Comstock Holding Companies, Inc. (NASDAQ: CHCI)

Sector: Real Estate Industry: Real Estate Services CIK: 0001299969
Market Cap 114.00 Mn
P/B 2.03
P/E 8.20
P/S 2.04
ROIC (Qtr) 8.21
Div Yield % 0.00
Rev 1y % (Qtr) 2.48
Total Debt (Qtr) 5.59 Mn
Debt/Equity (Qtr) 0.10

About

Comstock Holding Companies, Inc., or CHCI, operates in the real estate industry, specializing as an asset manager, developer, and operator of mixed-use and transit-oriented properties in the Washington, D.C. region. The company has established itself as a premier real estate service provider by creating remarkable places, delivering exceptional experiences, and generating impressive results for all stakeholders. Comstock's primary business activities revolve around the acquisition, development, and operation of real estate assets. The company offers...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 7.31M provides robust 1.31x coverage of total debt 5.59M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 26.17M provide 26.84x coverage of short-term debt 975000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 67.45M provides 12.07x coverage of total debt 5.59M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 7.02M exceeds capital expenditure of 287000 by 24.47x, indicating strong organic growth funding capability.
  • Strong operating cash flow of 7.31M provides 3.10x coverage of SG&A expenses 2.36M, showing efficient operational cost management.

Bear case

  • Operating cash flow of 7.31M barely covers its investment activities of (1.87M), with a coverage ratio of -3.92, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 26.17M provide limited coverage of acquisition spending of (1.08M), which is -24.25x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 7.31M provides minimal -2.05x coverage of tax expenses of (3.56M), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Long-term investments of 6.31M represent a high 1.08x of fixed assets 5.86M, indicating potential overexposure to financial assets versus operational capabilities.
  • Tangible assets of 67.45M provide limited backing for working capital of 35.22M, which is 1.92x, suggesting increased operational risk in market downturns.

Contract with Customer, Basis of Pricing Breakdown of Revenue (2024)

Timing of Transfer of Good or Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Real Estate Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 CBRE Cbre Group, Inc. 51.14 Bn 41.65 1.30 9.48 Bn
2 CSGP Costar Group, Inc. 26.47 Bn 1,304.00 8.66 1.18 Bn
3 BEKE KE Holdings Inc. 21.08 Bn 43.29 1.45 2.96 Bn
4 JLL Jones Lang Lasalle Inc 16.90 Bn 26.75 0.67 3.48 Bn
5 FSV FirstService Corp 7.01 Bn 56.92 1.78 1.51 Bn
6 COMP Compass, Inc. 6.69 Bn -118.64 1.01 0.48 Bn
7 CIGI Colliers International Group Inc. 5.39 Bn 69.70 2.00 2.50 Bn
8 OPEN Opendoor Technologies Inc. 4.15 Bn -13.09 0.88 1.79 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.32 1.34
EV to Cash from Ops. EV/CFO 12.22 2.97
EV to Debt EV to Debt 15.99 6.15
EV to EBIT EV/EBIT 8.64 5.23
EV to EBITDA EV/EBITDA 9.33 18.71
EV to Free Cash Flow [EV/FCF] EV/FCF 12.72 -9.39
EV to Market Cap EV to Market Cap 0.78 4.27
EV to Revenue EV/Rev 1.60 3.62
Price to Book Value [P/B] P/B 2.03 2.10
Price to Earnings [P/E] P/E 8.20 45.45
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 0.38
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -6.05
Dividend per Basic Share Div per Share (Qtr) 0.00 0.22
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 0.42
Interest Coverage Int. cover (Qtr) 0.00 -2.22
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -5.90 -12,525.88
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 24.32 23.84
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.27
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 127.81 4.69
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 30.03 26.73
EBIT Growth (1y) % EBIT 1y % (Qtr) 48.40 12.80
EBT Growth (1y) % EBT 1y % (Qtr) 48.40 21.27
EPS Growth (1y) % EPS 1y % (Qtr) 122.22 22.42
FCF Growth (1y) % FCF 1y % (Qtr) -41.47 54.29
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 24.99 39.11
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.83 1.45
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.01
Cash Ratio Cash Ratio (Qtr) 4.53 1.45
Current Ratio Curr Ratio (Qtr) 7.10 2.16
Debt to Equity Ratio Debt/Equity (Qtr) 0.10 -0.06
Interest Cover Ratio Int Coverage (Qtr) 0.00 -2.22
Times Interest Earned Times Interest Earned (Qtr) 0.00 -2.22
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 19.10 -121.98
EBIT Margin % EBIT Margin % (Qtr) 18.53 -136.76
EBT Margin % EBT Margin % (Qtr) 18.53 -144.54
Gross Margin % Gross Margin % (Qtr) 21.40 32.87
Net Profit Margin % Net Margin % (Qtr) 24.90 -139.89