NasdaqGS:HMST

Stock Analysis Report

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Executive Summary

HomeStreet, Inc. operates as the bank holding company for HomeStreet Bank, a state-chartered commercial bank that provides commercial and consumer banking services primarily in the Western United States. More Details


Snowflake Analysis

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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

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


Market Performance


7 Day Return

-0.2%

HMST

-0.08%

US Mortgage

-0.9%

US Market


1 Year Return

10.6%

HMST

5.9%

US Mortgage

19.6%

US Market

Return vs Industry: HMST exceeded the US Mortgage industry which returned 7.1% over the past year.

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


Shareholder returns

HMSTIndustryMarket
7 Day-0.2%-0.08%-0.9%
30 Day9.5%-0.7%3.0%
90 Day23.0%3.8%11.5%
1 Year12.9%10.6%9.1%5.9%22.3%19.6%
3 Year18.8%16.4%19.2%9.8%45.3%35.7%
5 Year92.5%88.6%90.6%63.5%124.8%99.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

22.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HMST ($36.49) is trading below our estimate of fair value ($46.76)

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


Price To Earnings Ratio

PE vs Industry: HMST's PE Ratio (13.1x) is in line with the US Mortgage industry average.

PE vs Market: HMST is good value based on its PE Ratio (13.1x) compared to the US market (21.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: HMST is overvalued based on its PB Ratio (1.2x) compared to the US Mortgage industry average (0.9x).


Next Steps

Future Growth

How is HomeStreet forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-2.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HMST's earnings are forecast to decline over the next 3 years (-2% per year).

Earnings vs Market: HMST's earnings are forecast to decline over the next 3 years (-2% per year).

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

Revenue vs Market: HMST's revenue is expected to decline over the next 3 years (-1.1% per year).

High Growth Revenue: HMST's revenue is forecast to decline over the next 3 years (-1.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HMST's Return on Equity is forecast to be low in 3 years time (9.7%).


Next Steps

Past Performance

How has HomeStreet performed over the past 5 years?

-0.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HMST has high quality earnings.

Growing Profit Margin: HMST's current net profit margins (21.3%) are higher than last year (15.4%).


Past Earnings Growth Analysis

Earnings Trend: HMST's earnings have declined by 0.8% per year over the past 5 years.

Accelerating Growth: HMST's earnings growth over the past year (67%) exceeds its 5-year average (-0.8% per year).

Earnings vs Industry: HMST earnings growth over the past year (67%) exceeded the Mortgage industry 2.7%.


Return on Equity

High ROE: HMST's Return on Equity (9.4%) is considered low.


Next Steps

Financial Health

How is HomeStreet'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: HMST's Assets to Equity ratio (10.6x) is moderate.

Allowance for Bad Loans: HMST has a sufficient allowance for bad loans (307%).

Low Risk Liabilities: 87% of HMST's liabilities are made up of primarily low risk sources of funding.

Loan Level: HMST has an appropriate level of Loans to Assets ratio (71%).

Low Risk Deposits: HMST's Loans to Deposits ratio (90%) is appropriate.

Level of Bad Loans: HMST has an appropriate level of bad loans (0.4%).


Next Steps

Dividend

What is HomeStreet current dividend yield, its reliability and sustainability?

1.64%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HMST's dividend (1.64%) is higher than the bottom 25% of dividend payers in the US market (1.38%).

High Dividend: HMST's dividend (1.64%) is low compared to the top 25% of dividend payers in the US market (3.84%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether HMST's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if HMST's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (16.1%), HMST's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HMST's dividends in 3 years are forecast to be well covered by earnings (18.8% payout ratio).


Next Steps

Management

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

8.5yrs

Average management tenure


CEO

Mark Mason (60 yo)

11yrs

Tenure

US$1,714,117

Compensation

Mr. Mark K. Mason has been the Chief Executive Officer of HomeStreet, Inc. since January 20, 2010, President since August 2010 and as its Executive Chairman of the Board since March 2015. Mr. Mason has bee...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD1.71M) is about average for companies of similar size in the US market ($USD2.38M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mark Mason
Executive Chairman11yrsUS$1.71m0.70%
$ 5.6m
Darrell van Amen
Chief Investment Officer8.5yrsUS$669.72k0.26%
$ 2.0m
Godfrey Evans
Chief Administrative Officer10.83yrsUS$595.97k0.21%
$ 1.7m
William Endresen
Commercial Capital President & Executive VP of Commercial Real Estate of Homestreet Bankno dataUS$1.34m0.024%
$ 187.9k
John Michel
Executive VP & CFO0.67yrno data0.13%
$ 1.0m
Troy Harper
Executive VP & Chief Information Officer5.58yrsno data0.021%
$ 170.5k
Gerhard Erdelji
Investor Relations Officerno datano datano data
Pamela Taylor
Executive VP & Human Resources Director6yrsno data0.15%
$ 1.2m
Jay Iseman
Executive VP & Chief Credit Officerno dataUS$354.33k0.24%
$ 1.9m
Richard W. Bennion
Executive Vice Presidentno dataUS$311.97kno data
Jeffrey Todhunter
Executive VP & Residential Construction Lending Director of HomeStreet Bankno datano datano data
Mary Vincent
Executive VP & Chief Risk Officer9yrsno data0.078%
$ 617.2k

8.5yrs

Average Tenure

61yo

Average Age

Experienced Management: HMST's management team is seasoned and experienced (8.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Mason
Executive Chairman11yrsUS$1.71m0.70%
$ 5.6m
Scott Boggs
Independent Director8.92yrsUS$92.96k0.12%
$ 930.4k
Mark Patterson
Independent Director3yrsUS$92.94k0.81%
$ 6.5m
Sandra Cavanaugh
Independent Director2.67yrsUS$82.96k0.038%
$ 305.2k
James Faulstich
Director Emeritusno datano datano data
Nancy Pellegrino
Independent Director1.25yrsUS$17.00k0.018%
$ 146.4k
Richard Page
Director Emeritusno datano datano data
Julianne Zimmerman
Director Emeritusno datano datano data
James Mitchell
Independent Director1yrno data0.030%
$ 234.8k
Donald Voss
Lead Independent Director2.58yrsUS$114.44k0.017%
$ 136.3k
Douglas Smith
Independent Director8.92yrsUS$82.90k0.41%
$ 3.3m
Jeffrey Green
Director0.58yrno data0.020%
$ 155.8k

2.7yrs

Average Tenure

66yo

Average Age

Experienced Board: HMST's board of directors are not considered experienced ( 2.7 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: HMST 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

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


Key Information

  • Name: HomeStreet, Inc.
  • Ticker: HMST
  • Exchange: NasdaqGS
  • Founded: 1921
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$795.042m
  • Shares outstanding: 21.79m
  • Website: https://www.homestreet.com

Number of Employees


Location

  • HomeStreet, Inc.
  • 601 Union Street
  • Suite 2000
  • Seattle
  • Washington
  • 98101
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HMSTNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDFeb 2012

Biography

HomeStreet, Inc. operates as the bank holding company for HomeStreet Bank, a state-chartered commercial bank that provides commercial and consumer banking services primarily in the Western United States. T...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/15 23:58
End of Day Share Price2021/01/15 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.