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HarborOne Bancorp, Inc. (HONE)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$9.86 - $18.40$13.35
Multi-Stage$9.86 - $10.77$10.31
Blended Fair Value$11.83
Current Price$11.68
Upside1.25%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%0.00%0.320.310.300.230.080.000.000.000.000.00
YoY Growth--2.20%5.23%32.55%182.23%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--3.09%3.03%2.45%1.61%0.59%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)26.37
(-) Cash Dividends Paid (M)13.46
(=) Cash Retained (M)12.91
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)5.273.301.98
Cash Retained (M)12.9112.9112.91
(-) Cash Required (M)-5.27-3.30-1.98
(=) Excess Retained (M)7.639.6110.93
(/) Shares Outstanding (M)40.8440.8440.84
(=) Excess Retained per Share0.190.240.27
LTM Dividend per Share0.330.330.33
(+) Excess Retained per Share0.190.240.27
(=) Adjusted Dividend0.520.560.60
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate3.67%4.67%5.67%
Fair Value$9.86$13.35$18.40
Upside / Downside-15.58%14.26%57.50%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)26.3727.6028.8930.2431.6533.1234.12
Payout Ratio51.05%58.84%66.63%74.42%82.21%90.00%92.50%
Projected Dividends (M)13.4616.2419.2522.5026.0229.8131.56

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate3.67%4.67%5.67%
Year 1 PV (M)14.7414.8915.03
Year 2 PV (M)15.8616.1716.48
Year 3 PV (M)16.8417.3317.83
Year 4 PV (M)17.6718.3719.08
Year 5 PV (M)18.3919.2920.23
PV of Terminal Value (M)319.16334.86351.16
Equity Value (M)402.67420.90439.81
Shares Outstanding (M)40.8440.8440.84
Fair Value$9.86$10.31$10.77
Upside / Downside-15.59%-11.77%-7.80%

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