First Hawaiian (FHB) AI Stock Analysis

• Market Cap: $3.35B
• Dividend Yield: 3.96%
• Average Volume (3M): 1.43M
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.80
• Revenue Growth: -4.45%
• EPS Growth: 16.92%
• Country: US
• Employees: 1,995
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.59
• Shares Outstanding: 123,719,580
• 10 Day Avg. Volume: 1,380,513
• 30 Day Avg. Volume: 1,430,862
• 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: 0.92
• Enterprise Value/Revenue: 2.78
• Enterprise Value/Gross Profit: 3.91
• Enterprise Value/Ebitda: 8.57
• 1Y Price Target: $28.10
• Price Target Upside: 3.80% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $30.00 ▲(10.82% Upside)

The score is supported primarily by solid profitability and a conservative balance sheet, plus a generally constructive technical trend. These positives are tempered by a sharp TTM revenue decline and highly volatile recent free-cash-flow growth; valuation and the earnings call provide additional, but secondary, support.

Positive Factors

Strong Deposit Growth

The significant increase in deposits enhances First Hawaiian's liquidity position and ability to fund loans, supporting long-term growth and stability.

Margin Expansion

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

Strong Credit Performance

Maintaining strong credit performance with low charge-offs ensures asset quality and reduces the risk of future loan losses, supporting financial stability.

Negative Factors

Loan Portfolio Decline

The decline in the loan portfolio, particularly in commercial and industrial loans, may limit revenue growth opportunities and affect interest income.

Revenue Growth Concerns

Negative revenue growth poses a challenge to sustaining profitability and expanding market share, potentially impacting long-term financial performance.

Federal Government Shutdown Concerns

Potential impacts from a government shutdown could affect consumer confidence and spending, leading to broader economic challenges that may impact the bank's operations.

First Hawaiian Business Overview & Revenue Model

Company Description

First Hawaiian, Inc. operates as a bank holding company for First Hawaiian Bank that provides a range of banking services to consumer and commercial customers in the United States. It operates through three segments: Retail Banking, Commercial Banking, and Treasury and Other. The company accepts various deposit products, including checking and savings accounts, and other deposit accounts. It also provides residential and commercial mortgage loans, home equity lines of credit, automobile loans and leases, personal lines of credit, installment loans, and small business loans and leases, as well as commercial lease and auto dealer financing. In addition, the company offers personal installment, credit card, individual investment and financial planning, insurance protection, trust and estate, private banking, retirement planning, treasury, and merchant processing services. It operates a network of 54 branches, which include 49 in Hawaii, 3 in Guam, and 2 in Saipan. The company was formerly known as BancWest Corporation and changed its name to First Hawaiian, Inc. in April 2016. First Hawaiian, Inc. was founded in 1858 and is headquartered in Honolulu, Hawaii.

How the Company Makes Money

First Hawaiian Bank generates revenue primarily through interest income from loans and investments, as well as non-interest income from service fees and commissions. Key revenue streams include consumer and commercial loans, which provide interest income, and deposit accounts that generate fee-based income. Additionally, FHB earns money through wealth management services and investment products. The bank also benefits from partnerships with local businesses and government entities, enhancing its service offerings and customer base, thereby contributing to its overall earnings.

First Hawaiian Financial Statement Overview

Summary

Profitability is solid (TTM net margin ~23%, operating margin ~29%) and the balance sheet appears conservative with very low leverage and steady ROE (~9–10%). Offsetting this, TTM revenue declined ~33% and free cash flow growth fell sharply (~-90%), creating near-term uncertainty despite positive absolute free cash flow (~$306M).

Income Statement

Profitability remains solid, with TTM (Trailing-Twelve-Months) net margin of ~23% and operating margin near ~29%, and margins have generally stayed healthy versus 2023–2024. However, the key concern is growth: TTM (Trailing-Twelve-Months) revenue declined ~33% after modest growth in 2024 and stronger growth in 2023, signaling a recent top-line setback despite still-positive earnings.

Balance Sheet

Balance sheet looks conservatively positioned with low leverage: debt-to-equity is near zero in TTM (Trailing-Twelve-Months) (and was ~0.10 in 2024, ~0.20 in 2023). Returns on equity are steady around ~9–10% in the last few periods, indicating consistent profitability on capital. Main watch item is that returns are good but not accelerating, and debt levels have moved around over time (though still modest).

Cash Flow

Cash generation is currently positive with TTM (Trailing-Twelve-Months) free cash flow of ~$306M and free cash flow running at ~0.89x net income, suggesting earnings are largely backed by cash. The weakness is volatility: TTM (Trailing-Twelve-Months) free cash flow growth is down sharply (~-90%) after a gain in 2024 and a decline in 2023, indicating uneven conversion and less reliable momentum.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.11B	1.13B	1.09B	811.75M	708.98M	758.02M
Gross Profit	791.37M	759.96M	778.68M	760.69M	729.23M	589.28M
EBITDA	361.00M	330.61M	351.94M	407.96M	400.84M	306.80M
Net Income	258.83M	230.13M	234.98M	265.69M	265.74M	185.75M
Balance Sheet
Total Assets	24.10B	23.83B	24.93B	24.58B	24.99B	22.66B
Cash, Cash Equivalents and Short-Term Investments	249.56M	1.18B	4.00B	3.68B	9.69B	1.04B
Total Debt	0.00	250.00M	500.00M	75.00M	0.00	200.01M
Total Liabilities	21.36B	21.21B	22.44B	22.31B	22.34B	19.92B
Stockholders Equity	2.73B	2.62B	2.49B	2.27B	2.66B	2.74B
Cash Flow
Free Cash Flow	305.77M	288.74M	239.04M	417.32M	396.67M	176.12M
Operating Cash Flow	344.00M	317.51M	255.03M	430.61M	417.13M	209.51M
Investing Cash Flow	437.15M	548.55M	1.03B	-965.10M	-2.38B	-2.10B
Financing Cash Flow	1.68M	-1.44B	-66.92M	-197.36M	2.18B	2.24B

First Hawaiian Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.07
• 50DMA: Positive
• 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 27.07 is above the 20-day moving average (MA) of 26.66, above the 50-day MA of 25.88, and above the 200-day MA of 24.67, indicating a bullish trend. The MACD of 0.39 indicates Negative momentum. The RSI at 54.45 is Neutral, neither overbought nor oversold. The STOCH value of 51.02 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	79 Outperform	$3.94B	17.92	6.25%	3.05%	11.05%	-10.78%
WSFS	76 Outperform	$3.37B	12.12	10.27%	1.16%	-3.62%	10.83%
WSBC	75 Outperform	$3.38B	15.83	5.25%	4.35%	41.49%	-5.53%
CATY	74 Outperform	$3.43B	11.12	10.63%	2.72%	-1.59%	9.34%
FIBK	73 Outperform	$3.79B	15.53	7.20%	5.24%	-5.43%	4.19%
FHB	72 Outperform	$3.35B	13.21	9.62%	3.96%	-4.45%	16.92%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%