Huntington Bancshares Incorporated
Huntington Bancshares Incorporated Fundamental Analysis
Huntington Bancshares Incorporated (HBANM) shows strong financial fundamentals with a PE ratio of 12.52, profit margin of 17.71%, and ROE of 10.06%. The company generates $12.0B in annual revenue with strong year-over-year growth of 10.96%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 49.8/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HBANM's fundamental strength across five key dimensions:
Efficiency Score
WeakHBANM struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHBANM trades at attractive valuation levels.
Growth Score
ModerateHBANM shows steady but slowing expansion.
Financial Health Score
ModerateHBANM shows balanced financial health with some risks.
Profitability Score
ModerateHBANM maintains healthy but balanced margins.
Key Financial Metrics
Is HBANM Expensive or Cheap?
P/E Ratio
HBANM trades at 12.52 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, HBANM's PEG of -6.01 indicates potential undervaluation.
Price to Book
The market values Huntington Bancshares Incorporated at 1.14 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.74 times EBITDA. This is generally considered low.
How Well Does HBANM Make Money?
Net Profit Margin
For every $100 in sales, Huntington Bancshares Incorporated keeps $17.71 as profit after all expenses.
Operating Margin
Core operations generate 21.53 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.06 in profit for every $100 of shareholder equity.
ROA
Huntington Bancshares Incorporated generates $0.98 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Huntington Bancshares Incorporated produces operating cash flow of $2.28B, showing steady but balanced cash generation.
Free Cash Flow
Huntington Bancshares Incorporated generates strong free cash flow of $2.17B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.47 in free cash annually.
FCF Yield
HBANM converts 7.98% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.52
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-6.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.14
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.26
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.76
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.19
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.010
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How HBANM Stacks Against Its Sector Peers
| Metric | HBANM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.52 | 18.86 | Better (Cheaper) |
| ROE | 10.06% | 847.00% | Weak |
| Net Margin | 17.71% | 4202.00% | Weak |
| Debt/Equity | 0.76 | 0.91 | Neutral |
| Current Ratio | 0.19 | 667.17 | Weak Liquidity |
| ROA | 0.98% | -21543.00% (disorted) | Weak |
HBANM outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Huntington Bancshares Incorporated's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
51.39%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
-1.59%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
-17.47%
Industry Style: Value, Dividend, Cyclical
Declining