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

-1.1%

US Banks

-0.6%

US Market


1 Year Return

-20.0%

SFNC

-6.9%

US Banks

0.6%

US Market

SFNC underperformed the Banks industry which returned -6.4% over the past year.

SFNC underperformed the Market in United States of America which returned 1.1% over the past year.


Share holder returns

SFNCIndustryMarket
7 Day-0.5%-1.1%-0.6%
30 Day1.2%8.5%2.2%
90 Day11.7%4.6%1.1%
1 Year-17.9%-20.0%-4.2%-6.9%2.9%0.6%
3 Year9.0%2.5%53.6%43.1%44.6%35.2%
5 Year44.0%30.0%63.8%46.1%61.9%44.2%

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

3 weeks ago | Simply Wall St

Do Directors Own Simmons First National Corporation (NASDAQ:SFNC) Shares?

Valuation

Is Simmons First National undervalued based on future cash flows and its price relative to the stock market?

21%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Simmons First National's share price is below the future cash flow value, and at a moderate discount (> 20%).

Simmons First National's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Simmons First National is good value based on earnings compared to the US Banks industry average.

Simmons First National is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Simmons First National is good value based on expected growth next year.


Price Based on Value of Assets

Simmons First National is good value based on assets compared to the US Banks industry average.


Next Steps

Future Growth

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

18.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Simmons First National's revenue is expected to grow by 15% yearly, however this is not considered high growth (20% yearly).

Simmons First National's earnings are expected to grow by 18.7% yearly, however this is not considered high growth (20% yearly).

Simmons First National's revenue growth is expected to exceed the United States of America market average.

Simmons First National's earnings growth is expected to exceed the United States of America market average.

Simmons First National's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Simmons First National is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Simmons First National has delivered over 20% year on year earnings growth in the past 5 years.

Simmons First National's 1-year earnings growth exceeds its 5-year average (40.3% vs 35.3%)

Simmons First National's earnings growth has exceeded the US Banks industry average in the past year (40.3% vs 32%).


Return on Equity

Simmons First National has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Simmons First National used its assets more efficiently than the US Banks industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Simmons First National improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


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

Information is not available.

Information is not available.


Financial Institutions Analysis

Simmons First National has an acceptable proportion of non-loan assets held.

Simmons First National has a low allowance for bad loans.

Simmons First National's liabilities are made up of primarily low risk sources of funding.

Simmons First National's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).

Loans at Simmons First National are broadly funded by customer deposits.

Simmons First National has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

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

2.72%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Simmons First National's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Simmons First National's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.6x coverage).


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?

5.2yrs

Average management tenure


CEO

George Makris (62yo)

5.7yrs

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

George's remuneration is about average for companies of similar size in United States of America.

George's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.2yrs

Average Tenure

62.5yo

Average Age

The average tenure for the Simmons First National management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

10.3yrs

Average Tenure

67yo

Average Age

The average tenure for the Simmons First National board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

More shares have been bought than sold by Simmons First National individual insiders 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
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: 5.7yrs
    • Compensation: US$4.59m
  • Bob Fehlman (54yo)

    Senior EVP

    • Tenure: 13.5yrs
    • Compensation: US$1.38m
  • Steve Massanelli (63yo)

    Investor Relations Officer & Executive VP

    • Tenure: 1.3yrs
    • Compensation: US$671.02k
  • David Garner (49yo)

    Executive VP & Chief Accounting Officer

    • Tenure: 6.7yrs
  • 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: 2.7yrs
    • Compensation: US$920.79k

Board Members

  • Steven Cossé (71yo)

    Lead Director

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

    Chairman & CEO

    • Tenure: 5.7yrs
    • Compensation: US$4.59m
  • Jay Burchfield (73yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$112.02k
  • Mark Doramus (60yo)

    Director

    • Tenure: 4.5yrs
    • Compensation: US$122.07k
  • W. McGeorge (75yo)

    Director

    • Tenure: 14.7yrs
    • Compensation: US$107.02k
  • Robert Shoptaw (72yo)

    Director

    • Tenure: 13yrs
    • Compensation: US$132.02k
  • Eddie Drilling (63yo)

    Director

    • Tenure: 11.7yrs
    • Compensation: US$102.02k
  • William Clark (49yo)

    Director

    • Tenure: 11.7yrs
    • Compensation: US$102.02k
  • Eugene Hunt (73yo)

    Director

    • Tenure: 10.3yrs
    • Compensation: US$92.02k
  • Chris Kirkland (49yo)

    Director

    • Tenure: 4.5yrs
    • 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$2.455b
  • Shares outstanding: 96.61m
  • 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 Analysis2019/09/20 23:45
End of Day Share Price2019/09/20 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.