HarborOne: Book Value Play Offers 23% Upside to Fair Value
By stockpickr AI | March 2, 2026 | 10 min read
Investment Summary
HarborOne Bancorp (HBAN) is a regional bank currently trading near book value, and our DCF analysis suggests it is undervalued.
Investment Recommendation
Buy
Fair Value: $15.85
Current Price: $12.90
Upside/Downside: +22.87%
The DCF model suggests an intrinsic value significantly higher than the current market price of $12.90, reflecting a valuation discount relative to projected future cash flows, primarily driven by stable regional loan growth forecasts.
Key Metrics
- Market Cap: $1.52B
- P/E Ratio: 10.56x
- Forward P/E: 9.78x
- Revenue Growth (YoY): 2.61%
- Net Margin: 24.86%
- ROE: 10.67%
- Debt/Equity: 8.11
- Dividend Yield: 3.57%
Strengths
- Strong Net Interest Margin performance, exceeding some peers.
- Relatively low non-performing assets indicating good credit quality.
- Expanding physical footprint in desirable financial markets like Boston.
- Attractive dividend yield supported by stable earnings.
Risk Factors
- Exposure to commercial real estate (CRE) concentrations, a common risk for regional banks.
- Sensitivity to fluctuations in the Fed Funds rate impacting Net Interest Margin (NIM).
- Potential for loan growth deceleration if local economic conditions worsen.