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HOMB

Home Bancshares (Conway AR)NasdaqGS:HOMB Stock Report

Market Cap

US$4.0b

7D

2.4%

1Y

38.5%

Updated

24 Oct, 2021

Data

Company Financials +
HOMB fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance5/6
Financial Health6/6
Dividends5/6

HOMB Overview

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.

Home Bancshares (Conway AR) Competitors

Signature Bank

NasdaqGS:SBNY

US$18.9b

Western Alliance Bancorporation

NYSE:WAL

US$12.6b

First Horizon

NYSE:FHN

US$9.2b

Commerce Bancshares

NasdaqGS:CBSH

US$8.4b

Price History & Performance

Summary of all time highs, changes and price drops for Home Bancshares (Conway AR)
Historical stock prices
Current Share PriceUS$24.52
52 Week HighUS$15.83
52 Week LowUS$29.76
Beta1.43
1 Month Change7.83%
3 Month Change13.73%
1 Year Change38.53%
3 Year Change32.97%
5 Year Change14.63%
Change since IPO482.60%

Recent News & Updates

Oct 18

Home BancShares: A Franchise Enhancing Transaction Provides Solid Upside Potential

Following the Happy Bancshares transaction, market reception was overly positive with shares outperforming the banking index by nearly 5%. According to management, the transaction is triple-accretive: a stronger earnings per share outlook, improved book value, and a better tangible book value per share. Future earnings growth will likely come from both stronger loan demand and deal related expense synergies falling to the bottom line.

Aug 03

Home Bancshares: Loan Portfolio Likely To Suffer Further Before Recovering

The loan portfolio will likely continue to decline in the remainder of 2021 due to payoffs. Excess liquidity will likely continue to build up due to the anticipated loan decline and normal deposit growth. Liquidity will likely pressurize the net interest margin. The year-end target price suggests a small upside from the current market price. Further, Home Bancshares is offering a modest dividend yield.

Aug 03
If You Like EPS Growth Then Check Out Home Bancshares (Conway AR) (NASDAQ:HOMB) Before It's Too Late

If You Like EPS Growth Then Check Out Home Bancshares (Conway AR) (NASDAQ:HOMB) Before It's Too Late

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Shareholder Returns

HOMBUS BanksUS Market
7D2.4%3.3%1.7%
1Y38.5%73.9%30.3%

Return vs Industry: HOMB underperformed the US Banks industry which returned 73.9% over the past year.

Return vs Market: HOMB exceeded the US Market which returned 30.3% over the past year.

Price Volatility

Is HOMB's price volatile compared to industry and market?
HOMB volatility
HOMB Beta1.43
Industry Beta1.32
Market Beta1

Stable Share Price: HOMB is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: HOMB's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19982,018Johnny Allisonhttps://www.homebancshares.com

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.

Home Bancshares (Conway AR) Fundamentals Summary

How do Home Bancshares (Conway AR)'s earnings and revenue compare to its market cap?
HOMB fundamental statistics
Market CapUS$4.02b
Earnings (TTM)US$327.46m
Revenue (TTM)US$743.21m

12.3x

P/E Ratio

1.5x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HOMB income statement (TTM)
RevenueUS$743.21m
Cost of RevenueUS$0
Gross ProfitUS$743.21m
ExpensesUS$415.75m
EarningsUS$327.46m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.00
Gross Margin100.00%
Net Profit Margin44.06%
Debt/Equity Ratio33.3%

How did HOMB perform over the long term?

See historical performance and comparison

Dividends

2.3%

Current Dividend Yield

28%

Payout Ratio

Valuation

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

35.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HOMB ($24.52) is trading below our estimate of fair value ($38.11)

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


Price To Earnings Ratio

PE vs Industry: HOMB is poor value based on its PE Ratio (12.3x) compared to the US Banks industry average (11.1x).

PE vs Market: HOMB is good value based on its PE Ratio (12.3x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: HOMB is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: HOMB is overvalued based on its PB Ratio (1.5x) compared to the US Banks industry average (1.2x).


Future Growth

How is Home Bancshares (Conway AR) forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

8.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HOMB's forecast earnings growth (8.5% per year) is above the savings rate (2%).

Earnings vs Market: HOMB's earnings (8.5% per year) are forecast to grow slower than the US market (14.7% per year).

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

Revenue vs Market: HOMB's revenue (14.8% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: HOMB's revenue (14.8% 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 (9.7%).


Past Performance

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

11.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HOMB has high quality earnings.

Growing Profit Margin: HOMB's current net profit margins (44.1%) are higher than last year (37.4%).


Past Earnings Growth Analysis

Earnings Trend: HOMB's earnings have grown by 11.9% per year over the past 5 years.

Accelerating Growth: HOMB's earnings growth over the past year (59%) exceeds its 5-year average (11.9% per year).

Earnings vs Industry: HOMB earnings growth over the past year (59%) exceeded the Banks industry 37.3%.


Return on Equity

High ROE: HOMB's Return on Equity (12%) is considered low.


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 Assets to Equity ratio (6.5x) is low.

Allowance for Bad Loans: HOMB has a sufficient allowance for bad loans (469%).

Low Risk Liabilities: 93% of HOMB's liabilities are made up of primarily low risk sources of funding.

Loan Level: HOMB has an appropriate level of Loans to Assets ratio (54%).

Low Risk Deposits: HOMB's Loans to Deposits ratio (69%) is appropriate.

Level of Bad Loans: HOMB has an appropriate level of bad loans (0.5%).


Dividend

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

2.28%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HOMB's dividend (2.28%) is higher than the bottom 25% of dividend payers in the US market (1.29%).

High Dividend: HOMB's dividend (2.28%) is low compared to the top 25% of dividend payers in the US market (3.48%).


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 (28.2%), 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 (34.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.2yrs

Average management tenure


CEO

Johnny Allison (74 yo)

1.92yrs

Tenure

US$4,639,256

Compensation

Mr. John W. Allison, also known as Johnny, is a Co-Founder of Home BancShares, Inc., and has been Chairman since 1998 and its President and Chief Executive Officer since November 7, 2019 also its Executive...


CEO Compensation Analysis

Compensation vs Market: Johnny's total compensation ($USD4.64M) is about average for companies of similar size in the US market ($USD5.18M).

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


Leadership Team

Experienced Management: HOMB's management team is seasoned and experienced (6.2 years average tenure).


Board Members

Experienced Board: HOMB's board of directors are considered experienced (8.4 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 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$4.021b
  • Shares outstanding: 164.01m
  • Website: https://www.homebancshares.com

Number of Employees


Location

  • Home Bancshares, Inc. (Conway, AR)
  • 719 Harkrider Street
  • Suite 100
  • Conway
  • Arkansas
  • 72032-5619
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/24 22:14
End of Day Share Price2021/10/22 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.