HOME BANCSHARES INC (HOMB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HOMB - US4368932004 - Common Stock
28.36 USD
-0.05 (-0.18%)
28.36 USD
0 (0%)
HOMB gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 388 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. HOMB is not valued too expensively and it also shows a decent growth rate. Finally HOMB also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year HOMB was profitable.
In the past year HOMB had a positive cash flow from operations.
In the past 5 years HOMB has always been profitable.
Each year in the past 5 years HOMB had a positive operating cash flow.
1.2 Ratios
HOMB has a better Return On Assets (2.02%) than 96.13% of its industry peers.
HOMB has a better Return On Equity (10.87%) than 73.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.02% | ||
| ROE | 10.87% | ||
| ROIC | N/A |
ROA(3y)1.62%
ROA(5y)1.59%
ROE(3y)9.73%
ROE(5y)9.79%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
HOMB has a better Profit Margin (42.94%) than 97.16% of its industry peers.
In the last couple of years the Profit Margin of HOMB has declined.
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) | 42.94% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-4.14%
PM growth 5Y-1.97%
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.
Compared to 1 year ago, HOMB has less shares outstanding
HOMB has more shares outstanding than it did 5 years ago.
The debt/assets ratio for HOMB is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of HOMB is 1.20, 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 60.57% 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.
The Debt to Equity ratio of HOMB (0.10) is better than 68.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 1.2 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC11.74%
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 nice 13.07% over the past year.
Measured over the past 5 years, HOMB shows a small growth in Earnings Per Share. The EPS has been growing by 3.05% on average per year.
Looking at the last year, HOMB shows a small growth in Revenue. The Revenue has grown by 6.23% in the last year.
Measured over the past years, HOMB shows a quite strong growth in Revenue. The Revenue has been growing by 8.95% on average per year.
EPS 1Y (TTM)13.07%
EPS 3Y1.19%
EPS 5Y3.05%
EPS Q2Q%22%
Revenue 1Y (TTM)6.23%
Revenue growth 3Y12.71%
Revenue growth 5Y8.95%
Sales Q2Q%7.62%
3.2 Future
The Earnings Per Share is expected to grow by 8.94% on average over the next years. This is quite good.
Based on estimates for the next years, HOMB will show a small growth in Revenue. The Revenue will grow by 4.87% on average per year.
EPS Next Y19.68%
EPS Next 2Y11.36%
EPS Next 3Y8.94%
EPS Next 5YN/A
Revenue Next Year5.98%
Revenue Next 2Y5.22%
Revenue Next 3Y4.87%
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 accelerating.
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.60, the valuation of HOMB can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of HOMB is on the same level as its industry peers.
HOMB is valuated cheaply when we compare the Price/Earnings ratio to 26.92, which is the current average of the S&P500 Index.
HOMB is valuated reasonably with a Price/Forward Earnings ratio of 11.38.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HOMB is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 23.46. HOMB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.6 | ||
| Fwd PE | 11.38 |
4.2 Price Multiples
HOMB's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. HOMB is more expensive than 65.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.8 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
HOMB's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.64
PEG (5Y)4.14
EPS Next 2Y11.36%
EPS Next 3Y8.94%
5. Dividend
5.1 Amount
HOMB has a Yearly Dividend Yield of 2.96%. Purely for dividend investing, there may be better candidates out there.
HOMB's Dividend Yield is comparable with the industry average which is at 2.74.
HOMB's Dividend Yield is a higher than the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
5.2 History
The dividend of HOMB is nicely growing with an annual growth rate of 8.08%!
HOMB has been paying a dividend for at least 10 years, so it has 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
34.19% of the earnings are spent on dividend by HOMB. This is a low number and sustainable payout ratio.
The dividend of HOMB is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP34.19%
EPS Next 2Y11.36%
EPS Next 3Y8.94%
28.36
-0.05 (-0.18%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners73.51%
Inst Owner Change0.21%
Ins Owners5.9%
Ins Owner Change-11.63%
Market Cap5.57B
Revenue(TTM)1.07B
Net Income(TTM)458.22M
Analysts77.33
Price Target33.92 (19.61%)
Short Float %3.72%
Short Ratio6.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
Yearly Dividend0.75
Dividend Growth(5Y)8.08%
DP34.19%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.17%
Min EPS beat(2)0.17%
Max EPS beat(2)0.18%
EPS beat(4)3
Avg EPS beat(4)-0.65%
Min EPS beat(4)-5.3%
Max EPS beat(4)2.33%
EPS beat(8)6
Avg EPS beat(8)0.49%
EPS beat(12)9
Avg EPS beat(12)0.48%
EPS beat(16)12
Avg EPS beat(16)-3.95%
Revenue beat(2)2
Avg Revenue beat(2)1.04%
Min Revenue beat(2)0.89%
Max Revenue beat(2)1.2%
Revenue beat(4)2
Avg Revenue beat(4)0.17%
Min Revenue beat(4)-1.33%
Max Revenue beat(4)1.2%
Revenue beat(8)4
Avg Revenue beat(8)-0.14%
Revenue beat(12)4
Avg Revenue beat(12)-1.1%
Revenue beat(16)5
Avg Revenue beat(16)-0.72%
PT rev (1m)0.38%
PT rev (3m)-0.75%
EPS NQ rev (1m)0.19%
EPS NQ rev (3m)0.42%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)0.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.96%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.6 | ||
| Fwd PE | 11.38 | ||
| P/S | 5.22 | ||
| P/FCF | 15.8 | ||
| P/OCF | 14.46 | ||
| P/B | 1.32 | ||
| P/tB | 2 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.25
EY7.93%
EPS(NY)2.49
Fwd EY8.79%
FCF(TTM)1.79
FCFY6.33%
OCF(TTM)1.96
OCFY6.92%
SpS5.43
BVpS21.45
TBVpS14.16
PEG (NY)0.64
PEG (5Y)4.14
Graham Number32.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.02% | ||
| ROE | 10.87% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 42.94% | ||
| GM | N/A | ||
| FCFM | 33.06% |
ROA(3y)1.62%
ROA(5y)1.59%
ROE(3y)9.73%
ROE(5y)9.79%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-4.14%
PM growth 5Y-1.97%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 1.2 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 114.09% | ||
| Cap/Sales | 3.07% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 76.99% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC11.74%
ROIC/WACCN/A
Cap/Depr(3y)62.61%
Cap/Depr(5y)59.57%
Cap/Sales(3y)1.87%
Cap/Sales(5y)1.75%
Profit Quality(3y)110.6%
Profit Quality(5y)116.26%
High Growth Momentum
Growth
EPS 1Y (TTM)13.07%
EPS 3Y1.19%
EPS 5Y3.05%
EPS Q2Q%22%
EPS Next Y19.68%
EPS Next 2Y11.36%
EPS Next 3Y8.94%
EPS Next 5YN/A
Revenue 1Y (TTM)6.23%
Revenue growth 3Y12.71%
Revenue growth 5Y8.95%
Sales Q2Q%7.62%
Revenue Next Year5.98%
Revenue Next 2Y5.22%
Revenue Next 3Y4.87%
Revenue Next 5YN/A
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-11.05%
FCF growth 3Y3.65%
FCF growth 5Y12.67%
OCF growth 1Y-5.54%
OCF growth 3Y5.76%
OCF growth 5Y13.24%
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.
What is the valuation status for HOMB stock?
ChartMill assigns a valuation rating of 4 / 10 to HOME BANCSHARES INC (HOMB). This can be considered as Fairly Valued.
What is the profitability of HOMB stock?
HOME BANCSHARES INC (HOMB) has a profitability rating of 4 / 10.
How financially healthy is HOME BANCSHARES INC?
The financial health rating of HOME BANCSHARES INC (HOMB) is 3 / 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 19.68% in the next year.