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 3 out of 10 in our fundamental rating. HOMB was compared to 396 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.
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 95.71% of the companies in the same industry.
HOMB has a better Return On Equity (10.32%) than 69.70% 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
HOMB has a Profit Margin of 40.48%. This is amongst the best in the industry. HOMB outperforms 95.96% 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) | 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.
Compared to 1 year ago, HOMB has less shares outstanding
Compared to 5 years ago, HOMB has more shares outstanding
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 in line compared to the rest of the industry. HOMB outperforms 59.85% of its industry peers.
A Debt/Equity ratio of 0.15 indicates that HOMB is not too dependend on debt financing.
The Debt to Equity ratio of HOMB (0.15) 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
WACC12.11%
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 been growing slightly by 5.05% over the past year.
HOMB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.05% yearly.
HOMB shows a small growth in Revenue. In the last year, the Revenue has grown by 3.68%.
HOMB shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.95% yearly.
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
HOMB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.32% yearly.
HOMB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.57% yearly.
EPS Next Y15.68%
EPS Next 2Y8.28%
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
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 13.26, HOMB is valued correctly.
60.86% of the companies in the same industry are cheaper than HOMB, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of HOMB to the average of the S&P500 Index (26.31), we can say HOMB is valued slightly cheaper.
A Price/Forward Earnings ratio of 11.70 indicates a reasonable valuation of HOMB.
67.68% 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 22.13, HOMB is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.26 | ||
| Fwd PE | 11.7 |
4.2 Price Multiples
HOMB's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.09 | ||
| 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)0.85
PEG (5Y)4.35
EPS Next 2Y8.28%
EPS Next 3Y7.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.83%, HOMB has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.48, HOMB has a dividend in line with its industry peers.
HOMB's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
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 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 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 2Y8.28%
EPS Next 3Y7.32%
27.58
-0.66 (-2.34%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners72.79%
Inst Owner Change1.99%
Ins Owners5.97%
Ins Owner Change1.76%
Market Cap5.45B
Analysts78.57
Price Target32.64 (18.35%)
Short Float %3.31%
Short Ratio6.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
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)2.96%
EPS NY rev (3m)4.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.26 | ||
| Fwd PE | 11.7 | ||
| P/S | 5.28 | ||
| P/FCF | 14.09 | ||
| P/OCF | 12.66 | ||
| P/B | 1.35 | ||
| P/tB | 2.09 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.08
EY7.54%
EPS(NY)2.36
Fwd EY8.55%
FCF(TTM)1.96
FCFY7.09%
OCF(TTM)2.18
OCFY7.9%
SpS5.22
BVpS20.47
TBVpS13.2
PEG (NY)0.85
PEG (5Y)4.35
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
WACC12.11%
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 Y15.68%
EPS Next 2Y8.28%
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%