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 392 industry peers in the Banks industry. HBAN may be in some trouble as it scores bad on both profitability and health. HBAN has a decent growth rate and is not valued too expensively. 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.
The Return On Equity of HBAN (9.39%) is better than 60.46% 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
HBAN's Profit Margin of 25.38% is fine compared to the rest of the industry. HBAN outperforms 62.24% of its industry peers.
In the last couple of years the Profit Margin of HBAN has declined.
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.
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
HBAN has a debt to FCF ratio of 8.27. This is a slightly negative value and a sign of low solvency as HBAN would need 8.27 years to pay back of all of its debts.
With a Debt to FCF ratio value of 8.27, HBAN is not doing good in the industry: 76.53% of the companies in the same industry are doing better.
HBAN has a Debt/Equity ratio of 0.69. This is a neutral value indicating HBAN is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.69, HBAN is doing worse than 80.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 8.27 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC15.14%
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 7.55%.
HBAN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.61% yearly.
EPS 1Y (TTM)8.87%
EPS 3Y-1.55%
EPS 5Y-0.32%
EPS Q2Q%13.33%
Revenue 1Y (TTM)7.55%
Revenue growth 3Y7.22%
Revenue growth 5Y9.61%
Sales Q2Q%7.6%
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.
HBAN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.14% yearly.
EPS Next Y17.08%
EPS Next 2Y13.59%
EPS Next 3Y11.69%
EPS Next 5Y6%
Revenue Next Year9.37%
Revenue Next 2Y8.62%
Revenue Next 3Y7.1%
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.
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
Based on the Price/Earnings ratio of 12.05, the valuation of HBAN can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as HBAN.
Compared to an average S&P500 Price/Earnings ratio of 26.82, HBAN is valued rather cheaply.
A Price/Forward Earnings ratio of 10.09 indicates a reasonable valuation of HBAN.
HBAN's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.21, HBAN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.05 | ||
| Fwd PE | 10.09 |
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 | 14.04 | ||
| 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.
PEG (NY)0.71
PEG (5Y)N/A
EPS Next 2Y13.59%
EPS Next 3Y11.69%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.71%, HBAN is a good candidate for dividend investing.
HBAN's Dividend Yield is rather good when compared to the industry average which is at 3.50. HBAN pays more dividend than 93.88% of the companies in the same industry.
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 | 6.71% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.11%
Div Incr Years0
Div Non Decr Years15
5.3 Sustainability
54.07% of the earnings are spent on dividend by HBAN. 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 2Y13.59%
EPS Next 3Y11.69%
16.27
+0.23 (+1.43%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners88.32%
Inst Owner Change0.05%
Ins Owners0.99%
Ins Owner Change4.88%
Market Cap23.85B
Analysts80.71
Price Target19.47 (19.67%)
Short Float %5%
Short Ratio2.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.71% |
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)6.93%
PT rev (3m)8.33%
EPS NQ rev (1m)-1.97%
EPS NQ rev (3m)-2.02%
EPS NY rev (1m)0.02%
EPS NY rev (3m)3.13%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)0.79%
Revenue NY rev (3m)1.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.05 | ||
| Fwd PE | 10.09 | ||
| P/S | 3.16 | ||
| P/FCF | 14.04 | ||
| P/OCF | 12.8 | ||
| P/B | 1.17 | ||
| P/tB | 1.68 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.35
EY8.3%
EPS(NY)1.61
Fwd EY9.91%
FCF(TTM)1.16
FCFY7.12%
OCF(TTM)1.27
OCFY7.82%
SpS5.15
BVpS13.94
TBVpS9.7
PEG (NY)0.71
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
WACC15.14%
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 Y17.08%
EPS Next 2Y13.59%
EPS Next 3Y11.69%
EPS Next 5Y6%
Revenue 1Y (TTM)7.55%
Revenue growth 3Y7.22%
Revenue growth 5Y9.61%
Sales Q2Q%7.6%
Revenue Next Year9.37%
Revenue Next 2Y8.62%
Revenue Next 3Y7.1%
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%