HarborOne Bancorp (HONE) AI Stock Analysis

• Market Cap: $484.77M
• Dividend Yield: 2.93%
• Average Volume (3M): 436.74K
• Price to Earnings (P/E): 18.1
• Beta (1Y): 0.95
• Revenue Growth: 5.42%
• EPS Growth: 67.14%
• Country: US
• Employees: 516
• Sector: Financial
• Sector Strength: 82
• Industry: Banks - Regional
• EPS (TTM): 0.14
• Shares Outstanding: 43,090,980
• 10 Day Avg. Volume: 325,068
• 30 Day Avg. Volume: 436,742
• PEG Ratio: -4.05
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 25.54
• Enterprise Value/Market Cap: 1.85
• Enterprise Value/Revenue: 1.18
• Enterprise Value/Gross Profit: 5.33
• Enterprise Value/Ebitda: 10.09
• 1Y Price Target: $13.33
• Price Target Upside: 18.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 66 Neutral
• Price Target: ―

HarborOne Bancorp's overall score is bolstered by strong financial growth and a strategic merger with Eastern Bankshares, which is expected to provide long-term benefits. However, bearish technical indicators and cash flow consistency issues present notable challenges. The stock's reasonable valuation and solid dividend yield add positive elements to the investment outlook.

HarborOne Bancorp Business Overview & Revenue Model

Company Description

HarborOne Bancorp, Inc. (HONE) is a Massachusetts-based bank holding company that operates through its subsidiary, HarborOne Bank. The company primarily provides a wide range of retail and commercial banking services. Its offerings include personal and business checking and savings accounts, mortgage and consumer loans, and commercial lending services. HarborOne also offers wealth management and financial advisory services, catering to individuals, families, and businesses in the Massachusetts and Rhode Island regions.

How the Company Makes Money

HarborOne Bancorp generates revenue primarily through the interest income earned from its loan portfolio, which includes residential mortgages, commercial loans, and consumer loans. The company also earns money from non-interest income sources such as fees from deposit accounts, wealth management services, and other financial services. Additionally, HarborOne benefits from its strategic partnerships and community involvement, which enhance its market presence and customer base, contributing to the overall growth in earnings.

HarborOne Bancorp Financial Statement Overview

Summary

HarborOne Bancorp exhibits strong revenue growth and improved financial stability with no debt in 2024. However, challenges in maintaining consistent cash flow and slightly declining profitability metrics highlight areas for strategic focus.

Income Statement

HarborOne Bancorp has shown a commendable revenue growth rate of 66.1% from 2023 to 2024, coupled with a strong EBIT margin of 96.8% in 2024. Despite this, the net profit margin has slightly decreased from 9.8% in 2023 to 10.1% in 2024. The absence of EBITDA margin data for 2024 is a minor limitation in assessing overall operating performance.

Balance Sheet

The company maintains a solid equity ratio of 10% in 2024, reflecting a stable financial structure. The debt-to-equity ratio has improved significantly due to the absence of total debt in 2024. However, the return on equity (ROE) has slightly decreased to 4.8% in 2024, indicating room for improvement in generating returns on shareholder investments.

Cash Flow

HarborOne Bancorp's cash flow analysis shows a substantial drop in operating cash flow from 2023 to 2024, leading to a 74.6% decrease in free cash flow. The free cash flow to net income ratio remains positive at 49.4% in 2024, indicating adequate cash generation relative to profits, though there are concerns about the sustainability of cash flow trends.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
167.94M	163.44M	204.91M	226.32M	248.94M
	Gross Profit
167.94M	166.35M	2.38M	226.32M	248.94M
	EBIT
24.48M	26.79M	84.67M	80.45M	58.01M
	EBITDA
0.00	20.63M	56.60M	70.24M	48.05M
	Net Income Common Stockholders
27.41M	16.08M	45.59M	58.52M	44.79M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
231.07M	227.35M	399.17M	588.75M	482.37M
	Total Assets
5.75B	5.67B	5.36B	4.55B	4.48B
	Total Debt
516.55M	568.46M	434.96M	89.87M	183.13M
	Net Debt
285.48M	341.11M	336.94M	-104.85M	-22.74M
	Total Liabilities
5.18B	5.08B	4.74B	3.87B	3.79B
	Stockholders Equity
575.01M	583.76M	616.98M	679.26M	696.31M
Cash Flow		Free Cash Flow
2.60M	49.03M	66.63M	217.84M	-32.69M
	Operating Cash Flow
3.84M	53.51M	68.90M	224.29M	-26.95M
	Investing Cash Flow
-76.70M	-196.71M	-952.02M	-241.05M	-318.85M
	Financing Cash Flow
76.58M	272.54M	786.42M	5.61M	340.06M

HarborOne Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HONE, the sentiment is Negative. The current price of 11.25 is below the 20-day moving average (MA) of 11.51, above the 50-day MA of 10.61, and below the 200-day MA of 11.76, indicating a neutral trend. The MACD of 0.29 indicates Positive momentum. The RSI at 53.76 is Neutral, neither overbought nor oversold. The STOCH value of 19.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HONE.

HarborOne Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UNTY	77 Outperform	$434.95M	10.17	15.17%	1.23%	6.99%	12.46%
SHBI	74 Outperform	$478.59M	9.66	9.27%	3.35%	15.26%	160.27%
BCAL	71 Outperform	$478.09M	33.21	4.21%	―	60.34%	-62.91%
AROW	67 Neutral	$427.22M	15.10	7.25%	4.24%	11.46%	-1.07%
HONE	66 Neutral	$484.77M	18.05	4.44%	2.93%	5.42%	67.14%
Sector *	64 Neutral	$12.64B	9.78	7.67%	17015.08%	12.23%	-6.02%
FFWM	57 Neutral	$425.94M	―	-8.68%	0.19%	3.61%	65.61%

HarborOne Bancorp Corporate Events

HarborOne Bancorp Announces Merger with Eastern Bankshares

On April 24, 2025, Eastern Bankshares, Inc. and HarborOne Bancorp, Inc. announced a definitive merger agreement, where HarborOne will merge into Eastern in a stock and cash transaction valued at approximately $490 million. This merger aims to solidify Eastern’s position in Greater Boston and expand its reach into Rhode Island, with anticipated benefits including 16% earnings per share accretion and enhanced customer offerings. The merger, expected to close in the fourth quarter of 2025, is subject to regulatory approvals and HarborOne shareholder approval. The transaction is seen as a strategic fit with shared values and a focus on customer-centric banking, promising to deliver sustained value to shareholders.

Spark’s Take on HONE Stock

According to Spark, TipRanks’ AI Analyst, HONE is a Neutral.

HarborOne Bancorp has demonstrated strong financial growth with excellent revenue expansion and a stable balance sheet, thanks to no debt and increased net income. However, the stock faces challenges with bearish technical indicators and cash flow consistency. Valuation metrics are favorable, with a reasonable P/E ratio and a solid dividend yield. The company’s recent significant income growth adds a positive outlook, though technical weaknesses remain a concern.

To see Spark’s full report on HONE stock, click here.

HarborOne Bancorp Reports Q1 2025 Earnings Decline

On April 24, 2025, HarborOne Bancorp, Inc. reported a net income of $5.5 million for the first quarter of 2025, a 38.1% decrease from the previous quarter. This decline was primarily due to a reduction in mortgage banking income. Despite the decrease in net income, the company saw improvements in its net interest margin and an increase in deposits. The quarter also featured a 12.5% increase in the quarterly dividend and share repurchases, reflecting a strategic focus on shareholder value. The company faced challenges with a decline in noninterest income and a decrease in loan balances, but managed to improve its loans-to-deposits ratio and reduce borrowing costs.

Spark’s Take on HONE Stock

According to Spark, TipRanks’ AI Analyst, HONE is a Neutral.

HarborOne Bancorp has demonstrated strong financial growth with excellent revenue expansion and a stable balance sheet, thanks to no debt and increased net income. However, the stock faces challenges with bearish technical indicators and cash flow consistency. Valuation metrics are favorable, with a reasonable P/E ratio and a solid dividend yield. The company’s recent significant income growth adds a positive outlook, though technical weaknesses remain a concern.

To see Spark’s full report on HONE stock, click here.