NasdaqGS:HMST

Stock Analysis Report

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 Pacific Northwest, California, and Hawaii.


Snowflake Analysis

Flawless balance sheet with acceptable 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.6%

HMST

-1.0%

US Mortgage

-1.1%

US Market


1 Year Return

11.1%

HMST

5.8%

US Mortgage

17.8%

US Market

Return vs Industry: HMST exceeded the US Mortgage industry which returned 5.8% over the past year.

Return vs Market: HMST underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

HMSTIndustryMarket
7 Day-6.6%-1.0%-1.1%
30 Day-3.9%-1.2%1.5%
90 Day-2.5%-3.2%6.6%
1 Year11.6%11.1%8.3%5.8%20.2%17.8%
3 Year13.3%12.8%18.4%10.0%47.5%38.1%
5 Year73.5%72.6%57.0%39.7%71.2%52.4%

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?

19.58x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HMST ($31.18) is trading above our estimate of fair value ($30.19)

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


Price To Earnings Ratio

PE vs Industry: HMST is poor value based on its PE Ratio (19.6x) compared to the Mortgage industry average (13.6x).

PE vs Market: HMST is poor value based on its PE Ratio (19.6x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: HMST is poor value based on its PEG Ratio (1x)


Price to Book Ratio

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


Next Steps

Future Growth

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

19.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HMST's forecast earnings growth (19.5% per year) is above the savings rate (1.7%).

Earnings vs Market: HMST's earnings (19.5% per year) are forecast to grow faster than the US market (14.1% per year).

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

Revenue vs Market: HMST's revenue (2.4% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: HMST's revenue (2.4% 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 (8.7%).


Next Steps

Past Performance

How has HomeStreet performed over the past 5 years?

6.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HMST has high quality earnings.

Growing Profit Margin: HMST's current net profit margins (15.4%) are higher than last year (9.2%).


Past Earnings Growth Analysis

Earnings Trend: HMST's earnings have grown by 6.8% per year over the past 5 years.

Accelerating Growth: HMST's earnings growth over the past year (1.7%) is below its 5-year average (6.8% per year).

Earnings vs Industry: HMST earnings growth over the past year (1.7%) underperformed the Mortgage industry 11.1%.


Return on Equity

High ROE: HMST's Return on Equity (6%) is considered low.


Return on Assets


Return on Capital Employed


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

Inventory Level: HMST has a low level of unsold assets or inventory.

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


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: HMST has an appropriate level of bad loans (0.25%)


Next Steps

Dividend

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

1.92%

Current Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years2.0%

Current dividend yield vs market & industry

Notable Dividend: HMST's dividend (1.92%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: HMST's dividend (1.92%) is low compared to the top 25% of dividend payers in the US market (3.73%).


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


Future Payout to Shareholders

Future Dividend Coverage: HMST's dividends in 3 years are forecast to be well covered by earnings (24.3% payout ratio).


Next Steps

Management

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

5.1yrs

Average management tenure


CEO

Mark Mason (59yo)

10.1yrs

Tenure

US$1,661,072

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 ($USD1.66M) is below average for companies of similar size in the US market ($USD2.51M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mark Mason
Executive Chairman10.1yrsUS$1.66m0.62% $4.6m
Mark Ruh
Executive VP & CFO2.8yrsUS$677.54k0.036% $267.6k
Darrell van Amen
Chief Investment Officer7.6yrsUS$642.15k0.23% $1.7m
William Endresen
Commercial Capital President & Executive VP of Commercial Real Estate of Homestreet Bank0yrsUS$1.22m0.015% $112.9k
Rose David
Senior EVP & Mortgage Lending Director of HomeStreet Bank5.1yrsUS$901.04k0.099% $740.4k
Troy Harper
Executive VP & Chief Information Officer4.7yrsno data0.017% $123.7k
Godfrey Evans
Chief Administrative Officer9.9yrsUS$690.69k0.20% $1.5m
Gerhard Erdelji
Investor Relations Officer0yrsno datano data
Pamela Taylor
Executive VP & Human Resources Director5.1yrsno data0.13% $991.7k
Richard W. Bennion
Executive Vice President0yrsUS$311.97k0.14% $1.0m

5.1yrs

Average Tenure

59yo

Average Age

Experienced Management: HMST's management team is seasoned and experienced (5.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Mason
Executive Chairman10.1yrsUS$1.66m0.62% $4.6m
David Ederer
Chairman Emeritus4.9yrsUS$89.25k0.16% $1.2m
Thomas King
Independent Director8yrsUS$86.33k0.082% $610.4k
Scott Boggs
Independent Director8yrsUS$122.25k0.098% $733.3k
Mark Patterson
Independent Director2.1yrsUS$89.50k0.41% $3.0m
Sandra Cavanaugh
Independent Director1.8yrsUS$49.92k0.029% $217.7k
Nancy Pellegrino
Director0.3yrsno data0.00093% $6.9k
George Kirk
Independent Director8yrsUS$96.25k0.10% $777.2k
Donald Voss
Lead Independent Director1.7yrsUS$113.03k0.031% $230.5k
Douglas Smith
Independent Director8yrsUS$100.50k0.33% $2.5m

4.9yrs

Average Tenure

65yo

Average Age

Experienced Board: HMST's board of directors are considered experienced (4.9 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 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$744.917m
  • Shares outstanding: 23.89m
  • 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 Pacific Northwest, California, and Hawaii. The company operates in two segments, Commercial and Consumer Banking, and Mortgage Banking. The Commercial and Consumer Banking segment offers deposit products; non-deposit investment products; and insurance products and cash management services. It also offers consumer loans, single family residential mortgages, loans secured by commercial real estate, construction loans for residential and commercial real estate projects, commercial business loans, and agricultural loans; and bridge loans and permanent loans primarily on single family residences, as well as on office, retail, industrial, and multifamily property types. This segment provides its products and services through bank branches, lending centers, and ATMs, as well as through online, mobile, and telephone banking. The Mortgage Banking segment originates single family residential mortgage loans for sale in the secondary market. This segment is also involved in the sale of loans on a servicing-released and servicing-retained basis to securitizers and correspondent lenders. As of December 31, 2018, it had a network of 60 retail deposit branches located in Washington state, Southern California, the Portland, Oregon, and Hawaii; and 32 primary stand-alone home loan centers and 6 primary commercial lending centers. The company was formerly known as Continental Mortgage and Loan Company. HomeStreet, Inc. was founded in 1921 and is headquartered in Seattle, Washington. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 01:23
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.