HUNTINGTON BANCSHARES INC /MD/ (HBAN) Stock Analysis
HUNTINGTON BANCSHARES INC /MD/ (HBAN) Stock Analysis
Overall Grade: F (Concerning)
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HUNTINGTON BANCSHARES INC /MD/ faces challenges in financial performance that warrant careful analysis.
Key Metrics:
| Metric | Value | Context |
|---|---|---|
| ROIC | N/A | Below expectations |
| FCF Margin | 141.8% | Strong cash generation |
| Debt/Equity | 0.1x | Conservative leverage |
Investment Thesis: Healthy free cash flow margin of 141.8% provides financial flexibility for growth and shareholder returns.
What is HUNTINGTON BANCSHARES INC /MD/'s Profitability and ROIC?
HUNTINGTON BANCSHARES INC /MD/'s return on invested capital of N/A is below the typical cost of capital.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Return on Invested Capital (ROIC) | N/A | Red flag | Below cost of capital |
| Return on Equity (ROE) | 9.7% | Adequate | Moderate equity returns |
How Strong is HUNTINGTON BANCSHARES INC /MD/'s Cash Flow Quality?
HUNTINGTON BANCSHARES INC /MD/ generated $2.2B in free cash flow over the trailing twelve months, representing a 141.8% margin. Cash earnings quality is strong, with operating cash flow exceeding net income by 1.2x.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Free Cash Flow Margin | 141.8% | Excellent | Excellent cash conversion |
| Free Cash Flow (TTM) | $2.2B | Good | Positive cash generation |
| OCF/Net Income | 1.2x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
What is HUNTINGTON BANCSHARES INC /MD/'s Financial Health?
HUNTINGTON BANCSHARES INC /MD/ maintains a net cash position of $12.2B, providing significant financial flexibility.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Debt to Equity | 0.1x | Excellent | Conservative capital structure |
| Net Cash Position | $12.2B | Excellent | Net cash positive |
Is HUNTINGTON BANCSHARES INC /MD/ Stock Overvalued or Undervalued?
HUNTINGTON BANCSHARES INC /MD/ trades at a P/E of 12.4x, representing a premium to the sector median of N/A. Free cash flow yield of 8.6% offers attractive cash returns.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| P/E Ratio | 12.4x | Adequate | Reasonable valuation |
| EV/Sales | 8.5x | Adequate | Growth premium priced in |
| FCF Yield | 8.6% | Excellent | Attractive cash return |
| Dividend Yield | 3.6% | Adequate | Meaningful income |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Free Cash Flow Margin | 141.8% | Top 5% | 6.4x above |
| Return on Equity (ROE) | 9.7% | Bottom 50% | 0.9x below |
| P/E Ratio | 12.4x | N/A | - |
Rating Thresholds
Free Cash Flow Margin
The percentage of revenue converted to free cash flow. Higher margins indicate stronger cash generation and business quality.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 20% | Strong cash generation, high-quality business |
| Good | 10% - 20% | Healthy cash conversion |
| Adequate | 5% - 10% | Moderate cash generation |
| Warning | 0% - 5% | Thin cash margins, capital intensive |
| Red flag | < 0% | Cash burn, potential liquidity concerns |
Current: 141.8% (Excellent - Top 5% of sector (median: 22.2%))
Debt to Equity Ratio
Total debt divided by shareholders' equity. Lower ratios indicate more conservative financing and reduced financial risk.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | < 0.3x | Conservative leverage, strong balance sheet |
| Good | 0.3x - 0.7x | Moderate leverage, healthy financial position |
| Adequate | 0.7x - 1.5x | Elevated leverage, monitor closely |
| Warning | 1.5x - 3.0x | High leverage, increased financial risk |
| Red flag | > 3.0x | Excessive leverage, potential distress risk |
Current: 5.2% (Excellent)
P/E Ratio (Price-to-Earnings)
Stock price divided by earnings per share. Lower P/E may indicate undervaluation, while higher P/E suggests growth expectations.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | < 15x | Attractively valued, potential opportunity |
| Good | 15x - 25x | Fair value for quality company |
| Adequate | 25x - 35x | Growth premium, justify with earnings growth |
| Warning | 35x - 50x | High expectations priced in |
| Red flag | > 50x or negative | Speculative valuation or losses |
Current: 12.4x (Adequate)
Free Cash Flow Yield
Free cash flow per share divided by stock price. Higher FCF yield indicates better cash return relative to valuation.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 8% | High cash return, potential value opportunity |
| Good | 5% - 8% | Solid cash yield |
| Adequate | 3% - 5% | Moderate cash return |
| Warning | 1% - 3% | Low cash yield, growth expectations |
| Red flag | < 1% | Minimal cash return to shareholders |
Current: 8.6% (Excellent)
Frequently Asked Questions
Q: What is HUNTINGTON BANCSHARES INC /MD/'s Return on Invested Capital (ROIC)?
HUNTINGTON BANCSHARES INC /MD/ (HBAN) has a trailing twelve-month Return on Invested Capital (ROIC) of N/A. This compares below the sector median of 9.2%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is HUNTINGTON BANCSHARES INC /MD/'s Free Cash Flow Margin?
HUNTINGTON BANCSHARES INC /MD/ (HBAN) has a free cash flow margin of 141.8%, generating $2.2 billion in free cash flow over the trailing twelve months. A FCF margin above 20% indicates excellent cash conversion and a high-quality business model.
Q: Is HUNTINGTON BANCSHARES INC /MD/ stock overvalued or undervalued?
HUNTINGTON BANCSHARES INC /MD/ (HBAN) trades at a P/E ratio of 12.4x, which is above the sector median of N/A. The EV/Sales multiple is 8.5x. Free cash flow yield is 8.6%, which represents an attractive cash return to investors.
Q: Does HUNTINGTON BANCSHARES INC /MD/ pay a dividend?
HUNTINGTON BANCSHARES INC /MD/ (HBAN) currently pays a dividend yield of 3.6%. Including share buybacks, the total shareholder yield is 3.6%. This yield is moderate, suggesting a balance between income and growth reinvestment.
Q: What is HUNTINGTON BANCSHARES INC /MD/'s revenue and earnings growth?
HUNTINGTON BANCSHARES INC /MD/ (HBAN) grew revenue by 6.4% year-over-year. Earnings per share increased by 13.0% compared to the prior year. Modest growth indicates a mature business with stable demand.
Q: How does HUNTINGTON BANCSHARES INC /MD/ compare to competitors in Financials?
Compared to other companies in Financials, HUNTINGTON BANCSHARES INC /MD/ (HBAN) shows: ROIC of N/A is below the sector median of 9.2% (NaNx median). FCF margin of 141.8% exceeds the sector median of 22.2% (Top 0% of sector). These rankings are based on MetricDuck's analysis of all Financials companies with available SEC filings.
Q: What warning signs should I watch for with HUNTINGTON BANCSHARES INC /MD/?
HUNTINGTON BANCSHARES INC /MD/ (HBAN) shows no major financial warning signs based on current metrics. However, investors should always monitor: 1) Margin compression trends, 2) Cash flow consistency, 3) Debt levels relative to cash generation, and 4) Changes in competitive positioning.
Data Source: Data sourced from 10-Q filed 2025-10-28. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
This analysis is for informational purposes only and does not constitute investment advice.