Hilltop Holdings (HTH) AI Stock Analysis

• Market Cap: $1.94B
• Dividend Yield: 2.29%
• Average Volume (3M): 463.98K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.71
• Revenue Growth: 3.16%
• EPS Growth: 27.33%
• Country: US
• Employees: 3,616
• Sector: Financial
• Sector Strength: 71
• Industry: Banks - Regional
• EPS (TTM): 0.57
• Shares Outstanding: 63,001,760
• 10 Day Avg. Volume: 436,707
• 30 Day Avg. Volume: 463,981
• 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: 1.23
• Enterprise Value/Gross Profit: 1.68
• Enterprise Value/Ebitda: 9.93
• 1Y Price Target: $33.00
• Price Target Upside: 8.09% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 69 Neutral
• Price Target: $33.00 ▲(8.09% Upside)

Hilltop Holdings demonstrates a stable financial foundation with strong cash flow and a solid balance sheet, which is its main strength. Technicals are neutral to slightly bearish, and valuation metrics are reasonable, providing modest income potential. While the earnings call highlighted some operational challenges, the company's capital return initiatives and strategic focus on balance sheet protection are positive indicators for future performance.

Hilltop Holdings Business Overview & Revenue Model

Company Description

Hilltop 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 Money

Hilltop Holdings generates revenue through multiple key streams. Primarily, it earns interest income from its banking operations, which include loans and deposits. The company also generates non-interest income from its mortgage banking segment through origination fees, servicing fees, and gains on the sale of mortgage loans. Additionally, the insurance segment contributes to revenue through premiums collected from underwriting and brokerage services. Investment advisory services provide fee-based income as well. Significant partnerships with mortgage lenders and real estate companies enhance its origination capabilities, contributing further to its earnings.

Hilltop Holdings Financial Statement Overview

Summary

Hilltop Holdings demonstrates a mixed financial performance with strong cash flow generation and a solid balance sheet. However, operational challenges are evident in negative EBIT margins and fluctuating revenues. The company benefits from low leverage and consistent equity structure, which provides stability and a foundation for future growth.

Income Statement

The income statement analysis shows a mixed performance. The TTM (Trailing-Twelve-Months) data indicates a gross profit margin of 102.63%, showing efficient cost management. However, the net profit margin is only 13.32%, and the EBIT margin is negative, reflecting operational challenges. Revenue has fluctuated over recent years, with a decline from 2020 to 2021, followed by some recovery. The EBITDA margin is relatively low at 3.60% TTM, suggesting limited operational efficiency.

Balance Sheet

The balance sheet is relatively strong, with a debt-to-equity ratio of 0.41 TTM, indicating manageable leverage. The return on equity is 5.91% TTM, which is modest but stable. The equity ratio is 13.91% TTM, suggesting a solid capital structure. Overall, the company maintains a stable financial position with low leverage and a consistent equity base.

Cash Flow

Cash flow analysis reveals strong operational cash flow, with a significant increase in free cash flow growth rate TTM. The operating cash flow to net income ratio is 5.31 TTM, and the free cash flow to net income ratio is 5.28 TTM, underscoring robust cash generation capabilities. This strong cash flow position provides the company with a buffer against potential financial challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.56B	1.54B	1.50B	1.35B	1.85B	2.16B
Gross Profit	1.14B	1.12B	1.11B	1.21B	1.80B	1.94B
EBITDA	193.34M	174.21M	168.75M	188.75M	528.70M	586.28M
Net Income	127.66M	113.21M	109.65M	113.13M	374.50M	447.84M
Balance Sheet
Total Assets	15.81B	16.27B	16.47B	16.27B	18.69B	16.94B
Cash, Cash Equivalents and Short-Term Investments	2.95B	3.70B	3.37B	3.24B	4.95B	2.52B
Total Debt	1.08B	1.35B	1.39B	1.50B	1.47B	1.35B
Total Liabilities	13.58B	14.05B	14.32B	14.20B	16.14B	14.59B
Stockholders Equity	2.20B	2.19B	2.12B	2.05B	2.52B	2.32B
Cash Flow
Free Cash Flow	203.44M	266.80M	434.54M	1.18B	740.87M	242.69M
Operating Cash Flow	208.92M	273.93M	443.02M	1.19B	765.62M	280.44M
Investing Cash Flow	311.83M	354.22M	158.34M	-877.30M	-553.27M	-827.67M
Financing Cash Flow	-510.46M	-174.31M	-332.51M	-1.71B	1.48B	1.26B

Hilltop Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 30.53
• 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 HTH, the sentiment is Positive. The current price of 30.53 is below the 20-day moving average (MA) of 30.54, above the 50-day MA of 30.37, and above the 200-day MA of 30.21, indicating a bullish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 54.45 is Neutral, neither overbought nor oversold. The STOCH value of 78.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HTH.

Hilltop Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRMK	80 Outperform	$2.22B	10.38	10.99%	2.54%	17.17%	―
NBTB	79 Outperform	$2.14B	14.74	8.16%	3.32%	10.00%	7.35%
PPBI	71 Outperform	$2.12B	15.32	4.59%	6.08%	23.85%	―
FBK	70 Outperform	$2.54B	24.53	5.81%	1.57%	-5.80%	-22.11%
HTH	69 Neutral	$1.94B	13.84	6.62%	2.29%	3.16%	27.33%
SYBT	65 Neutral	$2.14B	16.70	13.51%	1.70%	13.28%	22.43%
Sector *	58 Neutral	HK$110.80B	6.36	-4.20%	4.00%	8.89%	-46.47%

Hilltop Holdings Corporate Events

Hilltop Holdings Stockholders Approve Director Nominees

On July 24, 2025, Hilltop Holdings Inc. held its 2025 Annual Meeting of Stockholders virtually, where stockholders voted on three proposals. The election of 13 director nominees was approved, while the advisory vote on executive compensation was not. The appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm was ratified. Additionally, Gerald J. Ford resigned as Chairman Emeritus on July 8, 2025, and a dispute regarding the voting authority of shares owned by Diamond A Financial, L.P. was noted, though it did not affect the outcome of the proposals.

The most recent analyst rating on (HTH) stock is a Hold with a $32.00 price target. To see the full list of analyst forecasts on Hilltop Holdings stock, see the HTH Stock Forecast page.

Hilltop Holdings Announces Dividend and Stock Buyback

On July 24, 2025, Hilltop Holdings announced a quarterly cash dividend of $0.18 per common share, payable on August 29, 2025, and an increase in its stock repurchase program to $135 million, subject to Federal Reserve approval. For the second quarter of 2025, Hilltop reported a significant increase in income to common stockholders to $36.1 million, driven by a reversal of credit losses and increased net interest income, despite challenges in the mortgage origination segment. The company also highlighted a strategic focus on protecting its balance sheet and creating long-term stockholder value amid uncertain economic conditions.

The most recent analyst rating on (HTH) stock is a Hold with a $32.00 price target. To see the full list of analyst forecasts on Hilltop Holdings stock, see the HTH Stock Forecast page.

Hilltop Holdings Redeems Subordinated Notes on May 15

On May 15, 2025, Hilltop Holdings Inc. redeemed all of its outstanding 5.75% Fixed-to-Floating Rate Subordinated Notes due 2030 at a redemption price equal to the aggregate principal amount of $50 million, plus accrued and unpaid interest. This redemption was conducted in accordance with the First Supplemental Indenture, allowing the company to satisfy and discharge its obligations under these notes, potentially impacting its financial strategy and stakeholder interests.

The most recent analyst rating on (HTH) stock is a Hold with a $32.00 price target. To see the full list of analyst forecasts on Hilltop Holdings stock, see the HTH Stock Forecast page.