NasdaqGS:HBCP

Stock Analysis Report

Executive Summary

Home Bancorp, Inc. operates as the holding company for Home Bank, National Association that provides various banking products and services in Louisiana.

Rewards

PE ratio (12x) is below the US market (18.5x)

Earnings have grown 24.9% per year over the past 5 years

Risk Analysis

Unstable dividend track record

Shareholders have been diluted in the past year



Snowflake Analysis

Excellent balance sheet with acceptable track record.

Share Price & News

How has Home Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HBCP has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.8%

HBCP

-0.3%

US Mortgage

0.7%

US Market


1 Year Return

8.3%

HBCP

22.7%

US Mortgage

18.2%

US Market

Return vs Industry: HBCP underperformed the US Mortgage industry which returned 22.7% over the past year.

Return vs Market: HBCP underperformed the US Market which returned 18.2% over the past year.


Shareholder returns

HBCPIndustryMarket
7 Day0.8%-0.3%0.7%
30 Day1.4%-0.4%1.5%
90 Day-2.7%5.4%5.0%
1 Year10.8%8.3%25.4%22.7%20.8%18.2%
3 Year11.7%5.9%25.2%16.4%45.2%35.8%
5 Year82.7%68.4%75.4%56.4%71.6%52.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Home Bancorp undervalued compared to its fair value and its price relative to the market?

12.03x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HBCP ($38.81) is trading above our estimate of fair value ($34.73)

Significantly Below Fair Value: HBCP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HBCP is good value based on its PE Ratio (12x) compared to the Mortgage industry average (14.3x).

PE vs Market: HBCP is good value based on its PE Ratio (12x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: HBCP is poor value based on its PEG Ratio (34.5x)


Price to Book Ratio

PB vs Industry: HBCP is overvalued based on its PB Ratio (1.2x) compared to the US Mortgage industry average (1.1x).


Next Steps

Future Growth

How is Home Bancorp forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

0.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HBCP's forecast earnings growth (0.3% per year) is below the savings rate (1.7%).

Earnings vs Market: HBCP's earnings (0.3% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: HBCP's earnings are forecast to grow, but not significantly.

Revenue vs Market: HBCP's revenue (1.9% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: HBCP's revenue (1.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HBCP's Return on Equity is forecast to be low in 3 years time (8.5%).


Next Steps

Past Performance

How has Home Bancorp performed over the past 5 years?

24.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HBCP has high quality earnings.

Growing Profit Margin: HBCP's current net profit margins (30.5%) are higher than last year (27.1%).


Past Earnings Growth Analysis

Earnings Trend: HBCP's earnings have grown significantly by 24.9% per year over the past 5 years.

Accelerating Growth: HBCP's earnings growth over the past year (10%) is below its 5-year average (24.9% per year).

Earnings vs Industry: HBCP earnings growth over the past year (10%) underperformed the Mortgage industry 23.1%.


Return on Equity

High ROE: HBCP's Return on Equity (9.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Home Bancorp'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

Inventory Level: HBCP has a low level of unsold assets or inventory.

Debt Coverage by Assets: HBCP's debt is covered by short term assets (assets are 2.2x debt).


Financial Institutions Analysis

Asset Level: HBCP's level of assets compared to its equity is low.

Allowance for Bad Loans: HBCP has a low allowance for bad loans.

Low Risk Liabilities: HBCP's liabilities are made up of primarily low risk sources of funding.

Loan Level: HBCP has an acceptable proportion of non-loan assets held.

Low Risk Deposits: HBCP's loans are broadly funded by customer deposits.

Level of Bad Loans: HBCP has an appropriate level of bad loans (1.46%)


Next Steps

Dividend

What is Home Bancorp's current dividend yield, its reliability and sustainability?

2.27%

Current Dividend Yield


Dividend Yield vs Market

company2.3%marketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Years2.2%

Current dividend yield vs market & industry

Notable Dividend: HBCP's dividend (2.27%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: HBCP's dividend (2.27%) is low compared to the top 25% of dividend payers in the US market (3.7%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, HBCP has been paying a dividend for less than 10 years.

Growing Dividend: HBCP's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.4%), HBCP's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HBCP's dividends in 3 years are forecast to be well covered by earnings (25.9% payout ratio).


Next Steps

Management

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

11.7yrs

Average management tenure


CEO

John Bordelon (63yo)

11.9yrs

Tenure

US$802,277

Compensation

Mr. John W. Bordelon has been the Chief Executive Officer and President of Home Bank, National Association, a subsidiary of Home Bancorp, Inc. since 1993. Mr. Bordelon also serves as the Chief Executive Of ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD802.28K) is below average for companies of similar size in the US market ($USD1.67M).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Management Age and Tenure

11.7yrs

Average Tenure

54yo

Average Age

Experienced Management: HBCP's management team is seasoned and experienced (11.7 years average tenure).


Board Age and Tenure

11.6yrs

Average Tenure

64yo

Average Age

Experienced Board: HBCP's board of directors are seasoned and experienced ( 11.6 years average tenure).


Insider Trading

Insider Buying: HBCP insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$33,60020 Nov 19
Chris Rader
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares875
Max PriceUS$38.40
SellUS$226,08006 Sep 19
Joseph Zanco
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares6,000
Max PriceUS$37.68
SellUS$1,88822 Aug 19
Leon Maraist
EntityIndividual
Shares50
Max PriceUS$37.75
SellUS$73,12522 Aug 19
Leon Maraist
EntityIndividual
Shares1,950
Max PriceUS$37.50
BuyUS$35,90010 Jun 19
Chris Rader
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$35.90
SellUS$49,57210 May 19
John Bordelon
EntityIndividual
Role
Chief Executive Officer
President
Shares1,367
Max PriceUS$36.26
SellUS$7310 May 19
John Bordelon
EntityIndividual
Role
Chief Executive Officer
President
Shares2
Max PriceUS$36.35
SellUS$113,14609 May 19
John Bordelon
EntityIndividual
Role
Chief Executive Officer
President
Shares3,101
Max PriceUS$36.49
SellUS$232,12618 Mar 19
John Bordelon
EntityIndividual
Role
Chief Executive Officer
President
Shares6,476
Max PriceUS$35.84
BuyUS$35,00012 Mar 19
Michael Maraist
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares1,000
Max PriceUS$35.00
SellUS$91,65806 Mar 19
John Bordelon
EntityIndividual
Role
Chief Executive Officer
President
Shares2,554
Max PriceUS$36.00
SellUS$127,22322 Feb 19
Darren Guidry
EntityIndividual
Shares3,600
Max PriceUS$35.40
SellUS$178,75319 Feb 19
Darren Guidry
EntityIndividual
Shares5,063
Max PriceUS$35.42
SellUS$122,70014 Feb 19
Darren Guidry
EntityIndividual
Shares3,500
Max PriceUS$35.40
BuyUS$80,94019 Dec 18
Chris Rader
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$44.50

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5%.


Management Team

  • Joe Zanco (49yo)

    Executive VP & CFO

    • Tenure: 11.7yrs
    • Compensation: US$372.48k
  • Jason Freyou (54yo)

    Executive VP & COO

    • Tenure: 4.8yrs
    • Compensation: US$359.15k
  • John Bordelon (63yo)

    President

    • Tenure: 11.9yrs
    • Compensation: US$802.28k

Board Members

  • Mike Maraist (71yo)

    Chairman of the Board

    • Tenure: 11.9yrs
    • Compensation: US$60.88k
  • John Bordelon (63yo)

    President

    • Tenure: 11.9yrs
    • Compensation: US$802.28k
  • Paul Blanchet (64yo)

    Independent Director

    • Tenure: 11.6yrs
    • Compensation: US$52.88k
  • John Hendry (69yo)

    Independent Director

    • Tenure: 19.9yrs
    • Compensation: US$50.58k
  • Chris Rader (51yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$56.08k
  • Daniel Guidry (66yo)

    Independent Director

    • Tenure: 2yrs
    • Compensation: US$51.68k
  • Aubrey Cole (56yo)

    Independent Director

    • Tenure: 2yrs
    • Compensation: US$56.08k

Company Information

Home Bancorp, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Home Bancorp, Inc.
  • Ticker: HBCP
  • Exchange: NasdaqGS
  • Founded: 1908
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$359.987m
  • Shares outstanding: 9.28m
  • Website: https://www.home24bank.com

Location

  • Home Bancorp, Inc.
  • 503 Kaliste Saloom Road
  • Lafayette
  • Louisiana
  • 70508
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HBCPNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 2008

Biography

Home Bancorp, Inc. operates as the holding company for Home Bank, National Association that provides various banking products and services in Louisiana. It offers deposits products, including interest-bear ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 00:19
End of Day Share Price2019/12/10 00:00
Earnings2019/09/30
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.