Horizon Bancorp Stock Performance and Investment Strategy

Horizon Bancorp has consistently demonstrated strong stock performance, with a compound annual growth rate (CAGR) of 10.5% over the past five years.

Their revenue has steadily increased, reaching $241.1 million in 2020, a 14.1% growth from the previous year.

Horizon Bancorp's focus on community banking has allowed them to maintain a stable presence in their markets, with a network of 54 locations across Indiana, Illinois, and Michigan.

Their commitment to serving local communities has been a key driver of their success, with a strong track record of supporting economic development and job creation.

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Horizon Bancorp's financial health is a mixed bag. Their cash-to-debt ratio is a low 0.17, indicating a high level of debt compared to their cash reserves.

The bank's debt-to-equity ratio is a concerning 1.83, suggesting that they may be taking on too much debt to finance their operations. However, their equity-to-asset ratio is a healthy 0.1, indicating that they have a strong balance sheet.

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Horizon Bancorp's interest coverage ratio is not available, but their Piotroski F-Score is a mediocre 5/9, indicating some financial distress. On the other hand, their Beneish M-Score is a negative -2.47, suggesting that they are not likely to be involved in any accounting manipulation.

Their future growth prospects are promising, with a forecasted 3-5 year EPS growth rate of 6.51% and a total revenue growth rate of 13.86%.

Financial Strength is a crucial aspect of any company's overall health. The data suggests that the company's Cash-To-Debt ratio is a relatively low 0.17, which could indicate a high level of debt.

This is a significant concern, as a higher debt burden can make it difficult for the company to meet its financial obligations. The Equity-to-Asset ratio is also relatively low at 0.1, which means that the company's assets are not being well-supported by its equity.

On the other hand, the Debt-to-Equity ratio is a high 1.83, which indicates that the company is heavily reliant on debt financing. However, this ratio is not directly comparable to the industry average.

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The Piotroski F-Score is 5/9, which suggests that the company's financial health is mediocre. The Beneish M-Score is -2.47, which indicates that the company is likely not engaging in any accounting manipulation.

Here's a breakdown of the key financial ratios:

Overall, the company's financial strength is a mixed bag, with some concerning trends and others that are more neutral.

Financial analysis is all about understanding a company's growth prospects. This can be done by looking at various growth rates, including revenue growth, earnings per share (EPS) growth, and free cash flow (FCF) growth.

The 3-year revenue growth rate for a company is -5.8%, which means it's actually declining over the past three years. This is a red flag, as a negative growth rate indicates a company is losing ground.

A company's EPS growth rate without non-recurring items (NRI) is 0.2%, which is a very slow growth rate. This suggests that the company's earnings are not increasing at a healthy pace.

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On the other hand, the company's FCF growth rate is 3.8%, which is a more positive sign. This indicates that the company is generating more cash from operations over time.

The 3-year book growth rate is 1.1%, which is a relatively slow growth rate compared to other indicators.

Looking ahead, the company is estimated to have a 6.51% EPS growth rate without NRI over the next 3-5 years, which is a more optimistic outlook. This suggests that the company's earnings are expected to grow at a faster pace in the future.

Here are the growth rates in a concise table:

Momentum Rank is a crucial aspect of financial analysis, and it's essential to understand the different metrics involved.

The 5-Day RSI is currently at 5.72, indicating a relatively low level of momentum.

RSI stands for Relative Strength Index, and it measures the speed and change of price movements.

The 9-Day RSI is significantly higher at 13.58, suggesting a moderate level of momentum.

In contrast, the 14-Day RSI is at 22.01, indicating a higher level of momentum.

Momentum percentages can also be used to gauge the strength of a stock's price movement.

The 3-1 Month Momentum % is currently at 14.52, showing a moderate increase in price movement over the past three months.

The 6-1 Month Momentum % is at 29.58, indicating a substantial increase in price movement over the past six months.

The 12-1 Month Momentum % is at 33.16, showing a significant increase in price movement over the past year.

Here are the momentum metrics in a summary table:

In the world of finance, profitability is a key indicator of a company's success. The profitability rank is a crucial metric that helps investors and analysts assess a company's ability to generate profits.

A net margin of 11.4% indicates that for every dollar earned, a company retains 11.4 cents as profit. This is a decent margin, but it's essential to compare it to the industry average to understand its competitiveness.

The free cash flow margin of 35.18% suggests that a significant portion of a company's revenue is being converted into cash, which is a great sign for investors. This is because free cash flow is a measure of a company's ability to generate cash from its core operations.

Return on equity (ROE) of 2.92% is a relatively low indicator, suggesting that a company may not be generating sufficient profits from its shareholders' equity. ROA of 0.27% is also a low indicator, indicating that a company's net income is not proportionate to its total assets.

A company with 10 years of profitability over the past 10-year period is a reliable performer, indicating a consistent ability to generate profits over time.

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The GF Value Rank is based on the company's GF Value, which is calculated by taking the company's intrinsic value and dividing it by its market price. This value is then ranked against other companies in the industry to determine its relative value.

The GF Value Rank takes into account several key metrics, including the PE Ratio, which is currently at 33.11, and the Forward PE Ratio, which is significantly lower at 9.23. This suggests that the company's future earnings potential is being undervalued by the market.

Here's a breakdown of the key metrics used in the GF Value Rank:

The GF Value Rank is also influenced by the company's Price-to-Projected-FCF, which is currently at 0.45. This suggests that the company's future cash flows are being significantly undervalued by the market.

In conclusion, the GF Value Rank is a powerful tool in financial analysis, providing a comprehensive view of a company's intrinsic value and relative value against its peers.

The dividend yield for Horizon Bancorp is 4.07%, which is higher than the industry average. This indicates that the company is paying out a significant portion of its earnings to shareholders.

The dividend payout ratio is 0.46, which suggests that the company is maintaining a relatively conservative approach to dividend payments. This is a positive sign for investors who value a stable dividend income stream.

Here's a snapshot of Horizon Bancorp's dividend history:

As you can see, the company has a strong track record of dividend growth, with a 3-year growth rate of 10.1%. This is a great sign for investors who are looking for a company with a history of increasing dividend payments.

The dividend capture strategy for Horizon Bancorp involves buying shares one day before the ex-dividend date and selling them when the price recovers. The average price recovery is 0.76%, which is a relatively modest gain. However, this strategy can be a good way to earn a quick profit from the dividend payment.