Home Loan Financial (OTCPK:HLFN) - Share price, News & Analysis

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

HLFN ($33.5) is trading below our estimate of [[fair value]] ($66.04)

HLFN fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	5/6
Financial Health	6/6
Dividends	3/6

HLFN Stock Overview

Home Loan Financial Corporation, a unitary thrift holding company, provides various banking products and services in the United States.

Rewards

Trading at 49.3% below our estimate of its fair value

Earnings grew by 7.4% over the past year

Risk Analysis

Shares are highly illiquid

Unstable dividend track record

Does not have a meaningful market cap ($47M)

Home Loan Financial Competitors

Texas Community Bancshares

NasdaqCM:TCBS

US$49.6m

Income Opportunity Realty Investors

NYSEAM:IOR

US$53.5m

First Bancshares

OTCPK:FBSI

US$42.0m

KS Bancorp

OTCPK:KSBI

US$51.0m

Price History & Performance

Summary of all time highs, changes and price drops for Home Loan Financial
Historical stock prices
Current Share Price	US$33.50
52 Week High	US$37.46
52 Week Low	US$31.00
Beta	0.49
1 Month Change	0%
3 Month Change	n/a
1 Year Change	9.33%
3 Year Change	-10.67%
5 Year Change	21.82%
Change since IPO	120.11%

Shareholder Returns

	HLFN	US Mortgage	US Market
7D	0.1%	-0.1%	-2.5%
1Y	9.3%	-34.1%	-21.2%

Return vs Industry: HLFN exceeded the US Mortgage industry which returned -33.7% over the past year.

Return vs Market: HLFN exceeded the US Market which returned -21.2% over the past year.

Price Volatility

Is HLFN's price volatile compared to industry and market?
HLFN volatility
HLFN Average Weekly Movement	n/a
Mortgage Industry Average Movement	3.7%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	3.3%

Stable Share Price: Insufficient data to determine HLFN's volatility over the past 3 months.

Volatility Over Time: Insufficient data to determine HLFN's volatility change over the past year.

About the Company

Founded	Employees	CEO	Website
1997	n/a	Robert Hamilton	https://www.homeloanfinancialcorp.com

Home Loan Financial Corporation, a unitary thrift holding company, provides various banking products and services in the United States. The company’s primary deposit products include checking, savings, and term certificate accounts; and lending products comprise residential mortgage, nonresidential mortgage, residential construction and land, commercial, and consumer loans. It also provides consumer credits, such as home improvement loans, education loans, loans secured by savings accounts, motor vehicle loans, unsecured loans, and credit cards.

Home Loan Financial Fundamentals Summary

How do Home Loan Financial's earnings and revenue compare to its market cap?
HLFN fundamental statistics
Market Cap	US$46.89m
Earnings (TTM)	US$3.91m
Revenue (TTM)	US$10.99m

12.0x

P/E Ratio

1.5x

P/B Ratio

Is HLFN overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
HLFN income statement (TTM)
Revenue	US$10.99m
Cost of Revenue	US$0
Gross Profit	US$10.99m
Other Expenses	US$7.08m
Earnings	US$3.91m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	2.79
Gross Margin	100.00%
Net Profit Margin	35.60%
Debt/Equity Ratio	14.1%

How did HLFN perform over the long term?

See historical performance and comparison

Dividends

3.2%

Current Dividend Yield

39%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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 HLFN?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for HLFN. This is calculated by dividing HLFN's market cap by their current preferred multiple.
What is HLFN's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$46.89m

HLFN 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/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

HLFN PE Ratio vs Peers

The above table shows the PE ratio for HLFN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	27.5x
TCBS Texas Community Bancshares	74.4x	n/a	US$49.6m
IOR Income Opportunity Realty Investors	18.6x	n/a	US$53.5m
FBSI First Bancshares	8.6x	n/a	US$42.0m
KSBI KS Bancorp	8.5x	n/a	US$51.0m
HLFN Home Loan Financial	12x	n/a	US$46.9m

Forward PE

Price-To-Earnings vs Peers: HLFN is good value based on its Price-To-Earnings Ratio (12x) compared to the peer average (27.5x).

Price to Earnings Ratio vs Industry

How does HLFN's PE Ratio compare vs other companies in the US Mortgage Industry?

Price-To-Earnings vs Industry: HLFN is expensive based on its Price-To-Earnings Ratio (12x) compared to the US Mortgage industry average (11.4x)

Price to Earnings Ratio vs Fair Ratio

What is HLFN'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.

HLFN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	12x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate HLFN's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

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

Below Fair Value: HLFN ($33.5) is trading below our estimate of fair value ($66.04)

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

Price to Earnings Growth Ratio

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

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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

8.9%

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 Home Loan 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.

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Examine whether Home Loan Financial is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Home Loan Financial's filings and announcements here.

Past Performance

How has Home Loan Financial performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

5.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HLFN has high quality earnings.

Growing Profit Margin: HLFN's current net profit margins (35.6%) are higher than last year (35.6%).

Past Earnings Growth Analysis

Earnings Trend: HLFN's earnings have grown by 5.1% per year over the past 5 years.

Accelerating Growth: HLFN's earnings growth over the past year (7.4%) exceeds its 5-year average (5.1% per year).

Earnings vs Industry: HLFN earnings growth over the past year (7.4%) exceeded the Mortgage industry 5.8%.

Return on Equity

High ROE: HLFN's Return on Equity (12.1%) is considered low.

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Financial Health

How is Home Loan Financial'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: HLFN's Assets to Equity ratio (7.9x) is low.

Allowance for Bad Loans: HLFN has a sufficient allowance for bad loans (470%).

Low Risk Liabilities: 97% of HLFN's liabilities are made up of primarily low risk sources of funding.

Loan Level: HLFN has an appropriate level of Loans to Assets ratio (83%).

Low Risk Deposits: HLFN's Loans to Deposits ratio (98%) is appropriate.

Level of Bad Loans: HLFN has an appropriate level of bad loans (0.3%).

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Dividend

What is Home Loan Financial 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

3.22%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: HLFN's dividend (3.22%) is higher than the bottom 25% of dividend payers in the US market (1.6%).

High Dividend: HLFN's dividend (3.22%) is low compared to the top 25% of dividend payers in the US market (4.25%).

Stability and Growth of Payments

Stable Dividend: HLFN's dividend payments have been volatile in the past 10 years.

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

Current Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (38.7%), HLFN'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 or that it will be covered by earnings.

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Management

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

17.5yrs

Average board tenure

CEO

Robert Hamilton (79 yo)

no data

Tenure

US$285,076

Compensation

Mr. Robert C. Hamilton serves as the Chairman & Chief Executive Officer of Home Loan Financial Corp. Mr. Hamilton serves as the Chairman of The Home Loan Savings Bank, a subsidiary of Home Loan Financial C...

Board Members

Experienced Board: HLFN's board of directors are seasoned and experienced ( 17.5 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.

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/07/03 00:00
End of Day Share Price	2022/06/30 00:00
Earnings	2021/12/31
Annual Earnings	2021/06/30