HOME BANCSHARES INC (HOMB) Stock Fundamental Analysis
NYSE:HOMB - US4368932004 - Common Stock
29.95 USD
+1.35 (+4.72%)
29.95 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to HOMB. HOMB was compared to 393 industry peers in the Banks industry. There are concerns on the financial health of HOMB while its profitability can be described as average. HOMB is valied quite expensively at the moment, while it does show a decent growth rate.
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.
HOMB had positive earnings in each of the past 5 years.
HOMB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.90%, HOMB belongs to the top of the industry, outperforming 96.18% of the companies in the same industry.
Looking at the Return On Equity, with a value of 10.63%, HOMB is in the better half of the industry, outperforming 75.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.9% | ||
| ROE | 10.63% | ||
| 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 Profit Margin of 41.45%. This is amongst the best in the industry. HOMB outperforms 95.93% of its industry peers.
HOMB's Profit Margin has declined 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) | 41.45% | ||
| 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.
HOMB has less shares outstanding than it did 1 year ago.
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 1.62, which is an excellent value as it means it would take HOMB, only 1.62 years of fcf income to pay off all of its debts.
HOMB's Debt to FCF ratio of 1.62 is in line compared to the rest of the industry. HOMB outperforms 56.49% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that HOMB is not too dependend on debt financing.
The Debt to Equity ratio of HOMB (0.14) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.62 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC11.7%
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 8.08% over the past year.
The Earnings Per Share has been growing slightly by 3.05% on average over the past years.
HOMB shows a small growth in Revenue. In the last year, the Revenue has grown by 5.60%.
The Revenue has been growing by 8.95% on average over the past years. This is quite good.
EPS 1Y (TTM)8.08%
EPS 3Y1.19%
EPS 5Y3.05%
EPS Q2Q%11.54%
Revenue 1Y (TTM)5.6%
Revenue growth 3Y12.71%
Revenue growth 5Y8.95%
Sales Q2Q%6.46%
3.2 Future
The Earnings Per Share is expected to grow by 7.73% on average over the next years.
The Revenue is expected to grow by 3.21% on average over the next years.
EPS Next Y19.49%
EPS Next 2Y10.24%
EPS Next 3Y7.73%
EPS Next 5YN/A
Revenue Next Year5.4%
Revenue Next 2Y4.02%
Revenue Next 3Y3.21%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
Based on the Price/Earnings ratio of 14.00, the valuation of HOMB can be described as correct.
Based on the Price/Earnings ratio, HOMB is valued a bit more expensive than the industry average as 60.05% of the companies are valued more cheaply.
HOMB's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.24.
HOMB is valuated correctly with a Price/Forward Earnings ratio of 12.26.
HOMB's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. HOMB is more expensive than 67.18% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.81. HOMB is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14 | ||
| Fwd PE | 12.26 |
4.2 Price Multiples
61.07% of the companies in the same industry are cheaper than HOMB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.5 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.72
PEG (5Y)4.6
EPS Next 2Y10.24%
EPS Next 3Y7.73%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.80%, HOMB has a reasonable but not impressive dividend return.
HOMB's Dividend Yield is comparable with the industry average which is at 3.30.
HOMB's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.08%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
HOMB pays out 35.91% of its income as dividend. This is a sustainable payout ratio.
The dividend of HOMB is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP35.91%
EPS Next 2Y10.24%
EPS Next 3Y7.73%
29.95
+1.35 (+4.72%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners72.9%
Inst Owner Change-1.16%
Ins Owners5.96%
Ins Owner Change-0.41%
Market Cap5.90B
Analysts78.57
Price Target34.39 (14.82%)
Short Float %2.69%
Short Ratio4.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
Yearly Dividend0.75
Dividend Growth(5Y)8.08%
DP35.91%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.25%
Min EPS beat(2)0.18%
Max EPS beat(2)2.33%
EPS beat(4)2
Avg EPS beat(4)-2.58%
Min EPS beat(4)-7.51%
Max EPS beat(4)2.33%
EPS beat(8)6
Avg EPS beat(8)0.48%
EPS beat(12)9
Avg EPS beat(12)0.64%
EPS beat(16)12
Avg EPS beat(16)-3.74%
Revenue beat(2)1
Avg Revenue beat(2)0.56%
Min Revenue beat(2)-0.09%
Max Revenue beat(2)1.2%
Revenue beat(4)1
Avg Revenue beat(4)-0.63%
Min Revenue beat(4)-2.3%
Max Revenue beat(4)1.2%
Revenue beat(8)3
Avg Revenue beat(8)-0.69%
Revenue beat(12)3
Avg Revenue beat(12)-1.3%
Revenue beat(16)5
Avg Revenue beat(16)-0.65%
PT rev (1m)5.36%
PT rev (3m)5.36%
EPS NQ rev (1m)1.19%
EPS NQ rev (3m)8.73%
EPS NY rev (1m)3.35%
EPS NY rev (3m)3.29%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)2.61%
Revenue NY rev (1m)1.39%
Revenue NY rev (3m)1.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14 | ||
| Fwd PE | 12.26 | ||
| P/S | 5.64 | ||
| P/FCF | 16.5 | ||
| P/OCF | 14.79 | ||
| P/B | 1.44 | ||
| P/tB | 2.23 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.14
EY7.15%
EPS(NY)2.44
Fwd EY8.16%
FCF(TTM)1.81
FCFY6.06%
OCF(TTM)2.03
OCFY6.76%
SpS5.31
BVpS20.73
TBVpS13.45
PEG (NY)0.72
PEG (5Y)4.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.9% | ||
| ROE | 10.63% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 41.45% | ||
| GM | N/A | ||
| FCFM | 34.14% |
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
ROICexcg growth 3YN/A
ROICexcg 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 | 0.14 | ||
| Debt/FCF | 1.62 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 144.13% | ||
| Cap/Sales | 3.96% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 82.36% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC11.7%
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)8.08%
EPS 3Y1.19%
EPS 5Y3.05%
EPS Q2Q%11.54%
EPS Next Y19.49%
EPS Next 2Y10.24%
EPS Next 3Y7.73%
EPS Next 5YN/A
Revenue 1Y (TTM)5.6%
Revenue growth 3Y12.71%
Revenue growth 5Y8.95%
Sales Q2Q%6.46%
Revenue Next Year5.4%
Revenue Next 2Y4.02%
Revenue Next 3Y3.21%
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-24.22%
FCF growth 3Y3.65%
FCF growth 5Y12.67%
OCF growth 1Y-16.1%
OCF growth 3Y5.76%
OCF growth 5Y13.24%