Home Capital Group Inc (HCG.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:HCG - CA4369131079 - Common Stock
44.26 CAD
0 (0%)
Taking everything into account, HCG scores 4 out of 10 in our fundamental rating. HCG was compared to 26 industry peers in the Financial Services industry. HCG may be in some trouble as it scores bad on both profitability and health. HCG scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
HCG had positive earnings in the past year.
HCG had a positive operating cash flow in the past year.
1.2 Ratios
HCG's Return On Assets of 0.76% is in line compared to the rest of the industry. HCG outperforms 40.48% of its industry peers.
HCG's Return On Equity of 10.50% is amongst the best of the industry. HCG outperforms 88.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.76% | ||
| ROE | 10.5% | ||
| ROIC | N/A |
ROA(3y)0.93%
ROA(5y)0.84%
ROE(3y)11.9%
ROE(5y)10.37%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
HCG has a better Profit Margin (32.48%) than 61.90% of its industry peers.
HCG's Profit Margin has improved in the last couple of years.
HCG does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 32.48% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y0.53%
PM growth 5Y72.9%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
HCG does not have a ROIC to compare to the WACC, probably because it is not profitable.
HCG has less shares outstanding than it did 1 year ago.
Compared to 1 year ago, HCG has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of HCG is 10.76, which is on the high side as it means it would take HCG, 10.76 years of fcf income to pay off all of its debts.
HCG has a better Debt to FCF ratio (10.76) than 69.05% of its industry peers.
A Debt/Equity ratio of 2.66 is on the high side and indicates that HCG has dependencies on debt financing.
The Debt to Equity ratio of HCG (2.66) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.66 | ||
| Debt/FCF | 10.76 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC9.09%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
HCG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.63%, which is quite good.
HCG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.16% yearly.
The Revenue has been growing slightly by 3.26% in the past year.
The Revenue has been growing slightly by 5.33% on average over the past years.
EPS 1Y (TTM)16.63%
EPS 3Y19.14%
EPS 5Y3.16%
EPS Q2Q%61.86%
Revenue 1Y (TTM)3.26%
Revenue growth 3Y2.83%
Revenue growth 5Y5.33%
Sales Q2Q%22.69%
3.2 Future
HCG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.46% yearly.
Based on estimates for the next years, HCG will show a quite strong growth in Revenue. The Revenue will grow by 14.06% on average per year.
EPS Next Y52.54%
EPS Next 2Y27.46%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year22.24%
Revenue Next 2Y14.06%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
HCG is valuated reasonably with a Price/Earnings ratio of 9.14.
Compared to the rest of the industry, the Price/Earnings ratio of HCG indicates a rather cheap valuation: HCG is cheaper than 83.33% of the companies listed in the same industry.
HCG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.60.
HCG is valuated cheaply with a Price/Forward Earnings ratio of 7.00.
80.95% of the companies in the same industry are more expensive than HCG, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of HCG to the average of the S&P500 Index (23.23), we can say HCG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.14 | ||
| Fwd PE | 7 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, HCG is valued cheaper than 95.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.13 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
HCG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as HCG's earnings are expected to grow with 27.46% in the coming years.
PEG (NY)0.17
PEG (5Y)2.9
EPS Next 2Y27.46%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.36%, HCG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.82, HCG's dividend is way lower than its industry peers. On top of this 85.71% of the companies listed in the same industry pay a better dividend than HCG!
Compared to the average S&P500 Dividend Yield of 1.93, HCG is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
5.2 History
The dividend of HCG decreases each year by -3.09%.
HCG does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)-3.09%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
13.23% of the earnings are spent on dividend by HCG. This is a low number and sustainable payout ratio.
DP13.23%
EPS Next 2Y27.46%
EPS Next 3YN/A
TSX:HCG (9/1/2023, 7:00:00 PM)
44.26
0 (0%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners32.83%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.69B
Revenue(TTM)536.27M
Net Income(TTM)174.16M
Analysts48.89
Price Target44.88 (1.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
Yearly Dividend0.6
Dividend Growth(5Y)-3.09%
DP13.23%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)24.31%
Min EPS beat(2)23.76%
Max EPS beat(2)24.86%
EPS beat(4)2
Avg EPS beat(4)9.01%
Min EPS beat(4)-9.38%
Max EPS beat(4)24.86%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)16.03%
Min Revenue beat(2)14.03%
Max Revenue beat(2)18.03%
Revenue beat(4)4
Avg Revenue beat(4)16.39%
Min Revenue beat(4)14.03%
Max Revenue beat(4)18.03%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)2.02%
EPS NQ rev (3m)13.67%
EPS NY rev (1m)0%
EPS NY rev (3m)12.38%
Revenue NQ rev (1m)-3.4%
Revenue NQ rev (3m)13.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)7.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.14 | ||
| Fwd PE | 7 | ||
| P/S | 3.15 | ||
| P/FCF | 4.13 | ||
| P/OCF | 4 | ||
| P/B | 1.02 | ||
| P/tB | 1.06 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.84
EY10.94%
EPS(NY)6.32
Fwd EY14.28%
FCF(TTM)10.72
FCFY24.22%
OCF(TTM)11.07
OCFY25%
SpS14.03
BVpS43.41
TBVpS41.75
PEG (NY)0.17
PEG (5Y)2.9
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.76% | ||
| ROE | 10.5% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 32.48% | ||
| GM | N/A | ||
| FCFM | 76.38% |
ROA(3y)0.93%
ROA(5y)0.84%
ROE(3y)11.9%
ROE(5y)10.37%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y0.53%
PM growth 5Y72.9%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.66 | ||
| Debt/FCF | 10.76 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 69.37% | ||
| Cap/Sales | 2.47% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 235.19% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC9.09%
ROIC/WACCN/A
Cap/Depr(3y)91.52%
Cap/Depr(5y)69.5%
Cap/Sales(3y)4.03%
Cap/Sales(5y)3.39%
Profit Quality(3y)113.41%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)16.63%
EPS 3Y19.14%
EPS 5Y3.16%
EPS Q2Q%61.86%
EPS Next Y52.54%
EPS Next 2Y27.46%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.26%
Revenue growth 3Y2.83%
Revenue growth 5Y5.33%
Sales Q2Q%22.69%
Revenue Next Year22.24%
Revenue Next 2Y14.06%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y354.88%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y420.1%
OCF growth 3Y212.57%
OCF growth 5YN/A
Home Capital Group Inc / HCG.CA FAQ
What is the ChartMill fundamental rating of Home Capital Group Inc (HCG.CA) stock?
ChartMill assigns a fundamental rating of 4 / 10 to HCG.CA.
Can you provide the valuation status for Home Capital Group Inc?
ChartMill assigns a valuation rating of 8 / 10 to Home Capital Group Inc (HCG.CA). This can be considered as Undervalued.
How profitable is Home Capital Group Inc (HCG.CA) stock?
Home Capital Group Inc (HCG.CA) has a profitability rating of 4 / 10.
What is the financial health of Home Capital Group Inc (HCG.CA) stock?
The financial health rating of Home Capital Group Inc (HCG.CA) is 2 / 10.
Can you provide the expected EPS growth for HCG stock?
The Earnings per Share (EPS) of Home Capital Group Inc (HCG.CA) is expected to grow by 52.54% in the next year.