10Y annualized return is
positive but below market average
at 3.0% per year
HBAN has met or exceeded earnings expectations in
all
recent quarters (10/10)
Attractive P/E Ratio
Reasonable Price to Sales Ratio
Strong Net Profit Margin
Good Return on Equity
Low Debt to Equity Ratio
Strong Cash Position
📈 Strong Financial Performance
🏦 Effective Risk Management
🌍 Geographic Expansion and Market Penetration
🚀 Growth Momentum into 2025
💡 Strategic Focus on Fee Income
🔒 Stable Credit Environment
High EV/EBITDA Ratio
Low Price to Free Cash Flow Ratio
Moderate Operating Profit Margin
Low Gross Profit Margin
Liquidity Concerns
High Interest Coverage Ratio
Huntington Bancshares exhibits strong business quality through effective risk management and financial performance, while its future prospects look promising with growth initiatives and a focus on fee income. The bank's strategic investments and market expansion provide a solid foundation for ongoing success.
Analysis Date: January 17, 2025
Last Updated: March 12, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Huntington Bancshares Incorporated is a bank that helps people and businesses manage their money. They offer services like checking and savings accounts, loans for homes and cars, and credit cards. They also provide help for businesses, such as loans and financial advice. With branches in many states, they make banking easy for customers, whether online or in person.
Streams of revenue
Geographic Distribution
Estimations for reference only
Core Products
Business Type
Business to Consumer
Competitive Advantages
Key Business Risks
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$51.46
Current Market Price: $12.68
IV/P Ratio: 4.06x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
75.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for HBAN
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (9.43)
P/B ratio ≤ 1.5 (0.93)
Current ratio ≥ 2.0
Long-term debt < Net current assets
Margin of safety (75.0%)
HBAN does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
10.20%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-30)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
105.20%
Higher values indicate better efficiency in production
TTM (as of 2025-04-30)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
18.81%
Higher values indicate better overall profitability
TTM (as of 2025-04-30)
With a net profit margin of 18.81%, HBAN demonstrates effective cost management and profitability relative to its revenue.
A return on equity (ROE) of 9.80% indicates that the company is generating a reasonable return on shareholders' equity.
The operating profit margin of 17.92% suggests that while the company is profitable, there may be room for improvement in operational efficiency.
A gross profit margin of 1.05 indicates that the company may face challenges in managing its production costs.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.83x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
HBAN: No data available
The debt to equity ratio of 0.83 implies that the company is not overly reliant on debt for financing, indicating a healthier capital structure.
Cash per share stands at 11.86, which indicates that the company has a solid cash position to support operations and growth.
The current ratio and quick ratio at 0.0 indicate potential liquidity issues, suggesting that the company may struggle to meet short-term obligations.
With an interest coverage ratio of only 0.40, the company's ability to pay interest expenses is a concern, indicating potential financial strain.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
Huntington Bancshares demonstrated a significant financial performance with record fee revenues and strong growth in loans and deposits. The bank reported a ROTCE of 16.4% and a tangible book value increase of 6.9% year-over-year.
The bank maintains a disciplined approach to client selection and portfolio management, resulting in strong credit performance with net charge-offs stable at 30 basis points. This reflects a moderate-to-low risk appetite.
Huntington Bancshares has successfully expanded into new markets, including North and South Carolina and Texas, while also enhancing its service offerings in wealth management and payments.
The bank is poised for continued growth with expected loan increases between 5% and 7% and deposit growth of 3% to 5%. The organization also anticipates record net interest income for 2025.
Huntington's focus on enhancing fee revenue businesses, such as payments and wealth management, is expected to drive non-interest income growth between 4% and 6% for 2025.
Huntington's strong credit performance and stable asset quality position the bank well to handle future economic uncertainties while still pursuing growth.