NasdaqGS:HOPE

Stock Analysis Report

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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


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

-7.4%

HOPE

-2.7%

US Banks

0.6%

US Market


1 Year Return

-32.8%

HOPE

-16.6%

US Banks

22.7%

US Market

Return vs Industry: HOPE underperformed the US Banks industry which returned -19.6% over the past year.

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


Shareholder returns

HOPEIndustryMarket
7 Day-7.4%-2.7%0.6%
30 Day19.1%20.9%13.1%
90 Day13.5%17.0%4.5%
1 Year-28.7%-32.8%-13.6%-16.6%25.5%22.7%
3 Year-40.7%-48.1%-6.0%-13.8%49.0%39.1%
5 Year-37.7%-48.3%38.8%21.5%98.3%76.5%

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

Valuation

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

26.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HOPE ($9.61) is trading below our estimate of fair value ($13.04)

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 (9.5x) compared to the US Banks industry average (11.3x).

PE vs Market: HOPE is good value based on its PE Ratio (9.5x) compared to the US market (19.3x).


Price to Earnings Growth Ratio

PEG Ratio: HOPE is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: HOPE is good value based on its PB Ratio (0.6x) compared to the US Banks industry average (0.9x).


Next Steps

Future Growth

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

12.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HOPE's forecast earnings growth (12.6% per year) is above the savings rate (2.2%).

Earnings vs Market: HOPE's earnings (12.6% per year) are forecast to grow slower than the US market (21.9% per year).

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

Revenue vs Market: HOPE's revenue (5.7% per year) is forecast to grow slower than the US market (10.3% per year).

High Growth Revenue: HOPE's revenue (5.7% 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 (6.9%).


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 (-4.1%).


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?

5.83%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HOPE's dividend (5.83%) is higher than the bottom 25% of dividend payers in the US market (1.5%).

High Dividend: HOPE's dividend (5.83%) is in the top 25% of dividend payers in the US market (4.18%)


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 (48.8% payout ratio).


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Kevin Kim (62 yo)

7.67yrs

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 ($USD2.71M) is about average for companies of similar size in the US market ($USD2.59M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kevin Kim
Chairman7.67yrsUS$2.71m0.49%
$ 5.8m
Alex Ko
Executive VP & CFO3.08yrsUS$684.59k0.011%
$ 127.5k
Kyu Kim
Senior EVP & Regional President of Eastern Region-Bank of Hopeno dataUS$697.62k0.021%
$ 253.4k
Thomas Stenger
Executive VP & Chief Risk Officerno dataUS$762.88k0.0013%
$ 15.0k
Angie Yang
Senior VP and Director of IR & Corporate Communicationsno datano datano data
Lisa Pai
Executive VP & General Counsel4.33yrsno datano data
Peter Koh
Executive VP & Chief Credit Officer - Bank of Hope4.33yrsno data0.050%
$ 595.7k
Catherine Suh
Vice President of Eastern Region12yrsno datano data
Jason Kim
EVP & Chief Commercial Banking Officer of Bank of Hope8.92yrsUS$343.35k0.030%
$ 360.1k
David Kim
Executive VP & Chief Retail Banking Officer - Bank of Hope3.5yrsno data0.0026%
$ 30.8k
Janette Mah
EVP & Chief Mortgage Banking Officer of Bank of Hope4.33yrsno datano data
Hung Van
Executive VP & Chief Information Officer of Bank of Hopeno dataUS$663.81k0.0041%
$ 48.1k

4.3yrs

Average Tenure

56.5yo

Average Age

Experienced Management: HOPE's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kevin Kim
Chairman7.67yrsUS$2.71m0.49%
$ 5.8m
Steven Koh
Honorary Chairman of the Boardno dataUS$145.50k2.68%
$ 31.8m
Chung Lee
Independent Director8.92yrsUS$112.00k0.19%
$ 2.2m
Jin Jhung
Independent Director8.92yrsUS$100.00k0.19%
$ 2.3m
William Lewis
Independent Director6.17yrsUS$112.00k0.0081%
$ 96.1k
Donald Byun
Independent Director4.33yrsUS$92.80k0.39%
$ 4.6m
David Malone
Director6.5yrsUS$1.05m0.026%
$ 310.8k
Yoon-Suk Whang
Lead Independent Director1.5yrsUS$165.00k0.055%
$ 645.8k
John Taylor
Independent Director4.33yrsUS$112.00k0.036%
$ 420.6k
Daisy Ha
Independent Director4.33yrsUS$100.00k0.36%
$ 4.3m
Dale Zuehls
Independent Director6.67yrsUS$112.00k0.0061%
$ 72.0k
Jinho Doo
Independent Director6.08yrsUS$100.00k0.0061%
$ 72.0k

6.1yrs

Average Tenure

69.5yo

Average Age

Experienced Board: HOPE's board of directors are considered experienced (6.1 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$1.185b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HOPENasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 1996
NRBDB (Deutsche Boerse AG)YesCommon StockDEEURDec 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/02 00:41
End of Day Share Price2020/12/01 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.