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.


Snowflake Analysis

Undervalued with excellent balance sheet.

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

0.5%

HBCP

-2.3%

US Mortgage

-4.2%

US Market


1 Year Return

3.0%

HBCP

5.0%

US Mortgage

14.0%

US Market

Return vs Industry: HBCP underperformed the US Mortgage industry which returned 5% over the past year.

Return vs Market: HBCP underperformed the US Market which returned 14% over the past year.


Shareholder returns

HBCPIndustryMarket
7 Day0.5%-2.3%-4.2%
30 Day-3.8%-2.7%-1.8%
90 Day-7.5%-5.3%2.6%
1 Year5.4%3.0%7.5%5.0%16.3%14.0%
3 Year6.4%0.6%17.3%9.0%43.2%34.0%
5 Year84.6%69.7%54.5%37.4%65.9%47.6%

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?

27.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HBCP ($36.2) is trading below our estimate of fair value ($50.2)

Significantly Below Fair Value: HBCP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HBCP is good value based on its PE Ratio (11.8x) compared to the Mortgage industry average (13.5x).

PE vs Market: HBCP is good value based on its PE Ratio (11.8x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: HBCP's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: HBCP is good value based on its PB Ratio (1.1x) 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 4 analysts?

-0.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HBCP's earnings are forecast to decline over the next 3 years (-0.9% per year).

Earnings vs Market: HBCP's earnings are forecast to decline over the next 3 years (-0.9% per year).

High Growth Earnings: HBCP's earnings are forecast to decline over the next 3 years.

Revenue vs Market: HBCP's revenue is expected to decline over the next 3 years (-3.8% per year).

High Growth Revenue: HBCP's revenue is forecast to decline over the next 3 years (-3.8% 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 (8.1%).


Next Steps

Past Performance

How has Home Bancorp performed over the past 5 years?

23.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HBCP has high quality earnings.

Growing Profit Margin: HBCP's current net profit margins (29%) are lower than last year (31.1%).


Past Earnings Growth Analysis

Earnings Trend: HBCP's earnings have grown significantly by 23.4% 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 (-11.6%) over the past year, making it difficult to compare to the Mortgage industry average (11.1%).


Return on Equity

High ROE: HBCP's Return on Equity (8.8%) 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 1.9x 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 (1.42%)


Next Steps

Dividend

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

2.43%

Current Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%1.5%markettop25%3.8%industryaverage3.0%forecastin3Years2.3%

Current dividend yield vs market & industry

Notable Dividend: HBCP's dividend (2.43%) is higher than the bottom 25% of dividend payers in the US market (1.48%).

High Dividend: HBCP's dividend (2.43%) is low compared to the top 25% of dividend payers in the US market (3.77%).


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 (27.3%), 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 (26% payout ratio).


Next Steps

Management

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

11.8yrs

Average management tenure


CEO

John Bordelon (63yo)

12.1yrs

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 ($USD802.28K) is below average for companies of similar size in the US market ($USD1.72M).

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


Leadership Team

NamePositionTenureCompensationOwnership
John Bordelon
President12.1yrsUS$802.28k1.82% $6.1m
Joseph Zanco
Executive VP & CFO11.8yrsUS$372.48k0.77% $2.6m
Jason Freyou
Executive VP & COO4.9yrsUS$359.15k0.096% $321.3k

11.8yrs

Average Tenure

54yo

Average Age

Experienced Management: HBCP's management team is seasoned and experienced (11.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Bordelon
President12.1yrsUS$802.28k1.82% $6.1m
Michael Maraist
Chairman of the Board12.1yrsUS$60.88k1.96% $6.6m
Paul Blanchet
Independent Director11.8yrsUS$52.88k0.76% $2.5m
John Hendry
Independent Director20.1yrsUS$50.58k1.79% $6.0m
Chris Rader
Independent Director3.7yrsUS$56.08k0.15% $515.9k
Daniel Guidry
Independent Director2.2yrsUS$51.68k0.63% $2.1m
Mark Cole
Independent Director2.2yrsUS$56.08k0.20% $672.1k

11.8yrs

Average Tenure

64yo

Average Age

Experienced Board: HBCP's board of directors are seasoned and experienced ( 11.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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$334.938m
  • Shares outstanding: 9.25m
  • 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-bearing and noninterest-bearing checking, money market, savings, and certificates of deposit accounts. The company also provides various loan products, such as one-to four-family first mortgage loans, home equity loans and lines, commercial real estate loans, construction and land loans, multi-family residential loans, commercial and industrial loans, and consumer loans. In addition, it invests in securities; and offers online banking services. The company operates through a network of 39 banking offices in the Acadiana, Baton Rouge, Greater New Orleans, and Northshore regions of south Louisiana; and the Natchez and Vicksburg regions of west Mississippi. Home Bancorp, Inc. was founded in 1908 and is headquartered in Lafayette, Louisiana. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 01:01
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
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.