MeritValue

FIRST HAWAIIAN, INC.

FHBdata completeness 100%12 fiscal years on file
The thesis, from the filings

FIRST HAWAIIAN, INC. earns about 35% on invested capital, far above its ~9% cost of capital, and has bought back 3% of its shares over 5 years — the marks of a durable business run for its owners. The estimate methods put fair value between $21.94 and $44.64 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$715.5M1$793.1M2$836.9M3$808.5M3$880.8M3
Net income$265.7M4$265.7M5$235M6$230.1M6$276.3M6
Operating cash flow$417.1M7$430.6M8$255M9$317.5M9$335.1M9
Capital expenditure$20.5M10$13.3M11$16M12$28.8M12$31.8M12
Free cash flow (derived)$396.7M7$417.3M8$239M9$288.7M9$303.3M9
Total debt—$75M13$500M14$250M15$015
Cash & equivalents$1.26B16$526.6M17$1.74B17$1.17B17$1.48B17
Diluted shares129.5M128.0M127.9M128.3M125.5M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$220.65
your share of equity
Profit it earned you last year
$22.01
Free cash flow it threw off
$24.16
Debt you’d be carrying
$0

10 shares is a claim on $220.65 of net worth that earned you $22.01 and generated $24.16 of cash last year, against $0 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
35% avg · 5y
FY21 20%FY22 17%FY23 36%FY24 42%FY25 61%

It earned about 35% on invested capital, year after year, against a ~9% cost of capital — the footprint of real pricing power. Competition usually drags returns like this back down; here it hasn't.

seeing a moat in the numbers →
Management signal · capital allocation
−3% shares · 5y

Share count is down 3% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has fallen 100% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $21.94 and $44.64 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$42.17
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth0.0%
  • fcfBase$288.7M
DCF · Growth Exit 5Y
$44.64
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth0.0%
  • fcfBase$288.7M
Earnings Power Value
$21.94
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$265.7M
  • growthAssumed0.0%
Graham Number
$33.05
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years0.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $44.64
The three cases
Bear0.0%$44.64
Base0.0%$44.64
Bull5.0%$52.6

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 0.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001558370-24-001995 (Revenues)
  2. 10-K · period ending 2022-12-31 · accession 0001558370-25-001943 (Revenues)
  3. 10-K · period ending 2023-12-31 · accession 0001104659-26-021544 (Revenues)
  4. 10-K · period ending 2021-12-31 · accession 0001558370-24-001995 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001558370-25-001943 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001104659-26-021544 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001558370-24-001995 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001558370-25-001943 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001104659-26-021544 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001558370-24-001995 (PaymentsToAcquireProductiveAssets)
  11. 10-K · period ending 2022-12-31 · accession 0001558370-25-001943 (PaymentsToAcquireProductiveAssets)
  12. 10-K · period ending 2023-12-31 · accession 0001104659-26-021544 (PaymentsToAcquireProductiveAssets)
  13. 10-K · period ending 2022-12-31 · accession 0001558370-24-001995 (ShortTermBorrowings)
  14. 10-K · period ending 2023-12-31 · accession 0001558370-25-001943 (ShortTermBorrowings)
  15. 10-K · period ending 2024-12-31 · accession 0001104659-26-021544 (ShortTermBorrowings)
  16. 10-K · period ending 2021-12-31 · accession 0001558370-25-001943 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)
  17. 10-K · period ending 2022-12-31 · accession 0001104659-26-021544 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)