Home Bancorp (HBCP) AI Stock Analysis

• Market Cap: $438.03M
• Dividend Yield: 1.95%
• Average Volume (3M): 31.16K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.99
• Revenue Growth: 8.03%
• EPS Growth: 15.18%
• Country: US
• Employees: 471
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.48
• Shares Outstanding: 7,824,751
• 10 Day Avg. Volume: 33,416
• 30 Day Avg. Volume: 31,158
• PEG Ratio: -1.18
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 1.85
• P/FCF Ratio: 8.27
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 2.13
• Enterprise Value/Gross Profit: 3.11
• Enterprise Value/Ebitda: 7.98
• 1Y Price Target: $63.50
• Price Target Upside: 16.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 76 Outperform
• Price Target: $64.00 ▲(16.98% Upside)

Home Bancorp's overall stock score is driven by strong technical indicators and a positive earnings call outlook. The stock's valuation is attractive, with a low P/E ratio and a recent dividend increase enhancing investor appeal. Financial performance is solid, though cash flow generation needs improvement. These factors collectively contribute to a favorable stock assessment.

Positive Factors

Net Interest Margin Expansion

The consistent expansion of the net interest margin indicates effective interest rate management and enhances profitability, supporting long-term financial stability.

Deposit Growth

Strong deposit growth reflects customer trust and provides a stable funding base for future lending activities, crucial for sustained business expansion.

Stable Credit Quality

Maintaining low net charge-offs and a stable loan loss allowance indicates prudent risk management, ensuring financial resilience against potential defaults.

Negative Factors

Increase in Classified and Nonperforming Loans

Rising classified and nonperforming loans suggest potential credit risk, which could impact future earnings and necessitate increased provisions.

Increased Noninterest Expenses

Higher noninterest expenses can pressure profitability margins, necessitating cost management to maintain financial performance over the long term.

Slower Loan Growth Due to Paydowns

Reduced loan growth due to paydowns and slower construction activity could limit revenue expansion, affecting the company's growth trajectory.

Home Bancorp Business Overview & Revenue Model

Company Description

Home Bancorp, Inc. operates as the bank holding company for Home Bank, National Association that provides various banking products and services in Louisiana and Mississippi. It offers deposit products, including interest-bearing and noninterest-bearing checking, money market, savings, NOW, and certificates of deposit accounts. The company also provides various loan products, such as one-to four-family first mortgage loans, home equity loans and lines, commercial real estate loans, construction and land loans, multi-family residential loans, commercial and industrial loans, and consumer loans. In addition, it invests in securities; and offers credit cards and online banking services. The company operates through a network of 19 banking offices in the Acadiana, four banking offices in Baton Rouge, six banking offices in the Greater New Orleans area, six banking offices in the Northshore region, and three banking offices in Natchez. Home Bancorp, Inc. was founded in 1908 and is headquartered in Lafayette, Louisiana.

How the Company Makes Money

Home Bancorp generates revenue primarily through interest income derived from loans, which include residential mortgages, commercial real estate loans, and consumer loans. The bank earns interest on these loans by charging borrowers a specified rate, which is typically higher than the interest it pays on deposits. Additionally, HBCP receives non-interest income from various service fees associated with deposit accounts, ATM transactions, and wealth management services. The company may also engage in investment activities and earn income from securities, contributing to its overall revenue. Strategic partnerships with local businesses and organizations enhance its community outreach and customer base, further supporting its earnings.

Home Bancorp Financial Statement Overview

Summary

Home Bancorp demonstrates solid financial performance with strong revenue growth and efficient cash flow management. The balance sheet is stable, but increasing debt levels require monitoring.

Income Statement

Home Bancorp has shown strong revenue growth with a consistent increase from $118.4M in 2020 to $202.9M in TTM 2025. Gross profit margin has remained healthy, reflecting efficient cost management. However, there has been a slight decline in EBIT and EBITDA margins over the years, indicating some pressure on operational efficiency.

Balance Sheet

The company's balance sheet is relatively strong, with a moderate debt-to-equity ratio and a healthy equity ratio indicating a stable financial position. Return on equity has been impressive, showcasing effective shareholder capital utilization. However, the total debt has increased over the years, which could pose a future risk if not managed properly.

Cash Flow

Operating cash flow has remained robust, supporting strong free cash flow generation. The cash flow to net income ratios are healthy, indicating effective cash management. However, fluctuations in investing cash flow suggest varying levels of capital investment, which could impact future liquidity if not strategically aligned with growth objectives.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	206.06M	199.39M	178.30M	139.81M	123.17M	118.43M
Gross Profit	140.95M	132.37M	132.49M	124.13M	127.03M	93.79M
EBITDA	54.97M	48.68M	53.72M	45.97M	64.03M	34.03M
Net Income	41.40M	36.43M	40.24M	34.07M	48.62M	24.77M
Balance Sheet
Total Assets	3.49B	3.44B	3.32B	3.23B	2.94B	2.59B
Cash, Cash Equivalents and Short-Term Investments	506.06M	114.46M	91.95M	574.27M	929.42M	443.05M
Total Debt	148.30M	235.54M	252.49M	235.76M	31.59M	34.36M
Total Liabilities	3.08B	3.05B	2.95B	2.90B	2.59B	2.27B
Stockholders Equity	408.82M	396.09M	367.44M	329.95M	351.90M	321.84M
Cash Flow
Free Cash Flow	38.86M	44.67M	39.33M	48.49M	53.24M	46.88M
Operating Cash Flow	44.76M	48.73M	41.36M	51.20M	55.72M	49.03M
Investing Cash Flow	-78.00M	-107.11M	-94.25M	-495.35M	54.93M	-260.04M
Financing Cash Flow	32.37M	81.09M	41.33M	-69.89M	302.85M	359.11M

Home Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 54.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 54.71 is below the 20-day moving average (MA) of 55.78, above the 50-day MA of 54.51, and above the 200-day MA of 49.57, indicating a bullish trend. The MACD of 0.25 indicates Positive momentum. The RSI at 54.54 is Neutral, neither overbought nor oversold. The STOCH value of 46.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HBCP.

Home Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
USCB	78 Outperform	$351.37M	11.90	11.46%	2.00%	19.67%	68.34%
RRBI	77 Outperform	$440.79M	11.64	11.51%	0.73%	9.09%	23.58%
HBCP	76 Outperform	$438.03M	10.73	10.55%	1.95%	8.03%	15.18%
BSVN	75 Outperform	$449.20M	10.23	―	2.08%	-2.96%	37.09%
BSRR	69 Neutral	$402.95M	10.23	5.89%	3.34%	0.85%	18.21%
MSBI	54 Neutral	$378.09M	-3.16	5.35%	7.12%	14.49%	-380.35%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Home Bancorp Corporate Events

Home Bancorp Enters Salary Continuation Agreements

On July 21, 2025, Home Bank, N.A. entered into salary continuation agreements with its senior executive officers, Ms. Lemoine and Messrs. Herpin and Zollinger. These agreements promise a retirement benefit of $125,000 annually if they remain employed until age 67, with benefits vesting over ten years. In cases of early retirement or changes in control, different lump sum payments are stipulated, ensuring financial security for the executives. These agreements align with those of other senior executives, differing mainly in retirement age and vesting schedule.

Home Bancorp Reports Q2 Earnings and Dividend Increase

On July 21, 2025, Home Bancorp, Inc. announced its second-quarter financial results, reporting a net income of $11.3 million, an increase from the previous quarter. The company also declared a 7% increase in its quarterly cash dividend to $0.29 per share, payable on August 15, 2025. Despite an increase in nonperforming assets, the company maintained a solid allowance for loan losses, indicating strong capital and liquidity positions, which are expected to support future growth.