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. More Details
No risks detected for HCG from our risk checks.
Undervalued with excellent 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 is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: HCG's weekly volatility (4%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: HCG exceeded the Canadian Mortgage industry which returned -17.9% over the past year.
Return vs Market: HCG underperformed the Canadian Market which returned 1.8% over the past year.
Long-Term 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
3 weeks ago | Simply Wall StEarnings Beat: Home Capital Group Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models
3 weeks ago | Simply Wall StThe Home Capital Group (TSE:HCG) Share Price Is Up 80% And Shareholders Are Holding On
1 month ago | Simply Wall StIf You Like EPS Growth Then Check Out Home Capital Group (TSE:HCG) Before It's Too Late
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$29.78) is trading below our estimate of fair value (CA$48.23)
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 (10.1x) compared to the CA Mortgage industry average (10.3x).
PE vs Market: HCG is good value based on its PE Ratio (10.1x) compared to the Canadian market (15.5x).
Price to Earnings Growth Ratio
PEG Ratio: HCG is good value based on its PEG Ratio (0.7x)
Price to Book Ratio
PB vs Industry: HCG's PB Ratio (1x) is in line with the CA Mortgage industry average.
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 (13.6% per year) is above the savings rate (1.7%).
Earnings vs Market: HCG's earnings (13.6% per year) are forecast to grow slower than the Canadian market (25.9% per year).
High Growth Earnings: HCG's earnings are forecast to grow, but not significantly.
Revenue vs Market: HCG's revenue (7.2% per year) is forecast to grow faster than the Canadian market (6.9% per year).
High Growth Revenue: HCG's revenue (7.2% 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 (11.1%).
How has Home Capital Group performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HCG has high quality earnings.
Growing Profit Margin: HCG's current net profit margins (33.2%) are higher than last year (32%).
Past Earnings Growth Analysis
Earnings Trend: HCG's earnings have declined by 20.5% per year over the past 5 years.
Accelerating Growth: HCG's earnings growth over the past year (17.1%) exceeds its 5-year average (-20.5% per year).
Earnings vs Industry: HCG earnings growth over the past year (17.1%) exceeded the Mortgage industry 4%.
Return on Equity
High ROE: HCG's Return on Equity (9.7%) 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
Financial Institutions Analysis
Asset Level: HCG's Assets to Equity ratio (11.9x) is moderate.
Allowance for Bad Loans: HCG has a low allowance for bad loans (75%).
Low Risk Liabilities: 79% 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 (90%).
Low Risk Deposits: HCG's Loans to Deposits ratio (124%) is appropriate.
Level of Bad Loans: HCG has an appropriate level of bad loans (0.6%).
What is Home Capital Group 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 recent payouts.
High Dividend: Unable to evaluate HCG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent 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 (60 yo)
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 ($USD1.93M) is about average for companies of similar size in the Canadian market ($USD2.09M).
Compensation vs Earnings: Yousry's compensation has been consistent with company performance over the past year.
|Executive VP & CFO||3.25yrs||CA$1.06m||0.11% |
|Executive VP & Chief Information Officer||2.92yrs||CA$747.86k||0.011% |
|General Counsel & Corporate Secretary||2.58yrs||CA$648.68k||0.0077% |
|Executive VP and Chief Digital & Strategy Officer||no data||CA$847.65k||0.025% |
|Director of Investor Relations||no data||no data||no data|
|Senior VP||no data||no data||0.000060% |
|Senior Vice President of Human Resources||3.08yrs||no data||0.0046% |
|Senior Vice President of Internal Audit||4.92yrs||no data||0.015% |
|Executive VP of Enterprise Risk Management & Chief Risk Officer||3.42yrs||CA$727.70k||0.013% |
|Senior Vice President of Commercial Real Estate Lending||no data||no data||0.0072% |
|Manager||no data||no data||no data|
Experienced Management: HCG's management team is considered experienced (3.3 years average tenure).
|Independent Chairman of the Board||2.58yrs||CA$265.00k||0.12% |
|Independent Director||3.58yrs||CA$135.00k||0.064% |
|Independent Director||3.58yrs||CA$145.00k||0.025% |
|Independent Director||3.58yrs||CA$145.00k||0.024% |
|Independent Director||3.58yrs||CA$135.00k||0.0097% |
|Independent Director||3.58yrs||CA$115.00k||0.024% |
|Independent Director||5.58yrs||CA$115.00k||0.014% |
|Independent Director||2.08yrs||CA$115.00k||no data|
|Independent Director||2.58yrs||CA$115.00k||0.012% |
|Independent Director||2.25yrs||CA$128.33k||0.0019% |
Experienced Board: HCG's board of directors are considered experienced (3.6 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 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$1.542b
- Shares outstanding: 51.81m
- 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 ...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/12/05 00:20|
|End of Day Share Price||2020/12/04 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.