HarborOne Bancorp (HONE) AI Stock Analysis

• Market Cap: $544.66M
• Dividend Yield: 2.64%
• Average Volume (3M): 218.58K
• Price to Earnings (P/E): 19.5
• Beta (1Y): 1.01
• Revenue Growth: 5.00%
• EPS Growth: 72.45%
• Country: US
• Employees: 516
• Sector: Financial
• Sector Strength: 73
• Industry: Banks - Regional
• EPS (TTM): 0.23
• Shares Outstanding: 43,158,596
• 10 Day Avg. Volume: 190,281
• 30 Day Avg. Volume: 218,579
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.62
• Enterprise Value/Revenue: 2.86
• Enterprise Value/Gross Profit: 5.51
• Enterprise Value/Ebitda: 23.75
• 1Y Price Target: $13.00
• Price Target Upside: 1.64% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 69 Neutral
• Price Target: $13.00 ▲(1.64% Upside)

HarborOne Bancorp's stable financial position and positive technical indicators are offset by valuation concerns and legal challenges related to the merger. The company's ability to manage these risks will be crucial for future performance.

HarborOne Bancorp Business Overview & Revenue Model

Company Description

HarborOne Bancorp (HONE) is a financial institution based in the United States, primarily engaged in providing a range of banking services through its subsidiary, HarborOne Bank. The company offers various products including personal and commercial loans, mortgage lending, and deposit accounts such as savings and checking accounts. HarborOne operates in the banking sector, focusing on serving individuals, businesses, and communities with a commitment to customer service and community involvement.

How the Company Makes Money

HarborOne Bancorp generates revenue primarily through interest income from loans and mortgages, which constitutes a significant portion of its earnings. The company earns interest on various types of loans, including residential and commercial real estate loans, as well as consumer loans. Additionally, HarborOne derives income from fees associated with deposit accounts, transaction services, and other banking products. The bank also benefits from non-interest income generated through service fees, investment management, and wealth management services. Strategic partnerships with local businesses and a focus on community banking further enhance its revenue streams by fostering customer loyalty and increasing deposit base.

HarborOne Bancorp Financial Statement Overview

Summary

HarborOne Bancorp shows stable financial performance with a strong gross profit margin of 50.9% but stagnant revenue growth. The balance sheet is solid with a conservative debt-to-equity ratio of 0.69. Cash flow management needs improvement, as indicated by a low operating cash flow to net income ratio of 0.48.

Income Statement

HarborOne Bancorp's income statement reflects a modest performance. The TTM shows a gross profit margin of 50.9%, which is strong. However, the net profit margin is 8.3%, indicating room for improvement in cost management or revenue growth. Revenue growth is stagnant, with a slight decrease in the latest TTM compared to the previous year, highlighting a need for strategic initiatives to drive sales. The EBIT margin is 10.2%, and the EBITDA margin is 11.6%, both indicating stable operational efficiency.

Balance Sheet

The balance sheet of HarborOne Bancorp indicates a solid financial position. The debt-to-equity ratio stands at 0.69, reflecting a conservative leverage approach which is favorable for stability. The return on equity (ROE) is 4.4%, suggesting moderate profitability relative to shareholder equity. The equity ratio is 10.1%, indicating a modest level of equity financing relative to total assets. This structure supports potential growth while maintaining financial stability.

Cash Flow

The cash flow statement shows mixed performance. There is a significant increase in free cash flow compared to the previous period, resulting in a high free cash flow growth rate. However, the operating cash flow to net income ratio is low at 0.48, signaling that the company might face challenges in converting profits into cash. The free cash flow to net income ratio is 0.43, underscoring a need to enhance cash flow generation relative to net earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	308.19M	313.70M	283.37M	225.48M	237.06M	275.55M
Gross Profit	160.04M	159.66M	160.67M	196.87M	231.79M	212.25M
EBITDA	37.15M	38.75M	29.73M	66.55M	86.07M	63.69M
Net Income	26.37M	27.41M	16.08M	45.59M	58.52M	44.79M
Balance Sheet
Total Assets	5.61B	5.75B	5.67B	5.36B	4.55B	4.48B
Cash, Cash Equivalents and Short-Term Investments	203.05M	494.98M	517.50M	399.17M	588.75M	482.37M
Total Debt	439.65M	516.55M	568.46M	434.96M	89.87M	183.13M
Total Liabilities	5.03B	5.18B	5.08B	4.74B	3.87B	3.79B
Stockholders Equity	580.15M	575.01M	583.76M	616.98M	679.26M	696.31M
Cash Flow
Free Cash Flow	45.53M	2.60M	49.03M	66.63M	217.84M	-32.69M
Operating Cash Flow	46.78M	3.84M	53.51M	68.90M	224.29M	-26.95M
Investing Cash Flow	97.83M	-76.70M	-196.71M	-952.02M	-241.05M	-318.85M
Financing Cash Flow	-176.63M	76.58M	272.54M	786.42M	5.61M	340.06M

HarborOne Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.79
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 12.79 is above the 20-day moving average (MA) of 12.13, above the 50-day MA of 11.99, and above the 200-day MA of 11.52, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 65.44 is Neutral, neither overbought nor oversold. The STOCH value of 89.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HONE.

HarborOne Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AROW	78 Outperform	$486.99M	16.12	7.72%	3.79%	8.36%	-2.24%
UNTY	75 Outperform	$526.83M	10.61	17.02%	1.03%	10.57%	31.14%
SHBI	72 Outperform	$565.09M	10.50	9.88%	2.81%	2.66%	128.06%
BCAL	70 Outperform	$546.95M	19.57	7.44%	―	88.14%	0.65%
HONE	69 Neutral	$544.66M	19.48	4.56%	2.64%	5.00%	72.45%
Sector *	68 Neutral	$17.89B	12.03	10.28%	3.73%	9.80%	1.66%
FFWM	52 Neutral	$487.73M	―	-9.79%	0.20%	-1.29%	-1023.82%

HarborOne Bancorp Corporate Events

HarborOne Bancorp Approves Merger with Eastern Bankshares

On August 20, 2025, HarborOne Bancorp‘s shareholders approved a merger with Eastern Bankshares, Inc., where HarborOne will merge into Eastern, making Eastern the surviving entity. Additionally, shareholders approved a non-binding proposal for potential compensation to HarborOne’s executives related to the merger, while a proposal for meeting adjournment was not required.

HarborOne Bancorp Faces Legal Challenges in Merger

On April 24, 2025, HarborOne Bancorp, Inc. announced a merger agreement with Eastern Bankshares, Inc., where Eastern will acquire HarborOne and its subsidiary, HarborOne Bank. The merger has faced legal challenges, with shareholders alleging insufficient disclosures in the proxy statement, leading to lawsuits and demand letters. HarborOne and Eastern have denied these allegations but have issued supplemental disclosures to address the claims and avoid delays in the merger process. The outcome of these legal proceedings remains uncertain, but the companies are committed to proceeding with the merger as planned.

HarborOne Bancorp Announces Quarterly Cash Dividend

On July 31, 2025, HarborOne Bancorp, Inc. announced a quarterly cash dividend of $0.09 per share, payable on September 15, 2025, to shareholders recorded by September 3, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders amidst a backdrop of significant economic and operational challenges, including a pending merger with Eastern Bankshares, Inc., and various market risks.

HarborOne Bancorp Reports Q2 Income Surge Amid Merger

HarborOne Bancorp, Inc. reported a significant increase in net income for the second quarter of 2025, with earnings rising to $8.1 million, a 46.5% increase from the previous quarter. The company also announced a merger with Eastern Bankshares, Inc., which has led to the suspension of its share repurchase program. Despite a decrease in total assets and deposits, the company experienced growth in noninterest income, driven by higher mortgage banking income and deposit fees, while managing expenses effectively. The merger is expected to enhance HarborOne’s market position, although it incurred $1.7 million in merger-related expenses during the quarter.

HarborOne Bancorp Declares Quarterly Cash Dividend

On June 26, 2025, HarborOne Bancorp, Inc. announced that its Board of Directors declared a quarterly cash dividend of $0.09 per share, to be paid on July 23, 2025, to shareholders of record as of July 9, 2025. This decision reflects the company’s ongoing commitment to providing value to its shareholders and may impact its financial positioning and stakeholder relations, especially in light of the pending merger with Eastern Bankshares, Inc. and the various economic and operational risks outlined by the company.