Is Bank Of Hawaii (NYSE:BOH) undervalued?

Bank Of Hawaii Earnings before Tax are most likely to increase significantly in the upcoming years. The last year's value of Earnings before Tax was reported at 285.83 Million. The current Average Equity is estimated to increase to about 1.3 B, while Net Income Per Employee is projected to decrease to roughly 90.2 K. As some conservative investors are getting more into financial services space, Bank Of Hawaii could be a your radar. Why are we still confident in hope for a quick recovery. In this post, I will also go over some essential variables affecting Bank Of Hawaii's products, and show how it may impact Bank Of Hawaii outlook for active traders this year.
Published over a year ago
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Reviewed by Gabriel Shpitalnik

The firm shows a Beta (market volatility) of 1.7505, which signifies a somewhat significant risk relative to the market. Let's try to break down what Bank Of Hawaii's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Bank Of Hawaii will likely underperform. Even though it is essential to pay attention to Bank Of Hawaii historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy towards foreseeing any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Bank Of Hawaii exposes twenty-one different technical indicators, which can help you to evaluate its performance. Bank Of Hawaii has an expected return of -0.132%. Please be advised to confirm Bank Of Hawaii jensen alpha, as well as the relationship between the potential upside and skewness to decide if Bank Of Hawaii stock performance from the past will be repeated at some point in the near future.
The performance of Bank of Hawaii in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence Bank of Hawaii's stock prices. When investing in Bank of Hawaii, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, Bank Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as Bank of Hawaii carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.

And What about dividends?

A dividend is the distribution of a portion of Bank of Hawaii earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Bank of Hawaii dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Bank one year expected dividend income is about USD1.87 per share.
The Bank of Hawaii's current Dividends Paid is estimated to increase to about (113.7 M). The current Dividend Yield is estimated to decrease to 0.03.
Last ReportedProjected for Next Year
Dividends Paid-119.7 M-113.7 M
Dividend Yield 0.04  0.03 
Dividend Payout Ratio 0.70  0.35 
Dividend Paid And Capex Coverage Ratio 1.38  1.31 
Investing in dividend-paying stocks, such as Bank of Hawaii is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Bank of Hawaii must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Bank of Hawaii. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Bank of Hawaii's Liquidity

Bank of Hawaii financial leverage refers to using borrowed capital as a funding source to finance Bank of Hawaii ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Bank of Hawaii financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Bank of Hawaii's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Bank of Hawaii's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Bank of Hawaii's total debt and its cash.

What do experts say about Bank?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
Analysis Consensus

A Deeper look at Bank

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Bank Of Hawaii has an asset utilization ratio of 4.11 percent. This implies that the company is making $0.0411 for each dollar of assets. An increasing asset utilization means that Bank Of Hawaii is more efficient with each dollar of assets it utilizes for everyday operations.
 2017 2018 2019 2020 (projected)
PPandE Turnover5.645.094.535.63
Calculated Tax Rate31.1118.7320.9627.41

How will Bank Of Hawaii stockholders react to the next drop?

Current jensen alpha indicator falls down to -0.25. Possible price rise? Bank Of Hawaii shows above-average downside volatility for the selected time horizon. We advise investors to inspect Bank Of Hawaii further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Bank Of Hawaii future alpha.

Our Conclusion on Bank Of Hawaii

While some firms in the banks—regional industry are either recovering or due for a correction, Bank Of Hawaii may not be performing as strong as the other in terms of long-term growth potentials. With a relatively neutral outlook on the current economy, it is better to hold off any trading of Bank Of Hawaii as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Bank Of Hawaii.

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Bank of Hawaii. Please refer to our Terms of Use for any information regarding our disclosure principles.

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