Rating Change #3
Bank of Hawaii Corporation (BOH) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its expanding profit margins, good cash flow from operations, growth in earnings per share and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- The gross profit margin for BANK OF HAWAII CORP is currently very high, coming in at 90.90%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 27.10% trails the industry average.
- Net operating cash flow has significantly increased by 60.11% to $86.66 million when compared to the same quarter last year. Despite an increase in cash flow of 60.11%, BANK OF HAWAII CORP is still growing at a significantly lower rate than the industry average of 289.99%.
- BANK OF HAWAII CORP's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, BANK OF HAWAII CORP increased its bottom line by earning $3.80 versus $3.00 in the prior year. For the next year, the market is expecting a contraction of 11.3% in earnings ($3.37 versus $3.80).
- BOH, with its decline in revenue, slightly underperformed the industry average of 2.6%. Since the same quarter one year prior, revenues slightly dropped by 9.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Commercial Banks industry and the overall market, BANK OF HAWAII CORP's return on equity exceeds that of both the industry average and the S&P 500.
Bank of Hawaii Corporation operates as the holding company for Bank of Hawaii that provides a range of financial services and products in Hawaii, Guam, and other Pacific Islands. The company operates in four segments: Retail Banking, Commercial Banking, Investment Services, and Treasury. The company has a P/E ratio of 11.7, equal to the average banking industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Bank of Hawaii has a market cap of $1.84 billion and is part of the financial sector and banking industry. Shares are down 16.2% year to date as of the close of trading on Friday.You can view the full Bank of Hawaii Ratings Report or get investment ideas from our investment research center.