What's Behind the Bearish Analyst Sentiment on Huntington Bancshares (HBAN)?

Huntington Bancshares may be undervalued with mixed growth prospects, but the 17 analysts following the company give it an rating of hold. Their target prices range from $11.0 to $16.0 per share, for an average of $13.03. At today's price of $10.98, Huntington Bancshares is trading -15.69% away from its average target price, suggesting there is an analyst consensus of some upside potential for the stock.

Huntington Bancshares Incorporated operates as the bank holding company for The Huntington National Bank that provides commercial, consumer, and mortgage banking services in the United States. Based in Columbus, OH, the large-cap Finance company has 19,920 full time employees. Huntington Bancshares has not offered a regular dividend during the last year.

Huntington Bancshares has a trailing twelve month P/E ratio of 7.1, compared to an average of 14.34 for the Finance sector. Based on its EPS guidance of 1.38, the company has a forward P/E ratio of 8.0.

The average compound growth rate of the company's historical and projected earnings per share is 1.7%. On this basis, the company's PEG ratio is 4.89, which suggests that it is overpriced.

On the other hand, the market is potentially undervaluing Huntington Bancshares in terms of its book value because its P/B ratio is 1.0. In comparison, the sector average P/B ratio is 1.57. The company's shares are currently -32.8% below their Graham number, indicating that its shares have a margin of safety.

2019-12-31 2020-12-31 2021-12-31 2022-12-31
Revenue (MM) $4,667 $4,815 $5,991 $7,254
Revenue Growth n/a 3.17% 24.42% 21.08%
Net Margins 30.23% 16.97% 21.62% 30.85%
Net Margins Growth n/a -43.86% 27.4% 42.69%
Earnings Per Share $1.27 $0.69 $0.9 $1.55
EPS Growth n/a -45.67% 30.43% 72.22%
Diluted Shares (MM) 1,056 1,033 1,287 1,437
Free Cash Flow (MM) $1,467 $1,204 $1,815 $3,813
FCF Growth n/a -17.93% 50.75% 110.08%
Capital Expenditures (MM) -$107 -$119 -$247 -$214
Net Debt / EBITDA 2.27 0.43 0.26 0.59
The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.