| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 2/6 |
| Past Performance | 5/6 |
| Financial Health | 6/6 |
| Dividends | 5/6 |
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.
Rewards
Risk Analysis
No risks detected for HOMB from our risk checks.
Home Bancshares (Conway AR) Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$24.52 |
| 52 Week High | US$15.83 |
| 52 Week Low | US$29.76 |
| Beta | 1.43 |
| 1 Month Change | 7.83% |
| 3 Month Change | 13.73% |
| 1 Year Change | 38.53% |
| 3 Year Change | 32.97% |
| 5 Year Change | 14.63% |
| Change since IPO | 482.60% |
Recent News & Updates
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.
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.
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
| HOMB | US Banks | US Market | |
|---|---|---|---|
| 7D | 2.4% | 3.3% | 1.7% |
| 1Y | 38.5% | 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
| HOMB volatility | |
|---|---|
| HOMB Beta | 1.43 |
| Industry Beta | 1.32 |
| Market Beta | 1 |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1998 | 2,018 | Johnny Allison | https://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
| HOMB fundamental statistics | |
|---|---|
| Market Cap | US$4.02b |
| Earnings (TTM) | US$327.46m |
| Revenue (TTM) | US$743.21m |
12.3x
P/E Ratio1.5x
P/B RatioIs HOMB overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| HOMB income statement (TTM) | |
|---|---|
| Revenue | US$743.21m |
| Cost of Revenue | US$0 |
| Gross Profit | US$743.21m |
| Expenses | US$415.75m |
| Earnings | US$327.46m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 2.00 |
| Gross Margin | 100.00% |
| Net Profit Margin | 44.06% |
| Debt/Equity Ratio | 33.3% |
How did HOMB perform over the long term?
See historical performance and comparisonDividends
2.3%
Current Dividend Yield28%
Payout RatioValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/10/24 22:14 |
| End of Day Share Price | 2021/10/22 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2020/12/31 |
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.