Huntington Bancshares Inc (HBANM) stock analysis

P/E above its 5-year median

Huntington Bancshares's P/E of 12.2 is above its own 5-year median of 12.2.

P/E below the industry

Huntington Bancshares's P/E of 12.2 is below the Commercial Banks median of 12.3.

P/S above the industry

Huntington Bancshares's price-to-sales of 17.63 is above the Commercial Banks median of 3.64.

P/B below the industry

Huntington Bancshares's price-to-book of 0.98 is below the Commercial Banks median of 1.27.

Trading below fair value

The share price of $15.78 is below our fair value estimate of $17.36.

Margin of safety under 20%

The price is 9.1% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 5.8% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -1.4% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 13.6% over the last twelve months, against a 5-year average of 22.0% a year.

Growing faster than the industry

Revenue grew 20.5% over the last twelve months; the Commercial Banks median is 11.4%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

Banks and insurers do not report gross profit.

Return on equity under 15%

Return on equity was 9.0% over the last twelve months and averaged 10.1% over five years; we look for 15% on both.

Return on assets under 1%

Return on assets was 1.0%; for a bank or insurer, 1% or more is considered good.

Return on equity below the industry

Huntington Bancshares's return on equity of 9.0% is below the Commercial Banks median of 11.2%.

Earnings grew over 5 years

Net income grew 22.0% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 133% over the last twelve months, against a 5-year average of 140%.

Net margin above the industry

Huntington Bancshares's net margin of 133% is above the Commercial Banks median of 30.0%.

Well capitalized

Equity is 11.5% of total assets; 8% or more is a comfortable cushion.

Loans funded by deposits

Loans equal 83.7% of deposits, so lending is funded by customer deposits.

Adequate loan-loss reserve

The allowance for credit losses is 1.7% of loans; we look for at least 1%.

High cost base

Non-interest expense takes 64.3% of revenue; under 60% is efficient for a bank.

Deposits growing

Deposits grew 36.2% over the past year.

Modest borrowings

Borrowings other than deposits are 9.5% of equity.

Pays a dividend

Huntington Bancshares paid dividends worth 3.9% of the share price over the last twelve months.

Yield below Treasuries

The 3.9% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 4.0% or more; Huntington Bancshares yields 3.9%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 42.5% of net income.

Covered by free cash flow

Dividends take 38.0% of free cash flow.