HUNTINGTON BANCSHARES INC (HBAN) Stock Fundamental Analysis
NASDAQ:HBAN - Nasdaq - US4461501045 - Common Stock - Currency: USD
HBAN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 398 industry peers in the Banks industry. HBAN has a bad profitability rating. Also its financial health evaluation is rather negative. HBAN has a correct valuation and a medium growth rate. Finally HBAN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year HBAN was profitable.
In the past year HBAN had a positive cash flow from operations.
Each year in the past 5 years HBAN has been profitable.
HBAN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HBAN has a Return On Assets (0.88%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 9.12%, HBAN is in line with its industry, outperforming 58.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.88% | ||
| ROE | 9.12% | ||
| ROIC | N/A |
ROA(3y)1%
ROA(5y)0.85%
ROE(3y)10.17%
ROE(5y)8.4%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
HBAN has a Profit Margin (24.37%) which is comparable to the rest of the industry.
HBAN's Profit Margin has declined in the last couple of years.
HBAN does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 24.37% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y8.21%
PM growth 5Y-3.17%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
HBAN does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for HBAN has been increased compared to 1 year ago.
HBAN has more shares outstanding than it did 5 years ago.
HBAN has a worse debt/assets ratio than last year.
2.2 Solvency
HBAN has a debt to FCF ratio of 7.10. This is a slightly negative value and a sign of low solvency as HBAN would need 7.10 years to pay back of all of its debts.
HBAN's Debt to FCF ratio of 7.10 is on the low side compared to the rest of the industry. HBAN is outperformed by 72.36% of its industry peers.
A Debt/Equity ratio of 0.60 indicates that HBAN is somewhat dependend on debt financing.
HBAN's Debt to Equity ratio of 0.60 is on the low side compared to the rest of the industry. HBAN is outperformed by 78.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 7.1 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC16.41%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.55% over the past year.
HBAN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.32% yearly.
Looking at the last year, HBAN shows a small growth in Revenue. The Revenue has grown by 0.34% in the last year.
HBAN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.61% yearly.
EPS 1Y (TTM)1.55%
EPS 3Y-1.55%
EPS 5Y-0.32%
EPS Q2Q%21.43%
Revenue 1Y (TTM)0.34%
Revenue growth 3Y7.22%
Revenue growth 5Y9.61%
Sales Q2Q%9.51%
3.2 Future
The Earnings Per Share is expected to grow by 6.00% on average over the next years.
Based on estimates for the next years, HBAN will show a small growth in Revenue. The Revenue will grow by 4.14% on average per year.
EPS Next Y13.88%
EPS Next 2Y13.25%
EPS Next 3Y13.21%
EPS Next 5Y6%
Revenue Next Year6.97%
Revenue Next 2Y6.4%
Revenue Next 3Y5.55%
Revenue Next 5Y4.14%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.44, which indicates a very decent valuation of HBAN.
Based on the Price/Earnings ratio, HBAN is valued a bit cheaper than the industry average as 63.07% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.29. HBAN is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 8.53 indicates a reasonable valuation of HBAN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HBAN indicates a somewhat cheap valuation: HBAN is cheaper than 72.86% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.08. HBAN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.44 | ||
| Fwd PE | 8.53 |
4.2 Price Multiples
The rest of the industry has a similar Price/Free Cash Flow ratio as HBAN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.94 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
HBAN's earnings are expected to grow with 13.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.75
PEG (5Y)N/A
EPS Next 2Y13.25%
EPS Next 3Y13.21%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.67%, HBAN is a good candidate for dividend investing.
HBAN's Dividend Yield is a higher than the industry average which is at 3.78.
Compared to an average S&P500 Dividend Yield of 2.57, HBAN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.67% |
5.2 History
The dividend of HBAN has a limited annual growth rate of 2.11%.
HBAN has paid a dividend for at least 10 years, which is a reliable track record.
HBAN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)2.11%
Div Incr Years0
Div Non Decr Years15
5.3 Sustainability
HBAN pays out 58.08% of its income as dividend. This is a bit on the high side, but may be sustainable.
HBAN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP58.08%
EPS Next 2Y13.25%
EPS Next 3Y13.21%
13.67
+0.4 (+3.01%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners87.29%
Inst Owner Change0.05%
Ins Owners1.07%
Ins Owner Change4.69%
Market Cap19.97B
Analysts78.52
Price Target18.83 (37.75%)
Short Float %4.1%
Short Ratio2.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.67% |
Yearly Dividend0.72
Dividend Growth(5Y)2.11%
DP58.08%
Div Incr Years0
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.56%
Min EPS beat(2)6.82%
Max EPS beat(2)8.31%
EPS beat(4)4
Avg EPS beat(4)7.48%
Min EPS beat(4)4.87%
Max EPS beat(4)9.94%
EPS beat(8)8
Avg EPS beat(8)6.91%
EPS beat(12)10
Avg EPS beat(12)4.19%
EPS beat(16)12
Avg EPS beat(16)3.32%
Revenue beat(2)1
Avg Revenue beat(2)0.77%
Min Revenue beat(2)-0.63%
Max Revenue beat(2)2.18%
Revenue beat(4)1
Avg Revenue beat(4)-0.19%
Min Revenue beat(4)-1.63%
Max Revenue beat(4)2.18%
Revenue beat(8)2
Avg Revenue beat(8)-0.66%
Revenue beat(12)4
Avg Revenue beat(12)-0.51%
Revenue beat(16)5
Avg Revenue beat(16)-0.33%
PT rev (1m)-3.49%
PT rev (3m)-1.19%
EPS NQ rev (1m)-1%
EPS NQ rev (3m)5.46%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)3.95%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)2.23%
Revenue NY rev (1m)-0.34%
Revenue NY rev (3m)1.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.44 | ||
| Fwd PE | 8.53 | ||
| P/S | 2.7 | ||
| P/FCF | 11.94 | ||
| P/OCF | 11 | ||
| P/B | 1.01 | ||
| P/tB | 1.48 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.31
EY9.58%
EPS(NY)1.6
Fwd EY11.73%
FCF(TTM)1.14
FCFY8.37%
OCF(TTM)1.24
OCFY9.09%
SpS5.06
BVpS13.51
TBVpS9.24
PEG (NY)0.75
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.88% | ||
| ROE | 9.12% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 24.37% | ||
| GM | N/A | ||
| FCFM | 22.63% |
ROA(3y)1%
ROA(5y)0.85%
ROE(3y)10.17%
ROE(5y)8.4%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y8.21%
PM growth 5Y-3.17%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 7.1 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 22.99% | ||
| Cap/Sales | 1.94% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 92.84% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score4
WACC16.41%
ROIC/WACCN/A
Cap/Depr(3y)28.25%
Cap/Depr(5y)36.07%
Cap/Sales(3y)2.26%
Cap/Sales(5y)2.68%
Profit Quality(3y)136.93%
Profit Quality(5y)147.23%
High Growth Momentum
Growth
EPS 1Y (TTM)1.55%
EPS 3Y-1.55%
EPS 5Y-0.32%
EPS Q2Q%21.43%
EPS Next Y13.88%
EPS Next 2Y13.25%
EPS Next 3Y13.21%
EPS Next 5Y6%
Revenue 1Y (TTM)0.34%
Revenue growth 3Y7.22%
Revenue growth 5Y9.61%
Sales Q2Q%9.51%
Revenue Next Year6.97%
Revenue Next 2Y6.4%
Revenue Next 3Y5.55%
Revenue Next 5Y4.14%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year43.5%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-33.57%
FCF growth 3Y-2.7%
FCF growth 5Y2.65%
OCF growth 1Y-31.69%
OCF growth 3Y-4.16%
OCF growth 5Y2.89%