NasdaqGS:FHB

Stock Analysis Report

Executive Summary

First Hawaiian, Inc. operates as a bank holding company for First Hawaiian Bank that provides a range of banking services to consumer and commercial customers in the United States.

Snowflake

Flawless balance sheet with solid track record and pays a dividend.


Similar Companies

Share Price & News

How has First Hawaiian's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.9%

FHB

0.1%

US Banks

0.5%

US Market


1 Year Return

14.3%

FHB

10.6%

US Banks

16.1%

US Market

Return vs Industry: FHB exceeded the US Banks industry which returned 10.6% over the past year.

Return vs Market: FHB underperformed the US Market which returned 16.1% over the past year.


Shareholder returns

FHBIndustryMarket
7 Day-0.9%0.1%0.5%
30 Day1.3%4.1%3.9%
90 Day15.6%15.7%6.6%
1 Year18.9%14.3%13.9%10.6%18.7%16.1%
3 Year-0.8%-9.8%37.0%27.5%47.2%37.7%
5 Yearn/a70.7%51.9%61.5%43.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is First Hawaiian undervalued compared to its fair value and its price relative to the market?

36.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FHB ($28.47) is trading below our estimate of fair value ($44.54)

Significantly Below Fair Value: FHB is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: FHB is poor value based on its PE Ratio (13.8x) compared to the Banks industry average (12.6x).

PE vs Market: FHB is good value based on its PE Ratio (13.8x) compared to the US market (18x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: FHB is overvalued based on its PB Ratio (1.4x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is First Hawaiian forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-2.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FHB's earnings are forecast to decline over the next 3 years (-2.9% per year).

Earnings vs Market: FHB's earnings are forecast to decline over the next 3 years (-2.9% per year).

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

Revenue vs Market: FHB's revenue is expected to decline over the next 3 years (-5.3% per year).

High Growth Revenue: FHB's revenue is forecast to decline over the next 3 years (-5.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FHB's Return on Equity is forecast to be low in 3 years time (12%).


Next Steps

Past Performance

How has First Hawaiian performed over the past 5 years?

4.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FHB has high quality earnings.

Growing Profit Margin: FHB's current net profit margins (37.3%) are higher than last year (29.4%).


Past Earnings Growth Analysis

Earnings Trend: FHB's earnings have grown by 4.4% per year over the past 5 years.

Accelerating Growth: FHB's earnings growth over the past year (28%) exceeds its 5-year average (4.4% per year).

Earnings vs Industry: FHB earnings growth over the past year (28%) exceeded the Banks industry 27.3%.


Return on Equity

High ROE: FHB's Return on Equity (10.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is First Hawaiian'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

Inventory Level: FHB has a low level of unsold assets or inventory.

Debt Coverage by Assets: FHB's debt is covered by short term assets (assets are 2.4x debt).


Financial Institutions Analysis

Asset Level: FHB's level of assets compared to its equity is low.

Allowance for Bad Loans: FHB has a sufficient allowance for bad loans.

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

Loan Level: FHB has an acceptable proportion of non-loan assets held.

Low Risk Deposits: FHB's loans are broadly funded by customer deposits.

Level of Bad Loans: FHB has an appropriate level of bad loans (0.03%)


Next Steps

Dividend

What is First Hawaiian's current dividend yield, its reliability and sustainability?

3.65%

Current Dividend Yield


Dividend Yield vs Market

company3.7%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years3.9%

Current dividend yield vs market & industry

Notable Dividend: FHB's dividend (3.65%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: FHB's dividend (3.65%) is in the top 25% of dividend payers in the US market (3.65%)


Stability and Growth of Payments

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

Growing Dividend: FHB's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.5%), FHB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FHB's dividends in 3 years are forecast to be covered by earnings (55.3% payout ratio).


Next Steps

Management

What is the CEO of First Hawaiian's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Bob Harrison (59yo)

7.8yrs

Tenure

US$4,076,806

Compensation

Mr. Robert S. Harrison, also known as Bob, serves as President at First Hawaiian, Inc. since September 2019. He also serves as Chairman and Chief Executive Officer of First Hawaiian, Inc. He serves as the  ...


CEO Compensation Analysis

Compensation vs Market: Bob's total compensation ($USD4.08M) is about average for companies of similar size in the US market ($USD5.09M).

Compensation vs Earnings: Bob's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.3yrs

Average Tenure

59yo

Average Age

Experienced Management: FHB's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

2.5yrs

Average Tenure

60yo

Average Age

Experienced Board: FHB's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$129,39811 Mar 19
Robert Harrison
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares5,000
Max PriceUS$25.88
SellUS$649,088,07301 Feb 19
Bancwest Corporation
EntityCompany
Shares24,859,750
Max PriceUS$26.11

Ownership Breakdown

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


Management Team

  • Bob Harrison (59yo)

    Chairman

    • Tenure: 7.8yrs
    • Compensation: US$4.08m
  • Iris Matsumoto

    Executive Vice President of Human Resources Division

    • Tenure: 0yrs
  • Alan Arizumi (60yo)

    Vice Chairman of Wealth Management Group

    • Tenure: 5.8yrs
    • Compensation: US$1.15m
  • Joel Rappoport

    Executive VP

    • Tenure: 2.8yrs
  • Lance Mizumoto (61yo)

    Vice Chairman & Chief Lending Officer of Commercial Banking Group

    • Tenure: 2.3yrs
    • Compensation: US$869.22k
  • Mitchell Nishimoto (55yo)

    Vice Chairman & Head of Retail Banking Group

    • Tenure: 3.3yrs
    • Compensation: US$753.38k
  • Ralph Mesick (59yo)

    Vice Chairman of Risk Management Group & Chief Risk Officer

    • Tenure: 3.3yrs
  • Gina O. Anonuevo

    Executive VP & Chief Compliance Officer

    • Tenure: 0yrs
  • Kevin Haseyama

    Strategic Planning & Investor Relations Manager

    • Tenure: 0yrs
  • Ravi Mallela (49yo)

    Executive VP of Finance Group

    • Tenure: 1.2yrs
    • Compensation: US$2.31m

Board Members

  • Wilton Doane (71yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$224.73k
  • Faye Kurren (68yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$107.98k
  • Matt Cox (58yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$190.73k
  • Bob Harrison (59yo)

    Chairman

    • Tenure: 7.8yrs
    • Compensation: US$4.08m
  • Allen Uyeda (69yo)

    Lead Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$252.23k
  • Jenai Wall (60yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$109.98k
  • Craig Wo (54yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$91.37k

Company Information

First Hawaiian, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: First Hawaiian, Inc.
  • Ticker: FHB
  • Exchange: NasdaqGS
  • Founded: 1858
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$3.728b
  • Shares outstanding: 130.98m
  • Website: https://www.fhb.com

Number of Employees


Location

  • First Hawaiian, Inc.
  • 999 Bishop Street
  • 29th Floor
  • Honolulu
  • Hawaii
  • 96813
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FHBNasdaqGS (Nasdaq Global Select)YesNew Common StockUSUSDAug 2016
1HIDB (Deutsche Boerse AG)YesNew Common StockDEEURAug 2016

Biography

First Hawaiian, Inc. operates as a bank holding company for First Hawaiian Bank that provides a range of banking services to consumer and commercial customers in the United States. It operates in three seg ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/21 00:52
End of Day Share Price2019/11/20 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.