First Hawaiian (FHB) AI Stock Analysis

• Market Cap: $3.12B
• Dividend Yield: 4.09%
• Average Volume (3M): 775.83K
• Price to Earnings (P/E): 14.2
• Beta (1Y): 1.10
• Revenue Growth: 3.53%
• EPS Growth: -2.18%
• Country: US
• Employees: 2,000
• Sector: Financial
• Sector Strength: 77
• Industry: Banking
• EPS (TTM): 1.79
• Shares Outstanding: 126,422,900
• 10 Day Avg. Volume: 761,624
• 30 Day Avg. Volume: 775,828
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.11
• Price to Cash Flow (P/CF): 7.10
• P/FCF Ratio: 4.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $28.83
• Price Target Upside: 16.72% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 6

First Hawaiian's stock is supported by stable profitability and strong balance sheet, alongside positive momentum indicators. The fair valuation and positive earnings call further bolster the stock's outlook, despite minor challenges in revenue growth and specific market headwinds.

Positive Factors

Capital Strength

Capital remains in a solid position at 13.0% CET1 with incremental capital deployment remaining a potential opportunity over time.

Market Position

FHB holds the #2 market share in the attractive HI market and represents 33.79% of the HI deposit base, which is considered a more attractive deposit franchise than peers.

Negative Factors

Loan Growth

Loan growth was negative for the quarter, indicating challenges in expanding the loan portfolio.

First Hawaiian Business Overview & Revenue Model

Company Description

First Hawaiian, Inc. is a bank holding company, which engages in the provision of banking services to consumer and commercial customers, including deposit products, lending services, and wealth management and trust services through its subsidiary First Hawaiian Bank. It operates through the following business segments: Retail Banking, Commercial Banking, and Treasury and Other. The Retail Banking segment offers 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; deposits such as checking, savings and time deposit accounts to consumers, small businesses and certain commercial customers. The Commercial Banking segment provides corporate banking, residential and commercial real estate loans, commercial lease financing, auto dealer financing, deposit products and credit cards that they provide primarily to middle market and large companies in Hawaii, Guam, Saipan, and California. The Treasury and Other segment relates to treasury business, which consists of corporate asset and liability management activities, including interest rate risk management; as well as organizational units such as technology, operations, credit and risk management, human resources, finance, administration, marketing, and corporate and regulatory administration. The company was founded in 1858 and is headquartered in Honolulu, HI.

How the Company Makes Money

First Hawaiian, Inc. generates revenue primarily through its commercial and consumer banking operations. The company earns money from interest income, which is derived from loans and credit facilities provided to individuals, businesses, and governmental entities. Additionally, it earns revenue from fees and service charges related to various financial products, such as transaction fees, account maintenance charges, and loan origination fees. Another significant revenue stream comes from wealth management and investment services, where the bank provides advisory services and earns fees based on assets under management. Strategic partnerships and collaborations with other financial institutions and service providers further enhance its revenue potential by expanding its product offerings and customer base.

First Hawaiian Financial Statement Overview

Summary

First Hawaiian demonstrates stable profitability and a strong capital structure. However, challenges in revenue growth and free cash flow stability could impact future financial flexibility.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
980.04M	1.13B	762.08M	690.23M	711.00M
	Gross Profit
980.04M	1.12B	762.08M	690.23M	711.00M
	EBIT
911.41M	0.00	400.88M	349.00M	243.72M
	EBITDA
0.00	-24.18M	407.96M	400.84M	306.80M
	Net Income Common Stockholders
230.13M	234.98M	265.69M	265.74M	185.75M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
258.06M	1.74B	8.00B	1.26B	1.04B
	Total Assets
23.83B	24.93B	24.58B	24.99B	22.66B
	Total Debt
250.00M	500.00M	75.00M	65.80M	200.01M
	Net Debt
-8.06M	-1.24B	-451.62M	-1.19B	-840.93M
	Total Liabilities
21.21B	22.52B	22.31B	22.41B	200.01M
	Stockholders Equity
2.62B	2.49B	2.27B	2.66B	2.74B
Cash Flow		Free Cash Flow
317.51M	239.04M	417.32M	396.67M	176.12M
	Operating Cash Flow
317.51M	255.03M	430.61M	417.13M	209.51M
	Investing Cash Flow
548.55M	1.03B	-965.10M	-2.38B	-2.10B
	Financing Cash Flow
-1.44B	-66.92M	-197.36M	2.18B	2.24B

First Hawaiian Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FHB, the sentiment is Negative. The current price of 24.7 is below the 20-day moving average (MA) of 26.56, below the 50-day MA of 26.28, and above the 200-day MA of 24.01, indicating a neutral trend. The MACD of -0.34 indicates Positive momentum. The RSI at 30.12 is Neutral, neither overbought nor oversold. The STOCH value of 10.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FHB.

First Hawaiian Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FHB	71 Outperform	$3.12B	14.19	9.02%	4.09%	3.53%	-2.18%
ZION	69 Neutral	$6.98B	10.13	13.15%	3.56%	7.91%	13.79%
BOH	68 Neutral	$2.68B	19.81	9.73%	4.08%	4.63%	-16.29%
Sector *	64 Neutral	$13.80B	10.64	9.23%	4.22%	17.66%	-7.66%
CMA	63 Neutral	$7.48B	11.21	10.72%	5.06%	-6.54%	-21.90%
WAL	60 Neutral	$8.02B	10.90	12.32%	2.06%	13.60%	8.85%

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.