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HMST

HomeStreet NasdaqGS:HMST Stock Report

Last Price

US$35.51

Market Cap

US$664.2m

7D

1.5%

1Y

-12.8%

Updated

29 Jun, 2022

Data

Company Financials +
HMST fundamental analysis
Snowflake Score
Valuation6/6
Future Growth1/6
Past Performance3/6
Financial Health6/6
Dividends3/6

HMST Stock Overview

HomeStreet, Inc. operates as the bank holding company for HomeStreet Bank that provides commercial, mortgage, and consumer/retail banking services primarily in the Western United States.

HomeStreet Competitors

Price History & Performance

Summary of all time highs, changes and price drops for HomeStreet
Historical stock prices
Current Share PriceUS$35.51
52 Week HighUS$57.40
52 Week LowUS$33.76
Beta1.02
1 Month Change-12.65%
3 Month Change-25.05%
1 Year Change-12.84%
3 Year Change17.78%
5 Year Change25.48%
Change since IPO195.92%

Recent News & Updates

Shareholder Returns

HMSTUS BanksUS Market
7D1.5%-0.01%1.6%
1Y-12.8%-18.2%-20.8%

Return vs Industry: HMST exceeded the US Banks industry which returned -16.9% over the past year.

Return vs Market: HMST exceeded the US Market which returned -20.4% over the past year.

Price Volatility

Is HMST's price volatile compared to industry and market?
HMST volatility
HMST Average Weekly Movement4.7%
Banks Industry Average Movement3.8%
Market Average Movement8.1%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market3.2%

Stable Share Price: HMST is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: HMST's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1921962Mark Masonhttps://www.homestreet.com

HomeStreet, Inc. operates as the bank holding company for HomeStreet Bank that provides commercial, mortgage, and consumer/retail banking services primarily in the Western United States. The company offers personal and business checking, savings accounts, interest-bearing negotiable order of withdrawal accounts, money market accounts, and time certificates of deposit; credit cards; insurance; and treasury management products and services. Its loan products include commercial business and agriculture loans, single family residential mortgages, consumer loans, commercial loans secured by residential and commercial real estate, and construction loans for residential and commercial real estate development, as well as consumer installment loans and permanent loans on commercial real estate and single-family residences.

HomeStreet Fundamentals Summary

How do HomeStreet's earnings and revenue compare to its market cap?
HMST fundamental statistics
Market CapUS$664.16m
Earnings (TTM)US$105.71m
Revenue (TTM)US$347.79m

6.3x

P/E Ratio

1.1x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HMST income statement (TTM)
RevenueUS$347.79m
Cost of RevenueUS$0
Gross ProfitUS$347.79m
Other ExpensesUS$242.08m
EarningsUS$105.71m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)5.65
Gross Margin100.00%
Net Profit Margin30.40%
Debt/Equity Ratio83.8%

How did HMST perform over the long term?

See historical performance and comparison

Dividends

3.9%

Current Dividend Yield

21%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is HMST undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HMST?

Other financial metrics that can be useful for relative valuation.

HMST key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio0.8x

Price to Earnings Ratio vs Peers

How does HMST's PE Ratio compare to its peers?

HMST PE Ratio vs Peers
The above table shows the PE ratio for HMST vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average9.1x
CFB CrossFirst Bankshares
8.9x6.7%US$660.8m
FFIC Flushing Financial
8x-6.5%US$649.1m
HONE HarborOne Bancorp
12.9x-7.2%US$661.1m
HAFC Hanmi Financial
6.6x-2.7%US$676.4m
HMST HomeStreet
6.3x7.7%US$664.2m

Price-To-Earnings vs Peers: HMST is good value based on its Price-To-Earnings Ratio (6.3x) compared to the peer average (9.1x).


Price to Earnings Ratio vs Industry

How does HMST's PE Ratio compare vs other companies in the US Banks Industry?

Price-To-Earnings vs Industry: HMST is good value based on its Price-To-Earnings Ratio (6.3x) compared to the US Banks industry average (9.5x)


Price to Earnings Ratio vs Fair Ratio

What is HMST's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HMST PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.3x
Fair PE Ratio12.5x

Price-To-Earnings vs Fair Ratio: HMST is good value based on its Price-To-Earnings Ratio (6.3x) compared to the estimated Fair Price-To-Earnings Ratio (12.5x).


Share Price vs Fair Value

What is the Fair Price of HMST when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HMST ($35.51) is trading below our estimate of fair value ($112.65)

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


Price to Earnings Growth Ratio

PEG Ratio: HMST is good value based on its PEG Ratio (0.8x)


Discover undervalued companies

Future Growth

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

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


7.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HMST's forecast earnings growth (7.7% per year) is above the savings rate (1.9%).

Earnings vs Market: HMST's earnings (7.7% per year) are forecast to grow slower than the US market (13.7% per year).

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

Revenue vs Market: HMST's revenue (5.3% per year) is forecast to grow slower than the US market (8.3% per year).

High Growth Revenue: HMST's revenue (5.3% per year) is forecast to grow slower than 20% 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 (15.7%).


Discover growth companies

Past Performance

How has HomeStreet performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


22.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HMST has high quality earnings.

Growing Profit Margin: HMST's current net profit margins (30.4%) are higher than last year (27.9%).


Past Earnings Growth Analysis

Earnings Trend: HMST's earnings have grown significantly by 22.4% per year over the past 5 years.

Accelerating Growth: HMST's earnings growth over the past year (3.1%) is below its 5-year average (22.4% per year).

Earnings vs Industry: HMST earnings growth over the past year (3.1%) underperformed the Banks industry 20.7%.


Return on Equity

High ROE: HMST's Return on Equity (17.6%) is considered low.


Discover strong past performing companies

Financial Health

How is HomeStreet's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

6/6

Financial Health Score 6/6

  • Asset Level

  • Allowance for Bad Loans

  • Low Risk Liabilities

  • Loan Level

  • Low Risk Deposits

  • Level of Bad Loans

Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: HMST's Assets to Equity ratio (12.5x) is moderate.

Allowance for Bad Loans: HMST has a sufficient allowance for bad loans (320%).

Low Risk Liabilities: 91% 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 (78%).

Low Risk Deposits: HMST's Loans to Deposits ratio (93%) is appropriate.

Level of Bad Loans: HMST has an appropriate level of bad loans (0.2%).


Discover healthy companies

Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


3.94%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: HMST's dividend (3.94%) is higher than the bottom 25% of dividend payers in the US market (1.59%).

High Dividend: HMST's dividend (3.94%) is low compared to the top 25% of dividend payers in the US market (4.25%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, HMST has been paying a dividend for less than 10 years.

Growing Dividend: HMST's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Earnings Coverage: With its low payout ratio (21.2%), 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 (27.1% payout ratio).


Discover strong dividend paying companies

Management

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

9.9yrs

Average management tenure


CEO

Mark Mason (61 yo)

12.42yrs

Tenure

US$2,502,021

Compensation

Mr. Mark K. Mason has been the Chief Executive Officer and Director of HomeStreet, Inc. since January 20, 2010 and has been its President since August 16, 2010 and has been its Executive Chairman since Mar...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD2.50M) is below average for companies of similar size in the US market ($USD4.00M).

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


Leadership Team

Experienced Management: HMST's management team is seasoned and experienced (9.9 years average tenure).


Board Members

Experienced Board: HMST's board of directors are considered experienced (4.1 years average tenure).


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 employee growth, exchange listings and data sources


Key Information

  • Name: HomeStreet, Inc.
  • Ticker: HMST
  • Exchange: NasdaqGS
  • Founded: 1921
  • Industry: Regional Banks
  • Sector: Banks
  • Implied Market Cap: US$664.164m
  • Shares outstanding: 18.70m
  • Website: https://www.homestreet.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/29 00:00
End of Day Share Price2022/06/29 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.