NasdaqGS:OZK

Stock Analysis Report

Executive Summary

Bank OZK provides retail and commercial banking services to businesses, individuals, and non-profit and governmental entities.

Snowflake

Fundamentals

Flawless balance sheet, undervalued and pays a dividend.


Similar Companies

Share Price & News

How has Bank OZK's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0.5%

OZK

2.7%

US Banks

0.8%

US Market


1 Year Return

15.1%

OZK

9.3%

US Banks

11.0%

US Market

Return vs Industry: OZK exceeded the US Banks industry which returned 9.3% over the past year.

Return vs Market: OZK exceeded the US Market which returned 11% over the past year.


Shareholder returns

OZKIndustryMarket
7 Day0.5%2.7%0.8%
30 Day8.2%10.2%4.3%
90 Day10.8%16.9%6.1%
1 Year19.0%15.1%12.5%9.3%13.4%11.0%
3 Year-30.0%-34.5%45.2%35.1%49.9%40.2%
5 Year-8.8%-17.1%74.3%55.1%63.1%45.0%

Price Volatility Vs. Market

How volatile is Bank OZK's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Bank OZK undervalued compared to its fair value and its price relative to the market?

41.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OZK ($29.72) is trading below our estimate of fair value ($51.1)

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


Price To Earnings Ratio

PE vs Industry: OZK is good value based on its PE Ratio (8.7x) compared to the Banks industry average (12.7x).

PE vs Market: OZK is good value based on its PE Ratio (8.7x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: OZK's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: OZK is good value based on its PB Ratio (0.9x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Bank OZK forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

-3.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OZK's earnings are forecast to decline over the next 3 years (-3.8% per year).

Earnings vs Market: OZK's earnings are forecast to decline over the next 3 years (-3.8% per year).

High Growth Earnings: OZK's earnings are forecast to decline over the next 3 years.

Revenue vs Market: OZK's revenue (1.5% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: OZK's revenue (1.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OZK's Return on Equity is forecast to be low in 3 years time (8.9%).


Next Steps

Past Performance

How has Bank OZK performed over the past 5 years?

26.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OZK has high quality earnings.

Growing Profit Margin: OZK's current net profit margins (45.2%) are lower than last year (48.8%).


Past Earnings Growth Analysis

Earnings Trend: OZK's earnings have grown significantly by 26.5% per year over the past 5 years.

Accelerating Growth: OZK's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: OZK had negative earnings growth (-1.8%) over the past year, making it difficult to compare to the Banks industry average (27.5%).


Return on Equity

High ROE: OZK's Return on Equity (10.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Bank OZK'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: OZK has a low level of unsold assets or inventory.

Debt Coverage by Assets: OZK's debt is covered by short term assets (assets are 1.7x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: OZK has an appropriate level of bad loans (0.15%)


Next Steps

Dividend

What is Bank OZK's current dividend yield, its reliability and sustainability?

3.36%

Current Dividend Yield


Dividend Yield vs Market

company3.4%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years3.4%

Current dividend yield vs market & industry

Notable Dividend: OZK's dividend (3.36%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: OZK's dividend (3.36%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.3%), OZK's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: OZK's dividends in 3 years are forecast to be well covered by earnings (34.8% payout ratio).


Next Steps

Management

What is the CEO of Bank OZK's salary, the management and board of directors tenure and is there insider trading?

5.2yrs

Average management tenure


CEO

George Gleason (65yo)

40.8yrs

Tenure

US$6,372,351

Compensation

Mr. George G. Gleason, II has been Chairman of the Board, Chief Executive Officer and President of Bank of The Ozarks since 1979. Mr. Gleason’s qualifications to serve on the Board include his extensive ex ...


CEO Compensation Analysis

Compensation vs Market: George's total compensation ($USD6.37M) is about average for companies of similar size in the US market ($USD5.09M).

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


Management Age and Tenure

5.2yrs

Average Tenure

53yo

Average Age

Experienced Management: OZK's management team is seasoned and experienced (5.2 years average tenure).


Board Age and Tenure

7.6yrs

Average Tenure

66.5yo

Average Age

Experienced Board: OZK's board of directors are considered experienced (7.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$83,47005 Aug 19
Walter Mullen
EntityIndividual
Shares3,000
Max PriceUS$28.11
BuyUS$84,24005 Aug 19
Jeffrey Gearhart
EntityIndividual
Shares3,000
Max PriceUS$28.08
SellUS$374,71225 Jul 19
Dennis James
EntityIndividual
Role
Senior Key Executive
Executive VP and Director of Regulatory & Government Relations
Shares12,662
Max PriceUS$29.81
SellUS$32,32611 Jun 19
Paula H. Cholmondeley
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,054
Max PriceUS$30.67
BuyUS$32,32611 Jun 19
Paula H. Cholmondeley
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,054
Max PriceUS$30.67
SellUS$191,37507 Jun 19
Catherine Freedberg
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,250
Max PriceUS$30.62
SellUS$845,63030 Apr 19
George Gleason
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares25,805
Max PriceUS$32.77
SellUS$845,63030 Apr 19
Linda Gleason
EntityIndividual
Shares25,805
Max PriceUS$32.77
SellUS$94,47225 Apr 19
Dennis James
EntityIndividual
Role
Senior Key Executive
Executive VP and Director of Regulatory & Government Relations
Shares2,914
Max PriceUS$32.42
SellUS$36,10414 Feb 19
Jennifer Junker
EntityIndividual
Role
Senior Key Executive
Managing Director of Trust & Wealth Management Division
Shares1,123
Max PriceUS$32.15
BuyUS$653,79017 Dec 18
Ross Whipple
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares29,000
Max PriceUS$22.55
BuyUS$44,58016 Nov 18
John Carter
EntityIndividual
Role
Senior Key Executive
Chief Credit Officer
Shares1,751
Max PriceUS$25.46
BuyUS$103,33616 Nov 18
Christopher Orndorff
EntityIndividual
Shares4,000
Max PriceUS$25.83

Ownership Breakdown

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


Management Team

  • George Gleason (65yo)

    Chairman & CEO

    • Tenure: 40.8yrs
    • Compensation: US$6.37m
  • Keith Olsen (66yo)

    Executive Vice President of Stabilized Properties Group

    • Tenure: 4.8yrs
  • Greg McKinney (51yo)

    CFO & Chief Accounting Officer

    • Tenure: 8.9yrs
    • Compensation: US$2.05m
  • Tim Hicks (46yo)

    Chief Administrative Officer & Executive Director of Investor Relations

    • Tenure: 2.3yrs
    • Compensation: US$1.94m
  • Julie Cripe (65yo)

    President of South Texas Division

    • Tenure: 5.7yrs
  • Dennis James (68yo)

    Executive VP and Director of Regulatory & Government Relations

    • Tenure: 7.8yrs
  • Richard Smith

    Managing Director

    • Tenure: 6.3yrs
  • Jennifer Junker (48yo)

    Managing Director of Trust & Wealth Management Division

    • Tenure: 4.8yrs
  • John Carter (38yo)

    Chief Credit Officer

    • Tenure: 1.4yrs
    • Compensation: US$831.17k
  • Paschall Hamblen (53yo)

    Executive Officer & President and COO - Real Estate Specialties Group (RESG)

    • Tenure: 1.3yrs
    • Compensation: US$1.29m

Board Members

  • George Gleason (65yo)

    Chairman & CEO

    • Tenure: 40.8yrs
    • Compensation: US$6.37m
  • Robert Proost (82yo)

    Independent Director

    • Tenure: 8.6yrs
    • Compensation: US$214.15k
  • Bob East (71yo)

    Independent Director

    • Tenure: 22.3yrs
    • Compensation: US$172.90k
  • Paula H. Cholmondeley (72yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$154.15k
  • Bill Koefoed (54yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$152.27k
  • Ross Whipple (68yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: US$150.40k
  • Nicholas Brown (60yo)

    Independent Director

    • Tenure: 7.6yrs
    • Compensation: US$151.65k
  • John Reynolds (54yo)

    Independent Director

    • Tenure: 7.6yrs
    • Compensation: US$152.90k
  • Peter Kenny (60yo)

    Presiding Independent Director

    • Tenure: 0yrs
    • Compensation: US$241.65k
  • Catherine Freedberg (76yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$141.65k

Company Information

Bank OZK's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bank OZK
  • Ticker: OZK
  • Exchange: NasdaqGS
  • Founded: 1903
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$3.822b
  • Shares outstanding: 128.60m
  • Website: https://www.ozk.com

Number of Employees


Location

  • Bank OZK
  • 17901 Chenal Parkway
  • Little Rock
  • Arkansas
  • 72223
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OZKNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 1997
BO8DB (Deutsche Boerse AG)YesCommon StockDEEURJul 1997
OZK *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJul 1997

Biography

Bank OZK provides retail and commercial banking services to businesses, individuals, and non-profit and governmental entities. The company accepts non-interest bearing checking, interest bearing transactio ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/11 23:33
End of Day Share Price2019/11/11 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.