OTCPK:HARL

Stock Analysis Report

Harleysville Financial

Executive Summary

Harleysville Financial Corporation operates as a bank holding company for Harleysville Bank that provides various banking products and services primarily in southeastern Pennsylvania.

Rewards

PE ratio (11.5x) is below the US market (18.9x)

Earnings have grown 11.9% per year over the past 5 years

Pays a high and reliable dividend of 4%

Risk Analysis

Does not have a meaningful market cap ($94M)



Snowflake Analysis

Established dividend payer with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: HARL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.2%

HARL

-1.3%

US Mortgage

-1.3%

US Market


1 Year Return

1.8%

HARL

14.4%

US Mortgage

22.0%

US Market

Return vs Industry: HARL underperformed the US Mortgage industry which returned 18.8% over the past year.

Return vs Market: HARL underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

HARLIndustryMarket
7 Day0.2%-1.3%-1.3%
30 Day6.0%-1.4%1.8%
90 Day7.8%-1.0%9.3%
1 Year6.2%1.8%16.9%14.4%24.6%22.0%
3 Year40.6%24.5%25.7%17.1%49.2%39.6%
5 Year75.2%41.6%73.2%54.5%77.9%58.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

11.53x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HARL ($25) is trading above our estimate of fair value ($16.57)

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


Price To Earnings Ratio

PE vs Industry: HARL is good value based on its PE Ratio (11.5x) compared to the Mortgage industry average (14.2x).

PE vs Market: HARL is good value based on its PE Ratio (11.5x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HARL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HARL is overvalued based on its PB Ratio (1.2x) compared to the US Mortgage industry average (1.1x).


Next Steps

Future Growth

How is Harleysville Financial forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

9.0%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Harleysville Financial has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Harleysville Financial performed over the past 5 years?

11.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HARL has high quality earnings.

Growing Profit Margin: HARL's current net profit margins (30.6%) are higher than last year (28%).


Past Earnings Growth Analysis

Earnings Trend: HARL's earnings have grown by 11.9% per year over the past 5 years.

Accelerating Growth: HARL's earnings growth over the past year (14.6%) exceeds its 5-year average (11.9% per year).

Earnings vs Industry: HARL earnings growth over the past year (14.6%) underperformed the Mortgage industry 23.1%.


Return on Equity

High ROE: HARL's Return on Equity (10.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Harleysville Financial'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: HARL has a low level of unsold assets or inventory.

Debt Coverage by Assets: HARL's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

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

Allowance for Bad Loans: Insufficient data to determine if HARL has a sufficient allowance for bad loans.

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

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

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

Level of Bad Loans: Insufficient data to determine if HARL has an appropriate level of bad loans.


Next Steps

Dividend

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

4.32%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Harleysville Financial before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company4.3%marketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: HARL's dividend (4%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: HARL's dividend (4%) is in the top 25% of dividend payers in the US market (3.66%)


Stability and Growth of Payments

Stable Dividend: HARL's dividends per share have been stable in the past 10 years.

Growing Dividend: HARL's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.2%), HARL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Harleysville Financial's salary, the management and board of directors tenure and is there insider trading?

5.3yrs

Average management tenure


CEO

Brendan McGill (51yo)

1.8yrs

Tenure

US$528,200

Compensation

Mr. Brendan J. McGill has been Chief Executive Officer of Harleysville Financial Corporation since April 01, 2018. He has been the President of Harleysville Financial Corporation and its subsidiary Harleys ...


CEO Compensation Analysis

Compensation vs Market: Brendan's total compensation ($USD528.20K) is about average for companies of similar size in the US market ($USD519.76K).

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


Management Age and Tenure

5.3yrs

Average Tenure

49yo

Average Age

Experienced Management: HARL's management team is seasoned and experienced (5.3 years average tenure).


Board Age and Tenure

15.0yrs

Average Tenure

60yo

Average Age

Experienced Board: HARL's board of directors are seasoned and experienced ( 15 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Brendan McGill (51yo)

    Vice Chairman

    • Tenure: 1.8yrs
    • Compensation: US$528.20k
  • Denise Monaghan

    VP & Loan Administration Manager of Harleysville Savings Bank

    • Kim Licata

      VP & Loan Customer Service Manager of Harleysville Savings Bank

      • M. Michalak (47yo)

        Senior VP & CFO

        • Tenure: 5.3yrs
        • Compensation: US$254.40k
      • Adrian Gordon (49yo)

        Senior VP

        • Tenure: 14yrs
        • Compensation: US$117.72k
      • Michelle Beck

        VP & Security Officer of Harleysville Savings Bank

        • Rodney Kipp

          VP & Technology Operations Manager of Harleysville Savings Bank

          • Scott Little

            VP & Commercial Loan Officer of Harleysville Savings Bank

            • Craig Munson

              VP & Senior Credit Officer of Harleysville Savings Bank

              • James Garrity

                General Counsel


                Board Members

                • Mark Cummins (63yo)

                  Independent Director

                  • Tenure: 25yrs
                  • Compensation: US$45.08k
                • Brendan McGill (51yo)

                  Vice Chairman

                  • Tenure: 1.8yrs
                  • Compensation: US$528.20k
                • Ron Geib (65yo)

                  Independent Chairman of the Board

                  • Tenure: 3yrs
                  • Compensation: US$60.03k
                • George Meschter (67yo)

                  Independent Director

                  • Tenure: 39yrs
                  • Compensation: US$36.83k
                • Sanford Alderfer (67yo)

                  Independent Director

                  • Tenure: 19yrs
                  • Compensation: US$37.93k
                • James Rittenhouse (58yo)

                  Independent Director

                  • Tenure: 15yrs
                  • Compensation: US$42.88k
                • Charlotte Hunsberger (50yo)

                  Independent Director

                  • Tenure: 15yrs
                  • Compensation: US$40.23k
                • Thomas Clemens (60yo)

                  Independent Director

                  • Tenure: 11yrs
                  • Compensation: US$36.83k
                • Keith Ahart (51yo)

                  Independent Director

                  • Tenure: 3.5yrs
                  • Compensation: US$40.13k

                Company Information

                Harleysville Financial Corporation's company bio, employee growth, exchange listings and data sources


                Key Information

                • Name: Harleysville Financial Corporation
                • Ticker: HARL
                • Exchange: OTCPK
                • Founded: 1915
                • Industry: Thrifts and Mortgage Finance
                • Sector: Banks
                • Market Cap: US$96.335m
                • Shares outstanding: 3.77m
                • Website: https://www.harleysvillebank.com

                Location

                • Harleysville Financial Corporation
                • 271 Main Street
                • Harleysville
                • Pennsylvania
                • 19438
                • United States

                Listings

                TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
                HARLOTCPK (Pink Sheets LLC)YesCommon StockUSUSDSep 1987

                Biography

                Harleysville Financial Corporation operates as a bank holding company for Harleysville Bank that provides various banking products and services primarily in southeastern Pennsylvania. It accepts various deposit products, including checking accounts and savings accounts, and certificates of deposit; and personal loans and credit. The company also provides auto, mortgage, home equity, savings account, business term, commercial real estate, and small business loans, as well as lines and letters of credit. In addition, it offers online banking and bill payment, mobile banking, debit card, telephone banking, direct deposit, reorder check, safe deposit box, and other services. Further, the company provides investment services, such as financial consultation, cash and wealth management, education planning, investment strategy, insurance, retirement and estate planning, financial and goal planning, and asset allocation services. Additionally, it offers investment products, such as fixed and variable annuities, mutual funds, life insurances, stocks and bonds, tax-advantaged investments, long-term care insurances, disability insurances, retirement plans/individual retirement accounts, wrap accounts, and unit investment trusts. The company operated six full-service offices located in Montgomery County; and one full-service office situated in Bucks County, Pennsylvania. The company was formerly known as Harleysville Savings Financial Corporation and changed its name to Harleysville Financial Corporation in May 2017. Harleysville Financial Corporation was founded in 1915 and is headquartered in Harleysville, Pennsylvania. 


                Company Analysis and Financial Data Status

                All financial data provided by Standard & Poor's Capital IQ.
                DataLast Updated (UTC time)
                Company Analysis2020/01/24 23:41
                End of Day Share Price2020/01/24 00:00
                Earnings2019/09/30
                Annual Earnings2019/09/30


                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.