Hilltop Holdings (HTH) AI Stock Analysis

• Market Cap: $2.17B
• Dividend Yield: 2.07%
• Average Volume (3M): 475.33K
• Price to Earnings (P/E): 15.5
• Beta (1Y): 0.68
• Revenue Growth: 3.16%
• EPS Growth: 27.33%
• Country: US
• Employees: 3,616
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.57
• Shares Outstanding: 63,001,760
• 10 Day Avg. Volume: 429,723
• 30 Day Avg. Volume: 475,335
• PEG Ratio: 5.56
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 1.21
• P/FCF Ratio: 6.98
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 1.24
• Enterprise Value/Gross Profit: 1.64
• Enterprise Value/Ebitda: 9.00
• 1Y Price Target: $33.00
• Price Target Upside: -3.99% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 73 Outperform
• Price Target: $37.00 ▲(7.65% Upside)

Hilltop Holdings' overall stock score of 73 reflects a solid financial foundation with strong profitability margins and robust cash flow. The technical analysis indicates bullish momentum, although caution is advised due to potential overbought conditions. Valuation is fair, supported by reasonable P/E and dividend yield. The earnings call highlighted strengths in banking and securities but noted challenges in the mortgage sector. Corporate events positively impact shareholder value through dividends and buybacks.

Hilltop Holdings Business Overview & Revenue Model

Company Description

Hilltop Holdings Inc. (HTH) is a diversified financial services company based in Dallas, Texas. The company operates primarily through its subsidiaries in the banking, insurance, and investment sectors. Its core products and services include commercial and consumer banking, mortgage origination and servicing, insurance underwriting and brokerage, and investment advisory services. Hilltop Holdings aims to provide comprehensive financial solutions to its clients, leveraging its diverse portfolio to meet various customer needs.

How the Company Makes Money

Hilltop Holdings generates revenue through multiple key streams. Primarily, it earns interest income from its banking operations, which include loans and deposits. The company also generates non-interest income from its mortgage banking segment through origination fees, servicing fees, and gains on the sale of mortgage loans. Additionally, the insurance segment contributes to revenue through premiums collected from underwriting and brokerage services. Investment advisory services provide fee-based income as well. Significant partnerships with mortgage lenders and real estate companies enhance its origination capabilities, contributing further to its earnings.

Hilltop Holdings Financial Statement Overview

Summary

Hilltop Holdings shows a mixed financial performance. Despite challenges in revenue growth with a negative rate of -68.3%, the company maintains strong profitability margins with a gross profit margin of 75.53% and a net profit margin of 9.28%. The balance sheet indicates stability with a debt-to-equity ratio of 0.45, and cash flow is robust with a significant improvement in free cash flow growth at 99.64%.

Income Statement

Hilltop Holdings has shown a decline in revenue growth with a negative rate of -68.3% in the TTM period, indicating potential challenges in maintaining its revenue base. However, the company maintains a strong gross profit margin of 75.53% and a decent net profit margin of 9.28%, suggesting efficient cost management and profitability. The EBIT and EBITDA margins are also healthy at 12.54% and 13.81%, respectively, reflecting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio of 0.45 in the TTM period indicates a moderate level of leverage, which is a positive sign of financial stability. The return on equity (ROE) stands at 6.54%, showing a reasonable return on shareholders' investments. The equity ratio is not explicitly calculated, but the company's equity position appears stable relative to its total assets.

Cash Flow

Hilltop Holdings has demonstrated a significant improvement in free cash flow growth at 99.64% in the TTM period, indicating strong cash generation capabilities. The operating cash flow to net income ratio of 0.56 and free cash flow to net income ratio of 0.99 suggest effective conversion of income into cash, supporting liquidity and operational flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.55B	1.54B	1.50B	1.35B	1.85B	2.16B
Gross Profit	1.17B	1.12B	1.11B	1.21B	1.80B	1.94B
EBITDA	213.38M	174.21M	168.75M	188.75M	528.70M	586.28M
Net Income	143.40M	113.21M	109.65M	113.13M	374.50M	447.84M
Balance Sheet
Total Assets	15.36B	16.27B	16.47B	16.27B	18.69B	16.94B
Cash, Cash Equivalents and Short-Term Investments	2.27B	3.70B	3.37B	3.24B	4.95B	2.52B
Total Debt	1.05B	1.35B	1.39B	1.50B	1.47B	1.35B
Total Liabilities	13.14B	14.05B	14.32B	14.20B	16.14B	14.59B
Stockholders Equity	2.20B	2.19B	2.12B	2.05B	2.52B	2.32B
Cash Flow
Free Cash Flow	406.13M	266.80M	434.54M	1.18B	740.87M	242.69M
Operating Cash Flow	409.63M	273.93M	443.02M	1.19B	765.62M	280.44M
Investing Cash Flow	227.21M	354.22M	158.34M	-877.30M	-553.27M	-827.67M
Financing Cash Flow	-461.54M	-174.31M	-332.51M	-1.71B	1.48B	1.26B

Hilltop Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 34.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HTH, the sentiment is Positive. The current price of 34.37 is below the 20-day moving average (MA) of 34.81, above the 50-day MA of 32.48, and above the 200-day MA of 30.48, indicating a neutral trend. The MACD of 0.50 indicates Positive momentum. The RSI at 54.55 is Neutral, neither overbought nor oversold. The STOCH value of 51.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HTH.

Hilltop Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EFSC	77 Outperform	2.23B	11.43	10.44%	1.96%	5.66%	16.11%
BANR	76 Outperform	2.32B	12.80	9.76%	2.86%	8.40%	9.46%
BUSE	74 Outperform	2.20B	22.10	3.21%	4.00%	26.75%	-42.01%
HTH	73 Outperform	$2.17B	15.46	6.62%	2.07%	3.16%	27.33%
NBTB	73 Outperform	2.27B	15.58	7.39%	3.21%	10.00%	7.35%
SYBT	60 Neutral	2.22B	17.29	12.76%	1.66%	13.28%	22.43%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Hilltop Holdings Corporate Events

Hilltop Holdings Appoints New Lead Independent Director

On August 27, 2025, Tracy A. Bolt and A. Haag Sherman resigned from the Board of Directors of Hilltop Holdings Inc., with their departures not stemming from any disagreements with the company’s operations or policies. Subsequently, on August 29, 2025, J. Taylor Crandall was appointed as the Lead Independent Director of the Board, indicating a strategic shift in the company’s governance structure.

Hilltop Holdings Stockholders Approve Director Nominees

On July 24, 2025, Hilltop Holdings Inc. held its 2025 Annual Meeting of Stockholders virtually, where stockholders voted on three proposals. The election of 13 director nominees was approved, while the advisory vote on executive compensation was not. The appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm was ratified. Additionally, Gerald J. Ford resigned as Chairman Emeritus on July 8, 2025, and a dispute regarding the voting authority of shares owned by Diamond A Financial, L.P. was noted, though it did not affect the outcome of the proposals.

Hilltop Holdings Announces Dividend and Stock Buyback

On July 24, 2025, Hilltop Holdings announced a quarterly cash dividend of $0.18 per common share, payable on August 29, 2025, and an increase in its stock repurchase program to $135 million, subject to Federal Reserve approval. For the second quarter of 2025, Hilltop reported a significant increase in income to common stockholders to $36.1 million, driven by a reversal of credit losses and increased net interest income, despite challenges in the mortgage origination segment. The company also highlighted a strategic focus on protecting its balance sheet and creating long-term stockholder value amid uncertain economic conditions.