NasdaqGS:SFNC

Stock Analysis Report

Simmons First National

Executive Summary

Simmons First National Corporation operates as the holding company for Simmons Bank that provides financial products and services to individuals and businesses.


Snowflake Analysis

Undervalued with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has Simmons First National's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SFNC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

19.4%

SFNC

16.8%

US Banks

12.5%

US Market


1 Year Return

-26.7%

SFNC

-26.9%

US Banks

-12.7%

US Market

Return vs Industry: SFNC matched the US Banks industry which returned -26.9% over the past year.

Return vs Market: SFNC underperformed the US Market which returned -12.7% over the past year.


Shareholder returns

SFNCIndustryMarket
7 Day19.4%16.8%12.5%
30 Day-13.4%-24.7%-14.7%
90 Day-30.9%-38.6%-21.5%
1 Year-24.4%-26.7%-24.8%-26.9%-10.9%-12.7%
3 Year-26.4%-31.4%-16.9%-23.0%12.6%5.4%
5 Year-8.6%-18.0%12.0%-0.7%31.9%17.5%

Price Volatility Vs. Market

How volatile is Simmons First National's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Simmons First National 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: SFNC ($18.52) is trading below our estimate of fair value ($37.94)

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


Price To Earnings Ratio

PE vs Industry: SFNC is good value based on its PE Ratio (7.7x) compared to the Banks industry average (8.8x).

PE vs Market: SFNC is good value based on its PE Ratio (7.7x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: SFNC is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: SFNC is good value based on its PB Ratio (0.7x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is Simmons First National forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

3.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SFNC's forecast earnings growth (3.4% per year) is above the savings rate (1.7%).

Earnings vs Market: SFNC's earnings (3.4% per year) are forecast to grow slower than the US market (12.3% per year).

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

Revenue vs Market: SFNC's revenue (3.8% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: SFNC's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SFNC's Return on Equity is forecast to be low in 3 years time (8.3%).


Next Steps

Past Performance

How has Simmons First National performed over the past 5 years?

32.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SFNC has high quality earnings.

Growing Profit Margin: SFNC's current net profit margins (31.1%) are lower than last year (32.8%).


Past Earnings Growth Analysis

Earnings Trend: SFNC's earnings have grown significantly by 32.9% per year over the past 5 years.

Accelerating Growth: SFNC's earnings growth over the past year (10.3%) is below its 5-year average (32.9% per year).

Earnings vs Industry: SFNC earnings growth over the past year (10.3%) underperformed the Banks industry 11%.


Return on Equity

High ROE: SFNC's Return on Equity (8%) is considered low.


Next Steps

Financial Health

How is Simmons First National'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: SFNC has a low level of unsold assets or inventory.

Debt Coverage by Assets: SFNC's debt is not covered by short term assets (assets are 0.8x debt).


Financial Institutions Analysis

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

Allowance for Bad Loans: SFNC has a low allowance for bad loans.

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

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

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

Level of Bad Loans: SFNC has an appropriate level of bad loans (0.65%)


Next Steps

Dividend

What is Simmons First National's current dividend yield, its reliability and sustainability?

3.67%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SFNC's dividend (3.67%) is higher than the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: SFNC's dividend (3.67%) is low compared to the top 25% of dividend payers in the US market (5.49%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.5%), SFNC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SFNC's dividends in 3 years are forecast to be well covered by earnings (31.8% payout ratio).


Next Steps

Management

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

5.7yrs

Average management tenure


CEO

George Makris (62yo)

6.17s

Tenure

US$4,953,017

Compensation

Mr. George A. Makris, Jr., has been the Non Independent Chairman of the Board and Chief Executive Officer of Simmons First National Corporation since January 1, 2014. Mr. Makris served as the President of  ...


CEO Compensation Analysis

Compensation vs Market: George's total compensation ($USD4.95M) is about average for companies of similar size in the US market ($USD4.58M).

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


Leadership Team

NamePositionTenureCompensationOwnership
George Makris
Non Independent Chairman & CEO6.17yrsUS$4.95m0.39% $8.1m
Robert Fehlman
Senior EVP16yrsUS$2.23m0.081% $1.7m
Stephen Massanelli
Executive VPno dataUS$1.06m0.036% $763.5k
Patrick Burrow
Executive VP5.25yrsUS$1.07m0.044% $918.5k
Marty Casteel
Senior EVP & Non Independent Director0.17yrUS$2.00m0.13% $2.7m
David Garner
Executive VP7.17yrsno data0.044% $933.2k
Paul Kanneman
Executive VP & Chief Information Officer3.17yrsUS$920.79k0.014% $287.2k
Jennifer Compton
Executive VP4.5yrsno data0.020% $419.8k
Steven Wade
Executive VP & Chief Credit Officer of Simmons Bankno datano datano data
Matthew Reddin
Executive VP & Chief Banking Officer of Simmons Bankno dataUS$1.08mno data

5.7yrs

Average Tenure

62yo

Average Age

Experienced Management: SFNC's management team is seasoned and experienced (5.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
George Makris
Non Independent Chairman & CEO6.17yrsUS$4.95m0.39% $8.1m
Marty Casteel
Senior EVP & Non Independent Director0.17yrUS$2.00m0.13% $2.7m
Steven Cossé
Lead Independent Directorno dataUS$142.01k0.056% $1.2m
Jay Burchfield
Independent Director4.92yrsUS$112.01k0.084% $1.8m
Mark Doramus
Independent Director5yrsUS$122.00k0.015% $308.4k
W. McGeorge
Independent Director15.17yrsUS$102.01k0.083% $1.7m
Robert Shoptaw
Independent Director13.5yrsUS$132.00k0.055% $1.2m
Edward Drilling
Independent Director12.17yrsUS$102.01k0.012% $249.0k
William Clark
Independent Director12.17yrsUS$102.01k0.016% $328.5k
Eugene Hunt
Independent Director10.83yrsUS$92.00k0.014% $296.4k

10.8yrs

Average Tenure

69yo

Average Age

Experienced Board: SFNC's board of directors are seasoned and experienced ( 10.8 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.6%.


Top Shareholders

Company Information

Simmons First National Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Simmons First National Corporation
  • Ticker: SFNC
  • Exchange: NasdaqGS
  • Founded: 1903
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$2.098b
  • Shares outstanding: 113.28m
  • Website: https://www.simmonsbank.com

Number of Employees


Location

  • Simmons First National Corporation
  • 501 Main Street
  • Pine Bluff
  • Arkansas
  • 71601
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SFNCNasdaqGS (Nasdaq Global Select)YesClass A Common SharesUSUSDMar 1985

Biography

Simmons First National Corporation operates as the holding company for Simmons Bank that provides financial products and services to individuals and businesses. It offers checking, savings, and time deposits; loan products, including consumer, real estate, commercial, agricultural, equipment, and SBA lending; personal and corporate trust services; credit cards; investment management products; insurance products; and securities and investment services. The company conducts banking operations through approximately 191 financial centers located in communities throughout Arkansas, Colorado, Kansas, Missouri, Oklahoma, Tennessee, and Texas. Simmons First National Corporation was founded in 1903 and is headquartered in Pine Bluff, Arkansas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 02:12
End of Day Share Price2020/03/27 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.