Home Bancorp (HBCP) AI Stock Analysis

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Home Bancorp

(NASDAQ:HBCP)

76Outperform

Home Bancorp's stock is supported by strong financial performance, particularly in revenue growth and balance sheet stability. The valuation is attractive with a low P/E ratio and solid dividend yield. While technical indicators suggest stable momentum, there is caution around potential overbought conditions. Overall, the positive earnings call and corporate events reinforce confidence in the company's growth trajectory.

Positive Factors

Financial Performance

Analyst upgrades shares of HBCP to an Outperform rating following results that exceeded expectations on both an EPS and PPNR basis.

Profitability

The $60 price target for HBCP assumes the shares trade up to a justified 12x P/E due to its above-peer profitability, stable balance sheet, and well-managed credit risk.

Negative Factors

Earnings Growth

The lack of larger scale year-over-year EPS growth could inhibit the upside in the multiple to some degree for HBCP.

Home Bancorp (HBCP) vs. S&P 500 (SPY)

Market Cap

$399.98M

Dividend Yield2.01%

Average Volume (3M)21.94K

Price to Earnings (P/E)10.7

Beta (1Y)0.94

Revenue Growth9.82%

EPS Growth0.91%

CountryUS

Employees471

SectorFinancial

Sector Strength85

IndustryBanks - Regional

Share Statistics

EPS (TTM)1.40

Shares Outstanding7,801,368

10 Day Avg. Volume16,381

30 Day Avg. Volume21,939

Financial Highlights & Ratios

PEG Ratio2.06

Price to Book (P/B)0.98

Price to Sales (P/S)0.00

P/FCF Ratio9.16

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$60.00

Price Target Upside17.03% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Home Bancorp Business Overview & Revenue Model

Company DescriptionHome Bancorp, Inc. (HBCP) is a publicly traded bank holding company headquartered in Lafayette, Louisiana. It primarily operates through its wholly-owned subsidiary, Home Bank, N.A., which provides a range of financial services. The company serves individual and business customers across its branch network, focusing on traditional banking services such as deposits, loans, and mortgages. Its core offerings include personal and business banking, commercial and residential lending, and various deposit products.

How the Company Makes MoneyHome Bancorp generates revenue primarily through interest income from its lending activities, including commercial, consumer, and residential mortgage loans. The company also earns income from fees and service charges associated with its deposit accounts and other financial services. Additionally, Home Bancorp may generate revenue through investment securities and other financial instruments. Key factors contributing to its earnings include the interest rate environment, loan demand, and economic conditions in its operating regions. The company's strategic partnerships and community relationships also play a role in driving growth and profitability.

Home Bancorp Financial Statement Overview

Summary

Home Bancorp presents a generally positive financial outlook with strong revenue growth of 39% and a solid balance sheet highlighted by a low debt-to-equity ratio of 0.35. However, there are areas for improvement, including a decrease in net profit margin from 30.4% to 19.7% and cash flow management challenges.

Income Statement

Positive

Home Bancorp's income statement shows a solid revenue growth trend with a 39% increase in total revenue from 2023 to 2024. The gross profit margin is strong at approximately 100% due to the nature of the banking industry. However, the net profit margin decreased from 30.4% in 2023 to 19.7% in 2024, indicating some pressure on profitability. EBIT margins also show a decline, suggesting a need for efficiency improvements.

Balance Sheet

Positive

The company's balance sheet is robust, with a low debt-to-equity ratio of 0.35, reflecting conservative leverage. Return on Equity (ROE) is healthy at 9.2% for 2024, slightly down from 10.9% in 2023, which indicates solid profitability relative to shareholder equity. The equity ratio stands at 11.5%, showing a stable capital structure, though slightly lower than industry peers.

Cash Flow

Positive

Cash flow analysis reveals a positive trajectory with a 13.6% growth in free cash flow from 2023 to 2024. The operating cash flow to net income ratio is 1.34, indicating strong cash generation relative to earnings. However, free cash flow to net income ratio decreased slightly, showing potential cash flow management issues.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
169.39M	184.77M	132.49M	131.90M	117.26M	106.52M
	Gross Profit
118.42M	184.77M	132.49M	131.90M	117.26M	106.52M
	EBIT
49.24M	182.77M	59.89M	52.28M	60.44M	30.81M
	EBITDA
37.50M	0.00	0.00	45.97M	64.03M	34.03M
	Net Income Common Stockholders
38.19M	36.43M	40.24M	34.07M	48.62M	24.77M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	501.34M	75.83M	574.27M	929.42M	443.05M
	Total Assets
3.49B	3.44B	3.32B	3.23B	2.94B	2.59B
	Total Debt
223.31M	235.54M	252.49M	390.76M	31.59M	34.36M
	Net Debt
223.31M	137.00M	176.56M	303.01M	-570.21M	-153.94M
	Total Liabilities
3.08B	3.05B	2.95B	2.90B	2.59B	2.27B
	Stockholders Equity
402.83M	396.09M	367.44M	329.95M	351.90M	321.84M
Cash Flow		Free Cash Flow
43.53M	44.67M	39.33M	48.49M	53.24M	46.88M
	Operating Cash Flow
50.21M	48.73M	41.36M	51.20M	55.72M	49.03M
	Investing Cash Flow
-106.00M	-107.11M	-94.25M	-495.35M	54.93M	-260.04M
	Financing Cash Flow
75.40M	81.09M	41.33M	-69.89M	302.85M	359.11M

Home Bancorp Technical Analysis

Technical Analysis Sentiment

Positive

Last Price51.27

Price Trends

50DMA

46.27

Positive

100DMA

46.70

Positive

200DMA

45.60

Positive

Market Momentum

MACD

1.59

Negative

RSI

63.85

Neutral

STOCH

60.38

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HBCP, the sentiment is Positive. The current price of 51.27 is above the 20-day moving average (MA) of 49.84, above the 50-day MA of 46.27, and above the 200-day MA of 45.60, indicating a bullish trend. The MACD of 1.59 indicates Negative momentum. The RSI at 63.85 is Neutral, neither overbought nor oversold. The STOCH value of 60.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HBCP.

Home Bancorp Risk Analysis

Home Bancorp disclosed 22 risk factors in its most recent earnings report. Home Bancorp reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Home Bancorp Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HBCP	76 Outperform	$399.98M	10.74	9.85%	2.01%	9.82%	0.91%
USCB	76 Outperform	$344.03M	12.40	13.20%	1.46%	26.42%	78.75%
BSVN	75 Outperform	$370.50M	8.32	22.26%	2.37%	1.20%	46.86%
RRBI	65 Neutral	$374.04M	10.36	11.51%	0.71%	10.47%	13.63%
Sector *	64 Neutral	$12.82B	9.83	7.68%	17000.34%	12.38%	-5.56%
BSRR	62 Neutral	$396.32M	10.13	11.58%	3.35%	1.99%	17.65%
MSBI	54 Neutral	$382.66M	12.51	-1.68%	6.93%	3.95%	-135.44%

* Financial Sector Average

Performance Comparison

HBCP

Home Bancorp

51.27

15.07

41.63%

BSRR

Sierra Bancorp

28.68

7.52

35.54%

MSBI

Midland States Bancrop

17.88

-3.85

-17.72%

BSVN

Bank7

39.21

9.96

34.05%

RRBI

Red River Bancshares

55.10

7.56

15.90%

USCB

USCB Financial Holdings, Inc. Class A

17.16

5.09

42.17%

Home Bancorp Earnings Call Summary

Earnings Call Date:Apr 21, 2025

(Q1-2025)

% Change Since: 19.45%|

Next Earnings Date:Jul 29, 2025

Earnings Call Sentiment Positive

The earnings call for Home Bancorp's first quarter of 2025 reflected a generally positive financial performance with significant growth in net income, net interest margin, and loan and deposit growth. However, there were challenges related to an increase in nonperforming assets due to a few specific loan relationships. Despite these challenges, the company displayed strong cost management and continued success in strategic markets like Houston. Overall, the positive aspects outweighed the negatives, indicating a strong financial position and strategic outlook.

Q1-2025 Updates

Positive Updates

Strong Net Income Growth

Net income for the first quarter was $11 million, or $1.37 per share, representing a 13% increase from the fourth quarter and a 20% increase from a year ago.

Net Interest Margin Expansion

Net interest margin expanded for the fourth consecutive quarter to 3.91%, with a return on assets increasing by 17 basis points to 1.29%.

Loan and Deposit Growth

Loans grew by $29.1 million, about 4% annualized, and deposits increased at a 7% annualized rate. Noninterest-bearing deposits increased by $21.9 million.

Houston Market Success

The Houston market has been a tremendous success with plans to upgrade and expand the physical footprint, including a new branch building.

Efficient Cost Management

The core efficiency ratio declined to 60% in Q1, with noninterest expense decreasing by $776,000.

Share Repurchase Activity

Repurchased 297,000 shares through April 17 at an average price of $43.82 per share, with a new 400,000 share repurchase plan approved.

Negative Updates

Increase in Nonperforming Assets

Nonperforming assets increased by $5.9 million to $21.5 million, or 62 basis points of total assets, primarily due to the downgrade of two relationships.

Challenges with Specific Loan Relationships

Two problematic loan relationships were highlighted, one involving a condominium development in Mississippi and the other a hotel renovation in Houston.

Company Guidance

In the first quarter of 2025, Home Bancorp reported a net income of $11 million, translating to $1.37 per share, marking a 13% increase from the previous quarter and a 20% rise year-over-year. The net interest margin expanded to 3.91%, while the return on assets improved by 17 basis points to 1.29%. The company experienced a 4% annualized growth in loans, amounting to a $29.1 million increase, and deposits grew at a 7% annualized rate. Home Bancorp maintained a stable allowance for loan loss ratio at 1.21% and recorded minimal net charge-offs of $32,000. Noninterest income rose to $4 million, with noninterest expenses expected to increase by 3.5% in 2025. The company anticipates loan growth of 4% to 6% annually and plans to continue share repurchases, supported by a new 400,000 share buyback plan.

Home Bancorp Corporate Events

Stock BuybackDividendsFinancial Disclosures

Home Bancorp Announces New Share Repurchase Program

Positive

Apr 21, 2025

On April 21, 2025, Home Bancorp announced a new share repurchase program allowing the purchase of up to 400,000 shares, approximately 5% of its outstanding common stock, reflecting confidence in its financial stability. Additionally, the company declared a quarterly cash dividend of $0.27 per share, to be paid on May 16, 2025. The company reported strong financial results for the first quarter of 2025, with net income rising to $11.0 million and growth in loans and deposits, despite an increase in nonperforming assets due to two loan relationships moving to nonaccrual status.

Spark’s Take on HBCP Stock

According to Spark, TipRanks’ AI Analyst, HBCP is a Outperform.

Home Bancorp scores well due to its strong financial performance with robust revenue growth and a solid balance sheet. The technical analysis indicates stable but not strong momentum, while the valuation underscores an attractive investment opportunity with a low P/E ratio and decent dividend yield. The positive earnings call and corporate events further support the outlook, suggesting confidence in future growth.

To see Spark’s full report on HBCP stock, click here.

Financial Disclosures

Home Bancorp to Release Q1 2025 Earnings Report

Neutral

Apr 4, 2025

Home Bancorp, Inc. announced plans to release its first quarter 2025 earnings on April 21, 2025, followed by a conference call on April 22, 2025, to discuss the results. The earnings release and investor presentation will be available on the company’s website, and stakeholders can access the conference call to hear insights from the company’s leadership.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.