NasdaqGM:HIFS

Stock Analysis Report

Hingham Institution for Savings

Executive Summary

Hingham Institution for Savings provides various financial products and services to individuals and small businesses in the United States.

Rewards

PE ratio (14x) is below the US market (18.9x)

Earnings grew by 28.1% over the past year

Risk Analysis

No risks detected for HIFS from our risk checks.


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has Hingham Institution for Savings's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.7%

HIFS

-0.7%

US Mortgage

-0.09%

US Market


1 Year Return

11.7%

HIFS

15.4%

US Mortgage

23.9%

US Market

Return vs Industry: HIFS underperformed the US Mortgage industry which returned 18.8% over the past year.

Return vs Market: HIFS underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

HIFSIndustryMarket
7 Day-0.7%-0.7%-0.09%
30 Day-2.1%-0.9%3.1%
90 Day8.8%-0.3%10.4%
1 Year13.0%11.7%17.9%15.4%26.6%23.9%
3 Year10.8%7.6%26.2%17.5%50.9%41.2%
5 Year146.4%133.7%73.1%54.4%78.1%58.5%

Price Volatility Vs. Market

How volatile is Hingham Institution for Savings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hingham Institution for Savings undervalued compared to its fair value and its price relative to the market?

11.21x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HIFS ($211.6) is trading above our estimate of fair value ($158.47)

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


Price To Earnings Ratio

PE vs Industry: HIFS is good value based on its PE Ratio (14x) compared to the Mortgage industry average (14.2x).

PE vs Market: HIFS is good value based on its PE Ratio (14x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HIFS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HIFS is overvalued based on its PB Ratio (1.9x) compared to the US Mortgage industry average (1.1x).


Next Steps

Future Growth

How is Hingham Institution for Savings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

9.0%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Hingham Institution for Savings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Hingham Institution for Savings performed over the past 5 years?

13.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HIFS has high quality earnings.

Growing Profit Margin: HIFS's current net profit margins (49.2%) are higher than last year (48.1%).


Past Earnings Growth Analysis

Earnings Trend: HIFS's earnings have grown by 12.2% per year over the past 5 years.

Accelerating Growth: HIFS's earnings growth over the past year (28.1%) exceeds its 5-year average (13.9% per year).

Earnings vs Industry: HIFS earnings growth over the past year (28.1%) exceeded the Mortgage industry 22.9%.


Return on Equity

High ROE: HIFS's Return on Equity (13.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Hingham Institution for Savings'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: HIFS has a low level of unsold assets or inventory.

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


Financial Institutions Analysis

Asset Level: HIFS's level of assets compared to its equity is moderate.

Allowance for Bad Loans: HIFS has a sufficient allowance for bad loans.

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

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

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

Level of Bad Loans: HIFS has an appropriate level of bad loans (0.06%)


Next Steps

Dividend

What is Hingham Institution for Savings's current dividend yield, its reliability and sustainability?

1.10%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: HIFS's dividend (0.99%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: HIFS's dividend (0.99%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: HIFS's dividend payments have been volatile in the past 10 years.

Growing Dividend: HIFS's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (10.2%), HIFS's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Hingham Institution for Savings's salary, the management and board of directors tenure and is there insider trading?

3.1yrs

Average management tenure


CEO

Robert Gaughen (70yo)

26.8yrs

Tenure

US$1,894,662

Compensation

Mr. Robert H. Gaughen Jr., Esq. has been the Chairman and Chief Executive Officer of Hingham Institution For Savings since April 29, 1993 and has been its Director since May 1991 and also served as its Pre ...


CEO Compensation Analysis

Compensation vs Market: Robert's total compensation ($USD1.89M) is about average for companies of similar size in the US market ($USD1.70M).

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


Management Age and Tenure

3.1yrs

Average Tenure

55.5yo

Average Age

Experienced Management: HIFS's management team is considered experienced (3.1 years average tenure).


Board Age and Tenure

26.4yrs

Average Tenure

66.5yo

Average Age

Experienced Board: HIFS's board of directors are seasoned and experienced ( 26.4 years average tenure).


Insider Trading

Insider Buying: HIFS insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$209,35031 Dec 19
William Donovan
EntityIndividual
Shares1,000
Max PriceUS$209.35
SellUS$423,60013 Dec 19
Kevin Gaughen
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,200
Max PriceUS$193.00
SellUS$108,28827 Nov 19
Estate Of Kevin W. Gaughen
EntityCompany
Shares564
Max PriceUS$192.00
SellUS$9,62522 Nov 19
William Donovan
EntityIndividual
Shares50
Max PriceUS$192.50
SellUS$188,74219 Nov 19
Kevin Gaughen
EntityIndividual
Role
Member of the Board of Directors
Director
Shares997
Max PriceUS$189.31
SellUS$57014 Nov 19
Kevin Gaughen
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3
Max PriceUS$190.00
SellUS$142,64308 Nov 19
Estate Of Kevin W. Gaughen
EntityCompany
Shares750
Max PriceUS$190.19
SellUS$94,50016 Oct 19
Jacqueline Youngworth
EntityIndividual
Role
Member of the Board of Directors
Clerk & Director
Shares500
Max PriceUS$189.00
SellUS$55,50013 Sep 19
Jacqueline Youngworth
EntityIndividual
Role
Member of the Board of Directors
Clerk & Director
Shares300
Max PriceUS$185.00
SellUS$45,35519 Aug 19
Jacqueline Youngworth
EntityIndividual
Role
Member of the Board of Directors
Clerk & Director
Shares235
Max PriceUS$193.00
SellUS$190,00005 Aug 19
Kevin Gaughen
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,000
Max PriceUS$190.00
SellUS$76,00019 Jul 19
Jacqueline Youngworth
EntityIndividual
Role
Member of the Board of Directors
Clerk & Director
Shares400
Max PriceUS$190.00
SellUS$117,79402 Jul 19
Scott Moser
EntityIndividual
Shares590
Max PriceUS$199.65
SellUS$1,52020 Jun 19
Jacqueline Youngworth
EntityIndividual
Role
Member of the Board of Directors
Clerk & Director
Shares8
Max PriceUS$190.00
SellUS$57,90016 May 19
Jacqueline Youngworth
EntityIndividual
Role
Member of the Board of Directors
Clerk & Director
Shares300
Max PriceUS$193.00
SellUS$68,00016 Apr 19
Jacqueline Youngworth
EntityIndividual
Role
Member of the Board of Directors
Clerk & Director
Shares400
Max PriceUS$170.00
SellUS$25,35016 Apr 19
Kevin Gaughen
EntityIndividual
Role
Member of the Board of Directors
Director
Shares150
Max PriceUS$169.00
BuyUS$21,71016 Apr 19
Brian Kenner
EntityIndividual
Shares128
Max PriceUS$169.61
BuyUS$3,76216 Apr 19
Brian Kenner
EntityIndividual
Shares22
Max PriceUS$171.00
BuyUS$29,40013 Apr 19
Robert Gaughen
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares175
Max PriceUS$168.00
SellUS$50,49910 Apr 19
Kevin Gaughen
EntityIndividual
Role
Member of the Board of Directors
Director
Shares279
Max PriceUS$181.00
SellUS$74,00024 Feb 19
Jacqueline Youngworth
EntityIndividual
Role
Member of the Board of Directors
Clerk & Director
Shares400
Max PriceUS$185.00
BuyUS$1,83130 Jan 19
Robert Gaughen
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares10
Max PriceUS$183.10

Ownership Breakdown

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


Management Team

  • Robert Gaughen (70yo)

    Chairman & CEO

    • Tenure: 26.8yrs
    • Compensation: US$1.89m
  • Jacqueline Youngworth (75yo)

    Clerk & Director

    • Tenure: 23yrs
    • Compensation: US$72.46k
  • Kelley Currey

    President of NPHS

    • Eileen Trainor

      VP & Treasurer

      • Janet Rice

        Assistant Vice President of Personnel

        • Patrick Gaughen (38yo)

          President

          • Tenure: 7.8yrs
          • Compensation: US$628.04k
        • Mark Constable

          Chief Compliance Officer & VP

          • Cristian Melej (41yo)

            VP & CFO

            • Tenure: 3.3yrs
            • Compensation: US$431.70k
          • Maggie McInnis

            Director of Marketing

            • Tenure: 2.3yrs
          • Joe Bears

            Chief Information Officer & VP

            • Tenure: 3.1yrs

          Board Members

          • Robert Gaughen (70yo)

            Chairman & CEO

            • Tenure: 26.8yrs
            • Compensation: US$1.89m
          • Kevin Gaughen (64yo)

            Director

            • Tenure: 26yrs
            • Compensation: US$59.03k
          • Howard Berger (70yo)

            Independent Director

            • Tenure: 22yrs
            • Compensation: US$30.98k
          • Ronald Falcione (69yo)

            Independent Director

            • Tenure: 27yrs
            • Compensation: US$60.53k
          • Julio Hernando (48yo)

            Director

            • Tenure: 26yrs
            • Compensation: US$60.02k
          • Robert Lane (52yo)

            Director

            • Tenure: 27yrs
            • Compensation: US$54.60k
          • Stacey Page (55yo)

            Independent Director

            • Tenure: 28yrs
            • Compensation: US$23.19k
          • Edward Sparda (76yo)

            Independent Director

            • Tenure: 27yrs
            • Compensation: US$21.37k
          • Jacqueline Youngworth (75yo)

            Clerk & Director

            • Tenure: 23yrs
            • Compensation: US$72.46k
          • Patrick Gaughen (38yo)

            President

            • Tenure: 7.8yrs
            • Compensation: US$628.04k

          Company Information

          Hingham Institution for Savings's company bio, employee growth, exchange listings and data sources


          Key Information

          • Name: Hingham Institution for Savings
          • Ticker: HIFS
          • Exchange: NasdaqGM
          • Founded: 1834
          • Industry: Thrifts and Mortgage Finance
          • Sector: Banks
          • Market Cap: US$436.761m
          • Shares outstanding: 2.14m
          • Website: https://www.hinghamsavings.com

          Number of Employees


          Location

          • Hingham Institution for Savings
          • 55 Main Street
          • Hingham
          • Massachusetts
          • 2043
          • United States

          Listings

          TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
          HIFSNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDDec 1988

          Biography

          Hingham Institution for Savings provides various financial products and services to individuals and small businesses in the United States. The company’s deposit products include savings, demand, regular, checking, negotiable order of withdrawal, and money market accounts, as well as certificates of deposit. Its loan portfolio comprises commercial real estate, construction, residential real estate, home equity, commercial, and consumer loans. The company also provides ATM, and telephone and Internet banking services. It serves its customers through a network of 11 offices in Boston and southeastern Massachusetts. The company was founded in 1834 and is headquartered in Hingham, Massachusetts. 


          Company Analysis and Financial Data Status

          All financial data provided by Standard & Poor's Capital IQ.
          DataLast Updated (UTC time)
          Company Analysis2020/01/23 23:48
          End of Day Share Price2020/01/23 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.