Macroaxis Stories

Is Hanover Bancorp (USA Stocks:HNVR) ready for a correction?

December 21, 2024  By Raphi Shpitalnik
Macroaxis Story
Hanover Bancorp has liabilities totaling $215.37 million. It scores 13 out of 100 in performance metrics. With a Beta of 0.35, the stock offers potential diversification benefits. This means that when the market rises, Hanover Bancorp's returns are likely to increase, but not as much as the market. Conversely, in a downturn, its losses are expected to be less severe. To make an informed decision about Hanover Bancorp's stock trends, consider reviewing its maximum drawdown and the relationship between skewness and the day typical price. This analysis can help determine if current trends might reverse.

Main Considerations

Considering Hanover Bancorp's current market capitalization of 182.2M and a book value per share of 25.95X, the stock presents an intriguing valuation for potential investors. With insiders holding a significant 30.94% of shares, there's a strong indication of confidence in the company's future prospects.
Published 18 hours ago
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Reviewed by Gabriel Shpitalnik

Hanover Bancorp, a player in the regional banking sector, presents an intriguing case for investors evaluating its stock's potential. With a total revenue of $63.3 million and a robust net asset base of $2.15 billion, the company has established a solid financial foundation. However, the bank's operating income stands at a modest $1.8 million, highlighting challenges in translating revenue into substantial profits. Despite these hurdles, Hanover Bancorp's operating margin of 29.53% suggests efficient management of its operations, potentially positioning it for future growth. As investors consider the bank's current valuation of $207.48 million, the question remains whether these financial metrics signal a strategic buying opportunity or warrant a more cautious approach. Many investors are intrigued by the banking sector, so let's take a closer look at Hanover Bancorp. We'll explore whether Hanover Bancorp can still deliver strong profit margins and if its current valuation makes sense. By examining the company's valuation, we'll provide insights to help you decide if investing in this stock is a wise move.
We determine the current worth of Hanover Bancorp using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Hanover Bancorp based exclusively on its fundamental and basic technical indicators. By analyzing Hanover Bancorp's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Hanover Bancorp's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Hanover Bancorp. We calculate exposure to Hanover Bancorp's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Hanover Bancorp's related companies.

Hanover Bancorp Investment Alerts

Hanover investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Hanover Bancorp performance across your portfolios.Please check all investment alerts for Hanover

Hanover Bancorp Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Hanover value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Hanover Bancorp competition to find correlations between indicators driving the intrinsic value of Hanover.

Hanover Bancorp Gross Profit

Hanover Bancorp Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Hanover Bancorp previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Hanover Bancorp Gross Profit growth over the last 10 years. Please check Hanover Bancorp's gross profit and other fundamental indicators for more details.

Another angle On Hanover Bancorp

The company reported the previous year's revenue of 63.34 M. Net Income was 15.16 M with profit before overhead, payroll, taxes, and interest of 65.68 M.

Margins Breakdown

Hanover profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Hanover Bancorp itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Hanover Bancorp profit margins.
0.27
Operating Profit Margin
0.22
Net Profit Margin
0.29
Pretax Profit Margin
Pretax Profit Margin0.29
Operating Profit Margin0.27
Net Profit Margin0.22
Gross Profit Margin0.76
Hanover Bancorp Days Sales Outstanding is increasing over the last 6 years. The latest value of Hanover Bancorp Days Sales Outstanding is 55.41.
Further, Hanover Bancorp PTB Ratio is decreasing over the last 8 years. The previous year's value of Hanover Bancorp PTB Ratio was 1.23. "Buy low, sell high" is a classic mantra in investing, and Hanover Bancorp (HNVR) might just be offering a strategic entry point. With a Price to Book ratio of 0.97, the stock is trading below its book value, suggesting potential undervaluation. Despite a modest operating margin of 0.30%, the company has managed to maintain a positive net income of 15.2 million, indicating resilience in its operations. Additionally, the forward dividend yield of 1.57% provides an attractive income stream for investors seeking dividends. However, with a probability of bankruptcy at 71.84%, potential investors should weigh the risks carefully before diving in..

Time to exit of Hanover Bancorp?

With Hanover Bancorp's stock experiencing a drawdown of over 17.35%, investors might be wondering if it's time to reassess their holdings. Such a decline could indicate underlying issues or a shift in market sentiment that deserves attention. While it's important not to react impulsively, this downturn might prompt a strategic review, taking into account the company's fundamentals and the broader market landscape. Monitoring developments and evaluating risk tolerance are crucial for making informed decisions about whether to hold or sell the stock. Hanover Bancorp shows below-average downside deviation, with an Information Ratio of 0.17 and a Jensen Alpha of 0.42.
Understanding market volatility trends can help investors time their moves, as volatility impacts stock prices, especially during bear markets, often prompting portfolio adjustments.Despite Hanover Bancorp's recent dip of over 6% even as the broader market surged, investors might find a silver lining in the current situation. The analyst consensus remains a "Buy," suggesting confidence in the company's potential recovery and growth. With a possible upside price of 25.36, there is room for optimism if the company can navigate its current challenges effectively. However, it's important to weigh this against the potential downside price of 20.66, which indicates some risk. As always, investors should carefully consider their risk tolerance and investment goals before making any decisions..

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Editorial Staff

Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI. View Profile
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Hanover Bancorp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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