NasdaqGS:HOMB

Stock Analysis Report

Home Bancshares (Conway AR)

Executive Summary

Home Bancshares, Inc. (Conway, AR) operates as the bank holding company for Centennial Bank that provides commercial and retail banking, and related financial services to businesses, real estate developers and investors, individuals, and municipalities.

Rewards

Trading at 39.4% below its fair value

Earnings have grown 20.6% per year over the past 5 years

Pays a high and reliable dividend of 2.73%

Risk Analysis

No risks detected for HOMB from our risk checks.


Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Home Bancshares (Conway AR)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HOMB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.7%

HOMB

2.7%

US Banks

1.1%

US Market


1 Year Return

8.2%

HOMB

22.7%

US Banks

17.8%

US Market

Return vs Industry: HOMB underperformed the US Banks industry which returned 22.7% over the past year.

Return vs Market: HOMB underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

HOMBIndustryMarket
7 Day1.7%2.7%1.1%
30 Day1.7%0.9%1.4%
90 Day-0.8%10.0%3.9%
1 Year11.2%8.2%26.3%22.7%20.3%17.8%
3 Year-26.2%-30.8%31.8%22.6%44.8%35.4%
5 Year31.5%19.5%80.2%60.2%71.3%52.4%

Price Volatility Vs. Market

How volatile is Home Bancshares (Conway AR)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Home Bancshares (Conway AR) undervalued compared to its fair value and its price relative to the market?

39.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HOMB ($19.06) is trading below our estimate of fair value ($31.47)

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


Price To Earnings Ratio

PE vs Industry: HOMB is good value based on its PE Ratio (11.2x) compared to the Banks industry average (12.7x).

PE vs Market: HOMB is good value based on its PE Ratio (11.2x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: HOMB is poor value based on its PEG Ratio (43.8x)


Price to Book Ratio

PB vs Industry: HOMB is overvalued based on its PB Ratio (1.3x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Home Bancshares (Conway AR) forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

0.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HOMB's forecast earnings growth (0.3% per year) is below the savings rate (1.7%).

Earnings vs Market: HOMB's earnings (0.3% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: HOMB's earnings are forecast to grow, but not significantly.

Revenue vs Market: HOMB's revenue (2.1% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: HOMB's revenue (2.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HOMB's Return on Equity is forecast to be low in 3 years time (10.9%).


Next Steps

Past Performance

How has Home Bancshares (Conway AR) performed over the past 5 years?

20.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HOMB has high quality earnings.

Growing Profit Margin: HOMB's current net profit margins (43.7%) are higher than last year (38.6%).


Past Earnings Growth Analysis

Earnings Trend: HOMB's earnings have grown significantly by 20.6% per year over the past 5 years.

Accelerating Growth: HOMB's earnings growth over the past year (13.7%) is below its 5-year average (20.6% per year).

Earnings vs Industry: HOMB earnings growth over the past year (13.7%) underperformed the Banks industry 27.1%.


Return on Equity

High ROE: HOMB's Return on Equity (11.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Home Bancshares (Conway AR)'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: HOMB has a low level of unsold assets or inventory.

Debt Coverage by Assets: HOMB's debt is not covered by short term assets (assets are 0.5x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: HOMB has an appropriate level of bad loans (0.55%)


Next Steps

Dividend

What is Home Bancshares (Conway AR)'s current dividend yield, its reliability and sustainability?

2.73%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years2.8%

Current dividend yield vs market & industry

Notable Dividend: HOMB's dividend (2.73%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: HOMB's dividend (2.73%) is low compared to the top 25% of dividend payers in the US market (3.67%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.5%), HOMB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HOMB's dividends in 3 years are forecast to be well covered by earnings (31.9% payout ratio).


Next Steps

Management

What is the CEO of Home Bancshares (Conway AR)'s salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

Johnny Allison (72yo)

0.08yrs

Tenure

US$4,668,569

Compensation

Mr. John W. Allison also known as Johnny, is the co-founder and has been Chairman of Home BancShares, Inc. since 1998 and its President and Chief Executive Officer since November 7, 2019. He served as Chie ...


CEO Compensation Analysis

Compensation vs Market: Johnny's total compensation ($USD4.67M) is about average for companies of similar size in the US market ($USD5.10M).

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


Management Age and Tenure

4.3yrs

Average Tenure

50.5yo

Average Age

Experienced Management: HOMB's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

4.7yrs

Average Tenure

69yo

Average Age

Experienced Board: HOMB's board of directors are considered experienced (4.7 years average tenure).


Insider Trading

Insider Buying: HOMB insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$18,85409 Dec 19
Key Colony Management, LLC
EntityCompany
Shares1,000
Max PriceUS$18.85
SellUS$704,24204 Dec 19
Key Colony Management, LLC
EntityCompany
Shares37,500
Max PriceUS$18.81
SellUS$257,73625 Nov 19
Key Colony Management, LLC
EntityCompany
Shares14,000
Max PriceUS$18.41
SellUS$818,72020 Nov 19
Key Colony Management, LLC
EntityCompany
Shares44,500
Max PriceUS$18.53
SellUS$74,46820 Nov 19
Jack Engelkes
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares4,000
Max PriceUS$18.62
SellUS$553,62815 Nov 19
Key Colony Management, LLC
EntityCompany
Shares30,000
Max PriceUS$18.49
SellUS$381,10106 Nov 19
Key Colony Management, LLC
EntityCompany
Shares20,000
Max PriceUS$19.17
SellUS$452,31401 Nov 19
Key Colony Management, LLC
EntityCompany
Shares24,000
Max PriceUS$18.85
SellUS$586,80730 Oct 19
Key Colony Management, LLC
EntityCompany
Shares31,000
Max PriceUS$19.02
SellUS$142,06612 Sep 19
Russell Carter
EntityIndividual
Role
Senior Key Executive
Executive Officer
Shares7,500
Max PriceUS$18.94
SellUS$157,36612 Sep 19
John Tipton
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares8,500
Max PriceUS$18.51
SellUS$137,17520 Aug 19
Russell Carter
EntityIndividual
Role
Senior Key Executive
Executive Officer
Shares7,500
Max PriceUS$18.29
SellUS$10,46726 Jul 19
Jim Rankin
EntityIndividual
Shares527
Max PriceUS$19.86
SellUS$589,31925 Jul 19
Jim Rankin
EntityIndividual
Shares30,219
Max PriceUS$19.60
SellUS$193,20923 Jul 19
Jim Rankin
EntityIndividual
Shares10,000
Max PriceUS$19.32
SellUS$60,66131 May 19
Russell Carter
EntityIndividual
Role
Senior Key Executive
Executive Officer
Shares3,333
Max PriceUS$18.20

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Johnny Allison (72yo)

    Co-Founder

    • Tenure: 0.08yrs
    • Compensation: US$4.67m
  • Tracy French (57yo)

    Executive Officer & Director

    • Tenure: 4.9yrs
    • Compensation: US$3.34m
  • Jennifer Holbrook

    Controller

    • Tenure: 0yrs
  • Brian Davis (53yo)

    CFO, Treasurer & Director

    • Tenure: 4.4yrs
    • Compensation: US$837.16k
  • Holly McKenna

    Corporate Secretary

    • Tenure: 0yrs
  • Kevin Hester (55yo)

    Executive VP & Chief Lending Officer

    • Tenure: 0yrs
    • Compensation: US$1.60m
  • Davy Carter (43yo)

    Executive Officer

    • Tenure: 1.9yrs
  • Donna Townsell (48yo)

    Senior EVP

    • Tenure: 0.8yrs
    • Compensation: US$1.10m
  • Jennifer Floyd (44yo)

    Chief Accounting Officer

    • Tenure: 4.4yrs
  • John Tipton (37yo)

    Chief Operating Officer

    • Tenure: 4.3yrs

Board Members

  • Alex Lieblong (69yo)

    Independent Director

    • Tenure: 16.9yrs
    • Compensation: US$57.47k
  • Johnny Allison (72yo)

    Co-Founder

    • Tenure: 0.08yrs
    • Compensation: US$4.67m
  • Bud Stalnaker

    Chairman

    • Tenure: 0yrs
  • Jack Engelkes (69yo)

    Vice Chairman

    • Tenure: 0.08yrs
    • Compensation: US$187.55k
  • Jim Hinkle (70yo)

    Independent Director

    • Tenure: 14.9yrs
    • Compensation: US$69.52k
  • Tracy French (57yo)

    Executive Officer & Director

    • Tenure: 4.9yrs
    • Compensation: US$3.34m
  • Brian Davis (53yo)

    CFO, Treasurer & Director

    • Tenure: 4.4yrs
    • Compensation: US$837.16k
  • Kevin Hester (55yo)

    Executive VP & Chief Lending Officer

    • Tenure: 0yrs
    • Compensation: US$1.60m
  • Donna Townsell (48yo)

    Senior EVP

    • Tenure: 0.8yrs
    • Compensation: US$1.10m
  • Mike Beebe (72yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: US$70.53k

Company Information

Home Bancshares, Inc. (Conway, AR)'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Home Bancshares, Inc. (Conway, AR)
  • Ticker: HOMB
  • Exchange: NasdaqGS
  • Founded: 1998
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$3.180b
  • Shares outstanding: 166.84m
  • Website: https://www.homebancshares.com

Number of Employees


Location

  • Home Bancshares, Inc. (Conway, AR)
  • 719 Harkrider Street
  • Suite 100
  • Conway
  • Arkansas
  • 72032
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HOMBNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 2006

Biography

Home Bancshares, Inc. (Conway, AR) operates as the bank holding company for Centennial Bank that provides commercial and retail banking, and related financial services to businesses, real estate developers ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 00:03
End of Day Share Price2019/12/10 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.