Home Federal Bancorp, Inc. of Louisiana (NASDAQ: HFBL)

Sector: Financial Services Industry: Banks - Regional CIK: 0001500375
Market Cap 73.21 Mn
P/B 1.66
P/E 21.08
P/S 4.75
ROIC (Qtr) 8.52
Div Yield % 1.52
Rev 1y % (Qtr) 17.11
Total Debt (Qtr) 4.39 Mn
Debt/Equity (Qtr) 0.08
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About

Home Federal Bancorp, Inc. of Louisiana, or more commonly known as Home Federal Bank, is a holding company for a federally chartered stock savings bank operating within the banking industry. Its primary focus lies in the Shreveport-Bossier City-Minden combined statistical area of northwest Louisiana. Home Federal Bank is engaged in attracting deposits from the general public and using these funds to originate loans. The company's revenue is generated through the origination of various types of loans. These loans include one-to-four family residential...

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Investment thesis

Bull case

  • Strong operating cash flow of 7.64M provides robust 1.74x coverage of total debt 4.39M, indicating excellent debt servicing capability and financial flexibility.
  • Strong tangible asset base of 617.67M provides 140.60x coverage of total debt 4.39M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 7.64M provides strong 22.02x coverage of stock compensation 347000, indicating sustainable incentive practices.
  • Robust free cash flow of 7.58M exceeds capital expenditure of 64000 by 118.41x, indicating strong organic growth funding capability.
  • Operating cash flow of 7.64M provides strong 2.71x coverage of operating expenses 2.82M, showing operational efficiency.

Bear case

  • Operating cash flow of 7.64M barely covers its investment activities of (13.40M), with a coverage ratio of -0.57, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 7.64M provides thin coverage of dividend payments of (1.65M) with a -4.64 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Retained earnings of 15.41M provide limited buffer against comprehensive income items of (1.38M), which is -11.14x, indicating elevated exposure to market risks.
  • Operating cash flow of 7.64M is outpaced by equity issuance of (1.33M) (-5.75 ratio), indicating concerning reliance on equity markets for funding operations.
  • R&D investment of 0 represents just 0x of SG&A expenses of 13.13M, indicating potential underinvestment in innovation relative to administrative overhead.

Peer comparison

Companies in the Banks - Regional
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 PNC Pnc Financial Services Group, Inc. 99.49 Bn 13.81 5.85 62.34 Bn
2 USB Us Bancorp \De\ 87.84 Bn 19.01 4.52 77.98 Bn
3 NU Nu Holdings Ltd. 81.18 Bn 32.10 5.77 4.49 Bn
4 NWG NatWest Group plc 63.11 Bn 9.11 2.81 168.56 Bn
5 RF Regions Financial Corp 39.59 Bn 38.18 7.68 6.09 Bn
6 TFC Truist Financial Corp 39.02 Bn 20.15 4.25 71.11 Bn
7 FITB Fifth Third Bancorp 34.49 Bn -132.65 9.50 18.94 Bn
8 MTB M&T Bank Corp 33.34 Bn 20.67 5.83 14.99 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.15 0.13
EV to Cash from Ops. EV/CFO 19.81 13.53
EV to Debt EV to Debt 20.72 7.69
EV to EBIT EV/EBIT 17.57 24.25
EV to EBITDA EV/EBITDA 16.32 12.10
EV to Free Cash Flow [EV/FCF] EV/FCF 32.29 6.13
EV to Market Cap EV to Market Cap 1.24 1.08
EV to Revenue EV/Rev 5.91 6.13
Price to Book Value [P/B] P/B 1.66 1.91
Price to Earnings [P/E] P/E 21.08 10.51
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 3.16 276.83
Dividend Payout Ratio % Div Payout % (Qtr) 31.00 34.36
Dividend per Basic Share Div per Share (Qtr) 0.54 0.89
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 21.80 24.01
Interest Coverage Interest Coverage 0.00 -0.06
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 94.46 -73.37
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -1.39 18.43
Dividend Growth (1y) % Div 1y % (Qtr) 3.88 5.56
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 56.17 117.24
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 65.74 36.31
EBIT Growth (1y) % EBIT 1y % (Qtr) 71.20 61.65
EBT Growth (1y) % EBT 1y % (Qtr) 71.20 61.55
EPS Growth (1y) % EPS 1y % (Qtr) 56.88 65.85
FCF Growth (1y) % FCF 1y % (Qtr) 57.45 186.92
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 14.56 12.98
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.04 0.04
Cash Payout Ratio Cash Payout (Qtr) 0.21 0.25
Cash Ratio Cash Ratio 0.00 0.00
Current Ratio Current Ratio 0.00 0.01
Debt to Equity Ratio Debt/Equity (Qtr) 0.08 0.52
Interest Cover Ratio Interest Cover Ratio 0.00 -0.06
Times Interest Earned Times Interest Earned 0.00 -0.06
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 33.90 150.40
EBIT Margin % EBIT Margin % (Qtr) 29.40 157.97
EBT Margin % EBT Margin % (Qtr) 29.40 157.21
Gross Margin % Gross Margin % (Qtr) 100.00 97.97
Net Profit Margin % Net Margin % (Qtr) 23.00 117.48