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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Huntington Bancshares Incorporated (XNAS:HBAN) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
HBAN
Name:
HUNTINGTON BANCSHARES INCORPORATED (XNAS:HBAN)
Sector:
849.00M
Industry:
-
CEO:
Mr. Thomas Hoaglin
Total Employees:
19,866
Our Technological Advancement Rating
Our Rating:
-
-
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF HUNTINGTON BANCSHARES INCORPORATED(HBAN) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND - INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
13.32
One Month Price Target:
$13.41
Six Month Price Target :
$13.85
Likely Price in One Year's Time:
Ticker:
$14.38
Likely Trading Range Today Under (Normal Volatility)
$13.26
Price Upper limit ($) :
$13.39
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$12.51
This week:
$11.51
This month :
$9.7
Other Primary facts
Market Cap:
18.99B
Market Cap Classification:
Mid Cap
Number of Shares
IPO Date:
1.44B
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
17.73%
-15.02%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$17.08
$15.36
$9.56
$11.28
Medium risk (<10%) entry points
Buy Call
Sell Call
$14.80
Buy Put:
Sell Put:
$14.44
$11.83
$12.20
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
HBAN
Sharpe Ratio:
0.53%
Comparison:
HBAN, is amongst the top 60% stocks with highest risk-adjusted returns
& is -76.64% lower than the market/S&P 500 average
Average Returns/Yield of
HBAN
Daily returns:
0.02%
Weekly returns:
0.12%
Monthly returns:
0.49%
Yearly returns:
Comparison of returns:
Classification:
HBAN, is amongst the top 60% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.16
Statistical test of Returns:
HBAN has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
2.97%
Weekly Volatility:
6.65%
Monthly Volatility:
13.29%
Yearly Volatility:
46.04%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
0.28%
Volatility in last five trading days has been -90.56% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-6.08%
Weekly VaR:
-13.59%
Monthly VaR:
-27.19%
How Much Can the price of
HBAN
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-24%
Worst case (decline):
-94.17%
This translates to price declining to:
$10.15
This translates to price declining to:
$0.78
Severe Crash Probability
Risk of crash in next 6/12 months: Low (<25%)
What is Value at Risk (VaR)?
Risk Fundamentals
HBAN is a 91.88% riskier investment compared to the market/S&P 500 & is 64.38% riskier than Nasdaq (IXIC)
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
HBAN
Beta in relation to market/S&P 500--1.19
Expected beta in 1 year's time:
0.886
Expected beta in 3 year's time:
1.252
Unlevered (debt free) Beta:
0.924
Beta in relation to Nasdaq (XNAS):
0.781
Beta in relation to all global stocks::
0.833
Beta Comparison & Analysis
Beta of competitors/peers::
1.434
Beta is -17.30% lower than peers
Average Industry Beta:
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
-
Alpha provided | Alpha Analysis
Alpha provided:
-0.054
-
Alpha is -341% below the market average
Analysis of Cost of Capital of
HBAN
Equity cost of capital:
0.113
Equity cost of capital is above industry mean WACC
Unlevered (without debt) cost of capital:
8.78%
Before-tax cost of debt:
3.37%
After-tax cost of debt:
2.66%
Overall debt rating:
High AA grade (second highest grade)
Weighted average cost of capital (WACC):
2.66%
-
Key Per-Share Metrics & Analysis
Revenue per share:
$4.35
Revenue growth rate per share of (3Y):
1.04
-
EPS:
$0.72
Expected Annual growth rate of EPS (3Y):
-
-
Free cash flow (FCF) per share:
$1.93
-
-
Debt per share
$4.51
EBITDA per share
$1.52
Valuation Analysis Today of
HBAN
P/E Ratio:
11.9
P/E Ratio of Competitors/Peers:
18.1
-
-
-
Share value as per dividend discount (DDM) model: $13.02
Present value of the expected future dividends only: $5.64
P/S (Price to Sales ratio):
3.06
P/B (Price to book value ratio):
1.04
Price to free cash flow: 6.89
-
Net income growth rate (3Y):
-
Dividend Analysis
Dividend payout rate: 2.29%
Dividend yeild: 4.62%
Previous Dividend: $0.16
Previous adjusted dividend: $0.16
Previous Dividend: $0.62
Expected next dividend best case: $0.16
Expected next dividend worst case: $0.15
Average dividend payment (long-term): $0.15
Average dividend increase/decrease (growth rate) % per period: 0.33%
Expected next dividend payment date: 29/09/2022
Expected next dividend record date: 15/09/2022
-
Previous dividend payment date: 07/01/2022
Previous dividend record date: 17/06/2022
-
Dividend History:
2022-06-16--$0.16
2021-12-16--$0.16
2021-06-16--$0.15
2022-03-17--$0.16
2021-09-16--$0.15
2021-03-17--$0.15
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
35.27%
Net debt to equity ratio:
13.75%
Debt to assets ratio:
3.68%
Net debt to assets ratio:
1.44%
-
Ability to repay debt:
Interest coverage ratio:
9.1
-
Looking forward:
Debt growth rate:
-
-
Debt repayment rate in last quarter: 3.30%
Analysis of Key Statistics
Correlation of price movement with the market:
0.639
Statistical significance of correlation:
HBAN has a statistically significant correlation with the market
Average Correlation of the industry with the market:
R Squared (percentage of price movement explained by movement of the market):
Correlation of price movement with Nasdaq (^IXIC):
0.042
Covariance of price movement with the market:
0.072
Kurtosis
5.089
Returns have moderate fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
0.282
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
HBAN
Gross Profit Margin Ratio:
100%
Operating Profit Margin Ratio:
-
-
Net Profit Margin Ratio:
100%
Effective Tax Rate:
19.49%
-
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
6.63%
Financial Leverage
Asset Turnover Ratio (ROA):
0.69%
Financial Leverage:
1.0x
Current Ratio:
2.63
-
Cash Conversion Cycle (days):
-
-
The remaining useful life of property plant & equipment is: 6.6 years
Stock based compensation to net income ratio:
3.27%
In-depth Efficiency Analysis
Revenue generated per employee:
315.6K
-
EBITDA generated per employee:
110.4K
-
Profit generated per employee:
61.6K
-
Free cash flow (FCF) generated per employee:
42.7K
-
Assets/Capital per employee
2.6M
-
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
HBAN
ANZU SPECIAL ACQUISITION I UNT (XNAS:ANZUU)
GRAB HOLDINGS LIMITED (XNAS:GRAB)
CMLFU
HBANN
Signature Bank (XNAS:SBNY)
TRADEWEB MARKETS INC. (XNAS:TW)
Willis Towers Watson Public Limited Company (XNAS:WTW)
PRINCIPAL FINANCIAL GROUP, INC. (XNAS:PFG)
FIFTH THIRD BANCORP (XNAS:FITBI)
Current Analyst Ratings
Strong buy�29%
Buy�33%
Hold�46%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Hold
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
6.27B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
-
1.65B
-
2.33B
2.42B
91.00M
- 598000.00K
21.00M
4.52B
241.00M
432.00M
2.19B
-
1.22B
1.52B
297.00M
1.22B
Statement of Cash Flow
Date:
Period:
112.00M
Differed Income Tax :
52.00M
Stock Based Compensation :
40.00M
Change in Working Capital :
- 124829000.00K
Accounts Receivables:
-
Other Working Capital:
1.06B
Other Non-Cash Items:
125.01B
Net Cash Provided by Operating Activities:
849.00M
Investments in PP&E:
-
Net Acquisitions:
-
Purchases of Investments:
- 3866000.00K
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
4.62B
25.15B
29.77B
7.12B
-
- 35182000.00K
1.71B
1.17B
5.35B
665.00M
43.47B
-
-
50.66B
225.80B
176.86B
-
652.00M
567.00M
-
-
652.00M
6.51B
-
6.51B
164.23B
158.38B
14.00M
2.41B
- 1314000.0K
15.18B
March 31, 2022 at 6:00:00 AM
-
18.45B
176.83B
68.62B
7.16B
2.5B
-
- 1489000.00K
- 5355000.00K
- 222000.00K
-
-
- 28000.00K
3.76B
3.51B
-
- 998000.00K
4.52B
5.52B
849.00M
-
849.00M
Our Proprietary Portfolio Rating
Our Rating:
-
Price Forecast/Expected Price in Next 5 Years of
HBAN
2023
2024
2025
2026
2027
$10.79
$11.64
$12.57
$13.58
$14.66