Is HarborOne Bancorp, Inc. overvalued or undervalued?

As of 31 January 2025, the valuation grade for HarborOne Bancorp, Inc. has moved from expensive to fair. The company is currently fairly valued based on its financial metrics. The P/E ratio stands at 22, which is higher than the peer average of approximately 11.74 for Hanmi Financial Corp. and 9.38 for Business First Bancshares, Inc. The Price to Book Value is 0.97, and the EV to EBITDA is 30.17, indicating a relatively high valuation compared to its peers.
In comparison to its industry, HarborOne's return on equity (ROE) is 4.45%, which is modest, while its return on capital employed (ROCE) is at 2.57%. Notably, Cantaloupe, Inc. is rated attractive with a P/E of 13.71, suggesting that HarborOne may have room for improvement in its valuation metrics. Despite a recent stock return of 9.99% over the past year, it still lags behind the S&P 500's return of 10.26%, reinforcing the notion that while the company is fairly valued, there may be better investment opportunities within its sector.