Hilltop Holdings (HTH) AI Stock Analysis

• Market Cap: $2.01B
• Dividend Yield: 2.78%
• Average Volume (3M): 464.76K
• Price to Earnings (P/E): 15.9
• Beta (1Y): 0.72
• Revenue Growth: 2.60%
• EPS Growth: 14.96%
• Country: US
• Employees: 3,616
• Sector: Financial
• Sector Strength: 78
• Industry: Banks - Regional
• EPS (TTM): 0.65
• Shares Outstanding: 64,155,150
• 10 Day Avg. Volume: 587,942
• 30 Day Avg. Volume: 464,759
• PEG Ratio: 1.13
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.28
• Enterprise Value/Market Cap: 0.63
• Enterprise Value/Revenue: 0.20
• Enterprise Value/Gross Profit: 1.10
• Enterprise Value/Ebitda: 1.77
• 1Y Price Target: $33.33
• Price Target Upside: 6.52% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 71 Outperform
• Price Target: $33.00 ▲(5.47%Upside)

Hilltop Holdings' stock score reflects a stable financial foundation driven by strong cash flow and a solid balance sheet. Valuation metrics support a fair value assessment, while technical indicators suggest limited immediate momentum. Earnings call insights highlight both growth opportunities and sector-specific challenges, resulting in a balanced but cautious outlook.

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 its diversified financial services operations. The company's primary revenue streams include net interest income from its banking operations, fees from mortgage origination, and commissions from its financial advisory and broker-dealer services. PlainsCapital Bank, a subsidiary, earns interest income by offering loans and credit products and collects fees from deposit-related services. Hilltop Securities Holdings LLC contributes through investment advisory fees, underwriting, and trading services. Significant partnerships with other financial institutions and a focus on expanding its mortgage and advisory services further bolster Hilltop Holdings' 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: 31.29
• 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 HTH, the sentiment is Positive. The current price of 31.29 is above the 20-day moving average (MA) of 30.79, above the 50-day MA of 30.35, and above the 200-day MA of 30.26, indicating a bullish trend. The MACD of 0.27 indicates Positive momentum. The RSI at 56.37 is Neutral, neither overbought nor oversold. The STOCH value of 58.00 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
NBTB	76 Outperform	$2.26B	14.25	9.55%	3.90%	12.11%	16.58%
FBK	74 Outperform	$2.62B	25.36	5.81%	1.82%	-5.60%	-22.11%
SYBT	72 Outperform	$2.33B	19.12	13.18%	1.57%	14.30%	16.24%
HTH	71 Outperform	$2.01B	15.90	5.89%	2.78%	2.60%	14.96%
PPBI	70 Outperform	$2.14B	14.44	4.94%	5.97%	23.09%	1086.91%
TRMK	70 Neutral	$2.33B	357.61	3.28%	3.04%	-17.96%	-95.37%
Sector *	67 Neutral	$16.88B	11.72	9.78%	4.17%	11.83%	-7.72%

Hilltop Holdings Corporate Events

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.

Hilltop Holdings Board Reduces Members to Thirteen

On April 29, 2025, J. Markham Green announced he would not seek re-election at Hilltop Holdings Inc.’s 2025 Annual Meeting of Stockholders scheduled for July 24, 2025. His decision was not due to any disagreements with the company’s operations or policies. Subsequently, on April 30, 2025, the Board of Directors decided to reduce the number of board members to thirteen, effective at the Annual Meeting, without affecting the tenure of current directors.

Hilltop Holdings Extends Martin B. Winges’ Employment Agreement

On April 24, 2025, Hilltop Holdings Inc. appointed Mr. Gerald J. Ford as Chairman Emeritus, allowing him to attend board meetings without voting rights. Mr. Jeremy B. Ford was named Chairman of the Board, and Mr. Tracy Bolt was appointed as lead independent director. The board also reduced its size to fourteen directors. On April 25, 2025, Hilltop Holdings amended its employment agreement with Martin B. Winges, extending it until February 29, 2028. The amendment adjusts the incentive bonus calculation and allows Mr. Winges to retire voluntarily at age 65 with a pro rata bonus.

Hilltop Holdings Director Charlotte L. Jones Resigns

On April 19, 2025, Charlotte L. Jones resigned from the Board of Directors of Hilltop Holdings Inc., effective immediately. Her resignation was not due to any disagreements with the company’s operations, policies, or practices.