HUNTINGTON BANCSHARES INC (HBAN) Stock Fundamental Analysis
NASDAQ:HBAN - Nasdaq - US4461501045 - Common Stock - Currency: USD
Overall HBAN gets a fundamental rating of 3 out of 10. We evaluated HBAN against 395 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. Finally HBAN also has an excellent dividend rating.
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.
In the past 5 years HBAN always reported a positive cash flow from operatings.
1.2 Ratios
HBAN has a Return On Assets (0.92%) which is in line with its industry peers.
With a Return On Equity value of 9.39%, HBAN perfoms like the industry average, outperforming 59.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.92% | ||
| ROE | 9.39% | ||
| 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 25.38% is fine compared to the rest of the industry. HBAN outperforms 61.77% of its industry peers.
In the last couple of years the Profit Margin of HBAN has declined.
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) | 25.38% | ||
| 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.
Compared to 1 year ago, HBAN has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of HBAN is 8.27, which is on the high side as it means it would take HBAN, 8.27 years of fcf income to pay off all of its debts.
HBAN has a Debt to FCF ratio of 8.27. This is in the lower half of the industry: HBAN underperforms 76.71% of its industry peers.
HBAN has a Debt/Equity ratio of 0.69. This is a neutral value indicating HBAN is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.69, HBAN is not doing good in the industry: 81.01% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 8.27 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC16.05%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
HBAN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.55%.
HBAN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.32% yearly.
The Revenue has been growing slightly by 5.05% in the past year.
The Revenue has been growing by 9.61% on average over the past years. This is quite good.
EPS 1Y (TTM)1.55%
EPS 3Y-1.55%
EPS 5Y-0.32%
EPS Q2Q%21.43%
Revenue 1Y (TTM)5.05%
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.
The Revenue is expected to grow by 4.14% on average over the next years.
EPS Next Y17.06%
EPS Next 2Y13.51%
EPS Next 3Y12.27%
EPS Next 5Y6%
Revenue Next Year8.52%
Revenue Next 2Y6.76%
Revenue Next 3Y5.93%
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.
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
HBAN is valuated correctly with a Price/Earnings ratio of 13.39.
HBAN's Price/Earnings ratio is in line with the industry average.
HBAN is valuated cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.89 indicates a reasonable valuation of HBAN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HBAN is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of HBAN to the average of the S&P500 Index (21.90), we can say HBAN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.39 | ||
| Fwd PE | 10.89 |
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 | 15.04 | ||
| 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 12.27% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.78
PEG (5Y)N/A
EPS Next 2Y13.51%
EPS Next 3Y12.27%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.73%, HBAN has a reasonable but not impressive dividend return.
HBAN's Dividend Yield is a higher than the industry average which is at 3.47.
HBAN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.73% |
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 54.07% 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.
DP54.07%
EPS Next 2Y13.51%
EPS Next 3Y12.27%
17.54
+0.14 (+0.8%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners88.32%
Inst Owner Change0.93%
Ins Owners0.99%
Ins Owner Change4.69%
Market Cap25.56B
Analysts80
Price Target18.21 (3.82%)
Short Float %4.64%
Short Ratio2.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.73% |
Yearly Dividend0.72
Dividend Growth(5Y)2.11%
DP54.07%
Div Incr Years0
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.77%
Min EPS beat(2)6.72%
Max EPS beat(2)6.82%
EPS beat(4)4
Avg EPS beat(4)6.68%
Min EPS beat(4)4.87%
Max EPS beat(4)8.31%
EPS beat(8)8
Avg EPS beat(8)7.38%
EPS beat(12)11
Avg EPS beat(12)5.3%
EPS beat(16)12
Avg EPS beat(16)1.51%
Revenue beat(2)2
Avg Revenue beat(2)1.4%
Min Revenue beat(2)0.62%
Max Revenue beat(2)2.18%
Revenue beat(4)2
Avg Revenue beat(4)0.14%
Min Revenue beat(4)-1.63%
Max Revenue beat(4)2.18%
Revenue beat(8)3
Avg Revenue beat(8)-0.47%
Revenue beat(12)5
Avg Revenue beat(12)-0.37%
Revenue beat(16)5
Avg Revenue beat(16)-0.91%
PT rev (1m)1.27%
PT rev (3m)-4.42%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)1.9%
EPS NY rev (1m)0.26%
EPS NY rev (3m)2.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.16%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.39 | ||
| Fwd PE | 10.89 | ||
| P/S | 3.38 | ||
| P/FCF | 15.04 | ||
| P/OCF | 13.71 | ||
| P/B | 1.25 | ||
| P/tB | 1.8 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.31
EY7.47%
EPS(NY)1.61
Fwd EY9.18%
FCF(TTM)1.17
FCFY6.65%
OCF(TTM)1.28
OCFY7.29%
SpS5.19
BVpS14.02
TBVpS9.76
PEG (NY)0.78
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.92% | ||
| ROE | 9.39% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 25.38% | ||
| GM | N/A | ||
| FCFM | 22.49% |
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 | 0.69 | ||
| Debt/FCF | 8.27 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 25.74% | ||
| Cap/Sales | 2.18% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 88.58% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score4
WACC16.05%
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 Y17.06%
EPS Next 2Y13.51%
EPS Next 3Y12.27%
EPS Next 5Y6%
Revenue 1Y (TTM)5.05%
Revenue growth 3Y7.22%
Revenue growth 5Y9.61%
Sales Q2Q%9.51%
Revenue Next Year8.52%
Revenue Next 2Y6.76%
Revenue Next 3Y5.93%
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-45.93%
FCF growth 3Y-2.7%
FCF growth 5Y2.65%
OCF growth 1Y-43.65%
OCF growth 3Y-4.16%
OCF growth 5Y2.89%