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HarborOne Bancorp Inc (HONE)
NASDAQ:HONE

HarborOne Bancorp (HONE) AI Stock Analysis

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HarborOne Bancorp

(NASDAQ:HONE)

66Neutral
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 (HONE) vs. S&P 500 (SPY)

HarborOne Bancorp Business Overview & Revenue Model

Company DescriptionHarborOne 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 MoneyHarborOne 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
Overall, HarborOne Bancorp exhibits strong revenue growth and improved financial stability with no debt in 2024, enhancing its balance sheet position. However, challenges in maintaining consistent cash flow and slightly declining profitability metrics highlight areas for strategic focus. The company is well-positioned in the banking industry, but should aim to enhance cash generation capabilities to support future growth.
Income Statement
72
Positive
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
65
Positive
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
58
Neutral
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
271.41M163.44M204.91M226.32M248.94M
Gross Profit
271.41M163.44M2.38M226.32M248.94M
EBIT
262.64M26.79M84.67M80.45M58.01M
EBITDA
0.0020.63M56.60M70.24M48.05M
Net Income Common Stockholders
27.41M16.08M45.59M58.52M44.79M
Balance SheetCash, Cash Equivalents and Short-Term Investments
231.07M227.35M399.17M588.75M482.37M
Total Assets
5.75B5.67B5.36B4.55B4.48B
Total Debt
516.55M568.46M434.96M89.87M183.13M
Net Debt
-44.09M341.11M336.94M-104.85M-22.74M
Total Liabilities
5.18B5.08B4.74B3.87B3.79B
Stockholders Equity
575.01M583.76M616.98M679.26M696.31M
Cash FlowFree Cash Flow
13.54M49.03M66.63M217.84M-32.69M
Operating Cash Flow
13.54M53.51M68.90M224.29M-26.95M
Investing Cash Flow
1.12M-196.71M-952.02M-241.05M-318.85M
Financing Cash Flow
-33.15M272.54M786.42M5.61M340.06M

HarborOne Bancorp Technical Analysis

Technical Analysis Sentiment
Positive
Last Price11.29
Price Trends
50DMA
10.49
Positive
100DMA
11.23
Positive
200DMA
11.84
Negative
Market Momentum
MACD
0.12
Negative
RSI
69.15
Neutral
STOCH
84.48
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HONE, the sentiment is Positive. The current price of 11.29 is above the 20-day moving average (MA) of 9.85, above the 50-day MA of 10.49, and below the 200-day MA of 11.84, indicating a neutral trend. The MACD of 0.12 indicates Negative momentum. The RSI at 69.15 is Neutral, neither overbought nor oversold. The STOCH value of 84.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HONE.

HarborOne Bancorp Risk Analysis

HarborOne Bancorp disclosed 47 risk factors in its most recent earnings report. HarborOne Bancorp reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

HarborOne Bancorp Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$420.31M9.8015.17%1.28%6.99%12.46%
74
Outperform
$464.24M9.399.27%3.47%15.26%160.27%
67
Neutral
$406.76M13.757.61%4.48%16.37%0.52%
66
Neutral
$486.86M18.124.44%2.83%5.42%67.14%
63
Neutral
$12.46B9.568.14%17044.64%12.63%-4.25%
61
Neutral
$452.66M31.134.21%60.34%-63.03%
49
Neutral
$413.58M-9.34%1.00%6.75%62.30%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HONE
HarborOne Bancorp
11.29
1.09
10.69%
AROW
Arrow Financial
24.40
1.92
8.54%
SHBI
Shore Bancshares
13.91
3.58
34.66%
UNTY
Unity Bancorp
41.79
14.76
54.61%
FFWM
First Foundation
5.12
-0.35
-6.40%
BCAL
Southern California Bancorp
13.95
0.05
0.36%

HarborOne Bancorp Corporate Events

M&A TransactionsBusiness Operations and Strategy
HarborOne Bancorp Announces Merger with Eastern Bankshares
Positive
Apr 24, 2025

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.

Stock BuybackDividendsBusiness Operations and StrategyFinancial Disclosures
HarborOne Bancorp Reports Q1 2025 Earnings Decline
Negative
Apr 24, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.