Capitalcube gives Hingham Institution for Savings a score of 68.
Our analysis is based on comparing Hingham Institution for Savings with the following peers – Western New England Bancorp, Inc., Berkshire Hills Bancorp, Inc., Northwest Bancshares, Inc., Meridian Bancorp Inc, BSB Bancorp, Inc., Wellesley Bancorp, Inc., United Financial Bancorp Inc and Brookline Bancorp, Inc. (WNEB-US, BHLB-US, NWBI-US, EBSB-US, BLMT-US, WEBK-US, UBNK-US and BRKL-US).
Hingham Institution for Savings has a fundamental score of 68 and has a relative valuation of NEUTRAL.
- It currently trades at a Price/Book ratio of (2.26).
- We classify HIFS-US as Harvesting because of the market’s relatively low growth expectations despite its relatively high returns.
- HIFS-US has relatively high profit margins while operating with median capital turns.
- Compared with its chosen peers, changes in the company’s annual earnings are better than the changes in its revenue, implying better than median cost control and/or some economies of scale.
- HIFS-US‘s return on equity currently and over the past five years suggest that its relatively high operating returns are sustainable.
- While HIFS-US‘s revenues growth in recent years has been around the peer median, the stock’s below peer median P/E ratio suggests that the market likely sees the company’s long-term growth prospects to be fading.
- The company’s level of equity capital investment suggests it might be under-investing in a business with above median returns.
Drivers of Margin
- HIFS-US‘s pre-tax margin suggests relatively low operating costs.
- The company’s net interest income (net interest income/total revenues) of 97.19% is around peer median suggesting that HIFS-US‘s lending operations does not benefit from any differentiating pricing advantage. However, HIFS-US‘s pre-tax margin is more than the peer median (66.63% compared to 27.24%) suggesting relatively low operating costs.
- The company’s comparatively low proportion of fee based income (i.e. non interest income/total revenues) of 2.81% versus peer median of 12.37% — suggests that HIFS-US‘s operating margins are likely to be more volatile. In contrast, HIFS-US‘s proportion of overhead costs (i.e. non interest expense/total revenues) is less than peer median (31.53x compared to 64.59x) — suggesting relatively low fee-based overhead operations or even room for expanding this part of business.
Quadrant label definitions. Hover to know more
Hingham Institution for Savings provides community banking services. Its primary deposit products include savings, checking and term certificate accounts, and primary lending products are residential and commercial mortgage, real estate, construction, home equity and consumer loans. The company offers online banking services, which include PCBANK24, business online, bill pay service and 24-hour banking. It provides financial services to individuals and small businesses in Boston and Southeastern Massachusetts. Hingham Institution for Savings was founded in 1834 and is headquartered in Hingham, MA.