📊 HTH Key Takeaways
Is Hilltop Holdings Inc. (HTH) a Good Investment?
Hilltop Holdings demonstrates strong revenue growth (+77.9% YoY) but exhibits concerning operational deterioration with declining net income (-3.7% YoY), severely negative free cash flow (-$133.9M), and very weak returns on capital (ROE 1.8%). The fundamental disconnect between revenue growth and profitability decline, combined with negative cash generation and critically low interest coverage (0.5x), indicates structural operational problems.
Hilltop exhibits solid underlying profitability (28.2% operating margin, 21.1% net margin) and sound capitalization with low long-term leverage, supporting a 1.0% ROA. However, despite a sharp revenue surge and strong EPS growth, net income declined YoY and free cash flow is negative, raising questions about earnings quality and durability of growth.
Why Buy Hilltop Holdings Inc. Stock? HTH Key Strengths
- Strong revenue growth at 77.9% YoY demonstrates market expansion and business development success
- Very low leverage with Debt/Equity of 0.07x and $150M long-term debt provides significant financial flexibility
- Solid operating margins at 27.4% and adequate cash reserves of $892.5M provide near-term operational runway
- Strong operating and net margins support core profitability
- Healthy capitalization and conservative leverage (D/E 0.07x)
- Bank-like ROA (~1.0%) with notable EPS growth
HTH Stock Risks: Hilltop Holdings Inc. Investment Risks
- Severely negative free cash flow of -$133.9M is unsustainable without capital injections and signals structural operational problems
- Net income declining 3.7% YoY despite 77.9% revenue growth indicates deteriorating profitability and potential asset quality concerns
- Critically low returns on capital (ROE 1.8%, ROA 0.2%) and interest coverage of 0.5x suggest inadequate earnings power to support the capital structure
- Earnings quality concerns: net income down YoY and negative FCF
- Rate sensitivity/earnings volatility implied by 2.1x interest coverage
- Sustainability risk from outsized 77.9% revenue growth
Key Metrics to Watch
- Operating Cash Flow and Free Cash Flow trajectory - must return to positive to validate business sustainability
- Net Margin and Return on Equity trends - critical indicators of profitability recovery
- Interest Coverage Ratio - must improve well above 1.0x threshold for financial safety
- Provision for credit losses and net charge-offs
- Net interest margin (NIM) and funding costs
Hilltop Holdings Inc. (HTH) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
HTH Profit Margin, ROE & Profitability Analysis
HTH vs Finance Sector: How Hilltop Holdings Inc. Compares
How Hilltop Holdings Inc. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Hilltop Holdings Inc. Stock Overvalued? HTH Valuation Analysis 2026
Based on fundamental analysis, Hilltop Holdings Inc. has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Hilltop Holdings Inc. Balance Sheet: HTH Debt, Cash & Liquidity
HTH Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Hilltop Holdings Inc.'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $1.69 reflects profitable operations.
HTH Revenue Growth, EPS Growth & YoY Performance
HTH Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2012 | $40.6M | $248.0K | $0.00 |
| Q2 2012 | $36.5M | -$10.4M | $-0.18 |
| Q1 2012 | $34.7M | $343.0K | $0.01 |
| Q3 2011 | $33.9M | $248.0K | $0.00 |
| Q2 2011 | $32.9M | -$2.1M | $-0.09 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Hilltop Holdings Inc. Dividends, Buybacks & Capital Allocation
HTH SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Hilltop Holdings Inc. (CIK: 0001265131)
📋 Recent SEC Filings
❓ Frequently Asked Questions about HTH
What is the AI rating for HTH?
Hilltop Holdings Inc. (HTH) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 68% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are HTH's key strengths?
Claude: Strong revenue growth at 77.9% YoY demonstrates market expansion and business development success. Very low leverage with Debt/Equity of 0.07x and $150M long-term debt provides significant financial flexibility. ChatGPT: Strong operating and net margins support core profitability. Healthy capitalization and conservative leverage (D/E 0.07x).
What are the risks of investing in HTH?
Claude: Severely negative free cash flow of -$133.9M is unsustainable without capital injections and signals structural operational problems. Net income declining 3.7% YoY despite 77.9% revenue growth indicates deteriorating profitability and potential asset quality concerns. ChatGPT: Earnings quality concerns: net income down YoY and negative FCF. Rate sensitivity/earnings volatility implied by 2.1x interest coverage.
What is HTH's revenue and growth?
Hilltop Holdings Inc. reported revenue of $184.3M.
Does HTH pay dividends?
Hilltop Holdings Inc. pays dividends, with $11.8M distributed to shareholders in the trailing twelve months.
Where can I find HTH SEC filings?
Official SEC filings for Hilltop Holdings Inc. (CIK: 0001265131) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HTH's EPS?
Hilltop Holdings Inc. has a diluted EPS of $0.64.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is HTH a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Hilltop Holdings Inc. has a SELL rating with 68% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is HTH stock overvalued or undervalued?
Valuation metrics for HTH: ROE of 1.8% (sector avg: 12%), net margin of 20.5% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
Should I buy HTH stock in 2026?
Our dual AI analysis gives Hilltop Holdings Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is HTH's free cash flow?
Hilltop Holdings Inc.'s operating cash flow is $-127.3M, with capital expenditures of $6.6M. FCF margin is -72.7%.
How does HTH compare to other Finance stocks?
Vs Finance sector averages: Net margin 20.5% (avg: 25%), ROE 1.8% (avg: 12%), current ratio N/A (avg: 1.2).