Taking everything into account, HOMB scores 4 out of 10 in our fundamental rating. HOMB was compared to 383 industry peers in the Banks industry. While HOMB is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, HOMB is valued expensive at the moment. HOMB also has an excellent dividend rating.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

HOMB had positive earnings in the past year.
In the past year HOMB had a positive cash flow from operations.
In the past 5 years HOMB has always been profitable.
Of the past 5 years HOMB 4 years had a positive operating cash flow.

1.2 Ratios

With an excellent Return On Assets value of 2.02%, HOMB belongs to the best of the industry, outperforming 95.82% of the companies in the same industry.
HOMB has a Return On Equity of 10.86%. This is in the better half of the industry: HOMB outperforms 73.37% of its industry peers.

		Industry Rank	Sector Rank
ROA	2.02%
ROE	10.86%
ROIC	N/A

ROA(3y)1.87%

ROA(5y)1.74%

ROE(3y)10.53%

ROE(5y)10.36%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

With an excellent Profit Margin value of 42.90%, HOMB belongs to the best of the industry, outperforming 97.13% of the companies in the same industry.
HOMB's Profit Margin has improved in the last couple of years.
HOMB does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.

		Industry Rank	Sector Rank
OM	N/A
PM (TTM)	42.9%
GM	N/A

OM growth 3YN/A

OM growth 5YN/A

PM growth 3Y9.47%

PM growth 5Y7.13%

GM growth 3YN/A

GM growth 5YN/A

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

HOMB does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for HOMB has been reduced compared to 1 year ago.
HOMB has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, HOMB has an improved debt to assets ratio.

2.2 Solvency

The Debt to FCF ratio of HOMB is 1.20, which is an excellent value as it means it would take HOMB, only 1.20 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.20, HOMB is doing good in the industry, outperforming 61.10% of the companies in the same industry.
HOMB has a Debt/Equity ratio of 0.10. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.10, HOMB is doing good in the industry, outperforming 68.67% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.1
Debt/FCF	1.2
Altman-Z	N/A

ROIC/WACCN/A

WACC11.78%

2.3 Liquidity

		Industry Rank	Sector Rank
Current Ratio	N/A
Quick Ratio	N/A

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

HOMB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.92%, which is quite good.
The Earnings Per Share has been growing slightly by 6.32% on average over the past years.
Looking at the last year, HOMB shows a small growth in Revenue. The Revenue has grown by 7.23% in the last year.
The Revenue has been growing by 9.46% on average over the past years. This is quite good.

EPS 1Y (TTM)16.92%

EPS 3Y14.15%

EPS 5Y6.32%

EPS Q2Q%20%

Revenue 1Y (TTM)7.23%

Revenue growth 3Y5.89%

Revenue growth 5Y9.46%

Sales Q2Q%9.18%

3.2 Future

HOMB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.30% yearly.
Based on estimates for the next years, HOMB will show a small growth in Revenue. The Revenue will grow by 5.10% on average per year.

EPS Next Y7.67%

EPS Next 2Y6.3%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year7.92%

Revenue Next 2Y6.52%

Revenue Next 3Y5.1%

Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

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4. Valuation

4.1 Price/Earnings Ratio

HOMB is valuated correctly with a Price/Earnings ratio of 12.31.
The rest of the industry has a similar Price/Earnings ratio as HOMB.
When comparing the Price/Earnings ratio of HOMB to the average of the S&P500 Index (28.39), we can say HOMB is valued rather cheaply.
The Price/Forward Earnings ratio is 11.44, which indicates a very decent valuation of HOMB.
HOMB's Price/Forward Earnings is on the same level as the industry average.
HOMB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.72.

		Industry Rank	Sector Rank
PE	12.31
Fwd PE	11.44

4.2 Price Multiples

Compared to the rest of the industry, the Price/Free Cash Flow ratio of HOMB indicates a slightly more expensive valuation: HOMB is more expensive than 65.54% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	16.08
EV/EBITDA	N/A

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.

PEG (NY)1.61

PEG (5Y)1.95

EPS Next 2Y6.3%

EPS Next 3YN/A

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5. Dividend

5.1 Amount

HOMB has a Yearly Dividend Yield of 2.86%.
Compared to an average industry Dividend Yield of 2.65, HOMB has a dividend in line with its industry peers.
HOMB's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.

		Industry Rank	Sector Rank
Dividend Yield	2.86%

5.2 History

On average, the dividend of HOMB grows each year by 8.08%, which is quite nice.
HOMB has paid a dividend for at least 10 years, which is a reliable track record.
HOMB has not decreased their dividend for at least 10 years, which is a reliable track record.

Dividend Growth(5Y)8.08%

Div Incr Years11

Div Non Decr Years11

5.3 Sustainability

34.17% of the earnings are spent on dividend by HOMB. This is a low number and sustainable payout ratio.
HOMB's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.

DP34.17%

EPS Next 2Y6.3%

EPS Next 3YN/A

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HOME BANCSHARES INC / HOMB FAQ

Can you provide the ChartMill fundamental rating for HOME BANCSHARES INC?

ChartMill assigns a fundamental rating of 4 / 10 to HOMB.

Can you provide the valuation status for HOME BANCSHARES INC?

ChartMill assigns a valuation rating of 3 / 10 to HOME BANCSHARES INC (HOMB). This can be considered as Overvalued.

Can you provide the profitability details for HOME BANCSHARES INC?

HOME BANCSHARES INC (HOMB) has a profitability rating of 4 / 10.

What is the expected EPS growth for HOME BANCSHARES INC (HOMB) stock?

The Earnings per Share (EPS) of HOME BANCSHARES INC (HOMB) is expected to grow by 7.67% in the next year.

Is the dividend of HOME BANCSHARES INC sustainable?

The dividend rating of HOME BANCSHARES INC (HOMB) is 7 / 10 and the dividend payout ratio is 34.17%.