Bank Of Hawaii (BOH) AI Stock Analysis

• Market Cap: $2.83B
• Dividend Yield: 3.99%
• Average Volume (3M): 328.81K
• Price to Earnings (P/E): 17.4
• Beta (1Y): 0.61
• Revenue Growth: 3.40%
• EPS Growth: 23.04%
• Country: US
• Employees: 1,876
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.20
• Shares Outstanding: 39,785,090
• 10 Day Avg. Volume: 321,015
• 30 Day Avg. Volume: 328,807
• PEG Ratio: -1.15
• Price to Book (P/B): 1.69
• Price to Sales (P/S): 2.73
• P/FCF Ratio: 16.65
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 2.50
• Enterprise Value/Gross Profit: 3.84
• Enterprise Value/Ebitda: 9.13
• 1Y Price Target: $75.00
• Price Target Upside: 5.26% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 5.4
• Revenue Forecast (FY): $777.88M

• Rating: 71 Outperform
• Price Target: $79.00 ▲(10.88% Upside)

Bank Of Hawaii's overall stock score reflects its strong financial performance and promising earnings call results, which highlight growth in key areas such as earnings per share and net interest margin. The valuation is fair, with an attractive dividend yield. Technical analysis suggests a neutral trend, with some caution advised due to potential downward momentum. The company should continue to monitor loan growth and expense management closely.

Positive Factors

Earnings Growth

The significant increase in earnings per share indicates strong financial performance and effective cost management, enhancing shareholder value.

Net Interest Margin Expansion

Consistent improvement in net interest margin reflects effective asset-liability management and enhances profitability over the long term.

Wealth Management Initiative

Strategic focus on wealth management can drive revenue diversification and capture market share in the affluent segment, supporting long-term growth.

Negative Factors

Limited Loan Growth

Modest loan growth may limit revenue expansion opportunities, affecting the bank's ability to leverage its lending capabilities fully.

Expense Management Challenges

Rising non-interest expenses can pressure profit margins, necessitating improved cost controls to sustain financial performance.

Interest Rate Environment Impact

Potential rate cuts may compress net interest income, impacting profitability and necessitating strategic adjustments to mitigate effects.

Bank Of Hawaii Business Overview & Revenue Model

Company Description

Bank of Hawaii Corporation operates as the bank holding company for Bank of Hawaii that provides various financial products and services in Hawaii, Guam, and other Pacific Islands. It operates in three segments: Consumer Banking, Commercial Banking, and Treasury and Other. The Consumer Banking segment offers checking, savings, and time deposit accounts; residential mortgage loans, home equity lines of credit, automobile loans and leases, personal lines of credit, installment loans, small business loans and leases, and credit cards; private and international client banking, investment, credit, and trust services to individuals and families, and high-net-worth individuals; investment management; institutional investment advisory services to corporations, government entities, and foundations; and brokerage offerings, including equities, mutual funds, life insurance, and annuity products. This segment operates 54 branch locations and 307 ATMs throughout Hawaii and the Pacific Islands, and a customer service center, as well as through online and mobile banking. The Commercial Banking segment provides corporate banking, commercial real estate loans, commercial lease financing, auto dealer financing, and deposit products. It offers commercial lending and deposit products to middle-market and large companies, and government entities; commercial real estate mortgages to investors, developers, and builders; and international banking and merchant services. The Treasury and Other segment offers corporate asset and liability management services, including interest rate risk management and foreign exchange services. Bank of Hawaii Corporation was founded in 1897 and is headquartered in Honolulu, Hawaii.

How the Company Makes Money

Bank of Hawaii generates revenue through various streams, primarily from net interest income, which is the difference between the interest earned on loans and the interest paid on deposits. The bank offers a range of loan products, including consumer loans, mortgages, and commercial loans, which contribute significantly to its interest income. Additionally, BOH earns non-interest income through fees and commissions associated with account services, wealth management, and investment advisory services. The bank may also engage in mortgage servicing and investment in securities, which provide further revenue. Strategic partnerships, such as collaborations with local businesses and community organizations, enhance BOH's market presence and customer loyalty, contributing to its overall financial performance.

Bank Of Hawaii Financial Statement Overview

Summary

Bank Of Hawaii demonstrates strong financial performance with consistent revenue growth and effective cost management. The balance sheet is stable with improved leverage ratios, and cash flow generation is robust despite some conversion inefficiencies. The company is well-positioned in the regional banking sector, though it should monitor net profit margins and cash conversion closely.

Income Statement

Bank Of Hawaii has shown consistent revenue growth over the years, with a TTM revenue growth rate of 2.98%. The gross profit margin remains strong at 65.15% TTM, indicating effective cost management. However, the net profit margin has decreased from previous years, currently at 17.17% TTM, which may suggest rising expenses or increased competition. EBIT and EBITDA margins have improved over the last year, reflecting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.40 TTM, indicating a stable leverage position compared to previous years. Return on equity is at 10.09% TTM, showing a slight decline but still demonstrating effective use of equity. The equity ratio remains stable, suggesting a balanced asset structure. Overall, the balance sheet reflects a solid financial position with manageable debt levels.

Cash Flow

Free cash flow has grown significantly by 51.2% TTM, indicating strong cash generation capabilities. However, the operating cash flow to net income ratio is low at 0.83%, which could suggest potential issues in converting income into cash. The free cash flow to net income ratio is healthy at 89.10%, showing efficient cash utilization. Despite some fluctuations, the cash flow position remains robust.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.07B	1.03B	965.77M	754.91M	689.41M	730.83M
Gross Profit	698.77M	621.19M	643.42M	705.90M	710.49M	562.93M
EBITDA	294.03M	229.37M	260.11M	323.85M	358.13M	221.61M
Net Income	184.13M	149.99M	171.20M	225.80M	253.37M	153.80M
Balance Sheet
Total Assets	24.01B	23.60B	23.73B	23.61B	22.78B	20.60B
Cash, Cash Equivalents and Short-Term Investments	4.27B	2.62B	3.41B	3.17B	4.47B	4.07B
Total Debt	699.89M	747.07M	805.37M	1.24B	564.09M	768.48M
Total Liabilities	22.22B	21.93B	22.32B	22.29B	21.17B	19.23B
Stockholders Equity	1.79B	1.67B	1.41B	1.32B	1.61B	1.37B
Cash Flow
Free Cash Flow	234.81M	168.77M	140.82M	304.20M	354.78M	113.13M
Operating Cash Flow	232.00M	178.45M	150.22M	332.96M	377.15M	146.42M
Investing Cash Flow	-438.71M	20.99M	562.79M	-1.25B	-2.42B	-2.37B
Financing Cash Flow	-80.83M	-436.81M	-113.84M	761.79M	1.99B	2.28B

Bank Of Hawaii Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 71.25
• 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 BOH, the sentiment is Positive. The current price of 71.25 is above the 20-day moving average (MA) of 70.19, above the 50-day MA of 67.72, and above the 200-day MA of 65.49, indicating a bullish trend. The MACD of 0.84 indicates Positive momentum. The RSI at 59.23 is Neutral, neither overbought nor oversold. The STOCH value of 76.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BOH.

Bank Of Hawaii Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PFS	80 Outperform	$2.63B	10.26	9.51%	4.69%	38.34%	89.73%
PRK	73 Outperform	$2.60B	14.90	13.69%	2.96%	6.29%	28.28%
CVBF	72 Outperform	$2.70B	13.50	9.10%	4.00%	-8.43%	3.75%
FBK	71 Outperform	$3.19B	27.85	5.85%	1.34%	10.50%	-6.22%
BOH	71 Outperform	$2.83B	17.44	10.65%	3.99%	3.40%	23.04%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SBCF	62 Neutral	$3.31B	20.08	6.33%	2.25%	6.83%	23.44%