HUNTINGTON BANCSHARES INC (HBAN) Stock Fundamental Analysis
NASDAQ:HBAN - Nasdaq - US4461501045 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to HBAN. HBAN was compared to 405 industry peers in the Banks industry. HBAN has a bad profitability rating. Also its financial health evaluation is rather negative. HBAN is quite expensive at the moment. It does show a decent growth rate.
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.
Of the past 5 years HBAN 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.76%, HBAN is in line with its industry, outperforming 46.23% of the companies in the same industry.
HBAN's Return On Equity of 7.37% is in line compared to the rest of the industry. HBAN outperforms 43.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.76% | ||
| ROE | 7.37% | ||
| 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
With a Profit Margin value of 21.22%, HBAN perfoms like the industry average, outperforming 44.72% of the companies in the same industry.
In the last couple of years the Profit Margin of HBAN has declined.
The Operating Margin and Gross Margin are not available for HBAN so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 21.22% | ||
| 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.
Compared to 5 years ago, HBAN has more shares outstanding
HBAN has a worse debt/assets ratio than last year.
2.2 Solvency
HBAN has a debt to FCF ratio of 11.20. This is a negative value and a sign of low solvency as HBAN would need 11.20 years to pay back of all of its debts.
HBAN has a worse Debt to FCF ratio (11.20) than 72.36% of its industry peers.
HBAN has a Debt/Equity ratio of 0.57. This is a neutral value indicating HBAN is somewhat dependend on debt financing.
HBAN has a worse Debt to Equity ratio (0.57) than 78.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 11.2 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC13.87%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for HBAN have decreased strongly by -10.71% in the last year.
Measured over the past years, HBAN shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.32% on average per year.
HBAN shows a small growth in Revenue. In the last year, the Revenue has grown by 0.34%.
The Revenue has been growing by 9.61% on average over the past years. This is quite good.
EPS 1Y (TTM)-10.71%
EPS 3Y-1.55%
EPS 5Y-0.32%
EPS Q2Q%13.33%
Revenue 1Y (TTM)0.34%
Revenue growth 3Y7.22%
Revenue growth 5Y9.61%
Sales Q2Q%13.63%
3.2 Future
Based on estimates for the next years, HBAN will show a small growth in Earnings Per Share. The EPS will grow by 6.00% on average per year.
Based on estimates for the next years, HBAN will show a small growth in Revenue. The Revenue will grow by 3.94% on average per year.
EPS Next Y9.55%
EPS Next 2Y11.32%
EPS Next 3Y2.25%
EPS Next 5Y6%
Revenue Next Year6.16%
Revenue Next 2Y5.4%
Revenue Next 3Y3.33%
Revenue Next 5Y3.94%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.78, the valuation of HBAN can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as HBAN.
The average S&P500 Price/Earnings ratio is at 28.58. HBAN is valued rather cheaply when compared to this.
HBAN is valuated correctly with a Price/Forward Earnings ratio of 12.57.
HBAN's Price/Forward Earnings is on the same level as the industry average.
HBAN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.47, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.78 | ||
| Fwd PE | 12.57 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, HBAN is valued a bit more expensive than 72.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.76 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.44
PEG (5Y)N/A
EPS Next 2Y11.32%
EPS Next 3Y2.25%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.67%, HBAN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.19, HBAN pays a bit more dividend than its industry peers.
HBAN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.67% |
5.2 History
The dividend of HBAN has a limited annual growth rate of 5.35%.
HBAN has been paying a dividend for at least 10 years, so it has a reliable track record.
HBAN has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.35%
Div Incr Years0
Div Non Decr Years15
5.3 Sustainability
68.97% of the earnings are spent on dividend by HBAN. This is not a sustainable payout ratio.
HBAN's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP68.97%
EPS Next 2Y11.32%
EPS Next 3Y2.25%
HUNTINGTON BANCSHARES INC
NASDAQ:HBAN (1/27/2025, 11:42:09 AM)
17.22
+0.02 (+0.12%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners85.57%
Inst Owner Change-0.19%
Ins Owners1.07%
Ins Owner Change-0.33%
Market Cap25.02B
Analysts76.3
Price Target19.05 (10.63%)
Short Float %2.96%
Short Ratio2.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.67% |
Yearly Dividend0.72
Dividend Growth(5Y)5.35%
DP68.97%
Div Incr Years0
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.59%
Min EPS beat(2)4.87%
Max EPS beat(2)8.31%
EPS beat(4)4
Avg EPS beat(4)8.23%
Min EPS beat(4)4.87%
Max EPS beat(4)9.94%
EPS beat(8)8
Avg EPS beat(8)6.22%
EPS beat(12)9
Avg EPS beat(12)1.85%
EPS beat(16)11
Avg EPS beat(16)2.27%
Revenue beat(2)0
Avg Revenue beat(2)-1.13%
Min Revenue beat(2)-1.63%
Max Revenue beat(2)-0.63%
Revenue beat(4)0
Avg Revenue beat(4)-1.73%
Min Revenue beat(4)-3.99%
Max Revenue beat(4)-0.63%
Revenue beat(8)1
Avg Revenue beat(8)-1.1%
Revenue beat(12)3
Avg Revenue beat(12)-1.08%
Revenue beat(16)4
Avg Revenue beat(16)-0.66%
PT rev (1m)3.87%
PT rev (3m)11.82%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.55%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)0.71%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.78 | ||
| Fwd PE | 12.57 | ||
| P/S | 3.5 | ||
| P/FCF | 23.76 | ||
| P/OCF | 20.36 | ||
| P/B | 1.21 | ||
| P/tB | 1.74 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.25
EY7.26%
EPS(NY)1.37
Fwd EY7.95%
FCF(TTM)0.72
FCFY4.21%
OCF(TTM)0.85
OCFY4.91%
SpS4.92
BVpS14.18
TBVpS9.92
PEG (NY)1.44
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.76% | ||
| ROE | 7.37% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 21.22% | ||
| GM | N/A | ||
| FCFM | 14.72% |
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 | 0.57 | ||
| Debt/FCF | 11.2 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 24.04% | ||
| Cap/Sales | 2.46% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 69.37% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score4
WACC13.87%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-10.71%
EPS 3Y-1.55%
EPS 5Y-0.32%
EPS Q2Q%13.33%
EPS Next Y9.55%
EPS Next 2Y11.32%
EPS Next 3Y2.25%
EPS Next 5Y6%
Revenue 1Y (TTM)0.34%
Revenue growth 3Y7.22%
Revenue growth 5Y9.61%
Sales Q2Q%13.63%
Revenue Next Year6.16%
Revenue Next 2Y5.4%
Revenue Next 3Y3.33%
Revenue Next 5Y3.94%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year43.55%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-64.75%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-60.56%
OCF growth 3YN/A
OCF growth 5YN/A