NASDAQ:HCBK
$12.70
(2/9 11:29AM)
-0.3%
| Open | $12.86 |
Mkt Cap | $6.7 Billion |
| High | $12.96 |
52Wk High | $14.77 |
| Low | $12.66 |
52Wk Low | $7.46 |
| Volume | 1.7 Million |
Avg Vol 10D | 6.6 Million |
Ockham's Rating/Recommendation Summary
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HCBK Revenue
Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, HCBK the high and low end of the Price to Sales per share ratios are 6.29x and 3.95x respectively.
Notice that HCBK's current Price to Sales per share ratio is 2.31x, which is significantly below its average levels historically. In fact, with a current price of $13.06, HCBK is a full 55% below its average Price to Sales ratio at comparable sales levels. This is a rare occurrence and, when taken in context of the other areas of our analysis, can be a strong positive for our outlook for HCBK.
HCBK Cash Earnings
Looking at HCBK specifically in their Cash Earnings capabilities, Ockham views HCBK as significantly below its historical average multiple of Cash Earnings. Looking at the last 10 years we can get a good understanding of what investors have grown to expect from HCBK. For example, HCBK's Cash Earnings ratio per share has fluctuated between 18.11 and 27.69 over this historical timeframe. This range is based upon a proprietary weighted methodology at Ockham, but can clearly show an investor where HCBK is with respect to prior business periods.
So with HCBK's current price (latest close of $13.06) and most recent level of Cash Earnings reported, we see significant opportunity from a value perspective. At its current price level, HCBK is 42% below its average level of Price to Cash Earnings on a historical basis. This means that investors were willing to pay for a much higher stock price than currently for the same level of Cash in the past, on a relative basis. There are a couple of important things to remember, however. First, value doesn't exist in a vacuum. So if the market doesn't recognize this value, even a great disparity in Price to Cash Earnings cannot force an immediate stock price reaction. Second, patience is key when looking at securities that have reached these levels of Price to Cash Earnings versus their historical norms. So be patient with HCBK.
HCBK Dividends
A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company's inherent expectations.
Comparable to our analysis of Sales and Cash Earnings per share, we examine dividend yields from HCBK against the historic high and low levels over an available data range. Because HCBK has an established history of paying a dividend to shareholders, there is value in comparing recent dividends to historical dividends. In HCBK’s case, the estimated annual dividend is $0.60 producing a current dividend yield of 4.59%. The highest dividend yield from HCBK in recent history was 8.04% while the lowest dividend yield was 1.33%. The current dividend yield is below the historical median, which is slightly off-putting. We are a bit adverse to HCBK from this valuation metric.
Notice a Discussion Covering HCBK Appeared Recently in the Financial News
Hudson City Bancorp, Inc. is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Street Signs.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, HCBK has been less covered in the news compared to the rest of our universe of stocks. Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe Hudson City Bancorp, Inc. will perform just about the same as the index. We consider HCBK as Undervalued at the current price of $13.27. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise.
“… if we're worried about this everyone bank should be like john's bank, HUDSON CITY savings bank, we should do first meric, these places did risky mortgage lending. …”
Heard on Mad Money: CEO of HCBK Discussed
Hudson City Bancorp, Inc.'s CEO is obviously vital to his company, so we believe any news covering him is worth knowing for investors.
Based on our methodology, Hudson City Bancorp, Inc. should hold some appeal to value investors as we view it as Undervalued. We noticed recently that in comparison to all other stocks we analyze in the news; HCBK has received less coverage from the financial media in business television and blogs. The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral.
“… Becoming public as HUDSON CITY has done not doing any at all. To learn more about the quarter, look ahead to the future of banking 2010, let's hear from the fabulous ceo of ... …”
First HCBK News on Mad Money in More Than a Month
After a month of relative quiet from HCBK, they have appeared back in the news.
Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe Hudson City Bancorp, Inc. will perform just about the same as the index. We consider HCBK as Undervalued at the current price of $13.53. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, HCBK has been less covered in the news compared to the rest of our universe of stocks.
“… 2008 was not a wonderful year for banks, but HUDSON CITY, led by the ceo the first winner of bailey award for responsible banking was one of the few banks that actually made you ... …”
See More News on HCBK from Closing Bell
News has broken via the television and viral blogs regarding HCBK, so investors should take an interest in learning what was said.
Based on our methodology, Hudson City Bancorp, Inc. should hold some appeal to value investors as we view it as Undervalued. We noticed recently that in comparison to all other stocks we analyze in the news; HCBK has received less coverage from the financial media in business television and blogs. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.
“… You've got HUDSON CITY here in washington fed out in seattle. . …”
Investors Sentiment's Effect on Hudson City Bancorp, Inc. on Mad Money
It is always benefitial to understand the market's sentiment for a particular stock, and Mad Money talked about some aspects of sentiment for HCBK recently.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Hudson City Bancorp, Inc. has actually sunk a bit in comparison to the others. Be aware that crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. At present, Ockham has a valuation stance of Undervalued on HCBK, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue.
“… I remain bullish on HUDSON CITY bank corp. I'm not backing away. Why not let the losers back kirk in louisiana. > > caller: jimays big lsu tiger boo-yah to you. > > …”
Hudson City Bancorp, Inc. (HCBK) Discussed on CNBC's Squawk On The Street
Hudson City Bancorp, Inc. is in the news. Find out how this impacts HCBK trading on Ockham Research.
It's actually hu jentao's money. >> taxpayer neutralizes it. It's our money. One lesson on bank. HUDSON CITY BANCORP is just fine on their own. Kind of the ford motor company of the financial stocks. You know, ford did it without any help. So did HUDSON CITY. Up more than 50% since the march the bank also reporting record third quarter earnings last monday. One of the recession's president and chairman and ceo of HUDSON CITY BANCORP joins us right now. You know, i'm going to give you a chance to pat yourself on the it's also -- it's a legitimate question because I know that your bank, at least in my area, I live in new jersey, was very active in the mortgage market. >> you had rates and yada yada,
“… ITY. Up more than 50% since the march the bank also reporting record third quarter earnings last monday. One of the recession's president and chairman and ceo of HUDSON CITY BANCORP joins us right now. You know, i'm going to give you a chance to pat yourself on the it's also -- it's a legitimate question because I know that your bank, at least in my area, I live in new jersey, was very active in the mortgage market. >> you had rates and yada yada, …”
Hudson City Bancorp, Inc. (HCBK) Discussed on Fox Business's The Opening Bell on Fox Business
Hudson City Bancorp, Inc. is in the news. Find out how this impacts HCBK trading on Ockham Research.
Usual and everything should be fine. For some strange reason people don't want to revisit the past. Alexis: yeah, no, I talked about it with HUDSON CITY BANCORP, ron hermance agrees. Split them up. Where do you stand on the markets? >> the market is getting back it business as usual, trying not to discount or count in too much of what we just heard and teas pretty hard when you're talking about the banks, but you know what, using like the nasdaq and s&p as an example, we've got two
“… ing back it business as usual, trying not to discount or count in too much of what we just heard and teas pretty hard when you're talking about the banks, but you know what, using like the nasdaq and s&p as an example, we've got two …”
Hudson City Bancorp, Inc. (HCBK) Discussed on Fox Business's Fox Business
Hudson City Bancorp, Inc. is in the news. Find out how this impacts HCBK trading on Ockham Research.
High salary. That's what the market is all about >> alexis: I talked earlier this morning from robert reynolds from putnam from HUDSON CITY bank corp. Both said the one thing that keeps them up at night right now is uncertainty and the role the government is playing in things like taxation, healthcare, cap and trade. Why is that such a big issue for so many corporations today? >> all of those things would
“… t is playing in things like taxation, healthcare, cap and trade. Why is that such a big issue for so many corporations today? >> all of those things would …”
Hudson City Bancorp, Inc. (HCBK) Discussed on Fox Business's The Opening Bell on Fox Business
Hudson City Bancorp, Inc. is in the news. Find out how this impacts HCBK trading on Ockham Research.
Sales of its blood cancer drug. Stock up almost 4% on the news. Speaking of companies firing on all cylinders. HUDSON CITY BANCORP found a formula for success at a time when many regional banks are they're conservative when they can extend credit and it's the bank just reported quarterly earnings yesterday. Ron hermance says chairman and ceo of HUDSON CITY BANCORP. Thanks for having me back. Alexis: another record quarter, what are you doing? >> it's the same basic plan, alexis, it's been this way since we went public now 11 years ago. Each year has been a record for earnings in all 11 years and it's basically keeping your costs under control, your overhead, which is your efficiency ratio, we're
“… the bank just reported quarterly earnings yesterday. Ron hermance says chairman and ceo of HUDSON CITY BANCORP. Thanks for having me back. Alexis: another record quarter, what are you doing? >> it's the same basic plan, alexis, it's been this way since we went public now 11 years ago. Each year has been a record for earnings in all 11 years and it's basically keeping your costs under control, your overhead, which is your efficiency ratio, we're …”
Hudson City Bancorp, Inc. (HCBK) Discussed on Fox Business's The Opening Bell on Fox Business
Hudson City Bancorp, Inc. is in the news. Find out how this impacts HCBK trading on Ockham Research.
Instead of risky business. But is the bank immune to a weak economy? Ron hermance with HUDSON CITY BANCORP joining me next.
“… Instead of risky business. But is the bank immune to a weak economy? Ron hermance with HUDSON CITY BANCORP joining me next. …”