Shares of Home Bancorp Inc (HBCP) are on watch today as volume is moving the needle mid-session. 61912 shares have traded hands in the most recent session compared to the three month average of 0.02m. Technical traders will be keeping a close eye on the stock to see if the momentum crosses key levels.
Now we’ll take a look at how the fundamentals are stacking up for Home Bancorp Inc (HBCP). Fundamental analysis takes into consideration market, industry and stock conditions to help determine if the shares are correctly valued. Home Bancorp Inc currently has a yearly EPS of 2.25. This number is derived from the total net income divided by shares outstanding. In other words, EPS reveals how profitable a company is on a share owner basis.
Another indicator we can look at to determine the profitability of the company is the Price to Earnings ratio, or P/E ratio. Home Bancorp Inc (HBCP) has a current P/E ratio of 14.97. This ratio reveals what the market is willing to pay for a given stock based on the firm’s current earnings. It’s a useful tool for helping determine if the stock is fairly price, overvalued or undervalued. The formula to arrive at a P/E ratio is simply dividing the market value price per share by earnings per share. A higher P/E ratio is typically indicative of positive future earnings growth and performance. A company with a lower P/E ratio might encourage investors to do some additional homework to see why the current performance and earnings expectations are lower than their peers.
Another key indicator that can help investors determine if a stock might be a quality investment is the Return on Equity or ROE. Home Bancorp Inc (HBCP) currently has Return on Equity of 9.28. ROE is a ratio that measures profits generated from the investments received from shareholders. In other words, the ratio reveals how effective the firm is at turning shareholder investment into company profits. A company with high ROE typically reflects well on management and how well a company is run at a high level. A firm with a lower ROE might encourage potential investors to dig further to see why profits aren’t being generated from shareholder money.
Another ratio we can look at is the Return on Invested Capital or more commonly referred to as ROIC. Home Bancorp Inc (HBCP) has a current ROIC of 5.89. ROIC is calculated by dividing Net Income – Dividends by Total Capital Invested. Similar to ROE, ROIC measures how effectively company management is using invested capital to generate company income. A high ROIC number typically reflects positively on company management while a low number typically reflects the opposite.
Turning to Return on Assets or ROA, Home Bancorp Inc (HBCP) has a current ROA of 1.03. This is a profitability ratio that measures net income generated from total company assets during a given period. This ratio reveals how quick a company can turn it’s assets into profits. In other words, the ratio provides insight into the profitability of a firm’s assets. The ratio is calculated by dividing total net income by the average total assets. A higher ROA compared to peers in the same industry, would suggest that company management is able to effectively generate profits from their assets. Similar to the other ratios, a lower number might raise red flags about management’s ability when compared to other companies in a similar sector.
In taking a look at Home Bancorp Inc’s recent performance, near-term the stock has moved 0.87% over the past 5 trading days, -6.23% over the past 20 trading days, -13.92% over the past 13 weeks, 20.32% over the past half year and 25.47% over the past 52 weeks.