HPS

NEUTRAL

$14.55 Live

John Hancock Preferred Income Fund III · NYSE

$13.8 52W Range $15.68

HPS John Hancock Preferred Income Fund III - Fundamental Analysis

NEUTRAL

Console Chart News

HPS Stock | Fundamental Analysis & Investment Insights

NYSE • Financial Services • Asset Management

Current Price Live

$14.55

52W High

$15.68

52W Low

$13.8

Overview AI Snowflake Price Valuation Profitability Growth Health Statements Peers Insiders

At a glance

Key valuation, profitability, growth, and risk metrics.

Updated Apr 28, 2026

Market cap

$468.06M

P/E

12.44

ROE

8.1%

Profit margin

73.6%

Debt/Equity

0.59

Dividend yield

9.07%

AI Analysis

AI-powered fundamental assessment

Confidence

85%

HPS presents as a stable but stagnant income vehicle, characterized by a Piotroski F-Score of 6/9 indicating stable financial health. While the Graham Number of $19.45 suggests a defensive undervaluation, this is countered by a low growth-based intrinsic value of $8.19 and a bearish technical trend. The primary concern is a dividend payout ratio of 112.82%, which indicates the current 9.07% yield is unsustainable and being funded by capital rather than earnings. Overall, the fund is a classic yield trap with strong margins but declining earnings growth.

Key Strengths

Strong profit margins (73.63%) and operating margins (88.50%)

Trading near book value (P/B 1.01)

Low Debt/Equity ratio (0.59) compared to sector average (1.38)

Strong liquidity with a Current Ratio of 2.82

P/E ratio (12.44) is significantly lower than the sector average (36.83)

Key Risks

Unsustainable dividend payout ratio (112.82%)

Negative earnings growth (-5.10% YoY and -4.80% Q/Q)

Stagnant revenue growth (1.10% YoY)

Bearish technical trend (0/100 score)

Significant discrepancy between Graham Number and Intrinsic Value

AI Fair Value Estimate

Based on comprehensive analysis

$13.82

-5.0% below current price

Performance Snowflake

Multi-dimensional analysis across 5 key categories

Overall

Moderate

Value

Future

Past

Health

Dividend

AI Verdict

Yield Trap

Key drivers: Unsustainable dividend payout, Negative earnings growth, Strong balance sheet liquidity

Confidence

90%

Value

65/100

Ref P/E 12.44, Graham Number $19.45

Positives

Low P/E relative to sector
P/B near 1.0
Below Graham Number

Watchpoints

Price is significantly above growth-based intrinsic value

Future

30/100

Ref Earnings Growth -5.10%

Positives

Positive revenue growth (marginal)

Watchpoints

Declining earnings growth
Bearish technical momentum

Past

70/100

Ref 5Y Change +20.2%

Positives

Positive 1Y, 3Y, and 5Y price changes

Watchpoints

Recent 6-month decline

Health

75/100

Ref Piotroski F-Score 6/9

Positives

Piotroski F-Score 6/9
Low Debt/Equity
High Current Ratio

Watchpoints

Lack of Altman Z-Score data

Dividend

20/100

Ref Payout Ratio 112.82%

Positives

High absolute yield (9.07%)

Watchpoints

Payout ratio > 100% indicates capital erosion

Stock Price & Analyst Targets

Real-time price movements and analyst price targets

Current Price

$14.55

Multi-Horizon Performance vs Peers

Price momentum across 5Y → 1W horizons for HPS and closest competitors.

Updated 2026-04-27

Company	5Y	3Y	1Y	6M	1M	1W
HPS John Hancock Preferred Income Fund III Primary	+20.2%	+31.8%	+11.0%	-1.4%	+5.3%	-0.6%
BETR Better Home & Finance Holding Company Peer	-94.5%	-94.4%	+147.6%	+0.8%	-8.9%	-28.7%
OBT Orange County Bancorp, Inc. Peer	+145.2%	+65.9%	+63.2%	+44.6%	+12.3%	+2.7%
DHIL Diamond Hill Investment Group, Inc. Peer	+37.2%	+22.0%	+45.1%	+33.0%	+1.4%	+1.1%
BSRR Sierra Bancorp Peer	+57.1%	+152.4%	+40.7%	+35.0%	+8.5%	-2.5%

HPS

John Hancock Preferred Income Fund III

Primary

+20.2%

+31.8%

+11.0%

-1.4%

+5.3%

-0.6%

BET

Better Home & Finance Holding Company

Peer

-94.5%

-94.4%

+147.6%

+0.8%

-8.9%

-28.7%

OBT

Orange County Bancorp, Inc.

Peer

+145.2%

+65.9%

+63.2%

+44.6%

+12.3%

+2.7%

DHI

Diamond Hill Investment Group, Inc.

Peer

+37.2%

+22.0%

+45.1%

+33.0%

+1.4%

+1.1%

BSR

Sierra Bancorp

Peer

+57.1%

+152.4%

+40.7%

+35.0%

+8.5%

-2.5%

Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.

Historical Performance Trends

Long-term financial metrics and growth patterns

Revenue & Net Income

Profit & Operating Margins

Return on Equity (ROE)

Quarterly Revenue Growth

Historical data shows last 12 quarters (3 years)

Valuation Metrics

Key valuation ratios and pricing indicators

12.44

N/A

1.01

9.13

N/A

$468.06M

Profitability

Profit margins and return metrics

Profit Margin 73.63%

Operating Margin 88.5%

Gross Margin 100.0%

ROE 8.14%

ROA 3.82%

Growth

Revenue and earnings growth rates

Revenue Growth +1.1%

Earnings Growth -5.1%

Q/Q Revenue Growth N/A

Q/Q Earnings Growth -4.8%

Financial Health

Balance sheet strength and liquidity metrics

Debt/Equity

0.59

Moderate

Current Ratio

2.82

Strong

Quick Ratio

1.48

Good

Cash/Share

$N/A

Financial Statement Flow

Interactive flow visualization showing how money moves through the company Q1 2026

Total Assets

$0.7B

Liabilities

$0.3B

Equity

$0.5B

Debt/Equity

0.60x

Financial Services Sector Comparison

Comparing HPS against 820 companies in the Financial Services sector (141 bullish, 351 neutral, 328 bearish)

P/E Ratio

12.44

This Stock

36.01

Sector Avg

-65.5% (Discount)

Return on Equity (ROE)

8.14%

This Stock

-0.73%

Sector Avg

-1210.9% (Below Avg)

Profit Margin

73.63%

This Stock

91.62%

Sector Avg

-19.6% (Weaker)

Debt to Equity

0.59

This Stock

1.36

Sector Avg

-56.3% (Less Debt)

Revenue Growth

1.1%

This Stock

35.27%

Sector Avg

-96.9% (Slower)

Current Ratio

2.82

This Stock

3.18

Sector Avg

-11.4% (Weaker)

Similar Companies

Peer comparison within the same industry

Company	AI Rating	Market Cap	P/E	ROE	Profit Margin	Price
HPS John Hancock Preferred...	NEUTRAL	$468.06M	12.44	8.1%	73.6%	$14.55
BETR Better Home & Finance...	BEARISH	$468.33M	-	-%	-100.6%	$28.47	Compare
OBT Orange County Bancorp, Inc.	BULLISH	$469.9M	10.62	17.7%	34.8%	$35.15	Compare
DHIL Diamond Hill Investment Group, Inc.	BULLISH	$473.29M	9.78	29.1%	33.1%	$174.99	Compare
BSRR Sierra Bancorp	NEUTRAL	$474.89M	11.66	11.7%	28.4%	$36.27	Compare

HPS John Hancock...

NEUTRAL

Mkt Cap

$468M

P/E

12.4

ROE

8.1%

Price

$14.55

BETR Better Home &...

Compare with HPS

Compare with HPS

Compare with HPS

Compare with HPS

Recent Insider Trading

Insider buy and sell transactions from the last 6 months

Date	Insider	Position	Transaction	Shares	Value
2026-01-26	PHELAN KENNETH J.	Director	Purchase	682	$10,001

PHELAN KENNETH J.

Director

Buy

2026-01-26

682 shares · $10,001

Insider transactions can signal confidence or concerns about company prospects

Past News Coverage

Recent headlines mentioning HPS from our newsroom.

Newest → oldest

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HPS

HPS John Hancock Preferred Income Fund III - Fundamental Analysis

At a glance

AI Analysis

Key Strengths

Key Risks

Performance Snowflake

Stock Price & Analyst Targets

Multi-Horizon Performance vs Peers

Historical Performance Trends

Revenue & Net Income

Profit & Operating Margins

Return on Equity (ROE)

Quarterly Revenue Growth

Valuation Metrics

Profitability

Growth

Financial Health

Financial Statement Flow

Financial Services Sector Comparison

Similar Companies

Recent Insider Trading

Past News Coverage

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