025 | % Change Since: 29.80% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Positive
The earnings call for Five Point Holdings LLC highlighted a record-breaking fourth quarter and full year 2024 with strong net income and successful land sales. The company showcased strategic growth initiatives and a positive outlook for 2025, with plans to expand through new capital partnerships. Despite facing macroeconomic headwinds and challenges in the insurance market, the overall sentiment remains optimistic.Highlights
Record-Breaking Fourth Quarter
Generated net income of $121 million, the highest for Five Point in a single quarter, marking the seventh consecutive quarter of net income.
Successful Land Sales
Completed essential land sales in Valencia and Great Park, totaling over $447.2 million in aggregate purchase prices for home sites.
Strong Full Year Performance
Achieved record net income for the full year 2024 at $177.6 million, with total liquidity reaching $555.9 million.
Strategic Growth Initiatives
Announced plans to seek capital partners for new acquisitions and expand the asset-lighter land partnership and development model.
Positive Market Outlook
Expect earnings growth of approximately 10% in 2025, driven by continuous strong demand for residential land in California.
Lowlights
Macroeconomic Challenges
Faced a challenging macroeconomic environment with mixed signals from interest rates and inflation, impacting mortgage affordability.
Insurance Market Concerns
Continued challenges in the California insurance market, necessitating adjustments in building strategies.
Company Guidance
During the call, Five Point Holdings provided guidance for the first quarter and full year of 2025, projecting a 10% increase in earnings over 2024, approaching $200 million in net income. The company reported record-breaking Q4 net income of $121 million and a full year net income of $177.6 million for 2024, marking seven consecutive quarters of profitability. They detailed strong liquidity with $555.9 million, comprising $430.9 million in cash and $125 million in borrowing availability. Strategic priorities for 2025 include maximizing value from existing master-planned communities, managing overhead costs, matching development expenditures with revenue generation, and seeking capital partners for new acquisitions. The company anticipates that most of their 2025 earnings will stem from their investment in and management of the Great Park Venture, with expectations of continued strong demand for residential land despite challenging market conditions.Five Point Holdings Corporate Events
Executive/Board Changes
Leadership Changes at Five Point Holdings Board
Positive
Oct 16, 2024
Five Point Holdings, LLC has announced significant changes to its Board of Directors, with Sam Levinson, Chief Investment Officer at Glick Family Investments, joining as a new director following a major equity purchase. This move coincides with the resignation of Evan Carruthers, a long-standing board member and executive at Castlelake. Levinson’s appointment is expected to bring fresh insights to Five Point’s development of large-scale, mixed-use communities across California, offering promising growth opportunities for investors.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.