Hanover Bancorp Inc (HNVR) AI Stock Analysis

• Market Cap: $165.14M
• Dividend Yield: 1.7%
• Average Volume (3M): 13.02K
• Price to Earnings (P/E): 15.3
• Beta (1Y): 0.65
• Revenue Growth: 0.99%
• EPS Growth: -6.35%
• Country: US
• Employees: 176
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.47
• Shares Outstanding: 7,192,390
• 10 Day Avg. Volume: 10,333
• 30 Day Avg. Volume: 13,023
• PEG Ratio: -0.72
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 1.15
• P/FCF Ratio: 37.06
• Enterprise Value/Market Cap: 0.80
• Enterprise Value/Revenue: 0.91
• Enterprise Value/Gross Profit: 1.94
• Enterprise Value/Ebitda: 6.94
• 1Y Price Target: $27.00
• Price Target Upside: 14.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $24.00 ▲(2.08% Upside)

The overall stock score of 68.2 reflects a stable financial performance with strong technical indicators. The stock is fairly valued with a reasonable P/E ratio and dividend yield. The primary strengths are in the company's capital structure and cash generation capabilities, while areas for improvement include revenue growth and operational efficiency.

Positive Factors

Capital Structure

A strong CET1 capital ratio indicates a robust capital structure, providing financial stability and the ability to absorb potential losses.

Market Expansion

Expanding into key markets with hi-tech branches can enhance market share and customer engagement, driving long-term growth.

Cash Generation

A strong free cash flow to net income ratio indicates effective cash generation, supporting reinvestment and shareholder returns.

Negative Factors

Revenue Growth

Declining revenue growth suggests challenges in expanding business operations, which could impact long-term profitability.

Operational Efficiency

A low net profit margin indicates potential inefficiencies in cost management, affecting overall profitability and competitiveness.

Cash Flow Challenges

Negative free cash flow growth can signal liquidity issues, limiting the company's ability to invest in growth opportunities.

Hanover Bancorp Inc Business Overview & Revenue Model

Company Description

Hanover Bancorp, Inc. operates as the bank holding company for Hanover Community Bank that provides banking products and services for small and medium-sized businesses, municipalities, and individuals in the New York metro area. The company offers checking, savings, money market, NOW, and individual retirement accounts, as well as certificates of deposits and time deposits; cards; and residential and commercial real estate mortgages, commercial and industrial loans, lines of credit, and small business administration loans, as well as home equity, multi-family, business, bridge, and other personal purpose loans. It operates branch offices located in Manhattan, Brooklyn, Queens, and Nassau County, New York; and administrative office in Suffolk County, New York. The company was founded in 2008 and is headquartered in Mineola, New York.

How the Company Makes Money

Hanover Bancorp Inc generates revenue through several key streams, primarily from interest income on loans and fees associated with various banking services. The company earns interest income by providing personal loans, commercial loans, and mortgages to customers, which are repaid with interest over time. Additionally, HNVR charges fees for account maintenance, transaction services, and other banking products, contributing to its non-interest income. The bank may also engage in investment activities, earning revenue from securities and other financial instruments. Strategic partnerships with local businesses and community organizations further enhance its lending capabilities and customer base, thereby supporting its overall revenue generation efforts.

Hanover Bancorp Inc Financial Statement Overview

Summary

Hanover Bancorp Inc demonstrates a stable financial performance with strengths in its capital structure and cash generation capabilities. However, there are areas for improvement in revenue growth and operational efficiency. The company should focus on enhancing profitability and managing cash flow to ensure long-term sustainability.

Income Statement

Hanover Bancorp Inc shows a mixed performance in its income statement. The TTM data indicates a slight decline in revenue growth, but the company maintains a healthy gross profit margin of 46.25%. The net profit margin is relatively low at 7.73%, suggesting room for improvement in cost management. The EBIT and EBITDA margins are moderate, indicating stable operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.67, which is manageable for a regional bank. The return on equity is modest at 5.82%, indicating moderate profitability. The equity ratio stands at a healthy level, suggesting a solid capital structure.

Cash Flow

Cash flow analysis reveals challenges with a negative free cash flow growth rate of -21.33%. However, the free cash flow to net income ratio is strong at 113.54%, indicating effective cash generation relative to net income. The operating cash flow to net income ratio is low, suggesting potential liquidity constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	145.20M	148.36M	113.89M	77.30M	52.02M	41.50M
Gross Profit	68.04M	63.49M	59.91M	65.68M	44.06M	27.24M
EBITDA	19.05M	20.25M	23.68M	32.24M	15.53M	7.56M
Net Income	11.36M	12.35M	15.16M	23.56M	10.85M	4.97M
Balance Sheet
Total Assets	2.33B	2.31B	2.15B	1.84B	1.48B	851.61M
Cash, Cash Equivalents and Short-Term Investments	204.08M	195.00M	192.62M	162.23M	159.00M	86.24M
Total Debt	136.53M	141.52M	215.37M	126.32M	184.16M	100.14M
Total Liabilities	2.13B	2.12B	1.96B	1.67B	1.36B	773.56M
Stockholders Equity	201.83M	196.64M	185.91M	172.58M	122.53M	78.04M
Cash Flow
Free Cash Flow	6.29M	4.61M	12.99M	23.93M	11.11M	-527.00K
Operating Cash Flow	6.13M	5.90M	16.40M	25.05M	13.19M	566.00K
Investing Cash Flow	32.91M	-45.82M	-256.36M	-374.15M	89.85M	-7.29M
Financing Cash Flow	-12.71M	25.57M	282.64M	332.50M	-16.71M	-898.00K

Hanover Bancorp Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.51
• 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 HNVR, the sentiment is Positive. The current price of 23.51 is above the 20-day moving average (MA) of 23.29, above the 50-day MA of 22.73, and above the 200-day MA of 22.04, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 47.70 is Neutral, neither overbought nor oversold. The STOCH value of 40.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HNVR.

Hanover Bancorp Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PEBK	76 Outperform	$202.00M	12.07	11.73%	2.58%	4.52%	3.47%
OVBC	74 Outperform	$187.97M	13.27	8.95%	2.27%	10.35%	22.05%
MRBK	73 Outperform	$204.32M	10.02	11.39%	2.87%	9.77%	76.75%
BVFL	72 Outperform	$164.54M	16.94	5.32%	―	4.86%	-8.20%
ATLO	70 Outperform	$206.21M	12.90	8.35%	3.49%	5.89%	82.82%
HNVR	68 Neutral	$165.14M	15.26	5.60%	1.70%	0.99%	-6.35%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%