Hanover Bancorp, Inc. (HNVR) stock analysis
Close on Nov 13, 2026Market cap $157.55MP/E 15.8Yield 0.45%
StockData Score
Prices as of Nov 13, 2026How the score works
Mixed11 of 30 checks passed
Hanover Bancorp passes 11 of the 30 checks behind our score; 6 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 3/6
- Growth
- 1/6
- Past performance
- 0/6
- Financial health
- 4/6
- Dividend
- 3/6
What stands out
Trading below fair value
The share price of $22.33 is below our fair value estimate of $22.73.
Modest borrowings
Borrowings other than deposits are 29.5% of equity.
Revenue growing 10%+ a year
Revenue grew 17.6% a year over the last three fiscal years.
Covered by free cash flow
Dividends take 7.8% of free cash flow.
What to watch
Margin of safety under 20%
The price is 1.8% below fair value, less than the 20% cushion we look for.
Return on equity under 15%
Return on equity was 5.1% over the last twelve months and averaged 9.2% over five years; we look for 15% on both.
EPS growing under 10% a year
Diluted EPS grew -24.0% a year over the last three fiscal years.
P/E above its 5-year median
Hanover Bancorp's P/E of 15.8 is above its own 5-year median of 8.7.
Valuation3/6
P/E above its 5-year median
Hanover Bancorp's P/E of 15.8 is above its own 5-year median of 8.7.
P/E above the industry
Hanover Bancorp's P/E of 15.8 is above the Commercial Banks median of 12.1.
P/S below the industry
Hanover Bancorp's price-to-sales of 2.06 is below the Commercial Banks median of 3.60.
P/B below the industry
Hanover Bancorp's price-to-book of 0.78 is below the Commercial Banks median of 1.28.
Trading below fair value
The share price of $22.33 is below our fair value estimate of $22.73.
Margin of safety under 20%
The price is 1.8% below fair value, less than the 20% cushion we look for.
Growth1/6
Revenue growing 10%+ a year
Revenue grew 17.6% a year over the last three fiscal years.
EPS growing under 10% a year
Diluted EPS grew -24.0% a year over the last three fiscal years.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growth against the industry
Needs revenue for this year and last.
Company guidance
No outlook found in earnings releases from the last twelve months.
Gross margin trend
Banks and insurers do not report gross profit.
Past performance0/6
Return on equity under 15%
Return on equity was 5.1% over the last twelve months and averaged 9.2% over five years; we look for 15% on both.
Return on assets under 1%
Return on assets was 0.4%; for a bank or insurer, 1% or more is considered good.
Return on equity below the industry
Hanover Bancorp's return on equity of 5.1% is below the Commercial Banks median of 11.6%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin below its 5-year average
Net margin was 13.5% over the last twelve months, against a 5-year average of 21.9%.
Net margin below the industry
Hanover Bancorp's net margin of 13.5% is below the Commercial Banks median of 30.3%.
Financial health4/6
Well capitalized
Equity is 8.3% of total assets; 8% or more is a comfortable cushion.
Loans funded by deposits
Loans equal 97.8% of deposits, so lending is funded by customer deposits.
Thin loan-loss reserve
The allowance for credit losses is 1.0% of loans; we look for at least 1%.
High cost base
Non-interest expense takes 70.6% of revenue; under 60% is efficient for a bank.
Deposits growing
Deposits grew 6.9% over the past year.
Modest borrowings
Borrowings other than deposits are 29.5% of equity.
Dividend3/6
Pays a dividend
Hanover Bancorp paid dividends worth 1.8% of the share price over the last twelve months.
Yield below Treasuries
The 1.8% yield is below the 4.7% on a 1-year Treasury.
Yield below the top quarter
The top quarter of US dividend payers yield 3.8% or more; Hanover Bancorp yields 1.8%.
Dividend stability
Fewer than five years of dividend history.
Covered by earnings
Dividends take 28.9% of net income.
Covered by free cash flow
Dividends take 7.8% of free cash flow.
Fair value
How we estimate itOur estimate per share
$22.73
The share price is 2% below this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 10.6× | 8.7× | 12.1× | $14.88 | 50% |
| P/B | 1.1× | 0.8× | 1.3× | $30.59 | 50% |
| Fair value | $22.73 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 8.7
- Commercial Banks median 12.1
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
High risk
- Average value traded per day
- $500.80K
- Value traded per 1% price move
- $469.03K
Downside
Low risk
- Typical loss in a bad month
- 11.3%
- Volatility (annualized)
- 24%
- Sharpe ratio, 1 year
- -0.16
- Beta to the S&P 500 (5Y)
- 0.29
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2019 to 2025
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | – | +1.5% | +20.8% | – | |
| Net income | – | -31.8% | +8.5% | – | |
| EPS, diluted | – | -35.2% | -3.3% | – | |
| Free cash flow | – | -20.2% | – | – | |
| Dividend per share | – | 0.0% | – | – |
Returns and balance sheet
6 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2019 | FY2019 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | – | – | – | |
| Return on assets | – | – | – | |
| Capex to revenue | – | – | 1.2% | |
| Diluted shares | – | – | 7M |
Where the cash went
Fiscal 2020 to 2025, five years combined
Hanover Bancorp generated $68.29M from operations and spent $18.38M on capital expenditure, dividends and share buybacks. 47% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2023 | 23.9% | 0.03× | 11.13× | 8.5% |
| FY2022 | 33.6% | 0.04× | 11.27× | 16.0% |
| FY2021 | 24.1% | 0.04× | 11.65× | 10.8% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$7.49M
- Cash generatingOperating cash flow above zero$13.05M
- Return on assets improvedROA up on the prior year– → –
- Earnings backed by cashOperating cash flow above net income$13.05M vs $7.49M
- Less leverageLong-term debt to assets fell– → –
- Better liquidityCurrent ratio rose– → –
- No dilutionShare count did not rise– → 7M
- Gross margin improvedGross margin up on the prior year– → –
- More efficientAsset turnover rose– → –
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