Hope Bancorp (HOPE) AI Stock Analysis

• Market Cap: $1.45B
• Dividend Yield: 4.97%
• Average Volume (3M): 1.01M
• Price to Earnings (P/E): 28.5
• Beta (1Y): 0.80
• Revenue Growth: -7.96%
• EPS Growth: -52.79%
• Country: US
• Employees: 1,227
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.24
• Shares Outstanding: 128,186,230
• 10 Day Avg. Volume: 1,078,447
• 30 Day Avg. Volume: 1,012,661
• PEG Ratio: -0.59
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 1.48
• P/FCF Ratio: 13.86
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 1.43
• Enterprise Value/Gross Profit: 3.12
• Enterprise Value/Ebitda: 11.85
• 1Y Price Target: $12.00
• Price Target Upside: 6.67% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $12.00 ▲(6.67% Upside)

Hope Bancorp's overall stock score is driven by strong earnings call results and positive technical indicators. However, challenges in financial performance, particularly in profitability and cash flow, and a high P/E ratio weigh on the score. The attractive dividend yield provides some support.

Positive Factors

Net Income Growth

The significant increase in net income indicates improved profitability and effective cost management, strengthening the company's financial position.

Improved Asset Quality

Improved asset quality reduces credit risk and enhances financial stability, supporting long-term growth and resilience in adverse conditions.

Loan Growth

Consistent loan growth across segments indicates strong demand and market presence, contributing to sustainable revenue expansion.

Negative Factors

Declining Deposits

A decline in deposits can limit the bank's ability to fund loans and investments, potentially impacting liquidity and growth opportunities.

Profit Margin Pressure

Decreasing profit margins indicate rising costs or pricing pressures, which can erode profitability and affect long-term financial health.

Negative Free Cash Flow Growth

Negative free cash flow growth suggests challenges in cash generation, which may constrain investment and operational flexibility.

Hope Bancorp Business Overview & Revenue Model

Company Description

Hope Bancorp, Inc. operates as the bank holding company for Bank of Hope that provides banking services for small and medium-sized businesses, and individuals in the United States. The company accepts personal and business checking, money market, savings, time deposit, and individual retirement accounts. Its loan products include commercial loans to businesses for various purposes, such as working capital, purchasing inventory, debt refinancing, business acquisitions, and other business related financing needs; real estate loans; small business administration loans; and consumer loans, such as single-family mortgage, home equity, auto, credit card, and personal loans. The company also offers trade finance services, including the issuance and negotiation of letters of credit, as well as handles documentary collections; warehouse lines of credit to mortgage loan originators; and commercial equipment lease financing. In addition, it provides cash management services, such as remote deposit capture, lock box, and ACH origination services; investment and wealth management services; mobile banking services; debit card services; foreign exchanges services, safe deposit boxes, and other customary bank services; internet banking services; and automated teller machine services. As of December 31, 2021, the company operated 47 full-service branches in California, Washington, Texas, Illinois, New York, New Jersey, Virginia, and Alabama; SBA loan production offices in Atlanta, Houston, Dallas, Denver, Portland, Seattle, Fremont, and Southern California; and a representative office in Seoul, Korea. Hope Bancorp, Inc. was incorporated in 2000 and is headquartered in Los Angeles, California.

How the Company Makes Money

Hope Bancorp generates revenue primarily through interest income from loans and investment securities. The company offers various loan products such as commercial real estate loans, construction loans, and residential mortgages, which yield interest payments over time. Additionally, it earns fee income from services such as account maintenance, ATM transactions, and other banking services. The bank's diversification into wealth management and investment services also contributes to its revenue streams. Strategic partnerships with local businesses and community organizations enhance its market presence and customer base, further driving earnings.

Hope Bancorp Financial Statement Overview

Summary

Hope Bancorp shows strong revenue growth but faces challenges in profitability and cash flow generation. The company has improved its leverage position, which is positive for financial stability. However, declining margins and negative free cash flow growth highlight areas for improvement.

Income Statement

Hope Bancorp's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin is healthy at 46%, but the net profit margin has decreased to 5.46% from 9.96% in the previous year, indicating pressure on profitability. Revenue growth is strong at 82.7% TTM, but this follows a decline in the previous year, suggesting volatility. EBIT and EBITDA margins have also decreased, reflecting challenges in maintaining operational efficiency.

Balance Sheet

The balance sheet of Hope Bancorp is relatively stable. The debt-to-equity ratio has improved significantly to 0.06 TTM, indicating reduced leverage. However, return on equity has decreased to 2.35% TTM, suggesting lower profitability relative to equity. The equity ratio remains strong, indicating a solid capital base.

Cash Flow

Cash flow analysis reveals some concerns. Free cash flow growth is negative at -2.36% TTM, indicating potential cash generation issues. However, the free cash flow to net income ratio remains strong at 93%, suggesting efficient cash conversion. Operating cash flow to net income ratio is not available, limiting further analysis.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	945.24M	1.00B	1.09B	767.51M	610.13M	645.49M
Gross Profit	434.82M	456.64M	539.85M	619.97M	568.56M	419.11M
EBITDA	114.35M	132.96M	177.89M	296.05M	275.27M	142.29M
Net Income	51.61M	99.63M	133.67M	218.28M	204.57M	111.52M
Balance Sheet
Total Assets	18.51B	17.05B	19.13B	19.16B	17.89B	17.11B
Cash, Cash Equivalents and Short-Term Investments	454.91M	458.20M	4.07B	2.48B	3.00B	2.66B
Total Debt	194.25M	392.64M	1.96B	1.25B	678.87M	610.77M
Total Liabilities	16.25B	14.92B	17.01B	17.15B	15.80B	15.05B
Stockholders Equity	2.26B	2.13B	2.12B	2.02B	2.09B	2.05B
Cash Flow
Free Cash Flow	125.44M	106.91M	460.65M	476.42M	316.99M	160.94M
Operating Cash Flow	137.42M	116.72M	473.78M	485.54M	324.21M	165.92M
Investing Cash Flow	518.41M	466.52M	1.29B	-1.47B	-993.04M	-1.83B
Financing Cash Flow	-881.77M	-2.05B	-341.47M	1.18B	634.52M	1.32B

Hope Bancorp Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HOPE, the sentiment is Positive. The current price of 11.25 is above the 20-day moving average (MA) of 11.21, above the 50-day MA of 10.69, and above the 200-day MA of 10.34, indicating a bullish trend. The MACD of 0.21 indicates Positive momentum. The RSI at 56.49 is Neutral, neither overbought nor oversold. The STOCH value of 7.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HOPE.

Hope Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NBHC	79 Outperform	$1.48B	12.37	9.06%	3.07%	-2.46%	-1.98%
TCBK	78 Outperform	$1.57B	13.65	9.20%	2.83%	0.93%	5.65%
QCRH	75 Outperform	$1.43B	11.85	11.80%	0.28%	-2.42%	3.83%
DCOM	70 Neutral	$1.37B	27.40	4.23%	3.14%	-1.79%	-23.87%
HOPE	69 Neutral	$1.45B	28.47	2.19%	4.97%	-7.96%	-52.79%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
TFIN	67 Neutral	$1.53B	225.73	1.11%	―	2.04%	-64.17%

Hope Bancorp Corporate Events

Hope Bancorp Reports Strong Q3 2025 Financial Results

On October 28, 2025, Hope Bancorp announced its financial results for the third quarter of 2025, reporting a net income of $30.8 million, marking a 28% increase from the previous year. The company highlighted strong earnings growth driven by an 8% increase in net interest income, improved asset quality, and a strategic focus on enhancing its deposit mix. Additionally, the Board of Directors declared a quarterly cash dividend of $0.14 per common share, payable on November 21, 2025, to stockholders of record as of November 7, 2025.