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 Analysis

Flawless balance sheet 6 star dividend payer.


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

-0.8%

OZK

-1.2%

US Banks

-1.1%

US Market


1 Year Return

-16.5%

OZK

9.8%

US Banks

17.8%

US Market

Return vs Industry: OZK underperformed the US Banks industry which returned 9.8% over the past year.

Return vs Market: OZK underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

OZKIndustryMarket
7 Day-0.8%-1.2%-1.1%
30 Day0.9%0.4%1.5%
90 Day-7.5%-0.8%6.6%
1 Year-13.6%-16.5%13.0%9.8%20.2%17.8%
3 Year-45.8%-49.6%23.4%14.5%47.5%38.1%
5 Year-15.9%-23.9%72.2%52.7%71.2%52.4%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OZK ($27.87) is trading below our estimate of fair value ($56.64)

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 (8.4x) compared to the Banks industry average (12.6x).

PE vs Market: OZK is good value based on its PE Ratio (8.4x) 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?

-4.9%

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 (-4.9% per year).

Earnings vs Market: OZK's earnings are forecast to decline over the next 3 years (-4.9% per year).

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

Revenue vs Market: OZK's revenue (3.1% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: OZK's revenue (3.1% 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 (9.6%).


Next Steps

Past Performance

How has Bank OZK performed over the past 5 years?

23.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OZK has high quality earnings.

Growing Profit Margin: OZK's current net profit margins (44.3%) are lower than last year (44.8%).


Past Earnings Growth Analysis

Earnings Trend: OZK's earnings have grown significantly by 23.9% per year over the past 5 years.

Accelerating Growth: OZK's earnings growth over the past year (2.1%) is below its 5-year average (23.9% per year).

Earnings vs Industry: OZK earnings growth over the past year (2.1%) underperformed the Banks industry 12%.


Return on Equity

High ROE: OZK's Return on Equity (10.3%) 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 2.3x 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 (0.14%)


Next Steps

Dividend

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

3.73%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: OZK's dividend (3.73%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: OZK's dividend (3.73%) is in the top 25% of dividend payers in the US market (3.73%)


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 (28.5%), 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 (39.6% payout ratio).


Next Steps

Management

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

5.5yrs

Average management tenure


CEO

George Gleason (65yo)

41.1yrs

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 ($USD6.37M) is above average for companies of similar size in the US market ($USD4.86M).

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


Leadership Team

NamePositionTenureCompensationOwnership
George Gleason
Chairman & CEO41.1yrsUS$6.37m4.54% $162.7m
Gregory McKinney
Chief Financial Officer9.2yrsUS$2.05m0.063% $2.3m
Tim Hicks
Chief Administrative Officer & Executive Director of Investor Relations2.6yrsUS$1.94m0.032% $1.1m
Paschall Hamblen
Executive Officer & President and COO - Real Estate Specialties Group (RESG)1.5yrsUS$1.29m0.034% $1.2m
Stan Thomas
Chief Accounting Officer0.08yrsno data0.0035% $124.0k
Dennis James
Executive VP and Director of Regulatory & Government Relations8.1yrsno data0.040% $1.5m
Richard Smith
Managing Director6.6yrsno datano data
Julie Cripe
President of South Texas Division5.9yrsno datano data
Keith Olsen
Executive Vice President of Stabilized Properties Group5yrsno datano data
Jennifer Junker
Managing Director of Trust & Wealth Management Division5yrsno data0.0066% $235.8k

5.5yrs

Average Tenure

53yo

Average Age

Experienced Management: OZK's management team is seasoned and experienced (5.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
George Gleason
Chairman & CEO41.1yrsUS$6.37m4.54% $162.7m
Robert Proost
Independent Director8.8yrsUS$214.15k0.010% $364.1k
Robert East
Independent Director22.6yrsUS$172.90k0.10% $3.6m
Paula H. Cholmondeley
Independent Director3.8yrsUS$154.15k0.010% $356.6k
William Koefoed
Independent Director4.8yrsUS$152.27k0.0055% $198.2k
Ross Whipple
Independent Director5.8yrsUS$150.40k0.75% $27.0m
Nicholas Brown
Independent Director7.8yrsUS$151.65k0.012% $420.1k
John Reynolds
Independent Director7.8yrsUS$152.90k0.021% $744.1k
Peter Kenny
Presiding Independent Director0yrsUS$241.65k0.0079% $282.4k
Catherine Freedberg
Independent Director6.5yrsUS$141.65k0.087% $3.1m

7.8yrs

Average Tenure

66.5yo

Average Age

Experienced Board: OZK's board of directors are considered experienced (7.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: OZK 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

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$3.584b
  • 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 transaction, business sweep, savings, money market, individual retirement, and other accounts, as well as time deposits. Its loan products include loans secured by residential 1-4 family, non-farm/non-residential, agricultural, construction/land development, multifamily residential properties, and other land loans; small business and consumer loans; indirect consumer marine and RV loans; small business administration, farm service agency, and USDA guaranteed loans; commercial and industrial loans; and loans to businesses or individuals engages in the production of timber, poultry, livestock, or crops. The company also ACH, wire transfer, zero balance accounts, transaction reporting, wholesale lockbox, remote deposit capture, automated credit line transfer, investment sweep accounts, reconciliation, positive pay, and merchant and commercial card services. In addition, it provides personal trusts, custodial accounts, investment management accounts, and retirement accounts; and trustee, paying agent and registered transfer agent services, and other incidental services. Further, the company is involved in the provision of real estate appraisals; ATMs; telephone banking; electronic bill pay and mobile deposits; debit cards; safe deposit boxes; investment securities services; and other products and services, as well as processes merchant debit and credit card transactions, as well as real estate development and corporate aircraft businesses. As of December 31, 2018, it operated 251 offices in Arkansas, Georgia, Florida, North Carolina, Texas, Alabama, South Carolina, California, New York, and Mississippi. The company was formerly known as Bank of the Ozarks and changed its name to Bank OZK in July 2018. Bank OZK was founded in 1903 and is headquartered in Little Rock, Arkansas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 23:32
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.