HOME POINT CAPITAL INC (HMPT)
US43734L1061 - Common Stock
Taking everything into account, HMPT scores 3 out of 10 in our fundamental rating. HMPT was compared to 102 industry peers in the Financial Services industry. The financial health of HMPT is average, but there are quite some concerns on its profitability. HMPT is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year HMPT has reported negative net income.
In the past year HMPT had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: HMPT reported negative net income in multiple years.
In multiple years HMPT reported negative operating cash flow during the last 5 years.
1.2 Ratios
The profitability ratios for HMPT are negative, so there is not much use analyzing them.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | N/A | ||
| ROE | N/A | ||
| ROIC | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Gross Margin of HMPT (56.92%) is better than 78.72% of its industry peers.
In the last couple of years the Gross Margin of HMPT has declined.
The Profit Margin and Operating Margin are not available for HMPT so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 56.92% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-6.61%
GM growth 5YN/A
2. Health
2.1 Basic Checks
HMPT does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for HMPT has been reduced compared to 1 year ago.
HMPT has a better debt/assets ratio than last year.
2.2 Solvency
HMPT has an Altman-Z score of 0.16. This is a bad value and indicates that HMPT is not financially healthy and even has some risk of bankruptcy.
HMPT has a Altman-Z score of 0.16. This is in the lower half of the industry: HMPT underperforms 62.77% of its industry peers.
The Debt to FCF ratio of HMPT is 0.73, which is an excellent value as it means it would take HMPT, only 0.73 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.73, HMPT belongs to the best of the industry, outperforming 89.36% of the companies in the same industry.
HMPT has a Debt/Equity ratio of 2.77. This is a high value indicating a heavy dependency on external financing.
HMPT has a worse Debt to Equity ratio (2.77) than 84.04% of its industry peers.
Although HMPT does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.77 | ||
| Debt/FCF | 0.73 | ||
| Altman-Z | 0.16 |
ROIC/WACCN/A
WACC3.25%
2.3 Liquidity
A Current Ratio of 1.53 indicates that HMPT should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.53, HMPT is in the better half of the industry, outperforming 64.89% of the companies in the same industry.
A Quick Ratio of 1.53 indicates that HMPT should not have too much problems paying its short term obligations.
HMPT has a Quick ratio of 1.53. This is in the better half of the industry: HMPT outperforms 67.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.53 |
3. Growth
3.1 Past
The earnings per share for HMPT have decreased strongly by -1166.67% in the last year.
HMPT shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -62.77%.
Measured over the past years, HMPT shows a small growth in Revenue. The Revenue has been growing by 2.62% on average per year.
EPS 1Y (TTM)-1166.67%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-1312.5%
Revenue 1Y (TTM)-62.77%
Revenue growth 3Y2.62%
Revenue growth 5YN/A
Revenue growth Q2Q-58.55%
3.2 Future
Based on estimates for the next years, HMPT will show a very strong growth in Earnings Per Share. The EPS will grow by 35.98% on average per year.
HMPT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.62% yearly.
EPS Next Y76.04%
EPS Next 2Y43.03%
EPS Next 3Y35.98%
EPS Next 5YN/A
Revenue Next Year-42.42%
Revenue Next 2Y-9.38%
Revenue Next 3Y9.62%
Revenue Next 5YN/A
3.3 Evolution
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for HMPT. In the last year negative earnings were reported.
HMPT is valuated quite expensively with a Price/Forward Earnings ratio of 42.71.
Based on the Price/Forward Earnings ratio, HMPT is valued a bit more expensive than the industry average as 72.34% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of HMPT to the average of the S&P500 Index (21.63), we can say HMPT is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 42.71 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, HMPT is valued cheaply inside the industry as 97.87% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.17 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
HMPT'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 HMPT's earnings are expected to grow with 35.98% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y43.03%
EPS Next 3Y35.98%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.90%, HMPT is a good candidate for dividend investing.
HMPT's Dividend Yield is rather good when compared to the industry average which is at 3.63. HMPT pays more dividend than 89.36% of the companies in the same industry.
HMPT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.9% |
5.2 History
HMPT does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of HMPT are negative and hence is the payout ratio. HMPT will probably not be able to sustain this dividend level.
DP-1.8%
EPS Next 2Y43.03%
EPS Next 3Y35.98%
HOME POINT CAPITAL INC
NASDAQ:HMPT (7/31/2023, 7:00:01 PM)
2.32
0 (0%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap321.25M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.9% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
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Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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PT rev (1m)
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EPS NQ rev (1m)
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Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 42.71 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | N/A | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 56.92% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.77 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.53 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-1166.67%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y76.04%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-62.77%
Revenue growth 3Y2.62%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
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FCF growth 5Y
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OCF growth 3Y
OCF growth 5Y