NYSE:BOH

Stock Analysis Report

Executive Summary

Bank of Hawaii Corporation operates as the bank holding company for Bank of Hawaii that provides financial products and services in Hawaii, Guam, and other Pacific Islands.

Rewards

Trading at 8.6% below its fair value

Earnings have grown 7.3% per year over the past 5 years

Pays a high and reliable dividend of 2.86%

Risk Analysis

Earnings are forecast to decline by an average of -1% per year for the next 3 years



Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Bank of Hawaii's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0.9%

BOH

-0.08%

US Banks

2.0%

US Market


1 Year Return

23.8%

BOH

15.5%

US Banks

23.6%

US Market

Return vs Industry: BOH exceeded the US Banks industry which returned 21.7% over the past year.

Return vs Market: BOH matched the US Market which returned 24.4% over the past year.


Shareholder returns

BOHIndustryMarket
7 Day0.9%-0.08%2.0%
30 Day0.4%-1.6%3.9%
90 Day9.4%9.2%12.0%
1 Year27.7%23.8%18.9%15.5%26.2%23.6%
3 Year16.1%6.6%34.6%25.1%53.2%43.3%
5 Year91.0%66.1%86.1%65.2%75.7%56.3%

Price Volatility Vs. Market

How volatile is Bank of Hawaii's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Bank of Hawaii undervalued compared to its fair value and its price relative to the market?

6.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BOH ($93.74) is trading below our estimate of fair value ($102.58)

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


Price To Earnings Ratio

PE vs Industry: BOH is poor value based on its PE Ratio (17.2x) compared to the Banks industry average (12.8x).

PE vs Market: BOH is good value based on its PE Ratio (17.2x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: BOH is overvalued based on its PB Ratio (2.9x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Bank of Hawaii forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-1.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BOH's earnings are forecast to decline over the next 3 years (-1% per year).

Earnings vs Market: BOH's earnings are forecast to decline over the next 3 years (-1% per year).

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

Revenue vs Market: BOH's revenue (1.5% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: BOH's revenue (1.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BOH's Return on Equity is forecast to be low in 3 years time (16.8%).


Next Steps

Past Performance

How has Bank of Hawaii performed over the past 5 years?

7.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BOH has high quality earnings.

Growing Profit Margin: BOH's current net profit margins (33.7%) are higher than last year (33.1%).


Past Earnings Growth Analysis

Earnings Trend: BOH's earnings have grown by 7.3% per year over the past 5 years.

Accelerating Growth: BOH's earnings growth over the past year (6.2%) is below its 5-year average (7.3% per year).

Earnings vs Industry: BOH earnings growth over the past year (6.2%) underperformed the Banks industry 27.1%.


Return on Equity

High ROE: BOH's Return on Equity (17.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Bank of Hawaii'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: BOH has a low level of unsold assets or inventory.

Debt Coverage by Assets: BOH's debt is not covered by short term assets (assets are 0.8x debt).


Financial Institutions Analysis

Asset Level: BOH's level of assets compared to its equity is moderate.

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

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

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

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

Level of Bad Loans: BOH has an appropriate level of bad loans (0.17%)


Next Steps

Dividend

What is Bank of Hawaii's current dividend yield, its reliability and sustainability?

2.85%

Current Dividend Yield


Dividend Yield vs Market

company2.8%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years2.9%

Current dividend yield vs market & industry

Notable Dividend: BOH's dividend (2.86%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: BOH's dividend (2.86%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: BOH's dividends per share have been stable in the past 10 years.

Growing Dividend: BOH's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (46.7%), BOH's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BOH's dividends in 3 years are forecast to be well covered by earnings (49.3% payout ratio).


Next Steps

Management

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

3.9yrs

Average management tenure


CEO

Peter Ho (54yo)

9.5yrs

Tenure

US$5,205,426

Compensation

Mr. Peter S. Ho has been the President of the Bank at Hawaii Corporation since April 2008 and has been its Chief Executive Officer since July 30, 2010. Mr. Ho served as Chief Banking Officer of Bank of Haw ...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD5.21M) is about average for companies of similar size in the US market ($USD4.99M).

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


Management Age and Tenure

3.9yrs

Average Tenure

58.5yo

Average Age

Experienced Management: BOH's management team is considered experienced (3.9 years average tenure).


Board Age and Tenure

14.8yrs

Average Tenure

68yo

Average Age

Experienced Board: BOH's board of directors are seasoned and experienced ( 14.8 years average tenure).


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

SellUS$499,14414 May 19
James Polk
EntityIndividual
Role
Senior Key Executive
Vice Chairman of Residential & Consumer Lending Group
Shares6,176
Max PriceUS$80.82

Ownership Breakdown

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


Management Team

  • Kent Lucien (65yo)

    Vice Chair

    • Tenure: 13.8yrs
    • Compensation: US$869.99k
  • Cindy Wyrick

    Executive Vice President

    • Mary G. Bitterman (74yo)

      Lead Independent Director

      • Tenure: 21yrs
      • Compensation: US$187.20k
    • Mark Rossi (70yo)

      Vice Chair

      • Tenure: 12.9yrs
      • Compensation: US$1.53m
    • Peter Ho (54yo)

      Chairman

      • Tenure: 9.5yrs
      • Compensation: US$5.21m
    • Dean Shigemura (55yo)

      Vice Chair & CFO

      • Tenure: 2.8yrs
      • Compensation: US$1.50m
    • Mary Sellers (62yo)

      Vice Chair & Chief Risk Officer

      • Tenure: 16.6yrs
      • Compensation: US$1.66m
    • James Polk (52yo)

      Vice Chairman of Residential & Consumer Lending Group

      • Tenure: 3.5yrs
      • Compensation: US$1.49m
    • Sheh Bertram

      Senior EVP & Chief Information Officer

      • Tenure: 4.3yrs
    • Andrea Ignacio (46yo)

      Senior VP

      • Tenure: 0.4yrs

    Board Members

    • Bob Huret (74yo)

      Independent Director

      • Tenure: 20yrs
      • Compensation: US$151.88k
    • Kent Lucien (65yo)

      Vice Chair

      • Tenure: 13.8yrs
      • Compensation: US$869.99k
    • Mary G. Bitterman (74yo)

      Lead Independent Director

      • Tenure: 21yrs
      • Compensation: US$187.20k
    • Victor Nichols (62yo)

      Independent Director

      • Tenure: 5.5yrs
      • Compensation: US$145.38k
    • Ray Vara (49yo)

      Independent Director

      • Tenure: 6.8yrs
      • Compensation: US$152.20k
    • Peter Ho (54yo)

      Chairman

      • Tenure: 9.5yrs
      • Compensation: US$5.21m
    • Bub Wo (66yo)

      Independent Director

      • Tenure: 18yrs
      • Compensation: US$153.95k
    • Barbara Tanabe (70yo)

      Independent Director

      • Tenure: 15.8yrs
      • Compensation: US$150.95k
    • S. Apoliona (70yo)

      Independent Director

      • Tenure: 15.8yrs
      • Compensation: US$139.51k
    • Mark Burak (70yo)

      Independent Director

      • Tenure: 10.8yrs
      • Compensation: US$151.88k

    Company Information

    Bank of Hawaii Corporation's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Bank of Hawaii Corporation
    • Ticker: BOH
    • Exchange: NYSE
    • Founded: 1897
    • Industry: Regional Banks
    • Sector: Banks
    • Market Cap: US$3.791b
    • Shares outstanding: 40.27m
    • Website: https://www.boh.com

    Number of Employees


    Location

    • Bank of Hawaii Corporation
    • 130 Merchant Street
    • Honolulu
    • Hawaii
    • 96813
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    BOHNYSE (New York Stock Exchange)YesCommon StockUSUSDApr 1972

    Biography

    Bank of Hawaii Corporation operates as the bank holding company for Bank of Hawaii that provides financial products and services in Hawaii, Guam, and other Pacific Islands. It operates through four segments: Retail Banking, Commercial Banking, Investment Services and Private Banking, and Treasury and Other. The Retail Banking segment offers financial products and services to consumers and small businesses. It offers checking, savings, and time deposit accounts; loan and lease products, including residential mortgage loans, home equity lines of credit, automobile loans and leases, personal lines of credit, installment loans, small business loans and leases, and credit cards; and retail insurance products. This segment provides its products and services through 69 branch locations and 382 ATMs in Hawaii and the Pacific Islands, as well as through a customer service center, and online and mobile banking. The Commercial Banking segment’s product lines comprise corporate banking, commercial real estate loans, commercial lease financing, auto dealer financing, and deposit products. It offers commercial lending and deposit products to middle-market and large companies, and government entities; and commercial real estate mortgages to investors, developers, and builders. This segment also provides international banking and merchant services. The Investment Services and Private Banking segment offers private and international client banking, trust, investment management, and institutional investment advisory services for individuals and families, high-net-worth individuals, corporations, government entities, and foundations. This segment also provides brokerage offering equities, mutual funds, life insurance, and annuity products. The Treasury and Other segment offers corporate asset and liability management services, such as interest rate risk management and foreign exchange services. Bank of Hawaii Corporation was founded in 1897 and is headquartered in Honolulu, Hawaii. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/18 23:32
    End of Day Share Price2020/01/17 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.