Home Bancorp, Inc. (HBCP) stock analysis

P/E above its 5-year median

Home Bancorp's P/E of 10.9 is above its own 5-year median of 9.3.

P/E below the industry

Home Bancorp's P/E of 10.9 is below the Savings Institutions median of 13.6.

P/S below the industry

Home Bancorp's price-to-sales of 3.11 is below the Savings Institutions median of 3.67.

P/B above the industry

Home Bancorp's price-to-book of 1.07 is above the Savings Institutions median of 1.04.

Trading above fair value

The share price of $61.62 is above our fair value estimate of $61.56.

Margin of safety under 20%

The price is 0.1% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 4.1% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 12.2% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 0.4% over the last twelve months, against a 5-year average of 13.2% a year.

Growing slower than the industry

Revenue grew 7.0% over the last twelve months; the Savings Institutions median is 9.0%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

Banks and insurers do not report gross profit.

Return on equity under 15%

Return on equity was 10.2% over the last twelve months and averaged 11.3% over five years; we look for 15% on both.

Return on assets over 1%

Return on assets was 1.3%; for a bank or insurer, 1% or more is considered good.

Return on equity above the industry

Home Bancorp's return on equity of 10.2% is above the Savings Institutions median of 6.9%.

Earnings grew over 5 years

Net income grew 13.2% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 28.5% over the last twelve months, against a 5-year average of 31.0%.

Net margin above the industry

Home Bancorp's net margin of 28.5% is above the Savings Institutions median of 21.1%.

Well capitalized

Equity is 12.6% of total assets; 8% or more is a comfortable cushion.

Loans funded by deposits

Loans equal 89.7% of deposits, so lending is funded by customer deposits.

Adequate loan-loss reserve

The allowance for credit losses is 1.3% of loans; we look for at least 1%.

High cost base

Non-interest expense takes 62.0% of revenue; under 60% is efficient for a bank.

Deposits growing

Deposits grew 2.6% over the past year.

Borrowings

Needs debt and equity figures.

Pays a dividend

Home Bancorp paid dividends worth 2.0% of the share price over the last twelve months.

Yield below Treasuries

The 2.0% yield is below the 4.6% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.9% or more; Home Bancorp yields 2.0%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 22.0% of net income.

Covered by free cash flow

Dividends take 18.1% of free cash flow.