First Hawaiian (FHB) AI Stock Analysis

• Market Cap: $3.21B
• Dividend Yield: 4.04%
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.86
• Revenue Growth: -2.56%
• EPS Growth: 12.05%
• Country: US
• Employees: 1,995
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.58
• Shares Outstanding: 124,627,540
• 10 Day Avg. Volume: 1,084,473
• 30 Day Avg. Volume: 1,038,878
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 2.76
• Enterprise Value/Gross Profit: 4.00
• Enterprise Value/Ebitda: 8.99
• 1Y Price Target: $25.67
• Price Target Upside: -0.23% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 7

• Rating: 72 Outperform
• Price Target: $27.00 ▲(4.94% Upside)

First Hawaiian's overall stock score reflects its solid financial performance and positive earnings call sentiment. The company's strong profitability, prudent balance sheet management, and attractive valuation contribute significantly to the score. Technical indicators suggest a neutral trend, while the earnings call highlights robust net income growth and strategic management decisions.

Positive Factors

Financial Performance

Tangible book value rose by approximately 3.7% and CET1 increased by about 10 basis points, indicating financial strength.

Stock Repurchase

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

Negative Factors

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.

Growth Challenges

Growth remains elusive, valuation expensive, and credit leaves little room for error.

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 demonstrates a solid financial position with strong profitability and prudent balance sheet management. Despite a decline in revenue growth, the company maintains healthy profit 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	1.12B	1.13B	1.09B	811.75M	708.98M	758.02M
Gross Profit	772.09M	759.96M	778.68M	760.69M	729.23M	589.28M
EBITDA	343.28M	330.61M	351.94M	407.96M	400.84M	306.80M
Net Income	246.48M	230.13M	234.98M	265.69M	265.74M	185.75M
Balance Sheet
Total Assets	23.84B	23.83B	24.93B	24.58B	24.99B	22.66B
Cash, Cash Equivalents and Short-Term Investments	304.62M	1.18B	4.00B	3.68B	9.69B	1.04B
Total Debt	250.00M	250.00M	500.00M	75.00M	65.80M	200.01M
Total Liabilities	21.14B	21.21B	22.52B	22.31B	22.41B	19.92B
Stockholders Equity	2.69B	2.62B	2.49B	2.27B	2.66B	2.74B
Cash Flow
Free Cash Flow	308.55M	288.74M	239.04M	417.32M	396.67M	176.12M
Operating Cash Flow	345.79M	317.51M	255.03M	430.61M	417.13M	209.51M
Investing Cash Flow	502.97M	548.55M	1.03B	-965.10M	-2.38B	-2.10B
Financing Cash Flow	-564.48M	-1.44B	-66.92M	-197.36M	2.18B	2.24B

First Hawaiian Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.73
• 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 25.73 is above the 20-day moving average (MA) of 25.07, above the 50-day MA of 25.00, and above the 200-day MA of 24.68, indicating a bullish trend. The MACD of 0.40 indicates Negative momentum. The RSI at 58.56 is Neutral, neither overbought nor oversold. The STOCH value of 75.68 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	$3.54B	16.05	6.29%	3.26%	3.67%	-10.83%
WSBC	77 Outperform	$3.10B	19.41	4.25%	4.58%	30.52%	-21.64%
FIBK	76 Outperform	$3.41B	14.66	6.91%	5.78%	-2.11%	-8.95%
WSFS	75 Outperform	$3.26B	12.77	10.32%	1.10%	0.30%	1.46%
FHB	72 Outperform	$3.21B	13.29	9.40%	4.04%	-2.56%	12.05%
CATY	71 Outperform	$3.43B	11.97	10.38%	2.74%	-0.17%	-0.29%
Sector *	68 Neutral	$17.80B	11.87	10.23%	3.74%	9.69%	1.18%

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.