17.35 USD
-0.29 (-1.64%)
17.3518 USD
+0 (+0.01%)
We assign a fundamental rating of 3 out of 10 to HBAN. HBAN was compared to 383 industry peers in the Banks industry. HBAN may be in some trouble as it scores bad on both profitability and health. HBAN has a valuation in line with the averages, but it does not seem to be growing. 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.
- HBAN had positive earnings in 4 of the past 5 years.
- Of the past 5 years HBAN 4 years had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of 1.00%, HBAN is doing good in the industry, outperforming 61.10% of the companies in the same industry.
- The Return On Equity of HBAN (9.48%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1% | ||
| ROE | 9.48% | ||
| 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 better Profit Margin (26.54%) than 64.23% 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) | 26.54% | ||
| 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.
- There is no outstanding debt for HBAN. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- The Debt to FCF ratio of HBAN is 4.56, which is a neutral value as it means it would take HBAN, 4.56 years of fcf income to pay off all of its debts.
- HBAN's Debt to FCF ratio of 4.56 is on the low side compared to the rest of the industry. HBAN is outperformed by 68.67% of its industry peers.
- HBAN has a Debt/Equity ratio of 0.59. This is a neutral value indicating HBAN is somewhat dependend on debt financing.
- HBAN has a worse Debt to Equity ratio (0.59) than 77.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.56 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC14.76%
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 16.80% over the past year.
- The Earnings Per Share has been growing by 15.84% on average over the past years. This is quite good.
EPS 1Y (TTM)16.8%
EPS 3Y0.23%
EPS 5Y15.84%
EPS Q2Q%8.82%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%11.33%
3.2 Future
- HBAN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.38% yearly.
- Based on estimates for the next years, HBAN will show a small growth in Revenue. The Revenue will grow by 2.76% on average per year.
EPS Next Y15.79%
EPS Next 2Y16.81%
EPS Next 3Y2.02%
EPS Next 5Y3.38%
Revenue Next Year31.68%
Revenue Next 2Y19.08%
Revenue Next 3Y2.2%
Revenue Next 5Y2.76%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 11.88, the valuation of HBAN can be described as very reasonable.
- HBAN's Price/Earnings ratio is a bit cheaper when compared to the industry. HBAN is cheaper than 61.88% of the companies in the same industry.
- When comparing the Price/Earnings ratio of HBAN to the average of the S&P500 Index (27.21), we can say HBAN is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 10.26, the valuation of HBAN can be described as reasonable.
- The rest of the industry has a similar Price/Forward Earnings ratio as HBAN.
- HBAN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.88 | ||
| Fwd PE | 10.26 |
4.2 Price Multiples
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of HBAN indicates a somewhat cheap valuation: HBAN is cheaper than 71.28% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.53 | ||
| 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.
PEG (NY)0.75
PEG (5Y)0.75
EPS Next 2Y16.81%
EPS Next 3Y2.02%
5. Dividend
5.1 Amount
- HBAN has a Yearly Dividend Yield of 3.51%.
- HBAN's Dividend Yield is a higher than the industry average which is at 2.65.
- HBAN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.51% |
5.2 History
- The dividend of HBAN has a limited annual growth rate of 2.11%.
- 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)2.11%
Div Incr Years0
Div Non Decr Years15
5.3 Sustainability
- HBAN pays out 48.51% 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.
DP48.51%
EPS Next 2Y16.81%
EPS Next 3Y2.02%
HUNTINGTON BANCSHARES INC / HBAN FAQ
What is the ChartMill fundamental rating of HUNTINGTON BANCSHARES INC (HBAN) stock?
ChartMill assigns a fundamental rating of 3 / 10 to HBAN.
Can you provide the valuation status for HUNTINGTON BANCSHARES INC?
ChartMill assigns a valuation rating of 6 / 10 to HUNTINGTON BANCSHARES INC (HBAN). This can be considered as Fairly Valued.
What is the profitability of HBAN stock?
HUNTINGTON BANCSHARES INC (HBAN) has a profitability rating of 3 / 10.
Can you provide the PE and PB ratios for HBAN stock?
The Price/Earnings (PE) ratio for HUNTINGTON BANCSHARES INC (HBAN) is 11.88 and the Price/Book (PB) ratio is 1.23.
What is the expected EPS growth for HUNTINGTON BANCSHARES INC (HBAN) stock?
The Earnings per Share (EPS) of HUNTINGTON BANCSHARES INC (HBAN) is expected to grow by 15.79% in the next year.