First Hawaiian (FHB) AI Stock Analysis

• Market Cap: $3.12B
• Dividend Yield: 4.15%
• Average Volume (3M): 999.77K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.88
• Revenue Growth: -2.56%
• EPS Growth: 12.05%
• Country: US
• Employees: 1,995
• Sector: Financial
• Sector Strength: 72
• Industry: Banks - Regional
• EPS (TTM): 0.58
• Shares Outstanding: 124,627,540
• 10 Day Avg. Volume: 976,833
• 30 Day Avg. Volume: 999,767
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 2.75
• Enterprise Value/Gross Profit: 4.05
• Enterprise Value/Ebitda: 9.19
• 1Y Price Target: $26.00
• Price Target Upside: 6.12% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 7

• Rating: 77 Outperform
• Price Target: $28.00 ▲(14.29% Upside)

First Hawaiian's strong financial performance and positive earnings call sentiment are the most significant factors driving the stock score. The reasonable valuation and attractive dividend yield further support the score. Technical indicators suggest some short-term weakness, but the overall outlook remains positive.

Positive Factors

Costs Management

Deposit costs declined more than expected, implying a better performance than consensus expectations.

Financial Performance

FHB reported higher than expected core PPNR driven by higher than expected NII and core fee income.

Shareholder Confidence

FHB repurchased $25 million of stock, signaling confidence in the company's valuation.

Negative Factors

Credit Risks

Growing risks, as a combination of tariffs and potential for slowing visitor arrivals further dampens the growth outlook and could eventually translate to higher losses.

Growth Challenges

Balance sheet growth remained muted, with assets increasing only slightly and impacted by elevated payoffs in construction loans.

Interest Rate Sensitivity

The balance sheet being in a more asset-sensitive position relative to peers makes it more susceptible to falling rates tied to floating rate loans repricing more quickly than the deposit base.

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 through several key streams. The primary source is interest income from loans, which includes personal loans, mortgages, and commercial loans. Additionally, the bank earns non-interest income from fees associated with account maintenance, transaction services, and investment products. FHB also benefits from wealth management services, which provide advisory and investment management services to clients, further enhancing its revenue. The bank's strategic partnerships with other financial institutions and investment firms contribute to its ability to offer a diversified range of products and services, ultimately driving growth and profitability.

First Hawaiian Financial Statement Overview

Summary

First Hawaiian exhibits strong financial health with consistent revenue growth and profitability, backed by a solid balance sheet and effective cash flow management. Minor fluctuations in operational efficiency and asset management are noted, but the overall financial position remains stable.

Income Statement

First Hawaiian has demonstrated strong revenue growth, with a notable increase from $708.98 million in 2021 to $1,121.91 million TTM, driven by consistent gross profit margins around 68%. The net profit margin remains healthy, reflecting effective cost management. However, slight fluctuations in EBIT and EBITDA margins indicate potential volatility in operational efficiency.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio, reflecting prudent financial management typical of regional banks. The equity ratio has improved, indicating a solid equity foundation. However, the decrease in total assets in 2025 suggests a need for cautious asset management moving forward.

Cash Flow

Operating cash flow remains robust, with a healthy conversion to net income. Free cash flow has shown consistent growth, although recent declines in operating cash flow compared to previous years require monitoring. The company effectively manages capital expenditures, supporting steady free cash flow.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.13B	1.09B	811.75M	708.98M	758.02M
Gross Profit	759.96M	778.68M	760.69M	729.23M	589.28M
EBITDA	330.61M	351.94M	407.96M	400.84M	306.80M
Net Income	230.13M	234.98M	265.69M	265.74M	185.75M
Balance Sheet
Total Assets	23.83B	24.93B	24.58B	24.99B	22.66B
Cash, Cash Equivalents and Short-Term Investments	1.18B	4.00B	3.68B	9.69B	1.04B
Total Debt	250.00M	500.00M	75.00M	0.00	200.01M
Total Liabilities	21.21B	22.52B	22.31B	22.41B	19.92B
Stockholders Equity	2.62B	2.49B	2.27B	2.66B	2.74B
Cash Flow
Free Cash Flow	288.74M	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: Positive
• Last Price: 24.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 24.5 is below the 20-day moving average (MA) of 24.65, below the 50-day MA of 24.72, and below the 200-day MA of 24.92, indicating a bullish trend. The MACD of -0.14 indicates Negative momentum. The RSI at 56.15 is Neutral, neither overbought nor oversold. The STOCH value of 95.63 is Negative, 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
FHB	77 Outperform	$3.12B	12.95	9.40%	4.15%	-2.56%	12.05%
WSFS	77 Outperform	$3.13B	12.26	10.32%	1.14%	0.30%	1.46%
FIBK	73 Outperform	$3.21B	13.78	6.91%	6.14%	-2.11%	-8.95%
WSBC	73 Outperform	$3.00B	18.82	4.25%	4.79%	30.52%	-21.64%
INDB	72 Outperform	$3.39B	15.35	6.29%	3.41%	3.67%	-10.83%
CATY	71 Outperform	$3.34B	11.65	10.38%	2.88%	-0.17%	-0.29%
Sector *	67 Neutral	¥836.32B	13.01	9.24%	3.02%	7.93%	10.80%

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.