This firm has 207.4
M in debt with debt to equity (D/E) ratio of 6.07, demonstrating that First Hawaiian may be unable to create cash to meet all of its financial commitments.
First Hawaiian has
performance score of 4 on a scale of 0 to 100. The firm shows a Beta (market volatility) of 1.3945, which means a somewhat significant risk relative to the market. Let's try to break down what First'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, First Hawaiian will likely underperform. Although it is extremely important to respect
First Hawaiian historical returns, it is better to be realistic regarding the information on equity current trending patterns. The philosophy towards predicting
future performance of any stock is to evaluate the business as a whole together with its past performance, including all
available fundamental and
technical indicators. By reviewing
First Hawaiian technical indicators, you can presently evaluate if the expected return of 0.083% will be sustainable into the future.
First Hawaiian right now shows a risk of 1.52%. Please confirm First Hawaiian
jensen alpha,
potential upside,
skewness, as well as the
relationship between the
maximum drawdown and
semi variance to decide if First Hawaiian will be following its
price patterns.
First Hawaiian financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of First Hawaiian, including all of First Hawaiian's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of First Hawaiian assets, the company is considered highly leveraged. Understanding the
composition and structure of overall First Hawaiian debt and outstanding corporate bonds gives a good idea of
how risky the capital structure of a business is and if it is worth investing in it. Please read more on our
technical analysis page.
Understanding First Total Debt
First Hawaiian liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. First Hawaiian has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on First Hawaiian balance sheet include debt obligations and money owed to different First Hawaiian vendors, workers, and loan providers. Below is the chart of First main long-term debt accounts currently reported on its balance sheet.
You can use First Hawaiian
financial leverage analysis tool to get a better grip on understanding its financial position
How important is First Hawaiian's Liquidity
First Hawaiian
financial leverage refers to using borrowed capital as a funding source to finance First Hawaiian ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. First Hawaiian 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 First Hawaiian'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 First Hawaiian'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 First Hawaiian's total debt and its cash.
What is the case for First Hawaiian Investors
The current indifference towards the small price fluctuations of First Hawaiian could raise concerns from investors as the firm it trading at a share price of
28.92 on
356,210 in volume. The company directors and management did not add any value to First Hawaiian investors in
September. However, most investors can still diversify their portfolios with First Hawaiian to hedge their inherited risk against high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 1.52. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.
| 2018 | 2019 | 2020 | 2021 (projected) |
Net Income | 264.39 M | 284.39 M | 185.75 M | 228.35 M | Gross Profit | 723.13 M | 752.13 M | 611.4 M | 720.78 M |
Will First investors exit after the slip?
The semi variance is down to 1.24 as of today. First Hawaiian has relatively low volatility with skewness of 1.09 and kurtosis of 1.92. However, we advise all investors to independently investigate First Hawaiian to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure First Hawaiian's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact First Hawaiian's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Our Takeaway on First Hawaiian Investment
Whereas other entities under the banks—regional industry are still a bit expensive, First Hawaiian may offer a potential longer-term growth to investors. With a less-than optimistic outlook for your 90 days horizon, it may be a good time to exit some or all of your First Hawaiian holdings as it seems the potential growth was already fully factored into the current price. 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 First Hawaiian.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile 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 First Hawaiian. Please refer to our
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