We initiate coverage on HMC Capital, an alternative asset manager. It has AUD 17 billion in fee-generating assets under management, of which 60% are in three listed REITs: HomeCo Daily Needs REIT, HealthCo Healthcare and Wellness REIT, and DigiCo Infrastructure REIT.
The majority of HMC’s assets under management sit in listed REITs and closed-end unlisted real estate funds. These AUMs are relatively sticky, which means the majority of HMC’s management fee revenue is relatively stable.
HMC Capital lacks the economies of scale enjoyed by major property fund managers, given its relatively small size.
|
Metric
|
HMC
|
BAM
|
CNI
|
|---|---|---|---|
Price/Earnings (Normalized) | 5.65 | 26.28 | 8.77 |
Price/Book Value | 1.46 | 9.61 | 0.63 |
Price/Sales | 6.19 | 15.21 | 15.28 |
Price/Cash Flow | — | 31.46 | 11.66 |
|
Metric
|
HMC
|
BAM
|
CNI
|
|---|---|---|---|
Quick Ratio | 2.50 | 2.64 | 12.34 |
Current Ratio | 2.56 | 2.64 | 22.02 |
Interest Coverage | −1.70 | 8.74 | 0.42 |
|
Metric
|
HMC
|
BAM
|
CNI
|
|---|---|---|---|
Return on Assets (Normalized) | 7.86% | 19.20% | 2.96% |
Return on Equity (Normalized) | 12.34% | 41.96% | 8.62% |
Return on Invested Capital (Normalized) | 9.99% | 25.51% | 2.61% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
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|
Market Cap
|
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United States