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John Hancock Preferred Income Fund (HPI)
NYSE:HPI
US Market

John Hancock Preferred Income Fund (HPI) AI Stock Analysis

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John Hancock Preferred Income Fund

(NYSE:HPI)

55Neutral
The overall stock score of 55 reflects the mixed financial performance of John Hancock Preferred Income Fund. The main strengths are its stable cash flow and attractive valuation, as evidenced by a low P/E ratio and high dividend yield. However, significant risks stem from the volatility in revenue and profitability, as well as bearish technical indicators.

John Hancock Preferred Income Fund (HPI) vs. S&P 500 (SPY)

John Hancock Preferred Income Fund Business Overview & Revenue Model

Company DescriptionJohn Hancock Preferred Income Fund (HPI) is a closed-end management investment company that primarily invests in preferred stocks and other income-producing securities. The fund seeks to provide a high level of current income, consistent with preservation of capital, by focusing on sectors such as utilities, financials, and energy. Managed by John Hancock Investment Management, HPI leverages a team of experienced portfolio managers and analysts to select securities that offer attractive income and potential for capital appreciation.
How the Company Makes MoneyJohn Hancock Preferred Income Fund generates revenue primarily through the dividends and interest income received from its investments in preferred stocks and other income-oriented securities. The fund's income is distributed to its shareholders in the form of regular dividends. Additionally, the fund may realize capital gains from the sale of securities in its portfolio, which can contribute to its earnings. The fund's performance and income generation are influenced by factors such as interest rate changes, credit market conditions, and the overall economic environment. John Hancock Investment Management earns management fees based on the fund's assets under management, which is a key revenue stream for the investment management company.

John Hancock Preferred Income Fund Financial Statement Overview

Summary
John Hancock Preferred Income Fund exhibits mixed financial performance. While cash flow stability is a strength, revenue and profitability volatility pose challenges. The balance sheet is moderately strong, but attention to equity ratio trends is important for maintaining financial stability.
Income Statement
45
Neutral
The income statement shows volatility in revenue and profitability. Revenue growth is inconsistent, with substantial fluctuations from negative to positive. The net profit margin shows improvement in the most recent year, but historical performance has been mixed with significant losses in some years.
Balance Sheet
60
Neutral
The balance sheet reflects moderate financial health. The debt-to-equity ratio is reasonable, suggesting manageable leverage. However, the equity ratio has been declining, indicating a potential increase in risk. Return on equity has shown improvement but needs consistent positive performance.
Cash Flow
70
Positive
Cash flow has been relatively stable with a positive trend in free cash flow growth. Operating cash flow consistently supports net income, contributing to the company’s ability to fund operations and investments without external financing.
Breakdown
Sep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
48.14M-31.03M-34.92M101.85M-37.95M
Gross Profit
48.14M-36.28M-40.78M95.98M-44.03M
EBIT
42.78M-31.55M-32.19M101.36M-38.38M
EBITDA
0.00-31.55M-32.19M0.00-38.38M
Net Income Common Stockholders
61.22M-31.55M-35.33M101.36M-38.38M
Balance SheetCash, Cash Equivalents and Short-Term Investments
389.92K232.66K334.66K215.06K810.00K
Total Assets
689.24M664.34M738.84M801.81M718.88M
Total Debt
257.10M257.10M257.10M250.50M235.50M
Net Debt
256.71M256.87M256.77M250.28M235.50M
Total Liabilities
259.19M258.56M264.46M255.07M236.21M
Stockholders Equity
430.05M405.78M474.38M546.74M482.67M
Cash FlowFree Cash Flow
37.11M36.94M30.55M22.86M93.71M
Operating Cash Flow
37.11M36.94M30.55M22.86M93.71M
Investing Cash Flow
0.001.73M-27.52M-2.52M68.93M
Financing Cash Flow
-36.95M-37.05M-30.43M-22.64M-93.83M

John Hancock Preferred Income Fund Technical Analysis

Technical Analysis Sentiment
Negative
Last Price15.81
Price Trends
50DMA
16.40
Negative
100DMA
16.48
Negative
200DMA
16.65
Negative
Market Momentum
MACD
-0.37
Positive
RSI
37.19
Neutral
STOCH
49.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HPI, the sentiment is Negative. The current price of 15.81 is above the 20-day moving average (MA) of 15.76, below the 50-day MA of 16.40, and below the 200-day MA of 16.65, indicating a bearish trend. The MACD of -0.37 indicates Positive momentum. The RSI at 37.19 is Neutral, neither overbought nor oversold. The STOCH value of 49.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HPI.

John Hancock Preferred Income Fund Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AFAFL
79
Outperform
$58.92B11.3322.64%1.93%1.21%24.08%
UNUNM
76
Outperform
$13.83B8.3917.26%2.05%4.03%45.42%
63
Neutral
$12.32B9.527.89%79.24%12.74%-4.55%
LNLNC
61
Neutral
$5.42B1.7343.24%5.64%47.95%
MEMET
61
Neutral
$51.22B12.7615.41%2.87%6.10%225.22%
PRPRU
61
Neutral
$36.47B13.879.79%5.05%34.25%11.22%
HPHPI
55
Neutral
8.1412.00%9.46%6013.33%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HPI
John Hancock Preferred Income Fund
15.81
0.87
5.82%
AFL
AFLAC
107.94
25.12
30.33%
LNC
Lincoln National
31.73
5.27
19.92%
MET
Metlife
75.19
5.55
7.97%
PRU
Prudential Financial
102.90
-4.16
-3.89%
UNM
Unum Group
78.47
28.74
57.79%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.