HOPE BANCORP INC (HOPE)
US43940T1097 - Common Stock
We assign a fundamental rating of 3 out of 10 to HOPE. HOPE was compared to 412 industry peers in the Banks industry. The financial health of HOPE is average, but there are quite some concerns on its profitability. HOPE has a valuation in line with the averages, but it does not seem to be growing. Finally HOPE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
HOPE had positive earnings in the past year.
HOPE had a positive operating cash flow in the past year.
Each year in the past 5 years HOPE has been profitable.
Each year in the past 5 years HOPE had a positive operating cash flow.
1.2 Ratios
The Return On Assets of HOPE (0.70%) is worse than 64.56% of its industry peers.
HOPE's Return On Equity of 6.30% is on the low side compared to the rest of the industry. HOPE is outperformed by 72.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.7% | ||
| ROE | 6.3% | ||
| ROIC | N/A |
ROA(3y)0.99%
ROA(5y)0.94%
ROE(3y)8.96%
ROE(5y)8.14%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
HOPE has a Profit Margin (23.37%) which is in line with its industry peers.
In the last couple of years the Profit Margin of HOPE has declined.
HOPE 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) | 23.37% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y3%
PM growth 5Y-7.53%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
HOPE does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, HOPE has more shares outstanding
HOPE has less shares outstanding than it did 5 years ago.
HOPE has a better debt/assets ratio than last year.
2.2 Solvency
HOPE has a debt to FCF ratio of 0.24. This is a very positive value and a sign of high solvency as it would only need 0.24 years to pay back of all of its debts.
HOPE's Debt to FCF ratio of 0.24 is amongst the best of the industry. HOPE outperforms 85.92% of its industry peers.
HOPE has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.05, HOPE belongs to the best of the industry, outperforming 82.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.24 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC15.85%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for HOPE have decreased strongly by -37.02% in the last year.
Measured over the past years, HOPE shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.83% on average per year.
Looking at the last year, HOPE shows a decrease in Revenue. The Revenue has decreased by -9.24% in the last year.
HOPE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.84% yearly.
EPS 1Y (TTM)-37.02%
EPS 3Y7.8%
EPS 5Y-4.83%
EPS growth Q2Q-44.19%
Revenue 1Y (TTM)-9.24%
Revenue growth 3Y3.13%
Revenue growth 5Y0.84%
Revenue growth Q2Q-16.85%
3.2 Future
The Earnings Per Share is expected to grow by 8.07% on average over the next years. This is quite good.
HOPE is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.25% yearly.
EPS Next Y-5.46%
EPS Next 2Y8.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-8.48%
Revenue Next 2Y-0.25%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.99 indicates a reasonable valuation of HOPE.
HOPE's Price/Earnings ratio is in line with the industry average.
HOPE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.55.
Based on the Price/Forward Earnings ratio of 9.51, the valuation of HOPE can be described as reasonable.
66.26% of the companies in the same industry are more expensive than HOPE, based on the Price/Forward Earnings ratio.
HOPE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.99 | ||
| Fwd PE | 9.51 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, HOPE is valued cheaply inside the industry as 95.87% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.67 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y8.07%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HOPE has a Yearly Dividend Yield of 5.64%, which is a nice return.
HOPE's Dividend Yield is rather good when compared to the industry average which is at 3.86. HOPE pays more dividend than 88.35% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, HOPE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.64% |
5.2 History
The dividend of HOPE has a limited annual growth rate of 0.61%.
HOPE has been paying a dividend for at least 10 years, so it has a reliable track record.
As HOPE did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)0.61%
Div Incr Years0
Div Non Decr Years5
5.3 Sustainability
HOPE pays out 50.25% of its income as dividend. This is a bit on the high side, but may be sustainable.
HOPE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP50.25%
EPS Next 2Y8.07%
EPS Next 3YN/A
HOPE BANCORP INC
NASDAQ:HOPE (5/1/2024, 7:01:28 PM)
After market: 10.25 0 (0%)10.25
+0.23 (+2.3%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.23B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.64% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.99 | ||
| Fwd PE | 9.51 | ||
| 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 | 0.7% | ||
| ROE | 6.3% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 23.37% | ||
| GM | N/A | ||
| 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 Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| 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)-37.02%
EPS 3Y7.8%
EPS 5Y
EPS growth Q2Q
EPS Next Y-5.46%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-9.24%
Revenue growth 3Y3.13%
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
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y