Hammerson HMSO.L
United KingdomReal Estate · REIT - RetailLondon Stock Exchange · GBP
3.91 GBP (+19.4%)
14 analysts
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Hammerson is a British REIT that owns and operates shopping centers and outlets in the UK and Europe, generating income primarily from renting its retail assets.
Listed on London Stock Exchange · Symbol HMSO.L · LON: HMSO · Currency GBP
Key points
from its scores- ✕Unfavourable risk and backdrop2.5
- ✕Little competitive advantage4.0
- ✕Fragile balance sheet4.8
AI analysis
bottom line, main risk, context and newsThe high leverage and sensitivity to interest rates warrant caution despite the valuation discount and attractive dividend yield.
Hammerson has a highly leveraged balance sheet (Net Debt/EBITDA of 8.03x) and weak cash conversion (5.99%), making it vulnerable to rising interest rates, although its portfolio of shopping centers and outlets maintains a high gross margin (68.97%) and trades at a discount to its book value (P/B of 0.83).
The main risk is the high leverage (Net Debt/EBITDA of 8.03x) in a rising interest rate environment, which makes financing more expensive and pressures the valuation of its real estate assets.
Context and risks
Hammerson is a retail REIT with a highly leveraged balance sheet (Net Debt/EBITDA of 8.03x). The rise in long-term interest rates in the UK and the strength of the pound increase the cost of its debt and pressure the valuation of its real estate assets, a material risk for its business model.
Is Hammerson stock cheap or expensive?
at the analysis dateOn P/E and Price / book, it trades 52% below the Real Estate median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 8.2 | 21.6 | −62% |
| EV / EBITDA | 18.4 | 18.5 | −0% |
| Price / book | 0.8 | 1.4 | −42% |
| Price / sales | 6.2 | 6.3 | −2% |
Sector: median of the 100 Real Estate companies analysed. In bold, the multiples used for the comparison.
Valuation score: 4.9 out of 10 (median for Real Estate: 4.9).
Average analyst target: 3.91 GBP, +19.4% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 4.8 (sector 5.5), Growth 5.9 (sector 5.7).
Classic formulas with standard assumptions (0.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Real Estate medianValuation
- P/E
- 8.2
- Forward P/E
- 13.1
- EV / EBITDA
- 18.4
- Price / book
- 0.8
- Price / sales
- 6.2
- PEG
- 1.53
- Market cap
- 1.9B GBP
- Enterprise value
- 3.1B GBP
Profitability
- ROE
- 10.6%
- ROA
- 2.7%
- ROIC (approx.)
- 4.2%
- Gross margin
- 69.0%
- Operating margin
- 55.5%
- Net margin
- 67.5%
- Free cash flow
- 10.0M GBP
- FCF yield
- 0.5%
- Cash conversion
- 6%
Solvency
- Total debt
- 1.8B GBP
- Net debt
- 1.3B GBP
- Cash
- 469.2M GBP
- EBITDA
- 167.7M GBP
- Net debt / EBITDA
- 8.03
- Debt / equity
- 86.37
- Current ratio
- 0.77
- Quick ratio
- 0.73
Growth
- Revenue growth
- +39.9%
- Earnings growth
- −34.8%
- EPS (TTM)
- 0.40 GBP
- EPS (forward)
- 0.25 GBP
Dividend
- Dividend yield
- 5.5%
- Payout
- 40.9%
Risk and market
- Beta
- 1.78
- Analyst consensus
- Buy (14)
- Target price
- 3.91 GBP
Recent news
All HMSO.L news →Compare it with its sector
All 100 in Real Estate →Frequently asked questions about Hammerson
Is Hammerson stock cheap or expensive?
On P/E and Price / book, it trades 52% below the Real Estate median on average. Valuation score: 4.9 out of 10 (median for Real Estate: 4.9). Average analyst target: 3.91 GBP, +19.4% versus the price. This is not investment advice.
What score does Hammerson get on MeridIAn Screener?
It scores 4.6 out of 10, rank 1,839 of 2,130 (better than 13% of the companies analysed). Its strongest category is Momentum (6.6) and its weakest, Risk & Context (2.5). Analysis of 08/10/2026.
What is Hammerson's P/E ratio?
Its P/E is 8.2: the share price equals 8.2 times earnings per share over the last 12 months. The Real Estate median is 21.6. Based on the earnings analysts expect, the forward P/E is 13.1.
How much is Hammerson worth on the stock market?
Its market capitalisation is 1.9B GBP.
Does Hammerson pay a dividend?
Yes: its dividend yield is 5.49% and it pays out 41% of its earnings.
How has Hammerson stock performed over the last year?
It has risen 13.5% over the last year, excluding dividends. Over the last 52 weeks it has traded between 0.00 and 3.92 GBP. Past performance does not guarantee future results.
What do analysts think of Hammerson?
14 analysts cover it; their average recommendation is “Buy” and their average target is 3.91 GBP (+19.4% versus the price). It is an estimate, not market data.