First Hawaiian (FHB) AI Stock Analysis

• Market Cap: $3.07B
• Dividend Yield: 4.2%
• Average Volume (3M): 1.13M
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.86
• 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: 1,129,249
• 30 Day Avg. Volume: 1,129,918
• 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: 0.93
• Enterprise Value/Revenue: 2.56
• Enterprise Value/Gross Profit: 3.61
• Enterprise Value/Ebitda: 7.90
• 1Y Price Target: $27.14
• Price Target Upside: 9.52% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): 2.15
• Revenue Forecast (FY): $879.23M

• Rating: 70 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 strong profitability, prudent balance sheet management, and attractive dividend yield are significant strengths. However, technical indicators suggest caution due to potential overbought conditions and weak momentum. The decline in the loan portfolio and external economic concerns also pose risks.

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

First Hawaiian demonstrates a solid financial position with strong profitability and prudent balance sheet management. Despite recent negative revenue growth, 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	1.11B	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	65.80M	200.01M
Total Liabilities	21.36B	21.21B	22.52B	22.31B	22.41B	19.92B
Stockholders Equity	2.73B	2.62B	2.49B	2.27B	2.66B	2.74B
Cash Flow
Free Cash Flow	332.64M	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: 24.78
• 50DMA: Positive
• 100DMA: Negative
• 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 24.31, above the 50-day MA of 24.76, and above the 200-day MA of 24.44, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 53.25 is Neutral, neither overbought nor oversold. The STOCH value of 73.47 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	78 Outperform	$3.45B	16.98	5.51%	3.36%	11.05%	-10.78%
WSFS	73 Outperform	$2.95B	10.87	10.27%	1.21%	-3.62%	10.83%
WSBC	71 Outperform	$3.00B	15.89	5.25%	4.69%	41.49%	-5.53%
FIBK	71 Outperform	$3.29B	13.48	7.20%	5.80%	-5.43%	4.19%
FHB	70 Outperform	$3.07B	12.10	9.62%	4.20%	-4.45%	16.92%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CATY	66 Neutral	$3.21B	10.89	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.