Home Bancshares (Conway AR)
Market Cap
US$2.3b
Last Updated
2020/04/10 03:23 UTC
Data Sources
Company Financials +
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
Risk Analysis
Earnings are forecast to decline by an average of -7.7% per year for the next 3 years
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
24.6%
HOMB
14.6%
US Banks
9.4%
US Market
1 Year Return
-26.3%
HOMB
-24.3%
US Banks
-6.8%
US Market
Return vs Industry: HOMB underperformed the US Banks industry which returned -24.3% over the past year.
Return vs Market: HOMB underperformed the US Market which returned -6.8% over the past year.
Shareholder returns
| HOMB | Industry | Market | |
|---|---|---|---|
| 7 Day | 24.6% | 14.6% | 9.4% |
| 30 Day | 0.7% | -4.4% | -3.9% |
| 90 Day | -27.2% | -33.9% | -16.5% |
| 1 Year | -24.2%-26.3% | -22.0%-24.3% | -4.8%-6.8% |
| 3 Year | -40.0%-43.9% | -8.3%-15.1% | 23.4%15.2% |
| 5 Year | -7.2%-15.9% | 16.7%3.3% | 41.3%25.7% |
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
1 week ago | Simply Wall St
A Sliding Share Price Has Us Looking At Home Bancshares, Inc. (Conway, AR)'s (NASDAQ:HOMB) P/E Ratio3 weeks ago | Simply Wall St
A Sliding Share Price Has Us Looking At Home Bancshares, Inc. (Conway, AR)'s (NASDAQ:HOMB) P/E Ratio1 month ago | Simply Wall St
Are Insiders Selling Home Bancshares, Inc. (Conway, AR) (NASDAQ:HOMB) Stock?Valuation
Is Home Bancshares (Conway AR) 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: HOMB ($13.97) is trading below our estimate of fair value ($29.23)
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 (8.1x) compared to the Banks industry average (8.9x).
PE vs Market: HOMB is good value based on its PE Ratio (8.1x) compared to the US market (13.6x).
Price to Earnings Growth Ratio
PEG Ratio: HOMB's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: HOMB is overvalued based on its PB Ratio (0.9x) compared to the US Banks industry average (0.8x).
Next Steps
Future Growth
How is Home Bancshares (Conway AR) forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
-7.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HOMB's earnings are forecast to decline over the next 3 years (-7.7% per year).
Earnings vs Market: HOMB's earnings are forecast to decline over the next 3 years (-7.7% per year).
High Growth Earnings: HOMB's earnings are forecast to decline over the next 3 years.
Revenue vs Market: HOMB's revenue is expected to decline over the next 3 years (-0.5% per year).
High Growth Revenue: HOMB's revenue is forecast to decline over the next 3 years (-0.5% 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%).
Next Steps
Past Performance
How has Home Bancshares (Conway AR) performed over the past 5 years?
20.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HOMB has high quality earnings.
Growing Profit Margin: HOMB's current net profit margins (43.8%) are lower than last year (45.5%).
Past Earnings Growth Analysis
Earnings Trend: HOMB's earnings have grown by 20% per year over the past 5 years.
Accelerating Growth: HOMB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: HOMB had negative earnings growth (-3.6%) over the past year, making it difficult to compare to the Banks industry average (10.8%).
Return on Equity
High ROE: HOMB's Return on Equity (11.5%) is considered low.
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
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 (0.51%)
Next Steps
Dividend
What is Home Bancshares (Conway AR)'s current dividend yield, its reliability and sustainability?
3.72%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: HOMB's dividend (3.72%) is higher than the bottom 25% of dividend payers in the US market (1.87%).
High Dividend: HOMB's dividend (3.72%) is low compared to the top 25% of dividend payers in the US market (5.12%).
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 (29.6%), 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 (33.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.7yrs
Average management tenure
CEO
Johnny Allison (72yo)
0.42
Tenure
US$4,445,432
Compensation
Mr. John W. Allison also known as Johnny, is the co-founder and has been Chairman of Home BancShares, Inc. since 1998 and its President and Chief Executive Officer since November 7, 2019. He served as Chie ...
CEO Compensation Analysis
Compensation vs Market: Johnny's total compensation ($USD4.45M) is about average for companies of similar size in the US market ($USD4.68M).
Compensation vs Earnings: Johnny's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder | 0.42yr | US$4.45m | 4.07% $94.5m | |
| CFO, Treasurer | 4.75yrs | US$532.01k | 0.072% $1.7m | |
| COO & Executive Officer | 4.67yrs | US$552.04k | 0.044% $1.0m | |
| Senior EVP | 1.17yrs | US$251.96k | 0.054% $1.3m | |
| Executive Officer & Director | 5.25yrs | US$796.58k | 0.19% $4.4m | |
| Chief Lending Officer & Executive Officer | 10.25yrs | US$609.43k | 0.10% $2.3m | |
| Chief Accounting Officer & Executive Officer | 4.75yrs | no data | 0.0080% $186.3k | |
| Executive Officer | 2.25yrs | no data | 0.028% $644.9k | |
| Controller | no data | no data | no data | |
| Corporate Secretary | no data | no data | no data |
4.7yrs
Average Tenure
50.5yo
Average Age
Experienced Management: HOMB's management team is considered experienced (4.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder | 0.42yr | US$4.45m | 4.07% $94.5m | |
| CFO, Treasurer | 4.75yrs | US$532.01k | 0.072% $1.7m | |
| Senior EVP | 1.17yrs | US$251.96k | 0.054% $1.3m | |
| Executive Officer & Director | 5.25yrs | US$796.58k | 0.19% $4.4m | |
| Chairman | no data | no data | no data | |
| Independent Director | 17.25yrs | US$79.88k | 0.10% $2.4m | |
| Independent Director | 16.25yrs | US$214.53k | 1.14% $26.5m | |
| Independent Vice Chairman of the Board | 0.42yr | US$239.50k | 0.23% $5.3m | |
| Independent Director | 15.25yrs | US$83.78k | 0.37% $8.5m | |
| Independent Director | 4yrs | US$91.71k | 0.0060% $139.6k |
5.3yrs
Average Tenure
69yo
Average Age
Experienced Board: HOMB's board of directors are considered experienced (5.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: HOMB insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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$2.320b
- Shares outstanding: 166.04m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| HOMB | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Jun 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 and investors, individuals, and municipalities. Its deposit products include checking, savings, NOW, demand, and money market accounts, as well as certificates of deposit. The company’s loan portfolio comprises non-farm/non-residential real estate, construction/land development, residential mortgage, consumer, agricultural, and commercial and industrial loans. It also provides Internet banking, mobile banking, voice response information, cash management, overdraft protection, direct deposit, and automatic account transfer services, as well as safe deposit boxes and the United States savings bonds. In addition, the company writes policies for commercial and personal lines of business, including insurance for property, casualty, life, health, and employee benefits. As of December 31, 2018, it operated through 159 branch locations, including 77 branches in Arkansas, 76 branches in Florida, 5 branches in Alabama, and 1 branch in New York City. Home Bancshares, Inc. (Conway, AR) was founded in 1998 and is headquartered in Conway, Arkansas.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/10 03:23 |
| End of Day Share Price | 2020/04/09 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.