HOME BANCSHARES INC (HOMB)
US4368932004 - Common Stock
HOMB gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 411 industry peers in the Banks industry. HOMB has a medium profitability rating, but doesn't score so well on its financial health evaluation. HOMB is quite expensive at the moment. 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.
Each year in the past 5 years HOMB had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.71%, HOMB belongs to the top of the industry, outperforming 93.93% of the companies in the same industry.
With a decent Return On Equity value of 10.24%, HOMB is doing good in the industry, outperforming 63.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.71% | ||
| ROE | 10.24% | ||
| ROIC | N/A |
ROA(3y)1.61%
ROA(5y)1.61%
ROE(3y)10.19%
ROE(5y)10.06%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 39.23%, HOMB belongs to the top of the industry, outperforming 94.90% 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) | 39.23% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y8.48%
PM growth 5Y-2.72%
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
Compared to 1 year ago, HOMB has a worse debt to assets ratio.
2.2 Solvency
HOMB has a debt to FCF ratio of 1.53. This is a very positive value and a sign of high solvency as it would only need 1.53 years to pay back of all of its debts.
HOMB has a Debt to FCF ratio of 1.53. This is in the better half of the industry: HOMB outperforms 68.45% of its industry peers.
HOMB has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.16, HOMB is in the better half of the industry, outperforming 63.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.53 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC11.19%
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 17.16% over the past year.
The Earnings Per Share has been growing slightly by 2.59% on average over the past years.
Looking at the last year, HOMB shows a decrease in Revenue. The Revenue has decreased by -1.14% in the last year.
HOMB shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.47% yearly.
EPS 1Y (TTM)17.16%
EPS 3Y4.95%
EPS 5Y2.59%
EPS growth Q2Q-3.92%
Revenue 1Y (TTM)-1.14%
Revenue growth 3Y12.81%
Revenue growth 5Y8.47%
Revenue growth Q2Q-0.97%
3.2 Future
HOMB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.09% yearly.
The Revenue is expected to grow by 0.46% on average over the next years.
EPS Next Y-2.81%
EPS Next 2Y0%
EPS Next 3Y0.09%
EPS Next 5YN/A
Revenue Next Year-1.18%
Revenue Next 2Y1.27%
Revenue Next 3Y0.46%
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 decreasing.
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
A Price/Earnings ratio of 12.48 indicates a correct valuation of HOMB.
Based on the Price/Earnings ratio, HOMB is valued a bit more expensive than 65.29% of the companies in the same industry.
When comparing the Price/Earnings ratio of HOMB to the average of the S&P500 Index (28.60), we can say HOMB is valued rather cheaply.
With a Price/Forward Earnings ratio of 12.36, HOMB is valued correctly.
69.42% of the companies in the same industry are cheaper than HOMB, based on the Price/Forward Earnings ratio.
HOMB's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.15.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.48 | ||
| Fwd PE | 12.36 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, HOMB is valued a bit more expensive than the industry average as 64.08% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.38 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)4.82
EPS Next 2Y0%
EPS Next 3Y0.09%
5. Dividend
5.1 Amount
HOMB has a Yearly Dividend Yield of 2.92%. Purely for dividend investing, there may be better candidates out there.
HOMB's Dividend Yield is slightly below the industry average, which is at 3.65.
Compared to an average S&P500 Dividend Yield of 2.32, HOMB pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.92% |
5.2 History
The dividend of HOMB is nicely growing with an annual growth rate of 9.27%!
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)9.27%
Div Incr Years10
Div Non Decr Years13
5.3 Sustainability
37.30% of the earnings are spent on dividend by HOMB. This is a low number and sustainable payout ratio.
HOMB's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP37.3%
EPS Next 2Y0%
EPS Next 3Y0.09%
HOME BANCSHARES INC
NYSE:HOMB (5/17/2024, 7:04:21 PM)
After market: 24.72 0 (0%)24.72
+0.07 (+0.28%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.97B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.92% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.48 | ||
| Fwd PE | 12.36 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)4.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.71% | ||
| ROE | 10.24% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 39.23% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)17.16%
EPS 3Y4.95%
EPS 5Y
EPS growth Q2Q
EPS Next Y-2.81%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.14%
Revenue growth 3Y12.81%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y