NasdaqGM:HMNF

Stock Analysis Report

Executive Summary

HMN Financial, Inc. operates as a bank holding company for Home Federal Savings Bank that provides retail banking products and services.


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has HMN Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

5.8%

HMNF

-13.0%

US Mortgage

-2.6%

US Market


1 Year Return

-22.1%

HMNF

-36.4%

US Mortgage

-13.3%

US Market

Return vs Industry: HMNF exceeded the US Mortgage industry which returned -31.1% over the past year.

Return vs Market: HMNF underperformed the US Market which returned -13.6% over the past year.


Shareholder returns

HMNFIndustryMarket
7 Day5.8%-13.0%-2.6%
30 Day-12.0%-36.1%-15.2%
90 Day-16.9%-41.2%-22.2%
1 Year-22.1%-22.1%-34.9%-36.4%-11.5%-13.3%
3 Year-2.7%-2.7%-28.7%-33.7%13.2%5.7%
5 Year44.1%44.1%-11.1%-20.9%31.8%17.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is HMN Financial undervalued compared to its fair value and its price relative to the market?

32.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HMNF ($17.59) is trading below our estimate of fair value ($25.93)

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


Price To Earnings Ratio

PE vs Industry: HMNF is poor value based on its PE Ratio (10.4x) compared to the Mortgage industry average (10.4x).

PE vs Market: HMNF is good value based on its PE Ratio (10.4x) compared to the US market (12.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: HMNF is overvalued based on its PB Ratio (0.9x) compared to the US Mortgage industry average (0.8x).


Next Steps

Future Growth

How is HMN Financial forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

1.8%

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 HMN Financial 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 HMN Financial performed over the past 5 years?

15.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HMNF has high quality earnings.

Growing Profit Margin: HMNF's current net profit margins (20.4%) are lower than last year (22.6%).


Past Earnings Growth Analysis

Earnings Trend: HMNF's earnings have grown by 15.9% per year over the past 5 years.

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

Earnings vs Industry: HMNF had negative earnings growth (-5.4%) over the past year, making it difficult to compare to the Mortgage industry average (10.7%).


Return on Equity

High ROE: HMNF's Return on Equity (8.4%) is considered low.


Next Steps

Financial Health

How is HMN Financial's financial position?


Financial Position Analysis

Short Term Liabilities: HMNF's short term assets ($53.3M) do not cover its short term liabilities ($679.4M).

Long Term Liabilities: HMNF's short term assets ($53.3M) exceed its long term liabilities ($5.6M).


Debt to Equity History and Analysis

Debt Level: HMNF is debt free.

Reducing Debt: HMNF has no debt compared to 5 years ago when its debt to equity ratio was 0.1%.

Debt Coverage: HMNF has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: HMNF has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is HMN Financial's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate HMNF'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 HMNF's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: HMNF is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HMNF'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?

10.2yrs

Average management tenure


CEO

Brad Krehbiel (60yo)

8s

Tenure

US$468,307

Compensation

Mr. Bradley C. Krehbiel, also known as Brad, has been the Chief Executive Officer at HMN Financial, Inc. since April 2012 and has been its President since April 2010. Mr. Krehbiel has been President of Hom ...


CEO Compensation Analysis

Compensation vs Market: Brad's total compensation ($USD468.31K) is about average for companies of similar size in the US market ($USD605.16K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Bradley Krehbiel
President8yrsUS$468.31k2.83% $2.3m
Jon Eberle
Senior VP16.5yrsUS$336.69k1.97% $1.6m
Lawrence McGraw
Executive VP & COO of Home Federal Savings Bank10.17yrsUS$335.44k1.27% $1.0m
Cindy Hamlin
Corporate Secretaryno datano datano data

10.2yrs

Average Tenure

55yo

Average Age

Experienced Management: HMNF's management team is seasoned and experienced (10.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bradley Krehbiel
President8yrsUS$468.31k2.83% $2.3m
Roger Weise
Director Emeritus16yrsUS$102.79kno data
Allen Berning
Independent Director9yrsUS$26.08k0.13% $104.0k
Hugh Smith
Independent Chairman9yrsUS$48.18k0.50% $413.2k
Bernard Nigon
Independent Director9yrsUS$34.58k0.18% $146.4k
Mark Utz
Independent Director8.25yrsUS$24.88k0.078% $64.5k
Wendy Shannon
Independent Vice Chairno dataUS$32.43k0.088% $72.8k
Michael Bue
Independent Director4yrsUS$29.58k0.029% $23.8k
Hans Zietlow
Independent Director4yrsUS$26.18k0.096% $79.3k
Sequoya Borgman
Independent Director1yrUS$24.70k0.013% $11.1k

9.0yrs

Average Tenure

64.5yo

Average Age

Experienced Board: HMNF's board of directors are considered experienced (9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: HMNF 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 5.5%.


Top Shareholders

Company Information

HMN Financial, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information


Number of Employees


Location

  • HMN Financial, Inc.
  • 1016 Civic Center Drive Northwest
  • Rochester
  • Minnesota
  • 55901
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HMNFNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDJun 1994

Biography

HMN Financial, Inc. operates as a bank holding company for Home Federal Savings Bank that provides retail banking products and services. The company offers various deposit accounts, such as savings, negotiable order of withdrawal, non-interest bearing checking, money market, and certificate accounts, including individual retirement accounts. It also provides single family residential loans; commercial real estate and multi-family mortgage loans; construction and commercial business loans; and consumer loans, such as home equity, automobile, recreational vehicle, mobile home, and lot loans, as well as loans secured by deposit accounts, and other loans for household and personal purposes. In addition, the company offers financial planning products and services; and invests in mortgage-backed and related securities, the United States government agency obligations, and other permissible investments. The company operates through 14 full service branches located in Minnesota and Iowa; and 2 loan production offices located in Minnesota and Wisconsin. HMN Financial, Inc. was founded in 1934 and is based in Rochester, Minnesota. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 02:28
End of Day Share Price2020/04/06 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.