DB:WXF

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Hilltop Holdings

Executive Summary

Hilltop Holdings Inc. provides banking and financial products and services.


Snowflake Analysis

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

How has Hilltop Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WXF has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.6%

WXF

1.7%

DE Banks

2.7%

DE Market


1 Year Return

-16.3%

WXF

-17.9%

DE Banks

0.2%

DE Market

Return vs Industry: WXF exceeded the German Banks industry which returned -17.9% over the past year.

Return vs Market: WXF underperformed the German Market which returned 0.2% over the past year.


Shareholder returns

WXFIndustryMarket
7 Day-0.6%1.7%2.7%
30 Day-2.5%6.9%3.7%
90 Day28.7%26.1%28.3%
1 Year-14.8%-16.3%-17.8%-17.9%2.3%0.2%
3 Year-29.2%-32.2%-45.5%-47.5%4.0%-4.5%
5 Year-21.5%-25.4%-33.0%-45.9%14.9%-0.3%

Price Volatility Vs. Market

How volatile is Hilltop Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Hilltop Holdings undervalued compared to its fair value and its price relative to the market?

31.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WXF (€15.7) is trading below our estimate of fair value (€22.97)

Significantly Below Fair Value: WXF is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: WXF is good value based on its PE Ratio (6.7x) compared to the Banks industry average (20.2x).

PE vs Market: WXF is good value based on its PE Ratio (6.7x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: WXF's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: WXF is good value based on its PB Ratio (0.7x) compared to the DE Banks industry average (0.8x).


Next Steps

Future Growth

How is Hilltop Holdings forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-13.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WXF's earnings are forecast to decline over the next 3 years (-13.3% per year).

Earnings vs Market: WXF's earnings are forecast to decline over the next 3 years (-13.3% per year).

High Growth Earnings: WXF's earnings are forecast to decline over the next 3 years.

Revenue vs Market: WXF's revenue is expected to decline over the next 3 years (-6.2% per year).

High Growth Revenue: WXF's revenue is forecast to decline over the next 3 years (-6.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WXF's Return on Equity is forecast to be low in 3 years time (6.9%).


Next Steps

Past Performance

How has Hilltop Holdings performed over the past 5 years?

-0.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WXF has a high level of non-cash earnings.

Growing Profit Margin: WXF's current net profit margins (14.3%) are higher than last year (9.1%).


Past Earnings Growth Analysis

Earnings Trend: WXF's earnings have declined by -0.3% per year over the past 5 years.

Accelerating Growth: WXF's earnings growth over the past year (82.4%) exceeds its 5-year average (-0.3% per year).

Earnings vs Industry: WXF earnings growth over the past year (82.4%) exceeded the Banks industry 4%.


Return on Equity

High ROE: WXF's Return on Equity (11.5%) is considered low.


Next Steps

Financial Health

How is Hilltop Holdings's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: WXF's Assets to Equity ratio (7.3x) is low.

Allowance for Bad Loans: WXF has a sufficient allowance for bad loans (122%).

Low Risk Liabilities: 73% of WXF's liabilities are made up of primarily low risk sources of funding.

Loan Level: WXF has an appropriate level of Loans to Assets ratio (46%).

Low Risk Deposits: WXF's Loans to Deposits ratio (73%) is appropriate.

Level of Bad Loans: WXF has an appropriate level of bad loans (1.2%).


Next Steps

Dividend

What is Hilltop Holdings's current dividend yield, its reliability and sustainability?

2.05%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WXF's dividend (2.05%) is higher than the bottom 25% of dividend payers in the German market (1.27%).

High Dividend: WXF's dividend (2.05%) is low compared to the top 25% of dividend payers in the German market (3.83%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, WXF has been paying a dividend for less than 10 years.

Growing Dividend: WXF's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (12.7%), WXF's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WXF's dividends in 3 years are forecast to be well covered by earnings (18.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.2yrs

Average management tenure


CEO

Jeremy Ford (45yo)

1.25yrs

Tenure

US$3,685,005

Compensation

Mr. Jeremy Blue Ford serves as the Director at PlainsCapital Corporation. He has been Chairman of the Board at First Acceptance Corporation since November 2011. Oversees all holding company functional area ...


CEO Compensation Analysis

Compensation vs Market: Jeremy's total compensation ($USD3.69M) is above average for companies of similar size in the German market ($USD1.51M).

Compensation vs Earnings: Jeremy's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jeremy Ford
President1.25yrsUS$3.69m0.86% $12.1m
William Furr
Executive VP & CFO3.83yrsUS$1.90m0.046% $642.0k
Todd Salmans
Chairman of PrimeLending9.5yrsUS$2.32m0.042% $584.8k
Martin Winges
President & CEO of Hilltop Securities Inc.1.42yrsUS$5.80mno data
Mark Plunkett
Executive VP2.33yrsno datano data
Keith Bornemann
Executive VP2.67yrsno data0.0052% $72.4k
Toby Pennycuff
Chief Information Officer3.17yrsno datano data
Darren Parmenter
Executive VP & Chief Administrative Officer3.83yrsUS$802.11kno data
Erik Yohe
Senior Vice President of Corporate Developmentno datano datano data
Corey Prestidge
Executive VP12.5yrsUS$550.34k0.084% $1.2m

3.2yrs

Average Tenure

48yo

Average Age

Experienced Management: WXF's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jeremy Ford
President1.25yrsUS$3.69m0.86% $12.1m
John Green
Independent Director16.42yrsUS$69.00k0.13% $1.8m
Carl Webb
Director15.08yrsUS$53.00k0.13% $1.9m
Gerald Ford
Chairman of the Board12.92yrsUS$796.10k17.41% $244.6m
Charles Cummings
Independent Director14.75yrsUS$123.00k0.042% $583.6k
Rhodes Bobbitt
Independent Director14.67yrsUS$88.00k0.14% $2.0m
Arthur Sherman
Independent Director7.67yrsUS$68.00k0.023% $320.7k
W. Brinkerhoff
Independent Director15.08yrsUS$53.00k0.028% $392.9k
W. Nichols
Independent Director12.25yrsUS$68.00k0.018% $249.2k
Tracy Bolt
Independent Director7.67yrsUS$111.00k0.035% $494.4k

13.8yrs

Average Tenure

72yo

Average Age

Experienced Board: WXF's board of directors are seasoned and experienced ( 13.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: WXF insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Hilltop Holdings Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hilltop Holdings Inc.
  • Ticker: WXF
  • Exchange: DB
  • Founded: 1998
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$1.582b
  • Listing Market Cap: US$1.405b
  • Shares outstanding: 90.21m
  • Website: https://www.hilltop-holdings.com

Number of Employees


Location

  • Hilltop Holdings Inc.
  • 2323 Victory Avenue
  • Suite 1400
  • Dallas
  • Texas
  • 75219
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WXFDB (Deutsche Boerse AG)YesCommon StockDEEURFeb 2004
HTHNYSE (New York Stock Exchange)YesCommon StockUSUSDFeb 2004

Biography

Hilltop Holdings Inc. provides banking and financial products and services. The company operates in four segments: Banking, Broker-Dealer, Mortgage Origination, and Insurance. 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, check cards, safe deposit boxes, online banking, bill pay, overdraft, and automated teller machine services; and estate planning, management and administration, investment portfolio management, employee benefit accounts, and individual retirement accounts. The Broker-Dealer segment advises on public finance; trades in and underwrites U.S. government and government agency bonds, corporate and municipal bonds, and structured products, as well as mortgage-backed, asset-backed, and commercial mortgage-backed securities; trades in equities and options; and provides asset and liability management advisory, structured asset and liability, commodity hedging advisory, equity trading, retail brokerage, clearing, and securities lending services. The Mortgage Origination segment offers mortgage, jumbo, Federal Housing Administration, Veterans Affairs, and United States Department of Agriculture loans. The Insurance segment provides personal product line comprising homeowners, dwelling fire, manufactured home, and flood policies. The company operates in Texas, California, Florida, Ohio, Arizona, South Carolina, Washington, Missouri, North Carolina, Maryland, and other states in the United States. Hilltop Holdings Inc. was founded in 1998 and is headquartered in Dallas, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/02 22:12
End of Day Share Price2020/07/02 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.