NasdaqGS:HAFC

Stock Analysis Report

Executive Summary

Hanmi Financial Corporation operates as the holding company for Hanmi Bank that provides business banking products and services in the United States.

Snowflake

Fundamentals

Very undervalued with excellent balance sheet.

Risks

  • Hanmi Financial has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has Hanmi Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-8.5%

NasdaqGS:HAFC

-2.6%

US Banks

-1.0%

US Market


1 Year Return

-29.4%

NasdaqGS:HAFC

-14.2%

US Banks

-0.4%

US Market

HAFC underperformed the Banks industry which returned -14.2% over the past year.

HAFC underperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

HAFCIndustryMarket
7 Day-8.5%-2.6%-1.0%
30 Day-16.6%-6.3%-3.3%
90 Day-18.7%-3.5%0.8%
1 Year-26.2%-29.4%-11.8%-14.2%1.9%-0.4%
3 Year-19.7%-27.6%42.2%32.4%39.4%30.4%
5 Year-0.01%-14.0%53.3%36.7%54.2%37.1%

Price Volatility Vs. Market

How volatile is Hanmi Financial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hanmi Financial undervalued based on future cash flows and its price relative to the stock market?

41%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Hanmi Financial's share price is below the future cash flow value, and at a moderate discount (> 20%).

Hanmi Financial's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Hanmi Financial is good value based on earnings compared to the US Banks industry average.

Hanmi Financial is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Hanmi Financial is good value based on expected growth next year.


Price Based on Value of Assets

Hanmi Financial is good value based on assets compared to the US Banks industry average.


Next Steps

Future Growth

How is Hanmi Financial expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

11.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Hanmi Financial's revenue is expected to grow by 4.5% yearly, however this is not considered high growth (20% yearly).

Hanmi Financial's earnings are expected to grow by 11.9% yearly, however this is not considered high growth (20% yearly).

Hanmi Financial's revenue growth is positive but not above the United States of America market average.

Hanmi Financial's earnings growth is positive but not above the United States of America market average.

Hanmi Financial's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Hanmi Financial will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Hanmi Financial performed over the past 5 years?

4.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Hanmi Financial's year on year earnings growth rate has been positive over the past 5 years.

Hanmi Financial's 1-year earnings growth is less than its 5-year average (3.5% vs 4.4%)

Hanmi Financial's earnings growth has not exceeded the US Banks industry average in the past year (3.5% vs 33.2%).


Return on Equity

Hanmi Financial has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Hanmi Financial used its assets less efficiently than the US Banks industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Hanmi Financial improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is Hanmi Financial's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Hanmi Financial has an acceptable proportion of non-loan assets held.

Hanmi Financial has a low allowance for bad loans.

Hanmi Financial's liabilities are made up of primarily low risk sources of funding.

Hanmi Financial's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).

Loans at Hanmi Financial are broadly funded by customer deposits.

Hanmi Financial has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

What is Hanmi Financial's current dividend yield, its reliability and sustainability?

5.44%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Hanmi Financial's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Hanmi Financial's dividend is above the markets top 25% of dividend payers in United States of America (3.84%).

Whilst dividend payments have been stable, Hanmi Financial has been paying a dividend for less than 10 years.

Dividend payments have increased, but Hanmi Financial only paid a dividend in the past 6 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.9x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Hanmi Financial's salary, the management and board of directors tenure and is there insider trading?

3.1yrs

Average management tenure


CEO

Bonnie Lee (56yo)

0.3yrs

Tenure

US$443,811

Compensation

Ms. Bonita I. Lee, also known as Bonnie, has been Chief Executive Officer of Hanmi Financial Corporation and Hanmi Bank since May 3, 2019 and its President since June 2018. She served as Chief Operating Of ...


CEO Compensation Analysis

Bonnie's remuneration is lower than average for companies of similar size in United States of America.

Bonnie's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.1yrs

Average Tenure

56yo

Average Age

The tenure for the Hanmi Financial management team is about average.


Board Age and Tenure

1.5yrs

Average Tenure

56yo

Average Age

The average tenure for the Hanmi Financial board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$856,85418 May 19
Joseph Rho
EntityIndividual
Shares37,500
Max PriceUS$23.05
SellUS$840,19218 Apr 19
Joseph Rho
EntityIndividual
Shares37,500
Max PriceUS$22.55
SellUS$1,439,83613 Apr 19
Joseph Rho
EntityIndividual
Shares64,499
Max PriceUS$22.41
SellUS$234,29605 Apr 19
Joseph Rho
EntityIndividual
Shares10,496
Max PriceUS$22.37
SellUS$11205 Apr 19
Joseph Rho
EntityIndividual
Shares5
Max PriceUS$22.30

Ownership Breakdown


Management Team

  • Ron Santarosa (63yo)

    Senior EVP & CFO

    • Tenure: 3.8yrs
    • Compensation: $860.98k
  • Bonnie Lee (56yo)

    President

    • Tenure: 0.3yrs
    • Compensation: $443.81k
  • Greg Kim (58yo)

    Chief Administrative Officer & Executive VP of Hanmi Bank

    • Tenure: 6.0yrs
    • Compensation: $293.48k
  • Jean Lim (56yo)

    Chief Risk Officer & Executive VP of Hanmi Bank

    • Tenure: 6.0yrs
    • Compensation: $391.17k
  • Mike Park (56yo)

    Executive VP & Chief Credit Risk Officer

    • Tenure: 2.4yrs
    • Compensation: $538.42k
  • Matthew Fuhr (56yo)

    Executive VP & Chief Credit Administrative Officer of Hanmi Bank

    • Tenure: 2.4yrs
    • Compensation: $381.48k
  • Vivian Kim

    Senior VP


Board Members

  • Kiho Choi (63yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: $93.12k
  • John Ahn (54yo)

    Chairman

    • Tenure: 0.6yrs
    • Compensation: $121.22k
  • Christie Chu (54yo)

    Director

    • Tenure: 4.4yrs
    • Compensation: $121.02k
  • Bonnie Lee (56yo)

    President

    • Tenure: 0.3yrs
    • Compensation: $443.81k
  • David Rosenblum (66yo)

    Vice Chairman

    • Tenure: 0.6yrs
    • Compensation: $122.12k
  • Scott Diehl (57yo)

    Director

    • Tenure: 1.5yrs
    • Compensation: $104.92k
  • Harry Chung (49yo)

    Director

    • Tenure: 3.5yrs
    • Compensation: $123.62k
  • Michael Yang (56yo)

    Director

    • Tenure: 3.5yrs
    • Compensation: $116.87k
  • Tom Williams (56yo)

    Director

    • Tenure: 3.2yrs
    • Compensation: $117.12k

Company Information

Hanmi Financial Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hanmi Financial Corporation
  • Ticker: HAFC
  • Exchange: NasdaqGS
  • Founded: 2000
  • Industry: regional banks
  • Sector: banks
  • Market Cap: US$558.885m
  • Shares outstanding: 30.74m
  • Website: Click here

Number of Employees


Location

  • Hanmi Financial Corporation
  • 3660 Wilshire Boulevard
  • Penthouse Suite A
  • Los Angeles
  • California
  • 90010
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HAFCNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDJun 1994
HF7NDB (Deutsche Boerse AG)YesCommon SharesDEEURJun 1994

Biography

Hanmi Financial Corporation operates as the holding company for Hanmi Bank that provides business banking products and services in the United States. The company offers various deposit products, including  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/17 23:39
End of Day Share Price2019/08/16 00:00
Earnings2019/03/31
Annual Earnings2018/12/31


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.