HUNTINGTON BANCSHARES INC (HBAN) Stock Fundamental Analysis
NASDAQ:HBAN - US4461501045 - Common Stock
17.36 USD
+0.7 (+4.2%)
17.42 USD
+0.06 (+0.35%)
Taking everything into account, HBAN scores 3 out of 10 in our fundamental rating. HBAN was compared to 393 industry peers in the Banks industry. HBAN has a medium profitability rating, but doesn't score so well on its financial health evaluation. HBAN has a correct valuation and a medium growth rate. 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.
In the past 5 years HBAN has always been profitable.
Each year in the past 5 years HBAN had a positive operating cash flow.
1.2 Ratios
HBAN's Return On Assets of 0.96% is fine compared to the rest of the industry. HBAN outperforms 61.32% of its industry peers.
The Return On Equity of HBAN (9.50%) is better than 62.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.96% | ||
| ROE | 9.5% | ||
| 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
The Profit Margin of HBAN (25.89%) is better than 64.63% 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) | 25.89% | ||
| 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.
HBAN has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of HBAN is 6.88, which is on the high side as it means it would take HBAN, 6.88 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HBAN (6.88) is worse than 72.01% of its industry peers.
HBAN has a Debt/Equity ratio of 0.64. This is a neutral value indicating HBAN is somewhat dependend on debt financing.
HBAN has a Debt to Equity ratio of 0.64. This is in the lower half of the industry: HBAN underperforms 79.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 6.88 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC15.23%
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 grown by an nice 8.87% over the past 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 7.35%.
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)8.87%
EPS 3Y-1.55%
EPS 5Y-0.32%
EPS Q2Q%13.33%
Revenue 1Y (TTM)7.35%
Revenue growth 3Y7.22%
Revenue growth 5Y9.61%
Sales Q2Q%7.6%
3.2 Future
The Earnings Per Share is expected to grow by 5.35% 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 4.41% on average per year.
EPS Next Y16.92%
EPS Next 2Y13.14%
EPS Next 3Y12.05%
EPS Next 5Y5.35%
Revenue Next Year9.51%
Revenue Next 2Y8.86%
Revenue Next 3Y7.34%
Revenue Next 5Y4.41%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 12.86, HBAN is valued correctly.
HBAN's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of HBAN to the average of the S&P500 Index (27.24), we can say HBAN is valued rather cheaply.
HBAN is valuated reasonably with a Price/Forward Earnings ratio of 10.85.
HBAN's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.81, HBAN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.86 | ||
| Fwd PE | 10.85 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HBAN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.14 | ||
| 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 12.05% in the coming years.
PEG (NY)0.76
PEG (5Y)N/A
EPS Next 2Y13.14%
EPS Next 3Y12.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.72%, HBAN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.30, 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 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.72% |
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 51.86% 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.
DP51.86%
EPS Next 2Y13.14%
EPS Next 3Y12.05%
17.36
+0.7 (+4.2%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners88.2%
Inst Owner Change-4.63%
Ins Owners0.99%
Ins Owner Change4.86%
Market Cap25.45B
Analysts82.22
Price Target19.95 (14.92%)
Short Float %6.04%
Short Ratio2.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.72% |
Yearly Dividend0.72
Dividend Growth(5Y)2.11%
DP51.86%
Div Incr Years0
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.04%
Min EPS beat(2)-2.65%
Max EPS beat(2)6.72%
EPS beat(4)3
Avg EPS beat(4)4.8%
Min EPS beat(4)-2.65%
Max EPS beat(4)8.31%
EPS beat(8)7
Avg EPS beat(8)6.82%
EPS beat(12)10
Avg EPS beat(12)5.03%
EPS beat(16)11
Avg EPS beat(16)0.06%
Revenue beat(2)1
Avg Revenue beat(2)-1.25%
Min Revenue beat(2)-3.12%
Max Revenue beat(2)0.62%
Revenue beat(4)2
Avg Revenue beat(4)-0.24%
Min Revenue beat(4)-3.12%
Max Revenue beat(4)2.18%
Revenue beat(8)3
Avg Revenue beat(8)-0.7%
Revenue beat(12)4
Avg Revenue beat(12)-0.66%
Revenue beat(16)5
Avg Revenue beat(16)-0.96%
PT rev (1m)2.44%
PT rev (3m)10.92%
EPS NQ rev (1m)-1.53%
EPS NQ rev (3m)2.79%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)0.13%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)2.16%
Revenue NY rev (1m)0.51%
Revenue NY rev (3m)0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.86 | ||
| Fwd PE | 10.85 | ||
| P/S | 3.31 | ||
| P/FCF | 13.14 | ||
| P/OCF | 12.04 | ||
| P/B | 1.22 | ||
| P/tB | 1.73 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.35
EY7.78%
EPS(NY)1.6
Fwd EY9.22%
FCF(TTM)1.32
FCFY7.61%
OCF(TTM)1.44
OCFY8.3%
SpS5.24
BVpS14.28
TBVpS10.04
PEG (NY)0.76
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.96% | ||
| ROE | 9.5% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 25.89% | ||
| GM | N/A | ||
| FCFM | 25.21% |
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-Score7
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 6.88 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 26.86% | ||
| Cap/Sales | 2.3% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 97.38% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC15.23%
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)8.87%
EPS 3Y-1.55%
EPS 5Y-0.32%
EPS Q2Q%13.33%
EPS Next Y16.92%
EPS Next 2Y13.14%
EPS Next 3Y12.05%
EPS Next 5Y5.35%
Revenue 1Y (TTM)7.35%
Revenue growth 3Y7.22%
Revenue growth 5Y9.61%
Sales Q2Q%7.6%
Revenue Next Year9.51%
Revenue Next 2Y8.86%
Revenue Next 3Y7.34%
Revenue Next 5Y4.41%
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-31.23%
FCF growth 3Y-2.7%
FCF growth 5Y2.65%
OCF growth 1Y-28.69%
OCF growth 3Y-4.16%
OCF growth 5Y2.89%