First Hawaiian (FHB) AI Stock Analysis

• Market Cap: $2.90B
• Dividend Yield: 4.55%
• Average Volume (3M): 1.10M
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.93
• Revenue Growth: -0.47%
• EPS Growth: 5.97%
• Country: US
• Employees: 1,995
• Sector: Financial
• Sector Strength: 88
• Industry: Banks - Regional
• EPS (TTM): 1.84
• Shares Outstanding: 126,422,900
• 10 Day Avg. Volume: 990,008
• 30 Day Avg. Volume: 1,096,212
• PEG Ratio: 2.09
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 3.18
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $26.83
• Price Target Upside: 16.91% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 6

First Hawaiian's overall score reflects a moderately strong financial position with stable profitability and a robust capital structure. However, challenges in revenue growth and cash flow sustainability are concerns. The technical indicators suggest potential bearish momentum, but the stock's valuation and dividend yield offer some attraction. The earnings call and corporate events demonstrate solid management and strategic positioning, though macroeconomic uncertainties must be monitored.

Positive Factors

Capital Position

Capital remains in a solid position at 13.0% CET1 with incremental capital deployment remaining a potential opportunity over time.

Market Share

FHB holds the #2 market share in the attractive HI market and represents 33.79% of the HI deposit base, which is considered a more attractive deposit franchise than peers.

Negative Factors

Earnings Performance

The company is projected to have negative EPS growth for four consecutive years, which is a concern for investors.

Loan Portfolio

Loan growth was negative for the quarter, indicating challenges in expanding the loan portfolio.

Operating Expenses

Operating expenses are expected to increase in the coming quarters, impacting profitability.

First Hawaiian Business Overview & Revenue Model

Company Description

First Hawaiian, Inc. (FHB) is a prominent financial institution based in Hawaii, providing a comprehensive range of banking services to individuals, small businesses, and larger corporations. Founded in 1858, it operates in the financial services sector and offers a variety of products, including commercial banking, consumer banking, and wealth management services. With a strong presence across Hawaii, Guam, and Saipan, First Hawaiian Bank is committed to delivering high-quality financial solutions and fostering economic growth in the communities it serves.

How the Company Makes Money

First Hawaiian, Inc. generates revenue primarily through its commercial and consumer banking operations. The company earns money from interest income, which is derived from loans and credit facilities provided to individuals, businesses, and governmental entities. Additionally, it earns revenue from fees and service charges related to various financial products, such as transaction fees, account maintenance charges, and loan origination fees. Another significant revenue stream comes from wealth management and investment services, where the bank provides advisory services and earns fees based on assets under management. Strategic partnerships and collaborations with other financial institutions and service providers further enhance its revenue potential by expanding its product offerings and customer base.

First Hawaiian Financial Statement Overview

Summary

First Hawaiian demonstrates stable profitability with a strong equity base and effective cash generation. However, challenges in revenue growth and free cash flow stability indicate potential areas for improvement. The company needs to focus on enhancing revenue and managing cash flow more effectively.

Income Statement

First Hawaiian has demonstrated stable profitability with a consistent gross profit margin and net profit margin over recent years. However, there was a decline in total revenue from 2023 to 2024, indicating a potential challenge in revenue generation. The absence of EBITDA data for 2024 reduces visibility into operational efficiency.

Balance Sheet

The balance sheet reflects a strong equity base with a low debt-to-equity ratio, indicating conservative leverage. The equity ratio is robust, underscoring financial stability. However, substantial fluctuations in cash and short-term investments could indicate potential liquidity management challenges.

Cash Flow

Operating cash flow has been positive, but there is a lack of consistent free cash flow growth. The operating cash flow to net income ratio suggests effective cash generation relative to net income. However, a significant decrease in free cash flow from 2023 to 2024 raises concerns about cash flow sustainability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
980.04M	1.13B	762.08M	690.23M	711.00M
	Gross Profit
980.04M	1.12B	762.08M	690.23M	711.00M
	EBIT
911.41M	0.00	400.88M	349.00M	243.72M
	EBITDA
0.00	-24.18M	407.96M	400.84M	306.80M
	Net Income Common Stockholders
230.13M	234.98M	265.69M	265.74M	185.75M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
258.06M	1.74B	8.00B	1.26B	1.04B
	Total Assets
23.83B	24.93B	24.58B	24.99B	22.66B
	Total Debt
250.00M	500.00M	75.00M	65.80M	200.01M
	Net Debt
-8.06M	-1.24B	-451.62M	-1.19B	-840.93M
	Total Liabilities
21.21B	22.52B	22.31B	22.41B	200.01M
	Stockholders Equity
2.62B	2.49B	2.27B	2.66B	2.74B
Cash Flow		Free Cash Flow
317.51M	239.04M	417.32M	396.67M	176.12M
	Operating Cash Flow
317.51M	255.03M	430.61M	417.13M	209.51M
	Investing Cash Flow
548.55M	1.03B	-965.10M	-2.38B	-2.10B
	Financing Cash Flow
-1.44B	-66.92M	-197.36M	2.18B	2.24B

First Hawaiian Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 22.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 22.95 is above the 20-day moving average (MA) of 22.41, below the 50-day MA of 24.16, and below the 200-day MA of 24.63, indicating a neutral trend. The MACD of -0.27 indicates Negative momentum. The RSI at 47.65 is Neutral, neither overbought nor oversold. The STOCH value of 43.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FHB.

First Hawaiian Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FBP	77 Outperform	$3.20B	10.67	18.55%	3.36%	4.84%	4.75%
BOH	71 Outperform	$2.67B	18.85	10.03%	4.24%	2.95%	-7.85%
CATY	68 Neutral	$2.92B	10.53	10.07%	3.26%	2.76%	-12.43%
FHB	66 Neutral	$2.90B	12.49	9.11%	4.55%	-0.47%	5.97%
FIBK	66 Neutral	$2.75B	12.64	6.63%	7.05%	-6.80%	-15.66%
Sector *	63 Neutral	$12.46B	9.56	8.14%	17044.64%	12.63%	-4.25%
TFSL	61 Neutral	$3.71B	46.19	4.24%	8.72%	14.25%	10.46%

First Hawaiian Corporate Events

First Hawaiian Unveils 2025 Investor Presentation Highlights

First Hawaiian, Inc. has announced that it will be using a newly prepared investor presentation for meetings and interactions in 2025, which will also be available on its website. This presentation outlines its strong financial performance and highlights its dominant position in attractive markets. It emphasizes the company’s consistent underwriting standards, disciplined expense management, and favorable deposit behavior compared to broader U.S. banks. First Hawaiian Bank’s proven track record through various market cycles reinforces its stability and leadership in the banking sector, particularly in Hawaii.