DB:BO8

Stock Analysis Report

Executive Summary

Bank OZK provides retail and commercial banking services to businesses, individuals, and non-profit and governmental entities.

Snowflake

Fundamentals

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Bank OZK's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.9%

BO8

4.2%

DE Banks

1.7%

DE Market


1 Year Return

19.2%

BO8

-26.4%

DE Banks

7.2%

DE Market

Return vs Industry: BO8 exceeded the German Banks industry which returned -26.4% over the past year.

Return vs Market: BO8 exceeded the German Market which returned 7.2% over the past year.


Shareholder returns

BO8IndustryMarket
7 Day3.9%4.2%1.7%
30 Day8.3%-0.6%2.4%
90 Day-4.8%-7.4%2.3%
1 Year23.4%19.2%-24.1%-26.4%10.6%7.2%
3 Year-17.7%-23.0%-4.2%-8.9%18.4%8.1%
5 Year6.9%-2.8%-10.2%-32.1%42.3%22.9%

Price Volatility Vs. Market

How volatile is Bank OZK's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Bank OZK undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BO8 (€26.4) is trading below our estimate of fair value (€60.74)

Significantly Below Fair Value: BO8 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BO8 is good value based on its PE Ratio (8.8x) compared to the Banks industry average (16x).

PE vs Market: BO8 is good value based on its PE Ratio (8.8x) compared to the German market (19x).


Price to Earnings Growth Ratio

PEG Ratio: BO8's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: BO8 is overvalued based on its PB Ratio (0.9x) compared to the DE Banks industry average (0.8x).


Next Steps

Future Growth

How is Bank OZK forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

-3.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BO8's earnings are forecast to decline over the next 3 years (-3.8% per year).

Earnings vs Market: BO8's earnings are forecast to decline over the next 3 years (-3.8% per year).

High Growth Earnings: BO8's earnings are forecast to decline over the next 3 years.

Revenue vs Market: BO8's revenue (1.5% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: BO8's revenue (1.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BO8's Return on Equity is forecast to be low in 3 years time (8.9%).


Next Steps

Past Performance

How has Bank OZK performed over the past 5 years?

26.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BO8's earnings have grown significantly by 26.5% per year over the past 5 years.

Accelerating Growth: BO8's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BO8 had negative earnings growth (-1.8%) over the past year, making it difficult to compare to the Banks industry average (-11.7%).


Return on Equity

High ROE: BO8's Return on Equity (10.8%) is considered low.


Return on Assets

ROA vs Industry: BO8 has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate BO8's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Bank OZK's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: BO8 has a low level of unsold assets or inventory.

Debt Coverage by Assets: BO8's debt is covered by short term assets (assets are 1.734580x debt).


Financial Institutions Analysis

Asset Level: BO8's level of assets compared to its equity is low.

Allowance for Bad Loans: BO8 has a sufficient allowance for bad loans.

Low Risk Liabilities: BO8's liabilities are made up of primarily low risk sources of funding.

Loan Level: BO8 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: BO8's loans are broadly funded by customer deposits.

Level of Bad Loans: BO8 has an appropriate level of bad loans (0.15%)


Next Steps

Dividend

What is Bank OZK's current dividend yield, its reliability and sustainability?

3.34%

Current Dividend Yield


Dividend Yield vs Market

company3.3%marketbottom25%1.5%markettop25%3.8%industryaverage3.6%forecastin3Years3.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BO8's dividend (3.34%) is higher than the bottom 25% of dividend payers in the German market (1.48%).

High Dividend: BO8's dividend (3.34%) is low compared to the top 25% of dividend payers in the German market (3.83%).

Stable Dividend: BO8's dividends per share have been stable in the past 10 years.

Growing Dividend: BO8's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.4%), BO8's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BO8's dividends in 3 years are forecast to be well covered by earnings (34.8% payout ratio).


Next Steps

Management

What is the CEO of Bank OZK's salary, the management and board of directors tenure and is there insider trading?

5.1yrs

Average management tenure


CEO

George Gleason (65yo)

40.8yrs

Tenure

US$6,372,351

Compensation

Mr. George G. Gleason, II has been Chairman of the Board, Chief Executive Officer and President of Bank of The Ozarks since 1979. Mr. Gleason’s qualifications to serve on the Board include his extensive ex ...


CEO Compensation Analysis

Compensation vs. Market: George's total compensation ($USD6.37M) is about average for companies of similar size in the German market ($USD2.95M).

Compensation vs Earnings: George's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.1yrs

Average Tenure

53yo

Average Age

Experienced Management: BO8's management team is seasoned and experienced (5.1 years average tenure).


Board Age and Tenure

7.5yrs

Average Tenure

64.5yo

Average Age

Experienced Board: BO8's board of directors are considered experienced (7.5 years average tenure).


Insider Trading

Insider Buying: BO8 insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

BuyUS$74,60505 Aug 19
Walter Mullen
EntityIndividual
Shares3,000
Max PriceUS$25.12
BuyUS$75,84105 Aug 19
Jeffrey Gearhart
EntityIndividual
Shares3,000
Max PriceUS$25.28
SellUS$335,89225 Jul 19
Dennis James
EntityIndividual
Role
Senior Key Executive
Executive VP and Director of Regulatory & Government Relations
Shares12,662
Max PriceUS$26.72
SellUS$28,51211 Jun 19
Paula H. Cholmondeley
EntityIndividual
Shares1,054
Max PriceUS$27.05
BuyUS$28,51211 Jun 19
Paula H. Cholmondeley
EntityIndividual
Shares1,054
Max PriceUS$27.05
SellUS$170,15207 Jun 19
Catherine Freedberg
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,250
Max PriceUS$27.22
SellUS$757,17730 Apr 19
Linda Gleason
EntityIndividual
Role
Member of the Board of Directors
Director
Shares25,805
Max PriceUS$29.34
SellUS$757,17730 Apr 19
George Gleason
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares25,805
Max PriceUS$29.34
SellUS$84,30725 Apr 19
Dennis James
EntityIndividual
Role
Senior Key Executive
Executive VP and Director of Regulatory & Government Relations
Shares2,914
Max PriceUS$28.93
SellUS$31,98114 Feb 19
Jennifer Junker
EntityIndividual
Role
Senior Key Executive
Managing Director of Trust & Wealth Management Division
Shares1,123
Max PriceUS$28.48
BuyUS$575,79317 Dec 18
Ross Whipple
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares29,000
Max PriceUS$19.86
BuyUS$39,39116 Nov 18
John Carter
EntityIndividual
Role
Senior Key Executive
Chief Credit Officer
Shares1,751
Max PriceUS$22.50
BuyUS$91,30816 Nov 18
Christopher Orndorff
EntityIndividual
Shares4,000
Max PriceUS$22.83
BuyUS$46,61031 Oct 18
Catherine Freedberg
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$23.31
BuyUS$87,92226 Oct 18
Paschall Hamblen
EntityIndividual
Role
Senior Key Executive
Executive Officer & President and COO - Real Estate Specialties Group (RESG)
Shares4,063
Max PriceUS$21.64
BuyUS$43,04726 Oct 18
Tim Hicks
EntityIndividual
Role
Chief Administrative Officer
Chief Administrative Officer & Executive Director of Investor Relations
Shares2,000
Max PriceUS$21.52
BuyUS$26,03325 Oct 18
Brad Rebel
EntityIndividual
Shares1,200
Max PriceUS$21.69

Ownership Breakdown


Management Team

  • George Gleason (65yo)

    Chairman & CEO

    • Tenure: 40.8yrs
    • Compensation: US$6.37m
  • Keith Olsen (66yo)

    Executive Vice President of Stabilized Properties Group

    • Tenure: 4.7yrs
  • Greg McKinney (51yo)

    CFO & Chief Accounting Officer

    • Tenure: 8.8yrs
    • Compensation: US$2.05m
  • Tim Hicks (46yo)

    Chief Administrative Officer & Executive Director of Investor Relations

    • Tenure: 2.3yrs
    • Compensation: US$1.94m
  • Julie Cripe (65yo)

    President of South Texas Division

    • Tenure: 5.6yrs
  • Dennis James (68yo)

    Executive VP and Director of Regulatory & Government Relations

    • Tenure: 7.8yrs
  • Richard Smith

    Managing Director

    • Tenure: 6.3yrs
  • Jennifer Junker (48yo)

    Managing Director of Trust & Wealth Management Division

    • Tenure: 4.7yrs
  • John Carter (38yo)

    Chief Credit Officer

    • Tenure: 1.3yrs
    • Compensation: US$831.17k
  • Paschall Hamblen (53yo)

    Executive Officer & President and COO - Real Estate Specialties Group (RESG)

    • Tenure: 1.2yrs
    • Compensation: US$1.29m

Board Members

  • George Gleason (65yo)

    Chairman & CEO

    • Tenure: 40.8yrs
    • Compensation: US$6.37m
  • Robert Proost (82yo)

    Independent Director

    • Tenure: 8.5yrs
    • Compensation: US$214.15k
  • Bob East (71yo)

    Independent Director

    • Tenure: 22.3yrs
    • Compensation: US$172.90k
  • Linda Gleason (64yo)

    Director

    • Tenure: 32.5yrs
    • Compensation: US$184.15k
  • Bill Koefoed (54yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$152.27k
  • Ross Whipple (68yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$150.40k
  • Nicholas Brown (60yo)

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: US$151.65k
  • John Reynolds (54yo)

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: US$152.90k
  • Peter Kenny (60yo)

    Presiding Independent Director

    • Tenure: 0yrs
    • Compensation: US$241.65k
  • Catherine Freedberg (76yo)

    Independent Director

    • Tenure: 6.2yrs
    • Compensation: US$141.65k

Company Information

Bank OZK's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bank OZK
  • Ticker: BO8
  • Exchange: DB
  • Founded: 1903
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$3.812b
  • Listing Market Cap: US$3.427b
  • Shares outstanding: 128.60m
  • Website: https://www.ozk.com

Number of Employees


Location

  • Bank OZK
  • 17901 Chenal Parkway
  • Little Rock
  • Arkansas
  • 72223
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OZKNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 1997
BO8DB (Deutsche Boerse AG)YesCommon StockDEEURJul 1997
OZK *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJul 1997

Biography

Bank OZK provides retail and commercial banking services to businesses, individuals, and non-profit and governmental entities. The company accepts non-interest bearing checking, interest bearing transactio ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 21:22
End of Day Share Price2019/10/23 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.