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Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 58GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
10.1%
Sector: 8.5%
Dividend Analysis audit
GROWTH
1.17%
Trailing Yield
$1.17
Per $100 Invested
Modest dividend — capital prioritized for reinvestment.
Est. Payout Ratio
15%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, HomeTrust Bancshares, Inc. (HTB) receives a "Buy" rating with a composite score of 55.1/100, ranked #85 out of 4446 stocks. Key factor scores: Quality 58/100, Value 74/100, Momentum 51/100. This is quantitative analysis only — not investment advice.
HomeTrust Bancshares, Inc. (HTB) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does HomeTrust Bancshares, Inc. Do?
HomeTrust Bancshares, Inc. operates as the bank holding company for HomeTrust Bank that provides a range of retail and commercial banking products and services. Its deposit products include savings, money market, and demand accounts, as well as certificates of deposit for individuals, businesses, and nonprofit organizations. The company's loan portfolio comprises retail consumer loans, such as one-to-four-family real estate lending, home equity lines of credit, construction and land/lots, indirect auto finance, and consumer lending; and commercial loans that include commercial real estate, construction and development, and commercial and industrial loans. It also provides small business administration loans, equipment finance leases, indirect automobile loans, and municipal leases; and cash management and online/mobile banking services. As of June 30, 2021, the company operated 41 offices in North Carolina, Upstate South Carolina, East Tennessee, and Southwest Virginia. HomeTrust Bancshares, Inc. was founded in 1926 and is headquartered in Asheville, North Carolina. HomeTrust Bancshares, Inc. (HTB) is classified as a small-cap stock in the Financials sector, specifically within the Banking industry. The company is led by CEO C. Hunter Westbrook and employs approximately 520 people, headquartered in ASHEVILLE, North Carolina. With a market capitalization of $728M, HTB is one of the notable companies in the Financials sector.
HomeTrust Bancshares, Inc. (HTB) Stock Rating — Buy (April 2026)
As of April 2026, HomeTrust Bancshares, Inc. receives a Buy rating with a composite score of 55.1/100 and 4 out of 5 stars from the Blank Capital Research quantitative model.HTB ranks #85 out of 4,446 stocks in our coverage universe. Within the Financials sector, HomeTrust Bancshares, Inc. ranks #43 of 891 stocks, placing it in the top 10% of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
HTB Stock Price and 52-Week Range
HomeTrust Bancshares, Inc. (HTB) currently trades at $45.55. The stock lost $0.56 (1.2%) in the most recent trading session. The 52-week high for HTB is $47.64, which means the stock is currently trading -4.4% from its annual peak. The 52-week low is $30.95, putting the stock 47.2% above its annual trough. Recent trading volume was 51K shares, suggesting relatively thin trading activity.
Is HTB Overvalued or Undervalued? — Valuation Analysis
HomeTrust Bancshares, Inc. (HTB) carries a value factor score of 74/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 12.43x, compared to the Financials sector average of 14.88x — a discount of 16%. The price-to-book ratio stands at 1.26x, versus the sector average of 1.22x. The price-to-sales ratio is 3.10x, compared to 0.90x for the average Financials stock. On an enterprise value basis, HTB trades at 9.36x EV/EBITDA, versus 3.26x for the sector.
Based on these multiples, HomeTrust Bancshares, Inc. appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
HomeTrust Bancshares, Inc. Profitability — ROE, Margins, and Quality Score
HomeTrust Bancshares, Inc. (HTB) earns a quality factor score of 58/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 10.1%, compared to the Financials sector average of 8.5%, which is within a healthy range. Return on assets (ROA) comes in at 1.3% versus the sector average of 1.2%.
On a margin basis, HomeTrust Bancshares, Inc. reports gross margins of 0.0%. The operating margin is 31.7% (sector: 21.8%). Net profit margin stands at 24.9%, versus 17.7% for the average Financials stock. Revenue growth is running at 28.8% on a trailing basis, compared to 9.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
HTB Debt, Balance Sheet, and Financial Health
HomeTrust Bancshares, Inc. has a debt-to-equity ratio of 657.0%, compared to the Financials sector average of 121.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.15x, suggesting adequate working capital coverage. Total debt on the balance sheet is $240M. Cash and equivalents stand at $15M.
HTB has a beta of 0.63, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for HomeTrust Bancshares, Inc. is 89/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
HomeTrust Bancshares, Inc. Revenue and Earnings History — Quarterly Trend
In TTM 2026, HomeTrust Bancshares, Inc. reported revenue of $243M and earnings per share (EPS) of $3.75. Net income for the quarter was $61M. Gross margin was 0.0%. Operating income came in at $69M.
In FY 2025, HomeTrust Bancshares, Inc. reported revenue of $256M and earnings per share (EPS) of $3.75. Net income for the quarter was $64M. Revenue grew 26.7% year-over-year compared to FY 2024. Operating income came in at $81M.
In Q3 2025, HomeTrust Bancshares, Inc. reported revenue of $65M and earnings per share (EPS) of $0.96. Net income for the quarter was $16M. Operating income came in at $21M.
In Q2 2025, HomeTrust Bancshares, Inc. reported revenue of $64M and earnings per share (EPS) of $1.01. Net income for the quarter was $17M. Revenue grew 25.9% year-over-year compared to Q2 2024. Operating income came in at $22M.
Over the past 8 quarters, HomeTrust Bancshares, Inc. has demonstrated a growth trajectory, with revenue expanding from $51M to $243M. Investors analyzing HTB stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
HTB Dividend Yield and Income Analysis
HomeTrust Bancshares, Inc. (HTB) currently pays a dividend yield of 1.2%. At this yield, a $10,000 investment in HTB stock would generate approximately $$117.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning HTB yields less than the typical sector peer. With a net margin of 24.9%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
HTB Momentum and Technical Analysis Profile
HomeTrust Bancshares, Inc. (HTB) has a momentum factor score of 51/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 24/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 25/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
HTB vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing HTB against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full HTB vs S&P 500 (SPY) comparison to assess how HomeTrust Bancshares, Inc. stacks up against the broader market across all factor dimensions.
HTB Next Earnings Date
No upcoming earnings date has been announced for HomeTrust Bancshares, Inc. (HTB) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy HTB? — Investment Thesis Summary
The bull case for HomeTrust Bancshares, Inc. rests on several quantitative strengths. The value score of 74/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 89/100) reduces downside risk.
In summary, HomeTrust Bancshares, Inc. (HTB) earns a Buy rating with a composite score of 55.1/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on HTB stock.
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Institutional Research Dossier
HomeTrust Bancshares, Inc. (HTB) Deep Dive Analysis
Published on March 24, 2026
Action RatingBuy
Sections
Executive Summary
We initiate coverage on HomeTrust Bancshares, Inc. (HTB) with a Buy rating. This rating is primarily driven by the company's attractive valuation relative to its peers and its strong profitability metrics, as indicated by its high operating and net margins. While the company's investment score is relatively low, its stability and value scores provide a solid foundation for potential upside, making it an appealing investment opportunity within the banking sector.
The most critical takeaway is HTB's ability to generate superior margins compared to its peers, suggesting efficient operations and a potentially undervalued stock. However, investors should closely monitor the company's capital allocation strategies and free cash flow generation, which appear to be areas of concern based on recent data.
Business Strategy & Overview
HomeTrust Bancshares, Inc. operates as a community-focused bank, providing a range of retail and commercial banking products and services. The company's core strategy revolves around serving individuals, businesses, and nonprofit organizations within its geographic footprint, which includes North Carolina, Upstate South Carolina, East Tennessee, and Southwest Virginia. This regional focus allows HomeTrust to build strong customer relationships and tailor its offerings to the specific needs of the local markets.
The bank generates revenue primarily through interest income from loans and leases, as well as fees from various banking services. Its loan portfolio is diversified across retail consumer loans (including real estate, home equity lines, and auto finance) and commercial loans (including commercial real estate, construction, and industrial loans). This diversification helps mitigate risk and provides multiple avenues for revenue generation. HomeTrust also offers Small Business Administration (SBA) loans, equipment finance leases, and municipal leases, further expanding its service offerings and customer base.
HomeTrust's strategic positioning emphasizes a community banking model, which differentiates it from larger national banks. This approach allows for more personalized service and quicker decision-making, appealing to customers who value local expertise and responsiveness. The company also invests in technology to provide online and mobile banking services, enhancing customer convenience and competitiveness in the digital age.
The company's growth strategy appears to be a combination of organic expansion within its existing markets and potential acquisitions of smaller banks or branches. This approach allows HomeTrust to increase its market share and expand its geographic reach while maintaining its focus on community banking. The competitive landscape includes other regional and community banks, as well as larger national banks that operate in the same geographic areas. HomeTrust competes on factors such as interest rates, fees, service quality, and local market knowledge.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
28.8%
Sector: 9.4%
+207% VS SCTR
Economic Moat Analysis
HomeTrust Bancshares possesses a narrow economic moat, primarily derived from its established regional presence and customer relationships. While the banking industry is highly competitive, community banks like HomeTrust can carve out a niche by providing personalized service and local expertise that larger national banks often struggle to replicate. This localized focus creates a degree of customer loyalty and reduces the likelihood of customers switching to competitors solely based on price.
The company's branch network in North Carolina, Upstate South Carolina, East Tennessee, and Southwest Virginia provides a physical presence that reinforces its community banking image and facilitates customer interactions. This network effect, while not as strong as in other industries, contributes to the bank's ability to attract and retain customers within its target markets. The cost of switching banks, while relatively low in the digital age, can still be a deterrent for some customers, particularly those with complex financial needs or long-standing relationships with HomeTrust.
Intangible assets, such as brand reputation and customer trust, also play a role in HomeTrust's competitive advantage. The bank's long history (founded in 1926) and its commitment to community involvement contribute to its positive image and enhance customer confidence. However, these intangible assets are not insurmountable, and competitors can erode them through aggressive marketing or superior service offerings.
HomeTrust does not appear to possess significant cost advantages or efficient scale compared to its peers. The banking industry is subject to economies of scale, but larger national banks typically have a greater advantage in this area. HomeTrust's focus on community banking may limit its ability to achieve the same level of cost efficiency as larger competitors. Therefore, while HomeTrust has a narrow moat based on regional presence and customer relationships, it is not a wide moat company with durable competitive advantages.
Financial Health & Profitability
HomeTrust Bancshares exhibits a mixed financial profile. The company's revenue has shown strong growth, with TTM revenue of $256.14 million compared to $202.12 million in FY2024 and $188.47 million in FY2023. This indicates a positive trend in top-line performance. Net income has also increased, reaching $64.36 million in the TTM period, up from $54.80 million in FY2024 and $44.60 million in FY2023, demonstrating improved profitability.
The company's operating and net margins are significantly higher than the sector average. The TTM operating margin is 31.7% compared to the sector average of 22.0%, and the net margin is 24.9% compared to the sector average of 17.8%. These superior margins suggest efficient operations and effective cost management. However, the gross margin is reported as 0.0% for the TTM period, which is unusual for a bank and warrants further investigation. This could be due to the way interest income and expenses are accounted for.
HomeTrust's return on equity (ROE) of 10.1% is also higher than the sector average of 8.5%, indicating that the company is generating more profit from shareholders' equity than its peers. However, the company's free cash flow (FCF) is a concern. The TTM FCF is negative at $-819.54 million, and the historical FCF figures have been volatile, with significant fluctuations from quarter to quarter. This suggests that the company may be facing challenges in generating consistent positive cash flow.
The company's balance sheet shows total cash of $15.44 million and total debt of $240.19 million, resulting in a high debt-to-equity ratio of 657.00, significantly higher than the sector average of 115.00. This high leverage could pose a risk if the company faces financial difficulties or if interest rates rise. The current ratio of 1.15 indicates that the company has sufficient liquid assets to cover its short-term liabilities. Overall, HomeTrust's financial health is characterized by strong profitability and revenue growth, but also by high leverage and volatile free cash flow.
Valuation Assessment
HomeTrust Bancshares appears attractively valued based on several key metrics. The company's price-to-earnings (P/E) ratio of 11.1x is significantly lower than the sector average of 15.5x, suggesting that the stock is undervalued relative to its earnings. Similarly, the company's enterprise value-to-EBITDA (EV/EBITDA) ratio of 2.2x is also lower than the sector average of 3.5x, further supporting the notion that the stock is undervalued based on its operating performance.
Given the company's strong revenue growth of 28.8% compared to the sector average of 9.3%, the lower valuation multiples are particularly noteworthy. This suggests that the market may not be fully recognizing the company's growth potential and profitability. However, the negative free cash flow (FCF) could be a contributing factor to the lower valuation, as investors may be concerned about the company's ability to generate sustainable cash flow.
While a traditional FCF yield calculation is not possible due to the negative FCF, the P/E and EV/EBITDA ratios provide a compelling case for undervaluation. Compared to its historical valuation, it's difficult to assess without more historical data. However, the current multiples suggest that the stock is trading at a discount to its peers and its own growth rate.
It is important to consider the company's high debt-to-equity ratio when assessing its valuation. While the lower valuation multiples may be attractive, the high leverage could pose a risk and may be a reason why the market is discounting the stock. Nevertheless, the company's strong profitability and revenue growth, combined with its lower valuation multiples, make it an appealing investment opportunity for value-oriented investors.
Risk & Uncertainty
HomeTrust Bancshares faces several specific risks that could impact its performance and valuation. One significant risk is the company's high debt-to-equity ratio. While the company has demonstrated strong profitability, its high leverage makes it vulnerable to economic downturns or rising interest rates. An increase in interest rates could increase the company's borrowing costs and reduce its profitability, while an economic downturn could lead to increased loan defaults and reduced revenue.
Another risk is competition from larger national banks and other regional banks. The banking industry is highly competitive, and HomeTrust faces pressure from competitors offering similar products and services. Larger banks may have greater resources and economies of scale, allowing them to offer more competitive interest rates or fees. HomeTrust's ability to differentiate itself through personalized service and local expertise is crucial to mitigating this risk.
Regulatory risk is also a factor. Banks are subject to extensive regulation, and changes in regulations could impact HomeTrust's operations and profitability. For example, changes in capital requirements or lending regulations could increase the company's costs or restrict its ability to lend. The company must also comply with various consumer protection laws and regulations, which could expose it to legal or regulatory action if it fails to comply.
Finally, concentration risk in its loan portfolio could pose a threat. While the business description mentions diversification, further analysis of the specific loan types and geographic distribution is needed to assess the true level of concentration. A significant concentration in a particular industry or geographic area could increase the company's vulnerability to economic shocks or industry-specific downturns.
Bulls Say / Bears Say
The Bull Case
BULL VIEWHomeTrust's superior operating and net margins compared to the sector indicate efficient operations and strong profitability, justifying a higher valuation.
BULL VIEWThe company's robust revenue growth significantly outpaces the sector average, suggesting a strong competitive position and potential for continued expansion.
BULL VIEWHomeTrust's lower P/E and EV/EBITDA ratios relative to its peers present an attractive entry point for value investors seeking undervalued opportunities in the banking sector.
The Bear Case
BEAR VIEWHomeTrust's extremely high debt-to-equity ratio exposes the company to significant financial risk, particularly in a rising interest rate environment.
BEAR VIEWThe negative free cash flow raises concerns about the company's ability to generate sustainable cash flow and fund future growth initiatives.
BEAR VIEWDespite strong revenue growth, the lack of a clear competitive advantage beyond regional presence makes HomeTrust vulnerable to competition from larger, more efficient banks.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score HTB and 4,400+ other equities.
HomeTrust Bancshares, Inc. exhibits a 105% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
1.3%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
31.7%
Sector: 21.8%
Net Margin
Bottom-line profitability
24.9%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.48%
Yield Delta-53%
Income Projection audit
A $10,000 investment would generate approximately $117 annually in dividends at the current trailing rate.
