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.
Very undervalued with adequate balance sheet.
Share Price & News
How has Home Capital Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: HCG's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: HCG exceeded the Canadian Mortgage industry which returned -24.1% over the past year.
Return vs Market: HCG exceeded the Canadian Market which returned -24.5% over the past year.
Price Volatility Vs. Market
How volatile is Home Capital Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 days ago | Simply Wall StShould You Investigate Home Capital Group Inc. (TSE:HCG) At CA$17.97?
2 weeks ago | Simply Wall StA Sliding Share Price Has Us Looking At Home Capital Group Inc.'s (TSE:HCG) P/E Ratio
1 month ago | Simply Wall StDoes Home Capital Group Inc. (TSE:HCG) Have A Particularly Volatile Share Price?
Is Home Capital Group undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: HCG (CA$15.27) is trading below our estimate of fair value (CA$56.95)
Significantly Below Fair Value: HCG is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: HCG is good value based on its PE Ratio (6.7x) compared to the Mortgage industry average (6.7x).
PE vs Market: HCG is good value based on its PE Ratio (6.7x) compared to the Canadian market (10.3x).
Price to Earnings Growth Ratio
PEG Ratio: HCG is good value based on its PEG Ratio (0.5x)
Price to Book Ratio
PB vs Industry: HCG is good value based on its PB Ratio (0.5x) compared to the CA Mortgage industry average (0.7x).
How is Home Capital Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HCG's forecast earnings growth (14.6% per year) is above the savings rate (1.4%).
Earnings vs Market: HCG's earnings (14.6% per year) are forecast to grow faster than the Canadian market (7.4% per year).
High Growth Earnings: HCG's earnings are forecast to grow, but not significantly.
Revenue vs Market: HCG's revenue (6% per year) is forecast to grow faster than the Canadian market (3.8% per year).
High Growth Revenue: HCG's revenue (6% 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 (10.9%).
How has Home Capital Group performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HCG has a high level of non-cash earnings.
Growing Profit Margin: HCG's current net profit margins (31.2%) are lower than last year (33.3%).
Past Earnings Growth Analysis
Earnings Trend: HCG's earnings have declined by -28.2% per year over the past 5 years.
Accelerating Growth: HCG's earnings growth over the past year (2.6%) exceeds its 5-year average (-28.2% per year).
Earnings vs Industry: HCG earnings growth over the past year (2.6%) underperformed the Mortgage industry 12.7%.
Return on Equity
High ROE: HCG's Return on Equity (8.1%) is considered low.
How is Home Capital Group's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Inventory Level: HCG has a low level of unsold assets or inventory.
Debt Coverage by Assets: HCG's debt is not covered by short term assets (assets are 0.5x debt).
Financial Institutions Analysis
Asset Level: HCG's level of assets compared to its equity is moderate.
Allowance for Bad Loans: HCG has a low allowance for bad loans.
Low Risk Liabilities: HCG's liabilities are made up of primarily low risk sources of funding.
Loan Level: HCG has an acceptable proportion of non-loan assets held.
Low Risk Deposits: HCG has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: HCG has an appropriate level of bad loans (0.58%)
What is Home Capital Group's current dividend yield, its reliability and sustainability?
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate HCG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate HCG's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if HCG's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if HCG's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: HCG is not paying a notable dividend for the Canadian market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of HCG's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Yousry Bissada (59yo)
Mr. Yousry Bissada has been President and Chief Executive Officer at Home Capital Group Inc. and Home Trust Company since August 3, 2017. Mr. Bissada has been the President and Chief Executive Officer at H ...
CEO Compensation Analysis
Compensation vs Market: Yousry's total compensation ($USD1.71M) is above average for companies of similar size in the Canadian market ($USD1.23M).
Compensation vs Earnings: Yousry's compensation has increased by more than 20% in the past year.
|Executive VP & CFO||2.42yrs||CA$873.01k||0.10% CA$839.9k|
|Executive VP and Chief Digital & Strategy Officer||no data||CA$838.88k||0.021% CA$166.5k|
|Director of Investor Relations||no data||no data||no data|
|Senior VP||no data||no data||0.000050% CA$404.3|
|General Counsel & Corporate Secretary||1.67yrs||no data||0.0075% CA$60.7k|
|Senior Vice President of Human Resources||2.25yrs||no data||0.0046% CA$36.8k|
|Senior Vice President of Internal Audit||4.17yrs||no data||0.011% CA$90.6k|
|Executive VP of Enterprise Risk Management & Chief Risk Officer||2.67yrs||CA$727.70k||0.011% CA$91.3k|
|Senior Vice President of Commercial Real Estate Lending||no data||no data||no data|
Experienced Management: HCG's management team is considered experienced (2.5 years average tenure).
|Independent Chairman of the Board||1.83yrs||CA$165.99k||0.11% CA$916.2k|
|Independent Director||2.83yrs||CA$135.00k||0.045% CA$366.5k|
|Independent Director||2.83yrs||CA$145.00k||0.017% CA$140.5k|
|Independent Director||2.83yrs||CA$145.00k||0.024% CA$190.1k|
|Independent Director||2.83yrs||CA$135.00k||0.0094% CA$76.3k|
|Independent Director||2.83yrs||CA$115.00k||0.024% CA$190.8k|
|Non-Independent Director||4.83yrs||CA$115.00k||0.013% CA$106.9k|
|Independent Director||1.83yrs||CA$72.03k||0.011% CA$91.6k|
|Independent Director||1.42yrs||CA$28.75k||0.0019% CA$15.3k|
Experienced Board: HCG's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.
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 company bio, employee growth, exchange listings and data sources
- Name: Home Capital Group Inc.
- Ticker: HCG
- Exchange: TSX
- Founded: 1977
- Industry: Thrifts and Mortgage Finance
- Sector: Banks
- Market Cap: CA$808.645m
- Shares outstanding: 52.96m
- Website: https://www.homecapital.com
Number of Employees
- Home Capital Group Inc.
- 145 King Street West
- Suite 2300
- M5H 1J8
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|HCG||TSX (The Toronto Stock Exchange)||Yes||Common Shares||CA||CAD||Jan 1982|
|7HC||DB (Deutsche Boerse AG)||Yes||Common Shares||DE||EUR||Jan 1982|
|HMCB.F||OTCPK (Pink Sheets LLC)||Yes||Common Shares||US||USD||Jan 1982|
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 via brokers and financial planners, and under the Oaken Financial brand. The company also provides credit card and line of credit lending 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. In addition, it offers consumer retail lending services for durable household goods, such as water heaters and larger-ticket home improvement items; and consumer loans. Further, the company manages a treasury portfolio. The company operates through offices in Ontario, Alberta, British Columbia, Nova Scotia, Quebec, and Manitoba. Home Capital Group Inc. was founded in 1977 and is based in Toronto, Canada.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/03/31 01:48|
|End of Day Share Price||2020/03/30 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.