NEW YORK (
) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and weak operating cash flow.
Highlights from the ratings report include:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Commercial Banks industry. The net income has decreased by 24.5% when compared to the same quarter one year ago, dropping from $46.56 million to $35.15 million.
- Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, BOH has underperformed the S&P 500 Index, declining 9.23% from its price level of one year ago. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
- 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.
- BOH, with its decline in revenue, underperformed when compared the industry average of 1.1%. Since the same quarter one year prior, revenues fell by 15.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The gross profit margin for BANK OF HAWAII CORP is currently very high, coming in at 89.80%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, BOH's net profit margin of 22.00% significantly trails the industry average.
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 12.9, 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 $2.2 billion and is part of the
industry. Shares are down 2.3% year to date as of the close of trading on Tuesday.
You can view the full
or get investment ideas from our