NasdaqCM:HBMD

Stock Analysis Report

Executive Summary

Howard Bancorp, Inc. operates as the bank holding company for Howard Bank that provides commercial banking, mortgage banking, and consumer finance products and services to businesses, business owners, professionals, and other consumers.


Snowflake Analysis

Excellent balance sheet with questionable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0.9%

HBMD

-0.3%

US Banks

0.06%

US Market


1 Year Return

33.2%

HBMD

11.1%

US Banks

19.3%

US Market

Return vs Industry: HBMD exceeded the US Banks industry which returned 11.1% over the past year.

Return vs Market: HBMD exceeded the US Market which returned 19.3% over the past year.


Shareholder returns

HBMDIndustryMarket
7 Day0.9%-0.3%0.06%
30 Day3.6%-0.5%1.7%
90 Day9.6%0.6%9.0%
1 Year33.2%33.2%14.4%11.1%21.8%19.3%
3 Year-2.0%-2.0%24.7%15.7%49.5%39.9%
5 Year32.5%32.5%74.9%55.1%73.1%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

20.58x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HBMD ($18.26) is trading above our estimate of fair value ($17.03)

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


Price To Earnings Ratio

PE vs Industry: HBMD is poor value based on its PE Ratio (20.6x) compared to the Banks industry average (12.6x).

PE vs Market: HBMD is poor value based on its PE Ratio (20.6x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: HBMD is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: HBMD is good value based on its PB Ratio (1.1x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

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

11.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HBMD's forecast earnings growth (11.1% per year) is above the savings rate (1.7%).

Earnings vs Market: HBMD's earnings (11.1% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: HBMD's revenue is expected to decline over the next 3 years (-0.1% per year).

High Growth Revenue: HBMD's revenue is forecast to decline over the next 3 years (-0.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HBMD's Return on Equity is forecast to be low in 3 years time (7.2%).


Next Steps

Past Performance

How has Howard Bancorp performed over the past 5 years?

-3.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HBMD has high quality earnings.

Growing Profit Margin: HBMD became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: HBMD's earnings have declined by -3.1% per year over the past 5 years.

Accelerating Growth: HBMD has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: HBMD has become profitable in the last year, making it difficult to compare its past year earnings growth to the Banks industry (12.2%).


Return on Equity

High ROE: HBMD's Return on Equity (5.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Howard 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: HBMD has a low level of unsold assets or inventory.

Debt Coverage by Assets: HBMD's debt is not covered by short term assets (assets are 0.5x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: HBMD has an appropriate level of bad loans (1.1%)


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate HBMD's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate HBMD's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HBMD's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HBMD's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HBMD's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

8.1yrs

Average management tenure


CEO

Mary Scully (68yo)

14.2yrs

Tenure

US$1,034,969

Compensation

Ms. Mary Ann Scully is Chief Executive Officer and Chairman of Howard Bank and Howard Bancorp, Inc. She is a lifelong banker with over 30 years of varied executive experiences in the Maryland marketplace.  ...


CEO Compensation Analysis

Compensation vs Market: Mary's total compensation ($USD1.03M) is below average for companies of similar size in the US market ($USD1.66M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mary Scully
Chairman & CEO14.2yrsUS$1.03m0.75% $2.6m
Robert Kunisch
President & Director1.9yrsUS$1.80m0.65% $2.3m
Charles Schwabe
Executive VP14.2yrsUS$440.54k0.27% $925.2k
George Coffman
Executive Officer0yrsUS$594.13k0.36% $1.2m
Robert Carpenter
Interim CFO & Principal Accounting Officer0yrsno datano data
Steven Poynot
Executive VP & Chief Information Officer2.1yrsno data0.0040% $13.9k
Kevin Emerson
Senior VP & Chief Human Resource Officer0yrsno datano data
Frank Turner
Executive VP & Chief Commercial Banking Officer0yrsno data0.033% $113.6k
Steven McKone
Executive VP & Chief Deposit Officer0yrsno data0.00049% $1.7k
Thomas Jones
Executive VP & Chief Credit Officer0yrsno data0.0065% $22.8k

8.1yrs

Average Tenure

59.5yo

Average Age

Experienced Management: HBMD's management team is seasoned and experienced (8.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mary Scully
Chairman & CEO14.2yrsUS$1.03m0.75% $2.6m
Robert Kunisch
President & Director1.9yrsUS$1.80m0.65% $2.3m
Thomas O'Neill
Independent Director4.5yrsUS$35.09k0.14% $482.1k
Paul Latta
Independent Director15.1yrsUS$40.84k0.54% $1.9m
Kenneth Lundeen
Independent Director15.1yrsUS$37.09k0.76% $2.6m
Richard Arnold
Independent Director15.1yrsUS$37.09k0.74% $2.6m
William Dorsch
Independent Director1.9yrsUS$30.42k0.073% $253.3k
John Keenan
Independent Director5.7yrsUS$38.09k0.061% $211.5k
Donna Staton
Independent Director10.2yrsUS$36.34k0.085% $294.2k
Robert Smith
Lead Independent Director3.1yrsUS$47.09k0.22% $769.1k

7.9yrs

Average Tenure

66.5yo

Average Age

Experienced Board: HBMD's board of directors are considered experienced (7.9 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.6%.


Top Shareholders

Company Information

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


Key Information

  • Name: Howard Bancorp, Inc.
  • Ticker: HBMD
  • Exchange: NasdaqCM
  • Founded: 2004
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$348.162m
  • Shares outstanding: 19.07m
  • Website: https://www.howardbank.com

Number of Employees


Location

  • Howard Bancorp, Inc.
  • 3301 Boston Street
  • Baltimore
  • Maryland
  • 21224
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HBMDNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDMar 2006

Biography

Howard Bancorp, Inc. operates as the bank holding company for Howard Bank that provides commercial banking, mortgage banking, and consumer finance products and services to businesses, business owners, professionals, and other consumers. The company offers various consumer and business deposit products, including demand, money market, savings, individual retirement, and commercial and retail checking accounts, as well as certificates of deposit. It also provides commercial loans, such as lines of credit, revolving credit facilities, accounts receivable and inventory financing, term loans, equipment loans, small business administration loans, stand-by letters of credit, and unsecured loans; commercial mortgage loans for owner occupied and investment properties; construction loans; residential mortgage loans; and secured and unsecured consumer loans. In addition, the company offers wire transfer services; automated teller machines and check cards; and safe deposit boxes, as well as credit cards through a third party processor. Further, it provides Internet banking, merchant card, overnight sweep, and remote deposit capture services; and Mobiliti mobile banking, PopMoney, and eStatement products. As of December 31, 2018, the company operated through a network of 21 full service branches, as well as 11 mortgage and commercial lending offices located in Maryland. Howard Bancorp, Inc. was founded in 2004 and is headquartered in Baltimore, Maryland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 01:20
End of Day Share Price2020/02/21 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.