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HOPE BANCORP INC (HOPE) Stock Fundamental Analysis

NASDAQ:HOPE - Nasdaq - US43940T1097 - Common Stock - Currency: USD

10.9  -0.23 (-2.07%)

After market: 10.9 0 (0%)

Fundamental Rating

4

HOPE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 405 industry peers in the Banks industry. While HOPE seems to be doing ok healthwise, there are quite some concerns on its profitability. HOPE has a decent growth rate and is not valued too expensively. Finally HOPE also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

HOPE had positive earnings in the past year.
HOPE had a positive operating cash flow in the past year.
HOPE had positive earnings in each of the past 5 years.
Of the past 5 years HOPE 4 years had a positive operating cash flow.
HOPE Yearly Net Income VS EBIT VS OCF VS FCFHOPE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M

1.2 Ratios

The Return On Assets of HOPE (0.59%) is worse than 66.92% of its industry peers.
The Return On Equity of HOPE (4.69%) is worse than 75.69% of its industry peers.
Industry RankSector Rank
ROA 0.59%
ROE 4.69%
ROIC N/A
ROA(3y)0.81%
ROA(5y)0.84%
ROE(3y)7.26%
ROE(5y)7.4%
ROIC(3y)N/A
ROIC(5y)N/A
HOPE Yearly ROA, ROE, ROICHOPE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

1.3 Margins

Looking at the Profit Margin, with a value of 20.68%, HOPE is doing worse than 60.15% of the companies in the same industry.
In the last couple of years the Profit Margin of HOPE has declined.
HOPE does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) 20.68%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-17.06%
PM growth 5Y-8.73%
GM growth 3YN/A
GM growth 5YN/A
HOPE Yearly Profit, Operating, Gross MarginsHOPE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

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4

2. Health

2.1 Basic Checks

HOPE does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for HOPE has been increased compared to 1 year ago.
The number of shares outstanding for HOPE has been reduced compared to 5 years ago.
HOPE has a worse debt/assets ratio than last year.
HOPE Yearly Shares OutstandingHOPE Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
HOPE Yearly Total Debt VS Total AssetsHOPE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

2.2 Solvency

The Debt to FCF ratio of HOPE is 0.80, which is an excellent value as it means it would take HOPE, only 0.80 years of fcf income to pay off all of its debts.
HOPE has a better Debt to FCF ratio (0.80) than 80.45% of its industry peers.
HOPE has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.05, HOPE belongs to the top of the industry, outperforming 81.70% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF 0.8
Altman-Z N/A
ROIC/WACCN/A
WACC14.58%
HOPE Yearly LT Debt VS Equity VS FCFHOPE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
HOPE Yearly Current Assets VS Current LiabilitesHOPE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M

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4

3. Growth

3.1 Past

The earnings per share for HOPE have decreased strongly by -24.56% in the last year.
The Earnings Per Share has been decreasing by -8.76% on average over the past years.
HOPE shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -16.91%.
The Revenue has been decreasing by -1.66% on average over the past years.
EPS 1Y (TTM)-24.56%
EPS 3Y-19.52%
EPS 5Y-8.76%
EPS Q2Q%-16.67%
Revenue 1Y (TTM)-16.91%
Revenue growth 3Y-5.14%
Revenue growth 5Y-1.66%
Sales Q2Q%-12.76%

3.2 Future

Based on estimates for the next years, HOPE will show a very strong growth in Earnings Per Share. The EPS will grow by 23.33% on average per year.
The Revenue is expected to grow by 11.92% on average over the next years. This is quite good.
EPS Next Y14.16%
EPS Next 2Y23.33%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.21%
Revenue Next 2Y11.92%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
HOPE Yearly Revenue VS EstimatesHOPE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M
HOPE Yearly EPS VS EstimatesHOPE Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5

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5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 12.67, which indicates a correct valuation of HOPE.
HOPE's Price/Earnings is on the same level as the industry average.
HOPE is valuated cheaply when we compare the Price/Earnings ratio to 29.62, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.10, which indicates a very decent valuation of HOPE.
HOPE's Price/Forward Earnings is on the same level as the industry average.
HOPE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.70.
Industry RankSector Rank
PE 12.67
Fwd PE 11.1
HOPE Price Earnings VS Forward Price EarningsHOPE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

71.68% of the companies in the same industry are more expensive than HOPE, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 9.67
EV/EBITDA N/A
HOPE Per share dataHOPE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

HOPE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
HOPE's earnings are expected to grow with 23.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.9
PEG (5Y)N/A
EPS Next 2Y23.33%
EPS Next 3YN/A

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8

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 5.03%, HOPE is a good candidate for dividend investing.
The stock price of HOPE dropped by -21.13% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
HOPE's Dividend Yield is rather good when compared to the industry average which is at 3.19. HOPE pays more dividend than 91.73% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, HOPE pays a better dividend.
Industry RankSector Rank
Dividend Yield 5.03%

5.2 History

The dividend of HOPE has a limited annual growth rate of 0.61%.
HOPE has been paying a dividend for at least 10 years, so it has a reliable track record.
HOPE has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.61%
Div Incr Years0
Div Non Decr Years12
HOPE Yearly Dividends per shareHOPE Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.1 0.2 0.3 0.4 0.5

5.3 Sustainability

66.26% of the earnings are spent on dividend by HOPE. This is not a sustainable payout ratio.
HOPE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP66.26%
EPS Next 2Y23.33%
EPS Next 3YN/A
HOPE Yearly Income VS Free CF VS DividendHOPE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M
HOPE Dividend Payout.HOPE Dividend Payout, showing the Payout Ratio.HOPE Dividend Payout.PayoutRetained Earnings

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HOPE BANCORP INC

NASDAQ:HOPE (2/21/2025, 8:25:54 PM)

After market: 10.9 0 (0%)

10.9

-0.23 (-2.07%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)01-27 2025-01-27/bmo
Earnings (Next)04-28 2025-04-28/bmo
Inst Owners92.13%
Inst Owner Change-95.89%
Ins Owners4.83%
Ins Owner Change-2.87%
Market Cap1.32B
Analysts74.55
Price Target13.87 (27.25%)
Short Float %1.76%
Short Ratio2.88
Dividend
Industry RankSector Rank
Dividend Yield 5.03%
Yearly Dividend0.56
Dividend Growth(5Y)0.61%
DP66.26%
Div Incr Years0
Div Non Decr Years12
Ex-Date02-06 2025-02-06 (0.14)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.19%
Min EPS beat(2)-4.68%
Max EPS beat(2)-1.69%
EPS beat(4)1
Avg EPS beat(4)-2.52%
Min EPS beat(4)-13.67%
Max EPS beat(4)9.95%
EPS beat(8)2
Avg EPS beat(8)-3.83%
EPS beat(12)5
Avg EPS beat(12)-0.12%
EPS beat(16)8
Avg EPS beat(16)0.89%
Revenue beat(2)0
Avg Revenue beat(2)-5.53%
Min Revenue beat(2)-5.59%
Max Revenue beat(2)-5.47%
Revenue beat(4)0
Avg Revenue beat(4)-5.64%
Min Revenue beat(4)-7.3%
Max Revenue beat(4)-4.2%
Revenue beat(8)1
Avg Revenue beat(8)-5.7%
Revenue beat(12)4
Avg Revenue beat(12)-3.59%
Revenue beat(16)4
Avg Revenue beat(16)-3.52%
PT rev (1m)-4.23%
PT rev (3m)-1.45%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-19.8%
EPS NY rev (3m)-19.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-9.84%
Revenue NY rev (3m)-9.88%
Valuation
Industry RankSector Rank
PE 12.67
Fwd PE 11.1
P/S 2.67
P/FCF 9.67
P/OCF 9.04
P/B 0.61
P/tB 0.77
EV/EBITDA N/A
EPS(TTM)0.86
EY7.89%
EPS(NY)0.98
Fwd EY9.01%
FCF(TTM)1.13
FCFY10.34%
OCF(TTM)1.21
OCFY11.07%
SpS4.08
BVpS17.97
TBVpS14.1
PEG (NY)0.9
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.59%
ROE 4.69%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 20.68%
GM N/A
FCFM 27.65%
ROA(3y)0.81%
ROA(5y)0.84%
ROE(3y)7.26%
ROE(5y)7.4%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-17.06%
PM growth 5Y-8.73%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.03
Health
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF 0.8
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales 1.94%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 133.72%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score4
WACC14.58%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-24.56%
EPS 3Y-19.52%
EPS 5Y-8.76%
EPS Q2Q%-16.67%
EPS Next Y14.16%
EPS Next 2Y23.33%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-16.91%
Revenue growth 3Y-5.14%
Revenue growth 5Y-1.66%
Sales Q2Q%-12.76%
Revenue Next Year11.21%
Revenue Next 2Y11.92%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-72.77%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-71.63%
OCF growth 3YN/A
OCF growth 5YN/A