NasdaqGS:HOMB

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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. More Details

Rewards

Trading at 14.2% below our estimate of its fair value

Earnings are forecast to grow 10.28% per year

Pays a reliable dividend of 2.2%

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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: HOMB's weekly volatility has decreased from 10% to 5% over the past year.


Market Performance


7 Day Return

5.9%

HOMB

1.6%

US Banks

-1.3%

US Market


1 Year Return

46.4%

HOMB

18.4%

US Banks

41.9%

US Market

Return vs Industry: HOMB exceeded the US Banks industry which returned 19.9% over the past year.

Return vs Market: HOMB exceeded the US Market which returned 36.5% over the past year.


Shareholder returns

HOMBIndustryMarket
7 Day5.9%1.6%-1.3%
30 Day20.0%19.6%7.5%
90 Day34.5%27.5%15.9%
1 Year51.0%46.4%22.7%18.4%44.8%41.9%
3 Year12.7%3.8%13.6%3.9%49.1%41.0%
5 Year35.9%21.1%97.3%72.3%113.1%92.8%

Long-Term 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?

14.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HOMB ($25.43) is trading below our estimate of fair value ($29.64)

Significantly Below Fair Value: HOMB is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: HOMB is poor value based on its PE Ratio (19.6x) compared to the US Banks industry average (12.5x).

PE vs Market: HOMB is good value based on its PE Ratio (19.6x) compared to the US market (21.2x).


Price to Earnings Growth Ratio

PEG Ratio: HOMB is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: HOMB is overvalued based on its PB Ratio (1.6x) compared to the US Banks industry average (1x).


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?

10.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HOMB's forecast earnings growth (10.3% per year) is above the savings rate (2%).

Earnings vs Market: HOMB's earnings (10.3% per year) are forecast to grow slower than the US market (20% per year).

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

Revenue vs Market: HOMB's revenue (7.6% per year) is forecast to grow slower than the US market (10.4% per year).

High Growth Revenue: HOMB's revenue (7.6% 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 (9.6%).


Next Steps

Past Performance

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

11.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HOMB has high quality earnings.

Growing Profit Margin: HOMB's current net profit margins (36.8%) are lower than last year (43.7%).


Past Earnings Growth Analysis

Earnings Trend: HOMB's earnings have grown by 11.3% 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 (-25.7%) over the past year, making it difficult to compare to the Banks industry average (0.6%).


Return on Equity

High ROE: HOMB's Return on Equity (8.2%) 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 Assets to Equity ratio (6.3x) is low.

Allowance for Bad Loans: HOMB has a sufficient allowance for bad loans (331%).

Low Risk Liabilities: 92% 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 (66%).

Low Risk Deposits: HOMB's Loans to Deposits ratio (85%) is appropriate.

Level of Bad Loans: HOMB has an appropriate level of bad loans (0.7%).


Next Steps

Dividend

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

2.20%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HOMB's dividend (2.2%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: HOMB's dividend (2.2%) is low compared to the top 25% of dividend payers in the US market (3.76%).


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 (40.9%), 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 (32.1% payout ratio).


Next Steps

Management

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

5.6yrs

Average management tenure


CEO

Johnny Allison (73 yo)

1.25yrs

Tenure

US$4,445,432

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 ($USD4.45M) is about average for companies of similar size in the US market ($USD4.99M).

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


Leadership Team

NamePositionTenureCompensationOwnership
John Allison
Co-Founder1.25yrsUS$4.45m4.09%
$ 165.1m
Brian Davis
CFO, Treasurer5.58yrsUS$532.01k0.063%
$ 2.5m
John Tipton
COO & Executive Officer5.5yrsUS$552.04k0.045%
$ 1.8m
Donna Townsell
Senior EVP2yrsUS$251.96k0.10%
$ 4.2m
Tracy French
Executive Officer & Director6.08yrsUS$796.58k0.19%
$ 7.8m
Kevin Hester
Chief Lending Officer & Executive Officer11.08yrsUS$609.43k0.089%
$ 3.6m
Jennifer Floyd
Chief Accounting Officer & Executive Officer5.58yrsno data0.0071%
$ 285.3k
Jennifer Holbrook
Controllerno datano datano data
Holly McKenna
Corporate Secretaryno datano datano data
James Stalnaker
Chairmanno datano datano data
Christopher Poulton
President of Centennial Commercial Finance Group5.83yrsno datano data

5.6yrs

Average Tenure

51.5yo

Average Age

Experienced Management: HOMB's management team is seasoned and experienced (5.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Allison
Co-Founder1.25yrsUS$4.45m4.09%
$ 165.1m
Brian Davis
CFO, Treasurer5.58yrsUS$532.01k0.063%
$ 2.5m
Donna Townsell
Senior EVP2yrsUS$251.96k0.10%
$ 4.2m
Tracy French
Executive Officer & Director6.08yrsUS$796.58k0.19%
$ 7.8m
James Stalnaker
Chairmanno datano datano data
Alex Lieblong
Independent Director18.08yrsUS$79.88k0.36%
$ 14.6m
Richard Ashley
Independent Director17.08yrsUS$214.53k1.15%
$ 46.5m
Jack Engelkes
Independent Vice Chairman of the Board1.25yrsUS$239.50k0.23%
$ 9.3m
James Hinkle
Independent Director16.08yrsUS$83.78k0.37%
$ 15.1m
Robert Adcock
Independent Director13.58yrsUS$103.70k0.89%
$ 35.9m
Mike Beebe
Independent Director4.83yrsUS$91.71k0.0079%
$ 317.5k
Jim Rankin
Independent Director3.83yrsUS$205.44k0.13%
$ 5.3m

6.1yrs

Average Tenure

70yo

Average Age

Experienced Board: HOMB's board of directors are considered experienced (6.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: HOMB insiders have only sold shares 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$4.035b
  • Shares outstanding: 165.10m
  • 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

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 Analysis2021/03/01 23:22
End of Day Share Price2021/03/01 00:00
Earnings2020/12/31
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.