Hingham Institution For Savings (HIFS) AI Stock Analysis

• Market Cap: $629.66M
• Dividend Yield: 0.84%
• Average Volume (3M): 63.04K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 1.05
• Revenue Growth: 8.26%
• EPS Growth: 94.53%
• Country: US
• Employees: 87
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 9.39
• Shares Outstanding: 2,180,250
• 10 Day Avg. Volume: 94,137
• 30 Day Avg. Volume: 63,039
• PEG Ratio: 3.49
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 2.55
• P/FCF Ratio: 47.07
• Enterprise Value/Market Cap: 3.34
• Enterprise Value/Revenue: 9.67
• Enterprise Value/Gross Profit: 28.00
• Enterprise Value/Ebitda: 45.40
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $323.00 ▲(10.00% Upside)

Hingham Institution For Savings shows solid financial performance with improving profitability and cash flow metrics, despite high leverage being a concern. Technical analysis indicates a positive trend, though short-term weakness is possible. The stock is fairly valued with a reasonable P/E ratio and modest dividend yield.

Positive Factors

Profitability

The company's solid profitability indicates effective cost management and a strong ability to generate income, which supports long-term financial health and shareholder value.

Cash Management

Effective cash management ensures the company can meet its financial obligations, invest in growth opportunities, and return value to shareholders, enhancing its long-term sustainability.

Community Focus

By fostering strong community ties, HIFS strengthens its market position and customer loyalty, which can lead to sustained revenue growth and competitive advantage in the regional banking sector.

Negative Factors

Revenue Growth Concerns

Slowing revenue growth could limit the company's ability to expand and compete effectively, necessitating strategic initiatives to enhance growth and maintain market relevance.

Increasing Leverage

Higher leverage can strain the company's financial flexibility and increase risk, particularly in volatile markets, potentially impacting long-term stability and growth prospects.

Margin Declines

Declining margins may indicate rising costs or pricing pressures, which could erode profitability over time, necessitating strategic adjustments to maintain financial performance.

Hingham Institution For Savings Business Overview & Revenue Model

Company Description

Hingham Institution for Savings (HIFS) is a community bank headquartered in Hingham, Massachusetts, primarily serving the financial needs of individuals and businesses in the South Shore area. Established in 1834, HIFS offers a range of banking products including savings and checking accounts, residential and commercial loans, and investment services. The bank is known for its commitment to customer service and community involvement, emphasizing personalized banking solutions tailored to the needs of its clients.

How the Company Makes Money

Hingham Institution for Savings generates revenue primarily through the interest earned on loans, which is a significant component of its earnings. The bank offers various types of loans, including mortgage loans, home equity lines of credit, and commercial loans, charging interest on these products. Additionally, HIFS earns income from service fees associated with account maintenance, transaction processing, and other banking services. The bank also invests in securities, which provide interest income. A key factor contributing to HIFS's financial success is its ability to maintain a strong deposit base, allowing it to fund its lending activities effectively. Furthermore, the bank may engage in partnerships with local businesses for promotional offers or financial services, enhancing its customer reach and revenue potential.

Hingham Institution For Savings Financial Statement Overview

Summary

Hingham Institution For Savings demonstrates solid financial performance with improving profitability and cash flow metrics. While revenue and profit margins have shown positive trends, the high leverage remains a risk factor. The company needs to focus on maintaining its cash flow conversion and managing its debt levels to ensure long-term financial health.

Income Statement

Hingham Institution For Savings shows a stable revenue growth with a TTM revenue growth rate of 1.075%. The gross profit margin has improved to 34.54% in TTM from 30.29% in 2024, indicating better cost management. The net profit margin has also increased to 15.53% in TTM, reflecting improved profitability. However, the historical high margins seen in 2021 have not been maintained, suggesting some pressure on profitability.

Balance Sheet

The company has a high debt-to-equity ratio of 3.53 in TTM, which is a concern for financial stability. However, the return on equity has improved to 7.78% in TTM from 6.53% in 2024, indicating better utilization of equity. The equity ratio remains stable, showing a consistent equity base relative to total assets.

Cash Flow

Free cash flow growth has rebounded to 13.02% in TTM after a decline in previous years, indicating improved cash generation. The operating cash flow to net income ratio is low at 0.89%, suggesting potential challenges in converting income into cash. However, the free cash flow to net income ratio is strong at 98.90%, showing effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	217.35M	217.38M	190.52M	118.31M	123.46M	115.34M
Gross Profit	75.07M	65.53M	63.44M	80.91M	112.41M	91.89M
EBITDA	46.30M	37.27M	35.91M	54.81M	93.21M	70.83M
Net Income	33.76M	28.19M	26.37M	37.52M	67.46M	50.77M
Balance Sheet
Total Assets	4.54B	4.46B	4.48B	4.19B	3.43B	2.86B
Cash, Cash Equivalents and Short-Term Investments	360.61M	351.83M	362.48M	362.03M	271.16M	233.99M
Total Debt	1.57B	1.50B	1.69B	1.28B	665.00M	408.03M
Total Liabilities	4.09B	4.03B	4.08B	3.81B	3.08B	2.56B
Stockholders Equity	445.75M	431.75M	407.62M	385.97M	354.61M	292.94M
Cash Flow
Free Cash Flow	22.03M	11.75M	18.45M	53.33M	57.41M	44.06M
Operating Cash Flow	22.27M	11.89M	19.75M	55.85M	59.01M	45.59M
Investing Cash Flow	-12.25M	32.48M	-276.58M	-685.28M	-527.34M	-280.43M
Financing Cash Flow	-18.55M	-55.02M	257.27M	720.30M	505.50M	216.68M

Hingham Institution For Savings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 293.64
• 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 HIFS, the sentiment is Positive. The current price of 293.64 is above the 20-day moving average (MA) of 286.26, above the 50-day MA of 284.70, and above the 200-day MA of 263.99, indicating a bullish trend. The MACD of -1.27 indicates Positive momentum. The RSI at 51.63 is Neutral, neither overbought nor oversold. The STOCH value of 46.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HIFS.

Hingham Institution For Savings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NRIM	81 Outperform	$640.63M	10.32	21.92%	2.31%	36.60%	92.63%
UNTY	80 Outperform	$556.08M	9.77	18.08%	1.08%	11.38%	36.10%
BCAL	74 Outperform	$608.64M	9.72	11.93%	―	61.29%	―
PGC	72 Outperform	$512.52M	15.06	5.50%	0.70%	9.16%	6.95%
HIFS	69 Neutral	$629.66M	14.07	10.23%	0.84%	8.26%	94.53%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%