HUNTINGTON BANCSHARES INC (HBAN) Stock Fundamental Analysis
NASDAQ:HBAN - Nasdaq - US4461501045 - Common Stock - Currency: USD
Taking everything into account, HBAN scores 3 out of 10 in our fundamental rating. 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
HBAN had positive earnings in the past year.
HBAN had a positive operating cash flow in the past year.
In the past 5 years HBAN has always been profitable.
Of the past 5 years HBAN 4 years had a positive operating cash flow.
1.2 Ratios
HBAN has a Return On Assets (0.76%) which is comparable to the rest of the industry.
With a Return On Equity value of 7.37%, HBAN perfoms like the industry average, outperforming 42.36% of the companies in the same industry.
| 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
HBAN's Profit Margin of 21.22% is in line compared to the rest of the industry. HBAN outperforms 44.11% of its industry peers.
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) | 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.
Compared to 1 year ago, HBAN has more shares outstanding
The number of shares outstanding for HBAN has been increased compared to 5 years ago.
Compared to 1 year ago, HBAN has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of HBAN is 11.20, which is on the high side as it means it would take HBAN, 11.20 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 11.20, HBAN is not doing good in the industry: 72.18% of the companies in the same industry are doing better.
HBAN has a Debt/Equity ratio of 0.57. This is a neutral value indicating HBAN is somewhat dependend on debt financing.
HBAN's Debt to Equity ratio of 0.57 is on the low side compared to the rest of the industry. HBAN is outperformed by 78.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 11.2 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC13.56%
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.
HBAN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.32% yearly.
HBAN shows a small growth in Revenue. In the last year, the Revenue has grown by 0.34%.
Measured over the past years, HBAN shows a quite strong growth in Revenue. The Revenue has been growing by 9.61% on average per year.
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.
The Revenue is expected to grow by 3.94% on average over the next years.
EPS Next Y13.92%
EPS Next 2Y13.3%
EPS Next 3Y13.25%
EPS Next 5Y6%
Revenue Next Year7.18%
Revenue Next 2Y6.69%
Revenue Next 3Y6.2%
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.
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
With a Price/Earnings ratio of 12.85, HBAN is valued correctly.
HBAN's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 29.36. HBAN is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 11.28, which indicates a very decent valuation of HBAN.
HBAN's Price/Forward Earnings ratio is in line with the industry average.
HBAN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.65.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.85 | ||
| Fwd PE | 11.28 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HBAN indicates a slightly more expensive valuation: HBAN is more expensive than 69.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.17 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
HBAN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as HBAN's earnings are expected to grow with 13.25% in the coming years.
PEG (NY)0.92
PEG (5Y)N/A
EPS Next 2Y13.3%
EPS Next 3Y13.25%
5. Dividend
5.1 Amount
HBAN has a Yearly Dividend Yield of 3.78%.
Compared to an average industry Dividend Yield of 3.19, HBAN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, HBAN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.35%
Div Incr Years0
Div Non Decr Years15
5.3 Sustainability
HBAN pays out 68.97% of its income as dividend. 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 2Y13.3%
EPS Next 3Y13.25%
16.06
+0.25 (+1.58%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners87.29%
Inst Owner Change-90.83%
Ins Owners1.07%
Ins Owner Change-0.25%
Market Cap23.35B
Analysts76.43
Price Target19.51 (21.48%)
Short Float %3.27%
Short Ratio2.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
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)2.38%
PT rev (3m)7.66%
EPS NQ rev (1m)3.41%
EPS NQ rev (3m)3.41%
EPS NY rev (1m)3.99%
EPS NY rev (3m)4.5%
Revenue NQ rev (1m)0.94%
Revenue NQ rev (3m)0.94%
Revenue NY rev (1m)0.97%
Revenue NY rev (3m)2.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.85 | ||
| Fwd PE | 11.28 | ||
| P/S | 3.26 | ||
| P/FCF | 22.17 | ||
| P/OCF | 19 | ||
| P/B | 1.13 | ||
| P/tB | 1.62 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.25
EY7.78%
EPS(NY)1.42
Fwd EY8.87%
FCF(TTM)0.72
FCFY4.51%
OCF(TTM)0.85
OCFY5.26%
SpS4.92
BVpS14.18
TBVpS9.91
PEG (NY)0.92
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
WACC13.56%
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 Y13.92%
EPS Next 2Y13.3%
EPS Next 3Y13.25%
EPS Next 5Y6%
Revenue 1Y (TTM)0.34%
Revenue growth 3Y7.22%
Revenue growth 5Y9.61%
Sales Q2Q%13.63%
Revenue Next Year7.18%
Revenue Next 2Y6.69%
Revenue Next 3Y6.2%
Revenue Next 5Y3.94%
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-64.75%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-60.56%
OCF growth 3YN/A
OCF growth 5YN/A