First Hawaiian (FHB) AI Stock Analysis

• Market Cap: $3.17B
• Dividend Yield: 4.13%
• Average Volume (3M): 1.05M
• Price to Earnings (P/E): 13.9
• Beta (1Y): 0.88
• Revenue Growth: -0.36%
• EPS Growth: 5.97%
• Country: US
• Employees: 1,995
• Sector: Financial
• Sector Strength: 72
• Industry: Banks - Regional
• EPS (TTM): 0.58
• Shares Outstanding: 125,719,315
• 10 Day Avg. Volume: 917,197
• 30 Day Avg. Volume: 1,045,966
• PEG Ratio: 4.49
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.48
• Enterprise Value/Market Cap: 0.59
• Enterprise Value/Revenue: 0.41
• Enterprise Value/Gross Profit: 2.46
• Enterprise Value/Ebitda: 1.41
• 1Y Price Target: $24.83
• Price Target Upside: -1.47% Downside
• Rating Consensus: Strong Sell
• Number of Analyst Covering: 3

• Rating: 79 Outperform
• Price Target: $28.00 ▲(11.11%Upside)

First Hawaiian's solid financial performance, attractive valuation, and stable credit quality are significant strengths. Technical indicators suggest moderate momentum, while earnings call insights highlight stable management amidst economic uncertainties.

Positive Factors

Loan Growth Opportunities

First Hawaiian is following customers into the mainland US for additional loan growth opportunities.

Valuation Reset

The period ahead is seen as favoring stocks of banks with lower-quality balance sheets, which should see a favorable valuation reset.

Negative Factors

Balance Sheet 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.

Economic 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.

Federal Spending Cuts

HI leads the group in terms of Trump risk, as federal spending cuts, tariffs, and slowing US visitor arrivals could have an outsized impact on HI.

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, Inc. primarily generates revenue through interest income from its lending activities, including personal loans, mortgages, and business loans. Additionally, the company earns non-interest income from fees and service charges associated with its various banking services, such as account maintenance fees, transaction fees, and investment advisory fees. The wealth management division also contributes to the revenue through management fees for investment services. Furthermore, FHB benefits from its strategic partnerships with other financial institutions and service providers, enhancing its product offerings and expanding its market reach in the regions it serves.

First Hawaiian Financial Statement Overview

Summary

First Hawaiian exhibits moderate financial health, characterized by stable profitability and a strong capital structure. The company faces challenges in maintaining revenue growth and free cash flow stability, which could impact future financial flexibility. Overall, the financials indicate a need for strategic focus on revenue enhancement and cash flow management.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.12B	1.13B	1.09B	811.75M	708.98M	758.02M
Gross Profit	761.55M	759.96M	778.68M	760.69M	729.23M	589.28M
EBITDA	335.74M	330.61M	351.94M	407.96M	400.84M	306.80M
Net Income	235.16M	230.13M	234.98M	265.69M	265.74M	185.75M
Balance Sheet
Total Assets	23.74B	23.83B	24.93B	24.58B	24.99B	22.66B
Cash, Cash Equivalents and Short-Term Investments	1.31B	1.18B	4.00B	3.68B	9.69B	1.04B
Total Debt	250.00M	250.00M	500.00M	75.00M	0.00	200.01M
Total Liabilities	21.10B	21.21B	22.52B	22.31B	22.41B	19.92B
Stockholders Equity	2.65B	2.62B	2.49B	2.27B	2.66B	2.74B
Cash Flow
Free Cash Flow	255.58M	288.74M	239.04M	417.32M	396.67M	176.12M
Operating Cash Flow	287.59M	317.51M	255.03M	430.61M	417.13M	209.51M
Investing Cash Flow	657.79M	548.55M	1.03B	-965.10M	-2.38B	-2.10B
Financing Cash Flow	-905.06M	-1.44B	-66.92M	-197.36M	2.18B	2.24B

First Hawaiian Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.20
• 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 FHB, the sentiment is Positive. The current price of 25.2 is below the 20-day moving average (MA) of 25.65, above the 50-day MA of 24.58, and above the 200-day MA of 24.81, indicating a neutral trend. The MACD of 0.27 indicates Positive momentum. The RSI at 50.12 is Neutral, neither overbought nor oversold. The STOCH value of 43.49 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
FHB	79 Outperform	$3.17B	13.92	9.11%	4.13%	-0.36%	5.97%
WSFS	78 Outperform	$3.21B	13.07	10.25%	1.10%	5.06%	-0.30%
INDB	77 Outperform	$3.33B	15.46	6.29%	3.48%	3.68%	-10.83%
CATY	76 Outperform	$3.29B	11.71	10.38%	2.90%	-0.17%	-0.29%
FIBK	72 Outperform	$3.10B	14.45	6.63%	6.37%	-0.05%	-15.66%
WSBC	72 Outperform	$3.06B	21.37	3.38%	4.60%	17.74%	-35.93%
Sector *	61 Neutral	C$15.12B	7.06	23.28%	5.39%	33.61%	-23.38%

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.