HOME BANCSHARES INC (HOMB) Stock Fundamental Analysis
NYSE:HOMB - New York Stock Exchange, Inc. - US4368932004 - Common Stock - Currency: USD
HOMB gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 405 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.
In the past 5 years HOMB has always been profitable.
HOMB had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
HOMB's Return On Assets of 1.70% is amongst the best of the industry. HOMB outperforms 93.73% of its industry peers.
With a decent Return On Equity value of 9.80%, HOMB is doing good in the industry, outperforming 68.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.7% | ||
| ROE | 9.8% | ||
| 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 38.61%, HOMB belongs to the top of the industry, outperforming 95.49% 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) | 38.61% | ||
| 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
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 1.30, which is an excellent value as it means it would take HOMB, only 1.30 years of fcf income to pay off all of its debts.
HOMB has a better Debt to FCF ratio (1.30) than 71.18% 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.
HOMB's Debt to Equity ratio of 0.16 is fine compared to the rest of the industry. HOMB outperforms 60.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.3 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC10.69%
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 0.50%.
The Earnings Per Share has been growing slightly by 3.05% on average over the past years.
The Revenue has been growing slightly by 2.06% in the past year.
Measured over the past years, HOMB shows a quite strong growth in Revenue. The Revenue has been growing by 8.95% on average per year.
EPS 1Y (TTM)0.5%
EPS 3Y1.19%
EPS 5Y3.05%
EPS Q2Q%4.17%
Revenue 1Y (TTM)2.06%
Revenue growth 3Y12.71%
Revenue growth 5Y8.95%
Sales Q2Q%5.19%
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 5.09% on average per year.
Based on estimates for the next years, HOMB will show a small growth in Revenue. The Revenue will grow by 2.02% on average per year.
EPS Next Y10.29%
EPS Next 2Y6.69%
EPS Next 3Y5.09%
EPS Next 5YN/A
Revenue Next Year2.6%
Revenue Next 2Y3.09%
Revenue Next 3Y2.02%
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
With a Price/Earnings ratio of 14.66, HOMB is valued correctly.
Based on the Price/Earnings ratio, HOMB is valued a bit more expensive than the industry average as 61.90% of the companies are valued more cheaply.
HOMB is valuated cheaply when we compare the Price/Earnings ratio to 29.62, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 13.29, which indicates a correct valuation of HOMB.
62.91% 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 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.66 | ||
| Fwd PE | 13.29 |
4.2 Price Multiples
HOMB's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.34 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.42
PEG (5Y)4.81
EPS Next 2Y6.69%
EPS Next 3Y5.09%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.61%, HOMB has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.19, HOMB has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, HOMB has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
5.2 History
On average, the dividend of HOMB grows each year by 9.27%, which is quite nice.
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)9.27%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
HOMB pays out 38.03% of its income as dividend. This is a sustainable payout ratio.
HOMB's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP38.03%
EPS Next 2Y6.69%
EPS Next 3Y5.09%
29.46
-0.38 (-1.27%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners71.6%
Inst Owner Change-83.36%
Ins Owners6.18%
Ins Owner Change-0.98%
Market Cap5.86B
Analysts78.57
Price Target33.66 (14.26%)
Short Float %2.39%
Short Ratio4.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
Yearly Dividend0.72
Dividend Growth(5Y)9.27%
DP38.03%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.51%
Min EPS beat(2)-7.51%
Max EPS beat(2)4.49%
EPS beat(4)3
Avg EPS beat(4)1.64%
Min EPS beat(4)-7.51%
Max EPS beat(4)5.38%
EPS beat(8)6
Avg EPS beat(8)1.04%
EPS beat(12)9
Avg EPS beat(12)-5.05%
EPS beat(16)13
Avg EPS beat(16)-0.43%
Revenue beat(2)1
Avg Revenue beat(2)-0.67%
Min Revenue beat(2)-2.3%
Max Revenue beat(2)0.97%
Revenue beat(4)2
Avg Revenue beat(4)-0.45%
Min Revenue beat(4)-2.3%
Max Revenue beat(4)0.97%
Revenue beat(8)2
Avg Revenue beat(8)-1.74%
Revenue beat(12)3
Avg Revenue beat(12)-1.01%
Revenue beat(16)6
Avg Revenue beat(16)0.03%
PT rev (1m)0.43%
PT rev (3m)8.96%
EPS NQ rev (1m)-2.36%
EPS NQ rev (3m)-2.36%
EPS NY rev (1m)2.11%
EPS NY rev (3m)2.23%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.66 | ||
| Fwd PE | 13.29 | ||
| P/S | 5.83 | ||
| P/FCF | 12.34 | ||
| P/OCF | 11.69 | ||
| P/B | 1.48 | ||
| P/tB | 2.33 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.01
EY6.82%
EPS(NY)2.22
Fwd EY7.52%
FCF(TTM)2.39
FCFY8.11%
OCF(TTM)2.52
OCFY8.55%
SpS5.05
BVpS19.91
TBVpS12.67
PEG (NY)1.42
PEG (5Y)4.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.7% | ||
| ROE | 9.8% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 38.61% | ||
| GM | N/A | ||
| FCFM | 47.28% |
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-Score6
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.3 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 86.12% | ||
| Cap/Sales | 2.59% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 122.44% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC10.69%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)0.5%
EPS 3Y1.19%
EPS 5Y3.05%
EPS Q2Q%4.17%
EPS Next Y10.29%
EPS Next 2Y6.69%
EPS Next 3Y5.09%
EPS Next 5YN/A
Revenue 1Y (TTM)2.06%
Revenue growth 3Y12.71%
Revenue growth 5Y8.95%
Sales Q2Q%5.19%
Revenue Next Year2.6%
Revenue Next 2Y3.09%
Revenue Next 3Y2.02%
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 1Y19.76%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y22.74%
OCF growth 3YN/A
OCF growth 5YN/A