Stock Analysis

Bank of Hawaii's(NYSE:BOH) Share Price Is Down 17% Over The Past Year.

  •  Updated
NYSE:BOH
Source: Shutterstock

It is a pleasure to report that the Bank of Hawaii Corporation (NYSE:BOH) is up 35% in the last quarter. But in truth the last year hasn't been good for the share price. The cold reality is that the stock has dropped 17% in one year, under-performing the market.

Check out our latest analysis for Bank of Hawaii

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

Unhappily, Bank of Hawaii had to report a 22% decline in EPS over the last year. The share price fall of 17% isn't as bad as the reduction in earnings per share. So despite the weak per-share profits, some investors are probably relieved the situation wasn't more difficult.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

earnings-per-share-growth
NYSE:BOH Earnings Per Share Growth November 20th 2020

It's probably worth noting we've seen significant insider buying in the last quarter, which we consider a positive. That said, we think earnings and revenue growth trends are even more important factors to consider. Dive deeper into the earnings by checking this interactive graph of Bank of Hawaii's earnings, revenue and cash flow.

What About Dividends?

As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. In the case of Bank of Hawaii, it has a TSR of -14% for the last year. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

Investors in Bank of Hawaii had a tough year, with a total loss of 14% (including dividends), against a market gain of about 22%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Longer term investors wouldn't be so upset, since they would have made 4%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. It's always interesting to track share price performance over the longer term. But to understand Bank of Hawaii better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Bank of Hawaii .

Bank of Hawaii is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

When trading Bank of Hawaii or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted


What are the risks and opportunities for Bank of Hawaii?

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

View Full Analysis

Rewards

  • Trading at 18% below our estimate of its fair value

Risks

  • Earnings are forecast to decline by an average of 4.4% per year for the next 3 years

View all Risks and Rewards

Share Price

Market Cap

1Y Return

View Company Report