Many investors define successful investing as beating the market average over the long term. But if you try your hand at stock picking, you risk returning less than the market. We regret to report that long term Bank of Hawaii Corporation (NYSE:BOH) shareholders have had that experience, with the share price dropping 33% in three years, versus a market return of about 22%.
Now let’s have a look at the company’s fundamentals, and see if the long term shareholder return has matched the performance of the underlying business.
View our latest analysis for Bank of Hawaii
To quote Buffett, ‘Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace…’ One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.
During the three years that the share price fell, Bank of Hawaii’s earnings per share (EPS) dropped by 5.1% each year. This reduction in EPS is slower than the 12% annual reduction in the share price. So it seems the market was too confident about the business, in the past.
The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).
It might be well worthwhile taking a look at our free report on Bank of Hawaii’s earnings, revenue and cash flow.
As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. As it happens, Bank of Hawaii’s TSR for the last 3 years was -24%, which exceeds the share price return mentioned earlier. This is largely a result of its dividend payments!
It’s nice to see that Bank of Hawaii shareholders have received a total shareholder return of 29% over the last year. Of course, that includes the dividend. There’s no doubt those recent returns are much better than the TSR loss of 2% per year over five years. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For instance, we’ve identified 1 warning sign for Bank of Hawaii that you should be aware of.
We will like Bank of Hawaii better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.
Find out whether Bank of Hawaii is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.
View the Free Analysis
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Find out whether Bank of Hawaii is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.
View the Free Analysis
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
Anyone who’s grown up in the Islands has either given, received or marveled at a piece of Hawaiian heirloom jewelry, the highly ornate, hand-engraved bracelets and pendants emblazoned with Hawaiian names or initials in an Old English-style font.
But where did this jewelry and its unique style come from?
Turns out the first Hawaiian bracelet was made in 1862 for the young Lydia Park, who later became Queen Liliʻuokalani, the last sovereign monarch of the Hawaiian Kingdom. The bracelet, which is now at ʻIolani Palace on Oʻahu, is inscribed with the words, “Hoomanao Mau,” which translates to “a lasting remembrance.” It was handcrafted by Honolulu-based jeweler Christian Eckart and emulated English Victorian designs popular at the time.
Photo: Aaron K. Yoshino
Since then, the Hawaiian bracelet has evolved to include tropical flower designs, raised lettering and scalloped edges. Today—more than a century and a half later—Hawaiian heirloom jewelry is still a symbol of love and friendship.
This story was originally published in our SPRING 2023 Issue. Buy a copy here. Better yet, subscribe and get HAWAIʻI Magazine delivered to right to your mailbox.
Catherine Toth Fox is the former editor of HAWAIʻI Magazine and continues to contribute to the website and print publication.
A 35-year-old man was taken to a hospital in serious condition early this morning after an apparent stabbing on Waterhouse Street in Kalihi, according to Honolulu Emergency Medical Services.
At about 2 a.m. today, EMS crews co-responded to the incident and treated the man for multiple injuries, including at least one to his upper body. He was transported to an emergency room for further care.
No other details were immediately available.
Hawaii’s most active and popular volcano, Kilauea, is preparing to put on a show as geologists forecast the volcano’s 44th eruption in the coming days.
The United States Geological Survey said that precursory eruption activity is occurring as the active volcano prepares to erupt – one of Earth’s most captivating natural spectacles.
According to the USGS, the forecast for the start of episode 44 is between April 6 to April 14.
On Saturday morning, the south vent overflowed at 6:11 a.m. HST, with lava flowing from the south vent at least 10 times through small dome fountains.
One of the most active volcanoes in the world, Kilauea has been erupting episodically within its summit caldera since December 23, 2024 – and is preparing to do so for the 44th time in the coming days.
Eruption episodes at Kilauea typically last from a few hours to one day, with some lasting up to 8 ½ days of lava flow.
When the volcano comes alive, it is a sight to behold.
Fountains of red to yellow lava shoot more than 1,000 feet in the air out of boiling lakes of lava – a scene that annually attracts crowds of tourists to Hawaiʻi Volcanoes National Park to witness the phenomenon.
For those fortunate enough to witness a Kilauea eruption, the natural spectacle is as dangerous as it is mesmerizing.
According to the USGS, the volcano lets off threatening hazardous gases, especially to those with heart or respiratory issues, infants, children and pregnant women.
When the volcano is erupting, unsafe ash is abrasive and can irritate eyes, skin and the respiratory system.
Can’t make the trip to Hawaii to witness the 44th episode? Don’t worry.
The USGS operates several live webcams at Kilauea, streaming continuously on their website—stay tuned for any signs of eruption. You won’t want to miss it.
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