First Hawaiian (FHB) AI Stock Analysis

• Market Cap: $3.09B
• Dividend Yield: 4.2%
• Average Volume (3M): 1.01M
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.87
• Revenue Growth: -4.57%
• EPS Growth: 16.92%
• Country: US
• Employees: 1,995
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.59
• Shares Outstanding: 124,627,540
• 10 Day Avg. Volume: 1,260,410
• 30 Day Avg. Volume: 1,005,838
• PEG Ratio: -6.62
• Price to Book (P/B): 1.27
• Price to Sales (P/S): 2.93
• P/FCF Ratio: 11.48
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $26.50
• Price Target Upside: 6.94% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 7

• Rating: 71 Outperform
• Price Target: $27.00 ▲(8.96% Upside)

First Hawaiian's overall stock score is driven by its solid financial performance and positive earnings call sentiment. The company's attractive valuation further supports the score. However, technical analysis indicates potential bearish trends, which slightly tempers the overall outlook.

Positive Factors

Strong Deposit Growth

The significant increase in deposits enhances the bank's liquidity and ability to fund new loans, supporting long-term growth and stability.

Margin Expansion

Improved net interest margin indicates better profitability from core banking operations, which is crucial for sustaining earnings in the long term.

Strong Credit Performance

Solid credit performance reduces the risk of loan defaults, ensuring financial stability and protecting the bank's asset quality over time.

Negative Factors

Loan Portfolio Decline

A shrinking loan portfolio can limit revenue growth opportunities, affecting the bank's ability to expand its lending business and generate interest income.

Revenue Growth Decline

Declining revenue growth may signal challenges in market competitiveness or demand, potentially impacting long-term profitability and market position.

Federal Government Shutdown Concerns

Potential impacts from government shutdowns could affect customer financial stability, leading to increased credit risk and reduced banking activity.

First Hawaiian Business Overview & Revenue Model

Company Description

First Hawaiian Bank (FHB) is a prominent financial institution based in Hawaii, operating primarily in the banking sector. Established in 1858, FHB offers a wide range of financial services, including personal and commercial banking, investment services, and wealth management. The bank serves customers across various segments, including individuals, businesses, and government entities, with a strong emphasis on community involvement and customer service.

How the Company Makes Money

First Hawaiian Bank generates revenue through several key streams. The primary source is interest income from loans, which includes personal loans, mortgages, and commercial loans. Additionally, the bank earns non-interest income from fees associated with account maintenance, transaction services, and investment products. FHB also benefits from wealth management services, which provide advisory and investment management services to clients, further enhancing its revenue. The bank's strategic partnerships with other financial institutions and investment firms contribute to its ability to offer a diversified range of products and services, ultimately driving growth and profitability.

First Hawaiian Financial Statement Overview

Summary

First Hawaiian demonstrates a solid financial position with strong profitability and prudent balance sheet management. Despite recent revenue decline, the company maintains healthy margins and cash flow metrics. The low leverage and stable return on equity further underscore its financial stability.

Income Statement

First Hawaiian's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate, which is a concern. However, the company maintains healthy profit margins, with a net profit margin of 22.08% and an EBIT margin of 27.43%. The gross profit margin remains strong at 69.17%. Despite the recent revenue decline, the company has demonstrated resilience in maintaining profitability.

Balance Sheet

The balance sheet of First Hawaiian is robust, with a low debt-to-equity ratio of 0.09, indicating conservative leverage. The return on equity is stable at 9.29%, reflecting efficient use of equity to generate profits. The equity ratio stands at 11.30%, suggesting a solid equity base relative to total assets. Overall, the balance sheet reflects financial stability and prudent management of liabilities.

Cash Flow

The cash flow statement shows positive trends, with a significant free cash flow growth rate of 20.73% in the TTM period. The operating cash flow to net income ratio is strong at 1.38, indicating good cash generation relative to net income. The free cash flow to net income ratio is also healthy at 0.89. These metrics suggest effective cash flow management, although the company should monitor the sustainability of free cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.12B	1.13B	1.09B	811.75M	708.98M	758.02M
Gross Profit	772.09M	759.96M	778.68M	760.69M	729.23M	589.28M
EBITDA	343.28M	330.61M	351.94M	407.96M	400.84M	306.80M
Net Income	246.48M	230.13M	234.98M	265.69M	265.74M	185.75M
Balance Sheet
Total Assets	23.84B	23.83B	24.93B	24.58B	24.99B	22.66B
Cash, Cash Equivalents and Short-Term Investments	304.62M	1.18B	4.00B	3.68B	9.69B	1.04B
Total Debt	250.00M	250.00M	500.00M	75.00M	65.80M	200.01M
Total Liabilities	21.14B	21.21B	22.52B	22.31B	22.41B	19.92B
Stockholders Equity	2.69B	2.62B	2.49B	2.27B	2.66B	2.74B
Cash Flow
Free Cash Flow	308.55M	288.74M	239.04M	417.32M	396.67M	176.12M
Operating Cash Flow	345.79M	317.51M	255.03M	430.61M	417.13M	209.51M
Investing Cash Flow	502.97M	548.55M	1.03B	-965.10M	-2.38B	-2.10B
Financing Cash Flow	-564.48M	-1.44B	-66.92M	-197.36M	2.18B	2.24B

First Hawaiian Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.78
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FHB, the sentiment is Positive. The current price of 24.78 is above the 20-day moving average (MA) of 24.17, below the 50-day MA of 24.91, and above the 200-day MA of 24.47, indicating a neutral trend. The MACD of -0.31 indicates Negative momentum. The RSI at 54.54 is Neutral, neither overbought nor oversold. The STOCH value of 62.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FHB.

First Hawaiian Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INDB	―	$3.45B	16.86	5.51%	3.43%	11.09%	-10.78%
WSFS	―	$2.97B	10.94	10.27%	1.21%	-3.49%	―
WSBC	―	$3.01B	15.93	5.25%	4.73%	41.12%	-5.53%
FHB	―	$3.09B	12.10	9.62%	4.20%	-4.57%	16.92%
FIBK	―	$3.32B	14.24	6.91%	5.94%	-2.11%	-8.95%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CATY	―	$3.24B	10.83	10.63%	2.90%	-1.59%	9.34%

First Hawaiian Corporate Events

First Hawaiian Inc. Reports Strong Q3 Earnings

The recent earnings call for First Hawaiian Inc. conveyed an overall positive sentiment, highlighting strong deposit growth, margin expansion, and robust credit performance. Despite these positive indicators, the company faces challenges, including a decline in the loan portfolio and potential impacts from the federal government shutdown on families.

First Hawaiian Inc. Earnings Call: Positive Outlook Amid Challenges

First Hawaiian Inc. recently held its earnings call, which conveyed a positive outlook for the company. Despite facing challenges in deposits and tourism, the bank reported strong financial metrics, including a notable increase in net income. The overall sentiment was optimistic, with the bank maintaining a low credit risk and demonstrating effective expense management. While there are concerns regarding a decline in certain deposit categories and weak tourism from Japan and Canada, the strategic initiatives and overall performance suggest a promising trajectory for the company.