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 396 industry peers in the Banks industry. HBAN has a bad profitability rating. Also its financial health evaluation is rather negative. HBAN is not valued too expensively and it also shows a decent growth rate. Finally HBAN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
HBAN had positive earnings in the past year.
In the past year HBAN had a positive cash flow from operations.
Each year in the past 5 years HBAN has 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.
HBAN has a Return On Equity of 9.39%. This is comparable to the rest of the industry: HBAN outperforms 59.60% of its industry peers.
| 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
The Profit Margin of HBAN (25.38%) is better than 62.12% of its industry peers.
HBAN's Profit Margin has declined in the last couple of years.
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) | 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.
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 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 worse Debt to FCF ratio (8.27) than 76.77% 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.
HBAN has a worse Debt to Equity ratio (0.69) than 80.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 8.27 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC15.68%
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 been growing slightly by 1.55% over the past year.
HBAN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.32% yearly.
Looking at the last year, HBAN shows a small growth in Revenue. The Revenue has grown by 5.05% in the last 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
HBAN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.00% yearly.
The Revenue is expected to grow by 4.14% on average over the next years.
EPS Next Y16.76%
EPS Next 2Y13.33%
EPS Next 3Y11.92%
EPS Next 5Y6%
Revenue Next Year8.45%
Revenue Next 2Y6.63%
Revenue Next 3Y5.89%
Revenue Next 5Y4.14%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 12.28, HBAN is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as HBAN.
When comparing the Price/Earnings ratio of HBAN to the average of the S&P500 Index (26.59), we can say HBAN is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.02, the valuation of HBAN can be described as reasonable.
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 22.39, HBAN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.28 | ||
| Fwd PE | 10.02 |
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 | 13.8 | ||
| 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)0.73
PEG (5Y)N/A
EPS Next 2Y13.33%
EPS Next 3Y11.92%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.94%, HBAN has a reasonable but not impressive dividend return.
HBAN's Dividend Yield is a higher than the industry average which is at 3.51.
HBAN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
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.
The dividend of HBAN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP54.07%
EPS Next 2Y13.33%
EPS Next 3Y11.92%
16.09
-0.22 (-1.35%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners87.29%
Inst Owner Change0.93%
Ins Owners1.07%
Ins Owner Change4.41%
Market Cap23.44B
Analysts80
Price Target18.26 (13.49%)
Short Float %3.43%
Short Ratio2.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
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)1.58%
PT rev (3m)-6.39%
EPS NQ rev (1m)0.47%
EPS NQ rev (3m)1.33%
EPS NY rev (1m)2.85%
EPS NY rev (3m)2.49%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)1.16%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)1.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.28 | ||
| Fwd PE | 10.02 | ||
| P/S | 3.1 | ||
| P/FCF | 13.8 | ||
| P/OCF | 12.58 | ||
| P/B | 1.15 | ||
| P/tB | 1.65 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.31
EY8.14%
EPS(NY)1.61
Fwd EY9.98%
FCF(TTM)1.17
FCFY7.25%
OCF(TTM)1.28
OCFY7.95%
SpS5.19
BVpS14.02
TBVpS9.76
PEG (NY)0.73
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
WACC15.68%
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 Y16.76%
EPS Next 2Y13.33%
EPS Next 3Y11.92%
EPS Next 5Y6%
Revenue 1Y (TTM)5.05%
Revenue growth 3Y7.22%
Revenue growth 5Y9.61%
Sales Q2Q%9.51%
Revenue Next Year8.45%
Revenue Next 2Y6.63%
Revenue Next 3Y5.89%
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%