HWC

We rate HANCOCK WHITNEY CORP (HWC) as a Reduce with a composite score of 48.4/100 at a current price of $66.85. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential and elevated risk of underperformance relative to peers over the next 12 months.

The rating is primarily driven by strength in momentum (72th percentile) and stability (52th percentile), which together account for the majority of the composite score. Offsetting weakness in quality (29th percentile) and value (41th percentile) tempers our overall conviction. We assign a No Moat rating (32/100), Medium uncertainty, and Exemplary capital allocation.

Key items to watch: whether strong momentum is fundamentally supported by revenue trends. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.

HANCOCK WHITNEY CORP holds a top-quartile position (#0 of 50) within the Finance, Insurance, And Real Estate sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 48.4/100 places it at rank #2263 in our full 7,333-stock universe. At $5.3B in market capitalization, HANCOCK WHITNEY CORP is a mid-cap player in the Finance, Insurance, And Real Estate space, which limits certain scale advantages but may allow for more agile strategic execution.

Despite positive momentum (72th percentile), revenue contraction of -4% creates a divergence between price action and fundamental trajectory. This divergence suggests either that the market is looking through near-term weakness or that technical factors are temporarily inflating the stock. Investors should assess whether the revenue decline reflects cyclical weakness or structural challenges.

The margin cascade tells an important story: gross margins of 0% (-76.5pp vs sector) narrow to operating margins of 37% (+19.6pp vs sector) and net margins of 29.1%, yielding a gross-to-net conversion rate of N/A%. The significant margin erosion from gross to net suggests elevated operating expenses, high interest costs, or other structural drags that warrant monitoring.

At a current price of $66.85, HANCOCK WHITNEY CORP is trading near fair value based on current fundamentals. Our value factor score of 41/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. Valuation metrics are mixed, with no strong signal of mispricing in either direction.

The stock currently trades at a P/E of 11.9x (roughly in line with the sector median of 11.9x), EV/EBITDA of 9.8x (at a premium), P/B of 1.3x, P/S of 3.5x. The below-sector P/E suggests possible undervaluation or the market pricing in near-term headwinds.

We assign a Medium uncertainty rating to HANCOCK WHITNEY CORP. The stock presents a balanced risk profile: weak quality scores (29th percentile). While not risk-free, the core business fundamentals are adequate to withstand moderate economic stress, and the range of potential outcomes around our fair value estimate is manageable.

Specific risk factors that inform our assessment include: weak quality scores (29th percentile). Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 52th percentile and quality factor at the 29th percentile provide a quantitative summary of the overall risk landscape.

Key risk mitigants include: conservative leverage (5% D/E) limits balance sheet risk; a 2.80% dividend yield anchors total return. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile is favorable for long-term investors.

We rate HANCOCK WHITNEY CORP's capital allocation as Exemplary. Management demonstrates a strong track record of balancing reinvestment with shareholder returns, evidenced by disciplined leverage (5% D/E), a 2.80% dividend yield, best-in-class net margins of 29.1%. Exemplary allocators typically generate returns on equity above 20% while maintaining debt-to-equity below 50% — HANCOCK WHITNEY CORP approaches this high bar.

The balance sheet remains conservatively managed, providing financial flexibility for opportunistic investments while maintaining a margin of safety for shareholders. The company returns capital via a 2.80% dividend yield, and the combination of 1.3% return on assets and controlled leverage suggests management is deploying capital at rates well above the cost of capital — the hallmark of exemplary stewardship.

In summary, HANCOCK WHITNEY CORP receives a Reduce rating with a composite score of 48.4/100 (rank #2263 of 7,333). Our quantitative framework assigns a No Moat (32/100, trend: stable), Medium uncertainty, and Exemplary capital allocation. The average factor score across quality, value, momentum, stability, and investment is 47/100.

Our analysis does not support a constructive view on HANCOCK WHITNEY CORP at this time. The combination of limited competitive advantages, medium uncertainty, and exemplary capital allocation suggests unfavorable risk-reward at current levels. We recommend investors avoid new positions and existing holders consider reducing exposure.