NasdaqGS:HBCP

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet second-rate dividend payer.

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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: HBCP's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-7.8%

HBCP

-3.4%

US Mortgage

0.6%

US Market


1 Year Return

-26.3%

HBCP

-9.4%

US Mortgage

22.7%

US Market

Return vs Industry: HBCP underperformed the US Mortgage industry which returned -11.5% over the past year.

Return vs Market: HBCP underperformed the US Market which returned 21% over the past year.


Shareholder returns

HBCPIndustryMarket
7 Day-7.8%-3.4%0.6%
30 Day11.8%9.3%13.1%
90 Day11.7%-14.5%4.5%
1 Year-23.8%-26.3%-6.6%-9.4%25.5%22.7%
3 Year-29.0%-34.0%11.7%2.6%49.0%39.1%
5 Year18.9%7.4%36.5%18.1%98.3%76.5%

Long-Term 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?

17.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HBCP ($28.21) is trading below our estimate of fair value ($33.99)

Significantly Below Fair Value: HBCP is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: HBCP is poor value based on its PE Ratio (12.5x) compared to the US Mortgage industry average (12.2x).

PE vs Market: HBCP is good value based on its PE Ratio (12.5x) compared to the US market (19.3x).


Price to Earnings Growth Ratio

PEG Ratio: HBCP is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: HBCP's PB Ratio (0.8x) is in line with the US Mortgage industry average.


Next Steps

Future Growth

How is Home Bancorp forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

9.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HBCP's forecast earnings growth (9.4% per year) is above the savings rate (2.2%).

Earnings vs Market: HBCP's earnings (9.4% per year) are forecast to grow slower than the US market (21.9% per year).

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

Revenue vs Market: HBCP's revenue is expected to decline over the next 3 years (-0.4% per year).

High Growth Revenue: HBCP's revenue is forecast to decline over the next 3 years (-0.4% 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 (7.4%).


Next Steps

Past Performance

How has Home Bancorp performed over the past 5 years?

14.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HBCP has high quality earnings.

Growing Profit Margin: HBCP's current net profit margins (23%) are lower than last year (30.1%).


Past Earnings Growth Analysis

Earnings Trend: HBCP's earnings have grown by 14.5% per year over the past 5 years.

Accelerating Growth: HBCP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HBCP had negative earnings growth (-32.7%) over the past year, making it difficult to compare to the Mortgage industry average (4.3%).


Return on Equity

High ROE: HBCP's Return on Equity (6.3%) is considered low.


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


Financial Institutions Analysis

Asset Level: HBCP's Assets to Equity ratio (8.2x) is low.

Allowance for Bad Loans: HBCP has a sufficient allowance for bad loans (144%).

Low Risk Liabilities: 97% of HBCP's liabilities are made up of primarily low risk sources of funding.

Loan Level: HBCP has an appropriate level of Loans to Assets ratio (75%).

Low Risk Deposits: HBCP's Loans to Deposits ratio (87%) is appropriate.

Level of Bad Loans: HBCP has an appropriate level of bad loans (1.2%).


Next Steps

Dividend

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

3.12%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HBCP's dividend (3.12%) is higher than the bottom 25% of dividend payers in the US market (1.5%).

High Dividend: HBCP's dividend (3.12%) is low compared to the top 25% of dividend payers in the US market (4.18%).


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 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (39.1%), 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 (30.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.1yrs

Average management tenure


CEO

John Bordelon (64 yo)

12.83yrs

Tenure

US$893,650

Compensation

Mr. John W. Bordelon serves as the Chief Executive Officer and President at Home Bancorp, Inc., serves as its Chairman since May 2020 and has been its Director since May 2008. Mr. Bordelon serves as Chairm...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD893.65K) is about average for companies of similar size in the US market ($USD1.12M).

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


Leadership Team

NamePositionTenureCompensationOwnership
John Bordelon
Chairman12.83yrsUS$893.65k1.93%
$ 4.8m
Jason Freyou
Executive VP & COO5.67yrsUS$387.40k0.12%
$ 289.5k
Darren Guidry
Executive VP & Chief Credit Officer7.08yrsUS$357.90k0.47%
$ 1.2m
Daniel Guidry
Independent Director & Corporate Secretary2.92yrsUS$62.48k0.68%
$ 1.7m
David Kirkley
Chief Financial Officerno datano datano data

7.1yrs

Average Tenure

60.5yo

Average Age

Experienced Management: HBCP's management team is seasoned and experienced (7.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Bordelon
Chairman12.83yrsUS$893.65k1.93%
$ 4.8m
Daniel Guidry
Independent Director & Corporate Secretary2.92yrsUS$62.48k0.68%
$ 1.7m
Paul Blanchet
Independent Director12.5yrsUS$58.33k0.80%
$ 2.0m
John Hendry
Independent Director20.83yrsUS$57.18k1.89%
$ 4.7m
Ann Trappey
Director0.42yrno data0.022%
$ 53.6k
Chris Rader
Independent Director4.42yrsUS$61.58k0.18%
$ 435.0k
Mark Cole
Independent Director2.92yrsUS$62.88k0.21%
$ 526.2k

2.9yrs

Average Tenure

64.5yo

Average Age

Experienced Board: HBCP's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$246.986m
  • Shares outstanding: 8.76m
  • 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 and Mississippi. It offers deposits products, includi...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/02 00:02
End of Day Share Price2020/12/01 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.