Hingham Institution For Savings Is A Value Trap

Douglas McKenny
762 Followers
(10min)

Summary

  • Hingham Institution for Savings is a strong sell due to declining growth, profitability, and adverse macroeconomic conditions impacting the financial sector.
  • The bank's traditional, conservative business model focuses on real estate lending, but its efficiency ratio is above the U.S. average.
  • Hingham's financial performance has deteriorated significantly since 2020, with revenue, NOPAT, and net interest margin all declining sharply.
  • Despite trading at an 18% discount to intrinsic value, Hingham is a value trap due to economic uncertainties and risks in commercial real estate.
New York stock market moving up.

Torsten Asmus

Massachusetts-chartered savings bank, Hingham Institution for Savings (NASDAQ:HIFS) is a small regional bank that has struggled in recent years, with growth and profitability in decline. This is despite the bank’s attempts to operate in a conservative fashion. Although the bank is trading

This article was written by

762 Followers
An economics graduate with a passion for financial history; I apply my knowledge to markets in an effort to hopelessly predict trends and spot value. All opinions are my own and should not be taken seriously.

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