Bank Of Hawaii Corp (NYSE: BOH)

Sector: Financial Services Industry: Banks - Regional CIK: 0000046195
Market Cap 2.72 Bn
P/B 1.52
P/E 16.68
P/S 4.01
ROIC (Qtr) 7.53
Div Yield % 6.11
Rev 1y % (Qtr) 12.78
Total Debt (Qtr) 699.89 Mn
Debt/Equity (Qtr) 0.39

About

Bank of Hawaii Corporation, commonly referred to as Bank of Hawaii, is a Delaware corporation and a bank holding company that operates primarily in the financial services industry. The company's main business activities include consumer and commercial banking, investment services, and insurance subsidiaries. Bank of Hawaii operates in Hawaii, Guam, and other Pacific Islands, offering a range of financial products and services to individual consumers, small businesses, and large corporations, as well as government agencies and non-profit organizations. Bank...

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Price action

Investment thesis

Bull case

  • Strong tangible asset base of 23.98B provides 34.27x coverage of total debt 699.89M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 208.98M exceeds capital expenditure of 23.02M by 9.08x, indicating strong organic growth funding capability.
  • Operating cash flow of 232M provides strong 15.39x coverage of stock compensation 15.07M, indicating sustainable incentive practices.
  • Operating cash flow of 232M provides strong 2.55x coverage of operating expenses 91.12M, showing operational efficiency.
  • Retained earnings of 2.18B provide strong 69.11x coverage of intangibles 31.52M, indicating quality earnings retention.

Bear case

  • Operating cash flow of 232M barely covers its investment activities of (438.71M), with a coverage ratio of -0.53, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 232M provides thin coverage of dividend payments of (112.84M) with a -2.06 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Free cash flow of 208.98M represents just -4.13x of debt issuance (50.59M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Retained earnings of 2.18B provide limited buffer against comprehensive income items of (276.25M), which is -7.89x, indicating elevated exposure to market risks.
  • R&D investment of 0 represents just 0x of SG&A expenses of 350.44M, indicating potential underinvestment in innovation relative to administrative overhead.

Peer comparison

Companies in the Banks - Regional
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 USB Us Bancorp \De\ 84.44 Bn 12.40 3.25 77.98 Bn
2 PNC Pnc Financial Services Group, Inc. 84.36 Bn 13.61 3.73 62.34 Bn
3 NU Nu Holdings Ltd. 81.47 Bn 32.21 5.79 4.49 Bn
4 NWG NatWest Group plc 66.53 Bn 9.88 3.05 169.04 Bn
5 TFC Truist Financial Corp 64.60 Bn 13.18 3.53 71.11 Bn
6 MTB M&T Bank Corp 32.73 Bn 12.47 3.60 14.99 Bn
7 FITB Fifth Third Bancorp 31.96 Bn 14.15 3.93 18.94 Bn
8 FCNCA First Citizens Bancshares Inc /De/ 28.98 Bn 12.78 3.26 40.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.11 0.14
EV to Cash from Ops. EV/CFO 11.43 7.21
EV to Debt EV to Debt 3.79 5.20
EV to EBIT EV/EBIT 11.24 14.98
EV to EBITDA EV/EBITDA 9.96 8.92
EV to Free Cash Flow [EV/FCF] EV/FCF 12.69 8.87
EV to Market Cap EV to Market Cap 0.97 1.04
EV to Revenue EV/Rev 3.91 -3.76
Price to Book Value [P/B] P/B 1.52 1.17
Price to Earnings [P/E] P/E 16.68 15.63
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.22 271.44
Dividend Payout Ratio % Div Payout % (Qtr) 85.00 35.28
Dividend per Basic Share Div per Share (Qtr) 3.50 0.89
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 66.41 34.52
Interest Coverage Interest Coverage 0.00 -0.05
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -40.81 -73.15
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 251.98 15.78
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 5.32
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 30.38 110.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 22.09 38.80
EBIT Growth (1y) % EBIT 1y % (Qtr) 26.89 61.46
EBT Growth (1y) % EBT 1y % (Qtr) 26.89 61.37
EPS Growth (1y) % EPS 1y % (Qtr) 23.35 76.34
FCF Growth (1y) % FCF 1y % (Qtr) 132.11 161.72
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 8.56 14.15
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.03 0.04
Cash Payout Ratio Cash Payout (Qtr) 0.48 0.26
Cash Ratio Cash Ratio 0.00 0.00
Current Ratio Current Ratio 0.00 0.01
Debt to Equity Ratio Debt/Equity (Qtr) 0.39 0.53
Interest Cover Ratio Interest Cover Ratio 0.00 -0.05
Times Interest Earned Times Interest Earned 0.00 -0.05
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 39.30 147.97
EBIT Margin % EBIT Margin % (Qtr) 34.82 155.41
EBT Margin % EBT Margin % (Qtr) 34.82 154.66
Gross Margin % Gross Margin % (Qtr) 100.00 97.82
Net Profit Margin % Net Margin % (Qtr) 24.10 115.63