HCG Stock Overview
Home Capital Group Inc., through its subsidiary, Home Trust Company, provides residential and nonresidential mortgage lending, securitization of residential mortgage products, consumer lending, and credit card services in Canada.
Home Capital Group Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||CA$26.03|
|52 Week High||CA$46.92|
|52 Week Low||CA$24.49|
|1 Month Change||-13.00%|
|3 Month Change||-31.75%|
|1 Year Change||-29.02%|
|3 Year Change||34.24%|
|5 Year Change||53.21%|
|Change since IPO||4,954.37%|
Recent News & Updates
Need To Know: Analysts Just Made A Substantial Cut To Their Home Capital Group Inc. (TSE:HCG) Estimates
The analysts covering Home Capital Group Inc. ( TSE:HCG ) delivered a dose of negativity to shareholders today, by...
|HCG||CA Mortgage||CA Market|
Return vs Industry: HCG underperformed the Canadian Mortgage industry which returned -20.7% over the past year.
Return vs Market: HCG underperformed the Canadian Market which returned -4% over the past year.
|HCG Average Weekly Movement||6.0%|
|Mortgage Industry Average Movement||3.2%|
|Market Average Movement||10.0%|
|10% most volatile stocks in CA Market||17.3%|
|10% least volatile stocks in CA Market||4.4%|
Stable Share Price: HCG is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: HCG's weekly volatility (6%) has been stable over the past year.
About the Company
Home Capital Group Inc., through its subsidiary, Home Trust Company, provides residential and nonresidential mortgage lending, securitization of residential mortgage products, consumer lending, and credit card services in Canada. It offers deposits through brokers and financial planners under the Oaken Financial brand. The company also provides credit card and line of credit services, including Equityline Visa product, a home equity line of credit that is secured by residential property; and cash-secured and unsecured credit card products.
Home Capital Group Fundamentals Summary
|HCG fundamental statistics|
Is HCG overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|HCG income statement (TTM)|
|Cost of Revenue||CA$0|
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
|Earnings per share (EPS)||5.30|
|Net Profit Margin||40.37%|
How did HCG perform over the long term?See historical performance and comparison
2.3%Current Dividend Yield
Is HCG undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 6/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for HCG?
Other financial metrics that can be useful for relative valuation.
|What is HCG's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does HCG's PE Ratio compare to its peers?
|HCG PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
FN First National Financial
MKP MCAN Mortgage
AI Atrium Mortgage Investment
HCG Home Capital Group
Price-To-Earnings vs Peers: HCG is good value based on its Price-To-Earnings Ratio (4.9x) compared to the peer average (9.2x).
Price to Earnings Ratio vs Industry
How does HCG's PE Ratio compare vs other companies in the North American Mortgage Industry?
Price-To-Earnings vs Industry: HCG is good value based on its Price-To-Earnings Ratio (4.9x) compared to the Canadian Mortgage industry average (8.2x)
Price to Earnings Ratio vs Fair Ratio
What is HCG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||4.9x|
|Fair PE Ratio||11.5x|
Price-To-Earnings vs Fair Ratio: HCG is good value based on its Price-To-Earnings Ratio (4.9x) compared to the estimated Fair Price-To-Earnings Ratio (11.5x).
Share Price vs Fair Value
What is the Fair Price of HCG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: HCG (CA$26.03) is trading below our estimate of fair value (CA$111.48)
Significantly Below Fair Value: HCG is trading below fair value by more than 20%.
Price to Earnings Growth Ratio
PEG Ratio: HCG is good value based on its PEG Ratio (0.8x)
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How is Home Capital Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
Future Growth Score1/6
Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HCG's forecast earnings growth (6.1% per year) is above the savings rate (1.6%).
Earnings vs Market: HCG's earnings (6.1% per year) are forecast to grow slower than the Canadian market (8.2% per year).
High Growth Earnings: HCG's earnings are forecast to grow, but not significantly.
Revenue vs Market: HCG's revenue (4.1% per year) is forecast to grow slower than the Canadian market (6.9% per year).
High Growth Revenue: HCG's revenue (4.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: HCG's Return on Equity is forecast to be low in 3 years time (13.6%).
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How has Home Capital Group performed over the past 5 years?
Past Performance Score3/6
Past Performance Score 3/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HCG has high quality earnings.
Growing Profit Margin: HCG's current net profit margins (40.4%) are higher than last year (38.2%).
Past Earnings Growth Analysis
Earnings Trend: HCG's earnings have grown significantly by 24% per year over the past 5 years.
Accelerating Growth: HCG's earnings growth over the past year (5.9%) is below its 5-year average (24% per year).
Earnings vs Industry: HCG earnings growth over the past year (5.9%) underperformed the Mortgage industry 7.2%.
Return on Equity
High ROE: HCG's Return on Equity (14.1%) is considered low.
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How is Home Capital Group's financial position? (This company is analysed differently as a bank or financial institution)
Financial Health Score5/6
Financial Health Score 5/6
Allowance for Bad Loans
Low Risk Liabilities
Low Risk Deposits
Level of Bad Loans
Financial Position Analysis
Debt to Equity History and Analysis
Financial Institutions Analysis
Asset Level: HCG's Assets to Equity ratio (13.3x) is moderate.
Allowance for Bad Loans: HCG has a sufficient allowance for bad loans (136%).
Low Risk Liabilities: 74% of HCG's liabilities are made up of primarily low risk sources of funding.
Loan Level: HCG has an appropriate level of Loans to Assets ratio (92%).
Low Risk Deposits: HCG's Loans to Deposits ratio (135%) is high.
Level of Bad Loans: HCG has an appropriate level of bad loans (0.1%).
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What is Home Capital Group current dividend yield, its reliability and sustainability?
Dividend Score 4/6
Future Dividend Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: HCG's dividend (2.31%) is higher than the bottom 25% of dividend payers in the Canadian market (2.03%).
High Dividend: HCG's dividend (2.31%) is low compared to the top 25% of dividend payers in the Canadian market (5.33%).
Stability and Growth of Payments
Stable Dividend: HCG's dividend payments have been volatile in the past 10 years.
Growing Dividend: HCG's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Earnings Coverage: With its low payout ratio (3.2%), HCG's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: HCG's dividends in 3 years are forecast to be thoroughly covered by earnings (12.1% payout ratio).
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Yousry Bissada (61 yo)
Mr. Yousry Bissada serves as Independent Director at FirstService Corporation since April 6, 2022. He has been President and Chief Executive Officer at Home Capital Group Inc. and Home Trust Company since...
CEO Compensation Analysis
Compensation vs Market: Yousry's total compensation ($USD2.22M) is above average for companies of similar size in the Canadian market ($USD1.57M).
Compensation vs Earnings: Yousry's compensation has been consistent with company performance over the past year.
Experienced Management: HCG's management team is considered experienced (4.6 years average tenure).
Experienced Board: HCG's board of directors are considered experienced (4.5 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: HCG insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Home Capital Group Inc.'s employee growth, exchange listings and data sources
- Name: Home Capital Group Inc.
- Ticker: HCG
- Exchange: TSX
- Founded: 1986
- Industry: Thrifts and Mortgage Finance
- Sector: Banks
- Implied Market Cap: CA$1.093b
- Shares outstanding: 42.43m
- Website: https://www.homecapital.com
Number of Employees
- Home Capital Group Inc.
- 145 King Street West
- Suite 2300
- M5H 1J8
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/06/27 00:00|
|End of Day Share Price||2022/06/27 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.