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Want To Invest In Home Bancorp Inc (NASDAQ:HBCP)? Here’s How It Performed Lately

Assessing Home Bancorp Inc’s (NASDAQ:HBCP) past track record of performance is a valuable exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess HBCP’s recent performance announced on 30 June 2018 and evaluate these figures to its longer term trend and industry movements.

View our latest analysis for Home Bancorp

Were HBCP’s earnings stronger than its past performances and the industry?

HBCP’s trailing twelve-month earnings (from 30 June 2018) of US$23m has jumped 24% compared to the previous year.

Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 22%, indicating the rate at which HBCP is growing has accelerated. What’s enabled this growth? Let’s see if it is solely a result of industry tailwinds, or if Home Bancorp has experienced some company-specific growth.

NasdaqGS:HBCP Income Statement Export October 9th 18
NasdaqGS:HBCP Income Statement Export October 9th 18

In terms of returns from investment, Home Bancorp has fallen short of achieving a 20% return on equity (ROE), recording 7.8% instead. However, its return on assets (ROA) of 1.0% exceeds the US Mortgage industry of 0.6%, indicating Home Bancorp has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Home Bancorp’s debt level, has declined over the past 3 years from 9.8% to 9.6%.

What does this mean?

Home Bancorp’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Companies that have performed well in the past, such as Home Bancorp gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research Home Bancorp to get a more holistic view of the stock by looking at:

  1. Future Outlook: What are well-informed industry analysts predicting for HBCP’s future growth? Take a look at our free research report of analyst consensus for HBCP’s outlook.

  2. Financial Health: Are HBCP’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.

  3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

NB: Figures in this article are calculated using data from the trailing twelve months from 30 June 2018. This may not be consistent with full year annual report figures.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.