Hancock Whitney (HWC) AI Stock Analysis

• Market Cap: $4.50B
• Dividend Yield: 2.87%
• Average Volume (3M): 705.83K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 1.36
• Revenue Growth: 7.67%
• EPS Growth: 17.51%
• Country: US
• Employees: 3,591
• Sector: Financial
• Sector Strength: 85
• Industry: Banking
• EPS (TTM): 5.28
• Shares Outstanding: 86,127,850
• 10 Day Avg. Volume: 885,512
• 30 Day Avg. Volume: 705,832
• PEG Ratio: 0.57
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.19
• Price to Cash Flow (P/CF): 5.90
• P/FCF Ratio: 3.70
• 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: $69.17
• Price Target Upside: 32.26% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

Hancock Whitney's overall score reflects strong financial performance with notable revenue growth and profitability, despite some concerns over cash flow management. The technical analysis suggests a bearish trend, but the stock's valuation appears attractive due to a low P/E ratio and a decent dividend yield. The earnings call highlights a positive growth outlook and strategic initiatives, although challenges in credit quality and fee income remain areas to monitor.

Hancock Whitney Business Overview & Revenue Model

Company Description

Hancock Whitney Corporation (HWC) is a prominent financial services company that operates primarily in the Gulf South region of the United States. Established in 1899, the company is headquartered in Gulfport, Mississippi. Hancock Whitney provides a comprehensive range of financial products and services, including traditional and online banking, commercial and consumer lending, wealth management, and investment services. The company serves a diverse clientele, including individuals, small to mid-sized businesses, and large corporations, focusing on delivering personalized financial solutions tailored to meet the unique needs of its customers.

How the Company Makes Money

Hancock Whitney Corporation generates revenue through a variety of financial services. Its primary revenue streams include interest income from loans and leases, which is the largest contributor to its earnings. This encompasses residential and commercial mortgages, personal loans, and business loans. Additionally, Hancock Whitney earns non-interest income from fees and services related to wealth management, investment advisory, insurance products, and transaction-based fees from deposit accounts. The company also benefits from strategic partnerships with financial service providers and local community involvement, enhancing its customer base and market reach. Its diversified revenue model ensures resilience against market fluctuations and supports sustained financial performance.

Hancock Whitney Financial Statement Overview

Summary

Hancock Whitney shows strong revenue growth and a solid balance sheet with conservative leverage. However, cash flow management remains a concern with reduced free cash flow generation. The absence of EBIT and EBITDA data limits operational analysis.

Income Statement

Hancock Whitney's income statement reflects a strong recovery and growth trajectory. The gross profit margin stands at 100%, indicating efficient cost management. The net profit margin improved to 27.2% in 2024 from 29.7% in 2023. Revenue grew by 28.1% from the previous year, showcasing robust top-line expansion. However, the absence of reported EBIT and EBITDA margins in 2024 limits further analysis on operational efficiency.

Balance Sheet

The balance sheet of Hancock Whitney shows a well-capitalized position with a debt-to-equity ratio of 0.21, indicating conservative leverage. The equity ratio improved to 11.8% in 2024, reflecting a solid financial foundation. Return on equity decreased slightly to 11.2% from 10.3% in 2023, suggesting stable profitability. However, the company's total assets have slightly decreased, suggesting a potential area to monitor for future asset growth.

Cash Flow

Cash flow analysis reveals a decrease in operating cash flow to net income ratio to 0.49, indicating less cash generation relative to net income. Free cash flow declined by 51.7% from the previous year, which may impact the company's ability to reinvest or pay dividends. The free cash flow to net income ratio stands at 0.49, reflecting moderate cash conversion efficiency. This signals potential challenges in maintaining liquidity for future investments.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.69B	1.32B	1.38B	1.30B	1.27B
	Gross Profit
1.69B	1.32B	1.38B	1.30B	1.27B
	EBIT
-1.23B	604.35M	777.84M	568.06M	-124.75M
	EBITDA
0.00	536.40M	704.81M	613.83M	-74.70M
	Net Income Common Stockholders
460.81M	392.60M	524.09M	463.21M	-45.17M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.74B	6.10B	6.44B	8.06B	3.19B
	Total Assets
35.08B	35.58B	35.18B	36.53B	33.64B
	Total Debt
849.56M	1.52B	2.11B	1.91B	2.05B
	Net Debt
274.65M	328.92M	1.23B	-2.32B	186.18M
	Total Liabilities
30.95B	31.77B	31.84B	32.86B	30.20B
	Stockholders Equity
4.13B	3.80B	3.34B	3.67B	3.44B
Cash Flow		Free Cash Flow
227.13M	470.22M	812.88M	562.15M	317.32M
	Operating Cash Flow
227.13M	495.25M	842.02M	585.69M	355.19M
	Investing Cash Flow
320.00K	-295.21M	662.36M	-3.22B	-3.18B
	Financing Cash Flow
-173.47M	-203.29M	-1.34B	2.51B	2.92B

Hancock Whitney Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 52.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HWC, the sentiment is Negative. The current price of 52.3 is below the 20-day moving average (MA) of 53.02, below the 50-day MA of 56.33, and below the 200-day MA of 52.60, indicating a bearish trend. The MACD of -1.48 indicates Negative momentum. The RSI at 41.75 is Neutral, neither overbought nor oversold. The STOCH value of 74.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HWC.

Hancock Whitney Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CFR	76 Outperform	$7.88B	13.83	15.13%	3.08%	7.81%	-2.49%
OZK	76 Outperform	$5.03B	7.21	13.21%	3.66%	23.25%	4.64%
HWC	75 Outperform	$4.50B	9.90	11.54%	2.87%	7.67%	17.51%
PNFP	75 Outperform	$8.20B	17.78	7.62%	0.85%	14.99%	-16.42%
Sector *	63 Neutral	$14.34B	10.21	8.75%	4.25%	17.15%	-11.85%
TRMK	61 Neutral	$2.07B	10.05	2.68%	2.73%	-11.99%	-103.10%
FHN	58 Neutral	$9.92B	14.23	8.70%	3.11%	4.56%	-13.90%

Hancock Whitney Corporate Events

Hancock Whitney’s Strong Q4 2024 Financial Performance

Hancock Whitney Corporation reported a net income of $122.1 million for the fourth quarter of 2024, with earnings per share of $1.40, marking an increase from the previous quarter and the same period last year. The company’s financial performance included a slight decrease in loans but a significant rise in deposits, reflecting strong asset quality and improved credit metrics. The company also highlighted its robust capital ratios and the renewal of its share buyback program, positioning it favorably for future growth.

Hancock Whitney to Acquire Sabal Trust Company

On January 21, 2025, Hancock Whitney Corporation announced its subsidiary, Hancock Whitney Bank, has agreed to acquire Sabal Trust Company, a non-depository trust company based in Florida. This acquisition aims to expand Hancock Whitney’s wealth and asset management services in the high-growth Florida market, leveraging Sabal’s existing four locations in the Tampa and Orlando areas. The deal is expected to close in the second quarter of 2025, pending regulatory approvals, and is anticipated to be immediately accretive to the company’s earnings per share, excluding one-time costs.