HOME BANCSHARES INC (HOMB) Stock Fundamental Analysis
USA - NYSE:HOMB - US4368932004 - Common Stock
27.35 USD
-0.02 (-0.07%)
27.35 USD
0 (0%)
Taking everything into account, HOMB scores 4 out of 10 in our fundamental rating. HOMB was compared to 390 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. Finally HOMB also has an excellent dividend rating.
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.
Each year in the past 5 years HOMB has been profitable.
In the past 5 years HOMB always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.90%, HOMB belongs to the top of the industry, outperforming 95.90% of the companies in the same industry.
HOMB's Return On Equity of 10.63% is fine compared to the rest of the industry. HOMB outperforms 72.82% of its industry peers.
| 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 95.90% 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) | 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.
Compared to 1 year ago, HOMB has less shares outstanding
HOMB has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, HOMB has a worse debt to assets ratio.
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 has a Debt to FCF ratio (1.62) which is in line with its industry peers.
A Debt/Equity ratio of 0.14 indicates that HOMB is not too dependend on debt financing.
HOMB has a Debt to Equity ratio of 0.14. This is comparable to the rest of the industry: HOMB outperforms 58.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.62 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC11.72%
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.
The Revenue has been growing by 8.95% on average over the past years. This is quite good.
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
HOMB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.63% yearly.
HOMB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.25% yearly.
EPS Next Y19.73%
EPS Next 2Y10.98%
EPS Next 3Y8.63%
EPS Next 5YN/A
Revenue Next Year5.79%
Revenue Next 2Y4.39%
Revenue Next 3Y4.25%
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.
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
With a Price/Earnings ratio of 12.16, HOMB is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of HOMB is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.08. HOMB is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 11.05, the valuation of HOMB can be described as reasonable.
60.00% of the companies in the same industry are cheaper than HOMB, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.09, HOMB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.16 | ||
| Fwd PE | 11.05 |
4.2 Price Multiples
The rest of the industry has a similar Price/Free Cash Flow ratio as HOMB.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.06 | ||
| 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)0.62
PEG (5Y)3.99
EPS Next 2Y10.98%
EPS Next 3Y8.63%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.09%, HOMB has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.50, HOMB has a dividend in line with its industry peers.
HOMB's Dividend Yield is a higher than the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
5.2 History
The dividend of HOMB is nicely growing with an annual growth rate of 8.08%!
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
35.91% 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.
DP35.91%
EPS Next 2Y10.98%
EPS Next 3Y8.63%
27.35
-0.02 (-0.07%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners73.08%
Inst Owner Change-0.57%
Ins Owners5.89%
Ins Owner Change-6.65%
Market Cap5.38B
Revenue(TTM)1.07B
Net Income(TTM)434.21M
Analysts77.33
Price Target34.17 (24.94%)
Short Float %3%
Short Ratio5.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
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)0%
PT rev (3m)4.69%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)1.25%
EPS NY rev (1m)0.2%
EPS NY rev (3m)3.56%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)0.12%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)1.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.16 | ||
| Fwd PE | 11.05 | ||
| P/S | 5.14 | ||
| P/FCF | 15.06 | ||
| P/OCF | 13.49 | ||
| P/B | 1.32 | ||
| P/tB | 2.03 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.25
EY8.23%
EPS(NY)2.48
Fwd EY9.05%
FCF(TTM)1.82
FCFY6.64%
OCF(TTM)2.03
OCFY7.41%
SpS5.32
BVpS20.75
TBVpS13.46
PEG (NY)0.62
PEG (5Y)3.99
Graham Number32.41
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
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 | 0.14 | ||
| 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
WACC11.72%
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 Y19.73%
EPS Next 2Y10.98%
EPS Next 3Y8.63%
EPS Next 5YN/A
Revenue 1Y (TTM)6.23%
Revenue growth 3Y12.71%
Revenue growth 5Y8.95%
Sales Q2Q%7.62%
Revenue Next Year5.79%
Revenue Next 2Y4.39%
Revenue Next 3Y4.25%
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%
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 5 / 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 2 / 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 19.73% in the next year.