Hope Bancorp
Market Cap
US$1.5b
Last Updated
2021/01/19 00:25 UTC
Data Sources
Company Financials +
Executive Summary
Hope Bancorp, Inc. operates as the bank holding company for Bank of Hope that provides banking services to small and medium-sized businesses and individuals in the United States. More Details
Rewards
Risk Analysis
Snowflake Analysis
Very undervalued with flawless balance sheet and pays a dividend.
Similar Companies
Share Price & News
How has Hope Bancorp's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: HOPE is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.
Volatility Over Time: HOPE's weekly volatility (8%) has been stable over the past year.
Market Performance
7 Day Return
3.1%
HOPE
-0.4%
US Banks
-0.4%
US Market
1 Year Return
-16.4%
HOPE
-7.3%
US Banks
19.5%
US Market
Return vs Industry: HOPE underperformed the US Banks industry which returned -7.2% over the past year.
Return vs Market: HOPE underperformed the US Market which returned 19.6% over the past year.
Shareholder returns
| HOPE | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.1% | -0.4% | -0.4% |
| 30 Day | 19.1% | 13.4% | 2.3% |
| 90 Day | 53.9% | 38.1% | 12.7% |
| 1 Year | -11.2%-16.4% | -3.8%-7.3% | 22.3%19.5% |
| 3 Year | -26.2%-35.4% | 0.9%-7.7% | 44.4%34.8% |
| 5 Year | 3.9%-13.9% | 93.5%69.0% | 128.7%103.3% |
Long-Term Price Volatility Vs. Market
How volatile is Hope Bancorp's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 weeks ago | Simply Wall St
Consider This Before Buying Hope Bancorp, Inc. (NASDAQ:HOPE) For The 5.2% Dividend1 month ago | Simply Wall St
How Much Are Hope Bancorp, Inc. (NASDAQ:HOPE) Insiders Taking Off The Table?2 months ago | Simply Wall St
How Many Hope Bancorp, Inc. (NASDAQ:HOPE) Shares Do Institutions Own?Valuation
Is Hope Bancorp undervalued compared to its fair value and its price relative to the market?
30.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: HOPE ($12.37) is trading below our estimate of fair value ($17.91)
Significantly Below Fair Value: HOPE is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: HOPE is good value based on its PE Ratio (12.2x) compared to the US Banks industry average (12.3x).
PE vs Market: HOPE is good value based on its PE Ratio (12.2x) compared to the US market (21x).
Price to Earnings Growth Ratio
PEG Ratio: HOPE is good value based on its PEG Ratio (0.9x)
Price to Book Ratio
PB vs Industry: HOPE is good value based on its PB Ratio (0.7x) compared to the US Banks industry average (1x).
Next Steps
Future Growth
How is Hope Bancorp forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
13.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HOPE's forecast earnings growth (13.6% per year) is above the savings rate (2%).
Earnings vs Market: HOPE's earnings (13.6% per year) are forecast to grow slower than the US market (21.5% per year).
High Growth Earnings: HOPE's earnings are forecast to grow, but not significantly.
Revenue vs Market: HOPE's revenue (4.4% per year) is forecast to grow slower than the US market (10.3% per year).
High Growth Revenue: HOPE's revenue (4.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: HOPE's Return on Equity is forecast to be low in 3 years time (7.1%).
Next Steps
Past Performance
How has Hope Bancorp performed over the past 5 years?
10.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HOPE has high quality earnings.
Growing Profit Margin: HOPE's current net profit margins (28.2%) are lower than last year (33.5%).
Past Earnings Growth Analysis
Earnings Trend: HOPE's earnings have grown by 10.8% per year over the past 5 years.
Accelerating Growth: HOPE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: HOPE had negative earnings growth (-26.8%) over the past year, making it difficult to compare to the Banks industry average (-4.4%).
Return on Equity
High ROE: HOPE's Return on Equity (6.2%) is considered low.
Next Steps
Financial Health
How is Hope Bancorp'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: HOPE's Assets to Equity ratio (8.2x) is low.
Allowance for Bad Loans: HOPE has a sufficient allowance for bad loans (169%).
Low Risk Liabilities: 95% of HOPE's liabilities are made up of primarily low risk sources of funding.
Loan Level: HOPE has an appropriate level of Loans to Assets ratio (77%).
Low Risk Deposits: HOPE's Loans to Deposits ratio (92%) is appropriate.
Level of Bad Loans: HOPE has an appropriate level of bad loans (0.8%).
Next Steps
Dividend
What is Hope Bancorp current dividend yield, its reliability and sustainability?
4.53%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: HOPE's dividend (4.53%) is higher than the bottom 25% of dividend payers in the US market (1.39%).
High Dividend: HOPE's dividend (4.53%) is in the top 25% of dividend payers in the US market (3.85%)
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, HOPE has been paying a dividend for less than 10 years.
Growing Dividend: HOPE's dividend payments have increased, but the company has only paid a dividend for 8 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (55.1%), HOPE's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: HOPE's dividends in 3 years are forecast to be well covered by earnings (46.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.5yrs
Average management tenure
CEO
Kevin Kim (62 yo)
7.83yrs
Tenure
US$2,708,084
Compensation
Mr. Kevin Sung Kim has been the Chief Executive Officer and President of Hope Bancorp, Inc. since March 7, 2013 and serves as its Executive Director since December 2011. Mr. Kim has been Chairman of the Bo...
CEO Compensation Analysis
Compensation vs Market: Kevin's total compensation ($USD2.71M) is below average for companies of similar size in the US market ($USD3.88M).
Compensation vs Earnings: Kevin's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 7.83yrs | US$2.71m | 0.49% $ 7.5m | |
| Executive VP & CFO | 3.25yrs | US$684.59k | 0.011% $ 164.1k | |
| Senior EVP & Regional President of Eastern Region-Bank of Hope | no data | US$697.62k | 0.021% $ 326.1k | |
| Executive VP & Chief Risk Officer | no data | US$762.88k | 0.0013% $ 19.4k | |
| Senior VP and Director of IR & Corporate Communications | no data | no data | no data | |
| Executive VP & General Counsel | 4.5yrs | no data | no data | |
| Executive VP & Chief Credit Officer - Bank of Hope | 4.5yrs | no data | 0.050% $ 766.8k | |
| Vice President of Eastern Region | 12.17yrs | no data | no data | |
| EVP & Chief Commercial Banking Officer of Bank of Hope | 9.08yrs | US$343.35k | 0.030% $ 463.5k | |
| Executive VP & Chief Retail Banking Officer - Bank of Hope | 3.67yrs | no data | 0.0026% $ 39.6k | |
| EVP & Chief Mortgage Banking Officer of Bank of Hope | 4.5yrs | no data | no data | |
| Executive VP & Chief Information Officer of Bank of Hope | no data | US$663.81k | 0.0041% $ 61.9k |
4.5yrs
Average Tenure
56.5yo
Average Age
Experienced Management: HOPE's management team is considered experienced (4.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 7.83yrs | US$2.71m | 0.49% $ 7.5m | |
| Honorary Chairman of the Board | no data | US$145.50k | 2.68% $ 40.9m | |
| Independent Director | 9.08yrs | US$112.00k | 0.19% $ 2.9m | |
| Independent Director | 9.08yrs | US$100.00k | 0.19% $ 2.9m | |
| Independent Director | 6.33yrs | US$112.00k | 0.0081% $ 123.7k | |
| Independent Director | 4.5yrs | US$92.80k | 0.39% $ 6.0m | |
| Director | 6.67yrs | US$1.05m | 0.026% $ 400.1k | |
| Lead Independent Director | 1.67yrs | US$165.00k | 0.055% $ 831.3k | |
| Independent Director | 4.5yrs | US$112.00k | 0.036% $ 541.4k | |
| Independent Director | 6.83yrs | US$112.00k | 0.0061% $ 92.7k | |
| Independent Director | 6.25yrs | US$100.00k | 0.0061% $ 92.7k | |
| Independent Director | 1.25yrs | US$26.25k | no data |
6.3yrs
Average Tenure
69.5yo
Average Age
Experienced Board: HOPE's board of directors are considered experienced (6.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if 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
Hope Bancorp, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Hope Bancorp, Inc.
- Ticker: HOPE
- Exchange: NasdaqGS
- Founded: 2000
- Industry: Regional Banks
- Sector: Banks
- Market Cap: US$1.525b
- Shares outstanding: 123.26m
- Website: https://www.bankofhope.com
Number of Employees
Location
- Hope Bancorp, Inc.
- 3200 Wilshire Boulevard
- Suite 1400
- Los Angeles
- California
- 90010
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| HOPE | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Dec 1996 |
| NRB | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Dec 1996 |
Biography
Hope Bancorp, Inc. operates as the bank holding company for Bank of Hope that provides banking services to small and medium-sized businesses and individuals in the United States. The company offers persona...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/19 00:25 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.