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Hilltop Holdings Inc (HTH)
NYSE:HTH
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Hilltop Holdings
(NYSE:HTH)
68Neutral
Hilltop Holdings (HTH) vs. S&P 500 (SPY)
Market Cap
$1.84B
Dividend Yield2.43%
Average Volume (3M)394.45K
Price to Earnings (P/E)16.3
Beta (1Y)0.73
Revenue Growth1.39%
EPS Growth3.30%
CountryUS
Employees3,616
SectorFinancial
Sector Strength85
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.55
Shares Outstanding64,864,270
10 Day Avg. Volume546,261
30 Day Avg. Volume394,448
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.67
Price to Cash Flow (P/CF)4.00
P/FCF Ratio2.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$33.00Price Target Upside14.74% Upside
Rating ConsensusHold
Number of Analyst Covering3
Hilltop Holdings Business Overview & Revenue Model
Company DescriptionHilltop Holdings Inc. provides business and consumer banking, and financial products and services. It operates through three segments: Banking, Broker-Dealer, and Mortgage Origination. The Banking segment offers savings, checking, interest-bearing checking, and money market accounts; certificates of deposit; lines and letters of credit, home improvement and equity loans, loans for purchasing and carrying securities, equipment loans and leases, agricultural and commercial real estate loans, and other loans; and commercial and industrial loans, and term and construction finance. This segment also provides treasury management, wealth management, asset management, check cards, safe deposit boxes, online banking, bill pay, trust, and overdraft services; and estate planning, management and administration, investment portfolio management, employee benefit accounts, and individual retirement accounts, as well as automated teller machines. The Broker-Dealer segment offers public finance services that assist public entities in originating, syndicating, and distributing securities of municipalities and political subdivisions; specialized advisory and investment banking services; advice and guidance to arbitrage rebate compliance, portfolio management, and local government investment pool administration; structured finance services, which include advisory services for derivatives and commodities; sells, trades in, and underwrites U.S. government and government agency bonds, corporate bonds, and municipal bonds, as well as mortgage-backed, asset-backed, and commercial mortgage-backed securities and structured products. This segment also provides asset and liability management advisory, clearing, retail, and securities lending services. The Mortgage Origination segment offers mortgage, jumbo, Federal Housing Administration, Veterans Affairs, and United States Department of Agriculture loans. Hilltop Holdings Inc. was founded in 1998 and is headquartered in Dallas, Texas.
How the Company Makes MoneyHilltop Holdings generates revenue through its diversified operations in the financial services sector. The company earns money primarily through interest income from its banking operations, which involves lending activities and the management of its investment portfolio. In addition, Hilltop Holdings derives revenue from mortgage origination fees, gain on sales of loans, and servicing income through its mortgage division, PrimeLending. The company also benefits from fee-based income through its insurance operations, HilltopSecurities, which provides financial advisory and risk management services. Key revenue streams include net interest income, non-interest income from financial services, and fees from advisory and brokerage services. Strategic partnerships and a focus on expanding its customer base further contribute to the company's earnings.
Hilltop Holdings Financial Statement Overview
Summary
Hilltop Holdings presents a mixed financial picture with stable profitability and strong equity backing. However, challenges in revenue growth and cash flow consistency are present, indicating potential risks.Income Statement
Hilltop Holdings has shown fluctuating revenue trends with a notable decline in total revenue over recent years, particularly from 2020 to 2024. Net profit margins have been relatively stable, reflecting decent cost management. However, the absence of EBIT and EBITDA data for 2024 limits a comprehensive margin analysis for the latest year.68
Positive
Balance Sheet
The company's balance sheet exhibits a stable equity base with a healthy debt-to-equity ratio, indicating strong financial leverage management. The equity ratio remains robust, reflecting solid asset backing by equity. However, there has been variability in total assets and liabilities, suggesting potential fluctuations in financial stability.72
Positive
Cash Flow
Free cash flow has demonstrated significant variability, with occasional strong growth and contractions. Operating cash flow remains positive, supporting liquidity, but the fluctuating free cash flow growth rate suggests challenges in maintaining consistent cash generation. The ratio of operating cash flow to net income is favorable, indicating efficient conversion of income to cash.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 836.39M | 1.18B | 700.32M | 1.83B | 2.11B | Gross Profit |
| 836.39M | 1.18B | 700.32M | 1.83B | 2.11B | EBIT |
| -592.80M | 350.81M | 288.27M | 492.47M | 580.91M | EBITDA |
| 0.00 | 0.00 | 0.00 | 386.10M | 431.28M | Net Income Common Stockholders |
| 113.21M | 109.65M | 113.13M | 374.50M | 447.84M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 2.30B | 1.86B | 9.67B | 4.95B | 2.52B | Total Assets |
| 16.27B | 16.47B | 16.27B | 18.69B | 16.94B | Total Debt |
| 1.18B | 656.48M | 1.44B | 1.38B | 1.27B | Net Debt |
| -1.12B | -1.20B | -136.04M | -1.44B | 207.69M | Total Liabilities |
| 14.05B | 14.32B | 14.20B | 16.14B | 14.59B | Stockholders Equity |
| 2.19B | 2.12B | 2.05B | 2.52B | 2.32B |
| Cash Flow | Free Cash Flow | |||
| 273.93M | 434.54M | 1.18B | 740.87M | 242.69M | Operating Cash Flow |
| 273.93M | 443.02M | 1.19B | 765.62M | 280.44M | Investing Cash Flow |
| 354.22M | 158.34M | -877.30M | -553.27M | -827.67M | Financing Cash Flow |
| -174.31M | -332.51M | -1.71B | 1.48B | 1.26B |
Hilltop Holdings Technical Analysis
Negative
28.76
Price Trends
30.70
Negative
30.25
Negative
30.88
Negative
Market Momentum
-0.66
Positive
40.40
Neutral
43.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HTH, the sentiment is Negative. The current price of 28.76 is below the 20-day moving average (MA) of 29.60, below the 50-day MA of 30.70, and below the 200-day MA of 30.88, indicating a bearish trend. The MACD of -0.66 indicates Positive momentum. The RSI at 40.40 is Neutral, neither overbought nor oversold. The STOCH value of 43.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HTH.
Hilltop Holdings Risk Analysis
Hilltop Holdings disclosed 52 risk factors in its most recent earnings report. Hilltop Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Hilltop Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.83B | 13.09 | 9.53% | 3.45% | 18.58% | 11.39% | |
68 Neutral | $1.84B | 16.33 | 5.25% | 2.43% | 1.39% | 3.30% | |
66 Neutral | $1.92B | 15.13 | 8.27% | 1.74% | 3.30% | 14.32% | |
66 Neutral | $1.81B | 11.29 | 5.34% | 7.10% | 26.76% | 455.85% | |
63 Neutral | $12.75B | 9.36 | 8.64% | 84.32% | 13.82% | -3.89% | |
61 Neutral | $1.97B | 10.05 | 2.68% | 2.87% | -11.99% | -103.10% | |
60 Neutral | $1.91B | 16.67 | 12.74% | 1.90% | 15.78% | 6.02% |
* Financial Sector Average
Performance Comparison
HTH
Hilltop Holdings
28.61
0.59
2.11%
NBTB
NBT Bancorp
39.58
7.52
23.46%
PPBI
Pacific Premier Bancorp
19.02
-1.10
-5.47%
SYBT
Stock Yards Bancorp
67.05
25.54
61.53%
TRMK
Trustmark
32.47
7.70
31.09%
FBK
FB Financial
40.48
5.39
15.36%
Hilltop Holdings Earnings Call Summary
Earnings Call Date: Jan 30, 2025 | % Change Since: -2.94% | Next Earnings Date: Apr 25, 2025
Earnings Call Sentiment Neutral
The earnings call highlights Hilltop Holdings' ability to increase pretax income and grow core deposits despite interest rate volatility. HilltopSecurities showed strong performance in Public Finance and Structured Finance, however, challenges remain with net interest margin compression and losses in the PrimeLending segment due to ongoing mortgage market difficulties.Highlights
Increase in Consolidated Pretax Income
Hilltop Holdings reported an increase in consolidated pretax income year-over-year despite volatility in both short and long-term interest rates.
Core Deposit Growth
Hilltop experienced growth in core deposits at PlainsCapital Bank, enhancing liquidity by returning non-core excess funding.
HilltopSecurities Performance
HilltopSecurities generated $20 million in pretax income on $125 million of net revenues, with significant growth in Public Finance Services (32% increase in net revenues) and Structured Finance (increased by $9 million year-over-year).
Strong Capital Levels
Hilltop maintains a strong capital position with a common equity Tier 1 capital ratio of 21% and an increase in tangible book value per share by $1.14 to $29.49 from year-end 2023.
Positive Credit Migration
Provision for credit losses recaptured $5.7 million due to positive migration in the loan portfolio and improved economic conditions.
Lowlights
Net Interest Margin Compression
The bank's net interest margin compressed by seven basis points from the third quarter to 2.98%, primarily due to the immediate repricing of cash held at the Fed.
PrimeLending Pretax Loss
PrimeLending reported a pretax loss of $9.9 million during the quarter, mainly driven by a reduction in origination lock volumes.
Mortgage Market Challenges
PrimeLending continues to face challenges in the mortgage market, with a downward trend in origination fees and expected negative impact in the first quarter of 2025.
Fixed Income Business Pressure
HilltopSecurities' fixed income business faced challenging market conditions, resulting in a decline in net revenues of $10 million compared to the fourth quarter of 2023.
Company Guidance
During the Hilltop Holdings Fourth Quarter 2024 Earnings Conference Call, the management provided guidance that highlighted several key financial metrics and future expectations. Hilltop reported a net income of approximately $36 million or $0.55 per diluted share for the quarter, with a return on average assets of 0.9% and a return on average equity of 6.5%. The company experienced growth in core deposits, with PlainsCapital Bank reporting pretax income of $51 million on $13.3 billion of average assets. Despite a seven basis point compression in net interest margin to 2.98%, the bank saw an increase in average deposit balances by nearly $600 million. For 2025, Hilltop expects bank loan growth between 2% and 5%, reflecting its strategic focus on prudent capital deployment and long-term positioning. Moreover, the company returned $64 million to stockholders in 2024, with plans for continued stock repurchases, supported by strong capital levels including a common equity Tier 1 capital ratio of 21%. Overall, Hilltop aims to maintain its focus on risk management and improved operational efficiency to drive long-term value creation.Hilltop Holdings Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Hilltop Holdings Strengthens Financial Position with Debt Redemption
Positive
Jan 16, 2025
On January 15, 2025, Hilltop Holdings Inc. successfully redeemed all outstanding 5.00% Senior Notes due 2025, amounting to $150 million plus accrued interest, ahead of the notes’ maturity date. This strategic financial move helps the company manage its debt obligations effectively and may strengthen its financial position by reducing interest expenses.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.