Home Capital Group Inc (HCG.CA) Fundamental Analysis & Valuation

TSX:HCG • CA4369131079

Current stock price

44.26 CAD
0 (0%)
Last:

This HCG.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

3

1. HCG.CA Profitability Analysis

1.1 Basic Checks

  • HCG had positive earnings in the past year.
  • HCG had a positive operating cash flow in the past year.
HCG.CA Yearly Net Income VS EBIT VS OCF VS FCFHCG.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 0 200M -200M 400M

1.2 Ratios

  • With a Return On Assets value of 0.76%, HCG perfoms like the industry average, outperforming 40.48% of the companies in the same industry.
  • HCG has a Return On Equity of 10.50%. This is amongst the best in the industry. HCG outperforms 88.10% of its industry peers.
Industry RankSector 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
HCG.CA Yearly ROA, ROE, ROICHCG.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 5 10 15

1.3 Margins

  • HCG has a Profit Margin of 32.48%. This is in the better half of the industry: HCG outperforms 61.90% of its industry peers.
  • In the last couple of years the Profit Margin of HCG has grown nicely.
  • HCG does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
Industry RankSector 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
HCG.CA Yearly Profit, Operating, Gross MarginsHCG.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 10 20 30 40

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2

2. HCG.CA Health Analysis

2.1 Basic Checks

  • HCG does not have a ROIC to compare to the WACC, probably because it is not profitable.
  • Compared to 1 year ago, HCG has less shares outstanding
  • Compared to 1 year ago, HCG has an improved debt to assets ratio.
HCG.CA Yearly Shares OutstandingHCG.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 20M 40M 60M
HCG.CA Yearly Total Debt VS Total AssetsHCG.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 5B 10B 15B 20B

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.
  • Looking at the Debt to FCF ratio, with a value of 10.76, HCG is in the better half of the industry, outperforming 69.05% of the companies in the same industry.
  • A Debt/Equity ratio of 2.66 is on the high side and indicates that HCG has dependencies on debt financing.
  • HCG has a worse Debt to Equity ratio (2.66) than 66.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.66
Debt/FCF 10.76
Altman-Z N/A
ROIC/WACCN/A
WACC9.09%
HCG.CA Yearly LT Debt VS Equity VS FCFHCG.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 0 1B 2B 3B 4B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
HCG.CA Yearly Current Assets VS Current LiabilitesHCG.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 100M 200M 300M 400M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. HCG.CA Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 16.63% over the past year.
  • HCG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.16% yearly.
  • HCG shows a small growth in Revenue. In the last year, the Revenue has grown by 3.26%.
  • HCG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.33% yearly.
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

  • Based on estimates for the next years, HCG will show a very strong growth in Earnings Per Share. The EPS will grow by 27.46% on average per year.
  • 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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
HCG.CA Yearly Revenue VS EstimatesHCG.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M
HCG.CA Yearly EPS VS EstimatesHCG.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6

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8

4. HCG.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • HCG is valuated reasonably with a Price/Earnings ratio of 9.14.
  • 83.33% of the companies in the same industry are more expensive than HCG, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 25.23. HCG is valued rather cheaply when compared to this.
  • A Price/Forward Earnings ratio of 7.00 indicates a rather cheap valuation of HCG.
  • Based on the Price/Forward Earnings ratio, HCG is valued cheaply inside the industry as 80.95% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 22.42. HCG is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 9.14
Fwd PE 7
HCG.CA Price Earnings VS Forward Price EarningsHCG.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • Based on the Price/Free Cash Flow ratio, HCG is valued cheaply inside the industry as 95.24% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 4.13
EV/EBITDA N/A
HCG.CA Per share dataHCG.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

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.
  • HCG's earnings are expected to grow with 27.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.17
PEG (5Y)2.9
EPS Next 2Y27.46%
EPS Next 3YN/A

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

2

5. HCG.CA Dividend Analysis

5.1 Amount

  • HCG has a Yearly Dividend Yield of 1.36%.
  • Compared to an average industry Dividend Yield of 5.62, 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 1.89, HCG is paying slightly less dividend.
Industry RankSector 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
HCG.CA Yearly Dividends per shareHCG.CA Yearly Dividends per shareYearly Dividends per share 2022 2023 0.1 0.2 0.3 0.4 0.5

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
HCG.CA Yearly Income VS Free CF VS DividendHCG.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 0 200M -200M 400M
HCG.CA Dividend Payout.HCG.CA Dividend Payout, showing the Payout Ratio.HCG.CA Dividend Payout.PayoutRetained Earnings

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HCG.CA Fundamentals: All Metrics, Ratios and Statistics

Home Capital Group Inc

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)N/A
Earnings (Next)02-17
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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 Fundamental Analysis 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.