HOME BANCSHARES INC (HOMB) Stock Fundamental Analysis
NYSE:HOMB - New York Stock Exchange, Inc. - US4368932004 - Common Stock - Currency: USD
Taking everything into account, HOMB scores 4 out of 10 in our fundamental rating. HOMB was compared to 394 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 not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year HOMB was profitable.
HOMB had a positive operating cash flow in the past year.
In the past 5 years HOMB has always been profitable.
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 1.82%, HOMB belongs to the top of the industry, outperforming 95.69% of the companies in the same industry.
HOMB has a better Return On Equity (10.32%) than 70.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.82% | ||
| ROE | 10.32% | ||
| 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
Looking at the Profit Margin, with a value of 40.48%, HOMB belongs to the top of the industry, outperforming 95.94% of the companies in the same industry.
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) | 40.48% | ||
| 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.
The number of shares outstanding for HOMB has been reduced compared to 1 year ago.
The number of shares outstanding for HOMB has been increased compared to 5 years ago.
HOMB has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of HOMB is 1.55, which is an excellent value as it means it would take HOMB, only 1.55 years of fcf income to pay off all of its debts.
HOMB's Debt to FCF ratio of 1.55 is fine compared to the rest of the industry. HOMB outperforms 60.15% 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 Debt to Equity ratio (0.15) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.55 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC11.88%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
HOMB shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.05%.
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.
The Revenue has been growing slightly by 3.68% in the past year.
The Revenue has been growing by 8.95% on average over the past years. This is quite good.
EPS 1Y (TTM)5.05%
EPS 3Y1.19%
EPS 5Y3.05%
EPS Q2Q%14.29%
Revenue 1Y (TTM)3.68%
Revenue growth 3Y12.71%
Revenue growth 5Y8.95%
Sales Q2Q%5.56%
3.2 Future
Based on estimates for the next years, HOMB will show a small growth in Earnings Per Share. The EPS will grow by 7.32% on average per year.
HOMB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.57% yearly.
EPS Next Y15.62%
EPS Next 2Y8.17%
EPS Next 3Y7.32%
EPS Next 5YN/A
Revenue Next Year3.95%
Revenue Next 2Y3.37%
Revenue Next 3Y2.57%
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.
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
The Price/Earnings ratio is 14.11, which indicates a correct valuation of HOMB.
HOMB's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of HOMB to the average of the S&P500 Index (27.41), we can say HOMB is valued slightly cheaper.
HOMB is valuated correctly with a Price/Forward Earnings ratio of 12.48.
HOMB's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. HOMB is more expensive than 67.77% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.19, HOMB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.11 | ||
| Fwd PE | 12.48 |
4.2 Price Multiples
HOMB's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15 | ||
| 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)0.9
PEG (5Y)4.63
EPS Next 2Y8.17%
EPS Next 3Y7.32%
5. Dividend
5.1 Amount
HOMB has a Yearly Dividend Yield of 2.69%.
HOMB's Dividend Yield is comparable with the industry average which is at 3.31.
Compared to an average S&P500 Dividend Yield of 2.35, HOMB has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
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
HOMB pays out 36.55% 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.
DP36.55%
EPS Next 2Y8.17%
EPS Next 3Y7.32%
29.35
-0.4 (-1.34%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners72.79%
Inst Owner Change0%
Ins Owners5.97%
Ins Owner Change2.1%
Market Cap5.80B
Analysts78.57
Price Target32.64 (11.21%)
Short Float %2.95%
Short Ratio6.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
Yearly Dividend0.75
Dividend Growth(5Y)8.08%
DP36.55%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.48%
Min EPS beat(2)-5.3%
Max EPS beat(2)2.33%
EPS beat(4)2
Avg EPS beat(4)-1.5%
Min EPS beat(4)-7.51%
Max EPS beat(4)4.49%
EPS beat(8)6
Avg EPS beat(8)0.56%
EPS beat(12)8
Avg EPS beat(12)-6%
EPS beat(16)12
Avg EPS beat(16)-3.56%
Revenue beat(2)0
Avg Revenue beat(2)-0.71%
Min Revenue beat(2)-1.33%
Max Revenue beat(2)-0.09%
Revenue beat(4)1
Avg Revenue beat(4)-0.69%
Min Revenue beat(4)-2.3%
Max Revenue beat(4)0.97%
Revenue beat(8)2
Avg Revenue beat(8)-0.96%
Revenue beat(12)3
Avg Revenue beat(12)-0.98%
Revenue beat(16)4
Avg Revenue beat(16)-0.91%
PT rev (1m)0%
PT rev (3m)-3.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.73%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)4.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.3%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.11 | ||
| Fwd PE | 12.48 | ||
| P/S | 5.62 | ||
| P/FCF | 15 | ||
| P/OCF | 13.47 | ||
| P/B | 1.43 | ||
| P/tB | 2.22 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.08
EY7.09%
EPS(NY)2.35
Fwd EY8.01%
FCF(TTM)1.96
FCFY6.67%
OCF(TTM)2.18
OCFY7.42%
SpS5.22
BVpS20.47
TBVpS13.2
PEG (NY)0.9
PEG (5Y)4.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.82% | ||
| ROE | 10.32% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 40.48% | ||
| GM | N/A | ||
| FCFM | 37.48% |
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-Score9
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.55 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 150.61% | ||
| Cap/Sales | 4.24% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 92.58% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC11.88%
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)5.05%
EPS 3Y1.19%
EPS 5Y3.05%
EPS Q2Q%14.29%
EPS Next Y15.62%
EPS Next 2Y8.17%
EPS Next 3Y7.32%
EPS Next 5YN/A
Revenue 1Y (TTM)3.68%
Revenue growth 3Y12.71%
Revenue growth 5Y8.95%
Sales Q2Q%5.56%
Revenue Next Year3.95%
Revenue Next 2Y3.37%
Revenue Next 3Y2.57%
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-10.62%
FCF growth 3Y3.65%
FCF growth 5Y12.67%
OCF growth 1Y-2.6%
OCF growth 3Y5.76%
OCF growth 5Y13.24%