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

Fundamentals

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


Market Performance


7 Day Return

0.5%

SFNC

2.7%

US Banks

0.4%

US Market


1 Year Return

-10.0%

SFNC

2.7%

US Banks

6.9%

US Market

Return vs Industry: SFNC underperformed the US Banks industry which returned 2.7% over the past year.

Return vs Market: SFNC underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

SFNCIndustryMarket
7 Day0.5%2.7%0.4%
30 Day-5.9%0.7%-1.1%
90 Day1.3%3.0%-0.5%
1 Year-7.7%-10.0%5.7%2.7%9.3%6.9%
3 Year1.7%-4.3%52.1%41.6%45.8%36.4%
5 Year35.2%22.0%69.2%50.7%62.9%45.1%

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?

24.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: SFNC ($23.75) is trading below our estimate of fair value ($31.3)

Significantly Undervalued: SFNC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SFNC is good value based on its PE Ratio (10.3x) compared to the Banks industry average (12.6x).

PE vs Market: SFNC is good value based on its PE Ratio (10.3x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: SFNC is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: SFNC 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 Simmons First National forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

18.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SFNC's forecast earnings growth (18.5% per year) is above the savings rate (2.7%).

Earnings vs Market: SFNC's earnings (18.5% per year) are forecast to grow faster than the US market (14.6% per year).

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

Revenue vs Market: SFNC's revenue (14.9% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: SFNC's revenue (14.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: SFNC's Return on Equity is forecast to be low in 3 years time (9.6%).


Next Steps

Past Performance

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

35.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SFNC's earnings have grown significantly by 35.3% per year over the past 5 years.

Accelerating Growth: SFNC's earnings growth over the past year (40.3%) exceeds its 5-year average (35.3% per year).

Earnings vs Industry: SFNC earnings growth over the past year (40.3%) exceeded the Banks industry 29.6%.


Return on Equity

High ROE: SFNC's Return on Equity (8.7%) is considered low.


Return on Assets

ROA vs Industry: SFNC has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate SFNC's Return on Capital Employed to determine if it has improved over the past 3 years.


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 0.4x 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 (0.71%)


Next Steps

Dividend

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

2.69%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%1.4%markettop25%3.7%industryaverage3.0%forecastin3Years2.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SFNC's dividend (2.69%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: SFNC's dividend (2.69%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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 (27%), 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 (28.1% payout ratio).


Next Steps

Management

What is the CEO of Simmons First National's salary, the management and board of directors tenure and is there insider trading?

5.3yrs

Average management tenure


CEO

George Makris (62yo)

5.8yrs

Tenure

US$4,585,590

Compensation

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


CEO Compensation Analysis

Compensation vs. Market: George's total compensation ($USD4.59M) is about average for companies of similar size in the US market ($USD4.00M).

Compensation vs Earnings: George's compensation has increased by more than 20% in the past year.


Management Age and Tenure

5.3yrs

Average Tenure

62.5yo

Average Age

Experienced Management: SFNC's management team is seasoned and experienced (5.3 years average tenure).


Board Age and Tenure

10.4yrs

Average Tenure

67yo

Average Age

Experienced Board: SFNC's board of directors are seasoned and experienced ( 10.4 years average tenure).


Insider Trading

Insider Buying: SFNC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$329,60308 Aug 19
George Makris
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares13,518
Max PriceUS$24.45
BuyUS$25,30002 May 19
Patrick Burrow
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares1,000
Max PriceUS$25.30
BuyUS$121,95029 Apr 19
George Makris
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares5,000
Max PriceUS$24.39
BuyUS$24,61026 Apr 19
Eugene Hunt
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$24.61
BuyUS$248,50030 Jan 19
George Makris
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares10,000
Max PriceUS$24.85
BuyUS$41,47520 Nov 18
Patrick Burrow
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares1,500
Max PriceUS$27.70

Ownership Breakdown


Management Team

  • Mark Funke (63yo)

    President of SNB

    • Tenure: 0yrs
    • Compensation: US$899.43k
  • George Makris (62yo)

    Chairman & CEO

    • Tenure: 5.8yrs
    • Compensation: US$4.59m
  • Bob Fehlman (54yo)

    COO, CFO & Treasurer

    • Tenure: 15.6yrs
    • Compensation: US$1.38m
  • Steve Massanelli (63yo)

    Investor Relations Officer & Executive VP

    • Tenure: 1.4yrs
    • Compensation: US$671.02k
  • David Garner (49yo)

    Executive VP & Chief Accounting Officer

    • Tenure: 6.8yrs
  • Marty Casteel (67yo)

    Senior Executive Vice President

    • Tenure: 0yrs
    • Compensation: US$1.32m
  • Jena Compton (46yo)

    Executive VP

    • Tenure: 0yrs
  • Patrick Burrow (66yo)

    Executive VP

    • Tenure: 4.8yrs
    • Compensation: US$643.22k
  • Steve Wade (64yo)

    Executive VP & Chief Credit Officer of Simmons Bank

    • Tenure: 0yrs
  • Paul Kanneman (61yo)

    Executive VP & Chief Information Officer

    • Tenure: 2.8yrs
    • Compensation: US$920.79k

Board Members

  • Steven Cossé (71yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$142.02k
  • George Makris (62yo)

    Chairman & CEO

    • Tenure: 5.8yrs
    • Compensation: US$4.59m
  • Jay Burchfield (73yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$112.02k
  • Mark Doramus (60yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$122.07k
  • W. McGeorge (75yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$107.02k
  • Robert Shoptaw (72yo)

    Independent Director

    • Tenure: 13.1yrs
    • Compensation: US$132.02k
  • Eddie Drilling (63yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$102.02k
  • William Clark (49yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$102.02k
  • Eugene Hunt (73yo)

    Independent Director

    • Tenure: 10.4yrs
    • Compensation: US$92.02k
  • Chris Kirkland (49yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$102.02k

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$2.294b
  • Shares outstanding: 96.60m
  • 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 deposi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 23:43
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
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.