HOME BANCSHARES INC (HOMB)
US4368932004 - Common Stock
Taking everything into account, HOMB scores 4 out of 10 in our fundamental rating. HOMB was compared to 411 industry peers in the Banks industry. HOMB has a medium profitability rating, but doesn't score so well on its financial health evaluation. HOMB is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
HOMB had positive earnings in the past year.
HOMB had a positive operating cash flow in the past year.
HOMB had positive earnings in each of the past 5 years.
In the past 5 years HOMB always reported a positive cash flow from operatings.
1.2 Ratios
HOMB has a better Return On Assets (1.73%) than 93.43% of its industry peers.
HOMB has a better Return On Equity (10.37%) than 63.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.73% | ||
| ROE | 10.37% | ||
| ROIC | N/A |
ROA(3y)1.61%
ROA(5y)1.61%
ROE(3y)10.19%
ROE(5y)10.06%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
HOMB has a Profit Margin of 39.43%. This is amongst the best in the industry. HOMB outperforms 94.16% of its industry peers.
HOMB's Profit Margin has declined in the last couple of years.
The Operating Margin and Gross Margin are not available for HOMB so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 39.43% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y8.48%
PM growth 5Y-2.72%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
HOMB does not have a ROIC to compare to the WACC, probably because it is not profitable.
HOMB has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, HOMB has more shares outstanding
The debt/assets ratio for HOMB is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of HOMB is 1.57, which is an excellent value as it means it would take HOMB, only 1.57 years of fcf income to pay off all of its debts.
HOMB has a better Debt to FCF ratio (1.57) than 65.21% of its industry peers.
HOMB has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
HOMB has a better Debt to Equity ratio (0.15) than 65.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.57 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC11.8%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.58% over the past year.
The Earnings Per Share has been growing slightly by 2.59% on average over the past years.
Looking at the last year, HOMB shows a quite strong growth in Revenue. The Revenue has grown by 8.48% in the last year.
The Revenue has been growing by 8.47% on average over the past years. This is quite good.
EPS 1Y (TTM)26.58%
EPS 3Y4.95%
EPS 5Y2.59%
EPS growth Q2Q-15.79%
Revenue 1Y (TTM)8.48%
Revenue growth 3Y12.81%
Revenue growth 5Y8.47%
Revenue growth Q2Q-4.58%
3.2 Future
HOMB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.09% yearly.
The Revenue is expected to grow by 0.46% on average over the next years.
EPS Next Y-2.81%
EPS Next 2Y0%
EPS Next 3Y0.09%
EPS Next 5YN/A
Revenue Next Year-1.18%
Revenue Next 2Y1.27%
Revenue Next 3Y0.46%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
HOMB is valuated correctly with a Price/Earnings ratio of 12.26.
Based on the Price/Earnings ratio, HOMB is valued a bit more expensive than the industry average as 70.56% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of HOMB to the average of the S&P500 Index (25.20), we can say HOMB is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 12.61, the valuation of HOMB can be described as correct.
Based on the Price/Forward Earnings ratio, HOMB is valued a bit more expensive than 65.21% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.63. HOMB is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.26 | ||
| Fwd PE | 12.61 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, HOMB is valued a bit more expensive than the industry average as 69.83% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.29 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)4.73
EPS Next 2Y0%
EPS Next 3Y0.09%
5. Dividend
5.1 Amount
HOMB has a Yearly Dividend Yield of 2.90%.
HOMB's Dividend Yield is slightly below the industry average, which is at 3.86.
Compared to an average S&P500 Dividend Yield of 2.44, HOMB has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
5.2 History
On average, the dividend of HOMB grows each year by 9.27%, 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)9.27%
Div Incr Years10
Div Non Decr Years13
5.3 Sustainability
37.12% of the earnings are spent on dividend by HOMB. This is a low number and sustainable payout ratio.
The dividend of HOMB is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP37.12%
EPS Next 2Y0%
EPS Next 3Y0.09%
HOME BANCSHARES INC
NYSE:HOMB (4/25/2024, 7:04:00 PM)
After market: 24.52 0 (0%)24.52
-0.28 (-1.13%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.93B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.26 | ||
| Fwd PE | 12.61 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)4.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.73% | ||
| ROE | 10.37% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 39.43% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)26.58%
EPS 3Y4.95%
EPS 5Y
EPS growth Q2Q
EPS Next Y-2.81%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.48%
Revenue growth 3Y12.81%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y