SIMMONS FIRST NATL CORP-CL A (SFNC) Stock Fundamental Analysis
NASDAQ:SFNC - Nasdaq - US8287302009 - Common Stock - Currency: USD
Overall SFNC gets a fundamental rating of 3 out of 10. We evaluated SFNC against 405 industry peers in the Banks industry. Both the profitability and financial health of SFNC have multiple concerns. SFNC is valued correctly, but it does not seem to be growing. SFNC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
SFNC had positive earnings in the past year.
SFNC had a positive operating cash flow in the past year.
Each year in the past 5 years SFNC has been profitable.
SFNC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of SFNC (0.47%) is worse than 75.69% of its industry peers.
The Return On Equity of SFNC (3.64%) is worse than 83.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.47% | ||
| ROE | 3.64% | ||
| ROIC | N/A |
ROA(3y)0.71%
ROA(5y)0.88%
ROE(3y)5.76%
ROE(5y)6.84%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
SFNC has a Profit Margin of 17.22%. This is in the lower half of the industry: SFNC underperforms 69.67% of its industry peers.
SFNC's Profit Margin has declined in the last couple of years.
The Operating Margin and Gross Margin are not available for SFNC so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 17.22% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-17.14%
PM growth 5Y-7.92%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
SFNC does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for SFNC has been increased compared to 1 year ago.
SFNC has more shares outstanding than it did 5 years ago.
The debt/assets ratio for SFNC is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of SFNC is 0.60, which is an excellent value as it means it would take SFNC, only 0.60 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.60, SFNC belongs to the top of the industry, outperforming 83.96% of the companies in the same industry.
SFNC has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
SFNC has a Debt to Equity ratio of 0.12. This is in the better half of the industry: SFNC outperforms 67.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.6 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC17.22%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for SFNC have decreased strongly by -11.32% in the last year.
Measured over the past years, SFNC shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -10.24% on average per year.
Looking at the last year, SFNC shows a decrease in Revenue. The Revenue has decreased by -3.72% in the last year.
Measured over the past years, SFNC shows a decrease in Revenue. The Revenue has been decreasing by -0.61% on average per year.
EPS 1Y (TTM)-11.32%
EPS 3Y-17.05%
EPS 5Y-10.24%
EPS Q2Q%-2.5%
Revenue 1Y (TTM)-3.72%
Revenue growth 3Y-0.33%
Revenue growth 5Y-0.61%
Sales Q2Q%17.4%
3.2 Future
Based on estimates for the next years, SFNC will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.83% on average per year.
SFNC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.10% yearly.
EPS Next Y14.79%
EPS Next 2Y15.83%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.31%
Revenue Next 2Y7.1%
Revenue Next 3YN/A
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.35, which indicates a correct valuation of SFNC.
Compared to the rest of the industry, the Price/Earnings ratio of SFNC indicates a slightly more expensive valuation: SFNC is more expensive than 67.17% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.62. SFNC is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 13.38 indicates a correct valuation of SFNC.
Based on the Price/Forward Earnings ratio, SFNC is valued a bit more expensive than the industry average as 63.91% of the companies are valued more cheaply.
SFNC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.35 | ||
| Fwd PE | 13.38 |
4.2 Price Multiples
SFNC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SFNC is cheaper than 95.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.77 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
SFNC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as SFNC's earnings are expected to grow with 15.83% in the coming years.
PEG (NY)1.04
PEG (5Y)N/A
EPS Next 2Y15.83%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SFNC has a Yearly Dividend Yield of 3.88%.
SFNC's Dividend Yield is a higher than the industry average which is at 3.19.
Compared to an average S&P500 Dividend Yield of 2.27, SFNC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.88% |
5.2 History
The dividend of SFNC has a limited annual growth rate of 5.79%.
SFNC has paid a dividend for at least 10 years, which is a reliable track record.
SFNC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.79%
Div Incr Years13
Div Non Decr Years34
5.3 Sustainability
81.16% of the earnings are spent on dividend by SFNC. This is not a sustainable payout ratio.
The dividend of SFNC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP81.16%
EPS Next 2Y15.83%
EPS Next 3YN/A
21.65
-0.26 (-1.19%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners73.48%
Inst Owner Change-94.94%
Ins Owners0.74%
Ins Owner Change1.43%
Market Cap2.72B
Analysts52.73
Price Target24.48 (13.07%)
Short Float %2.08%
Short Ratio4.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.88% |
Yearly Dividend0.8
Dividend Growth(5Y)5.79%
DP81.16%
Div Incr Years13
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.16%
Min EPS beat(2)5.5%
Max EPS beat(2)8.82%
EPS beat(4)3
Avg EPS beat(4)7.18%
Min EPS beat(4)-0.93%
Max EPS beat(4)15.34%
EPS beat(8)6
Avg EPS beat(8)2.49%
EPS beat(12)9
Avg EPS beat(12)3.5%
EPS beat(16)13
Avg EPS beat(16)8.87%
Revenue beat(2)0
Avg Revenue beat(2)-10.29%
Min Revenue beat(2)-16.37%
Max Revenue beat(2)-4.21%
Revenue beat(4)0
Avg Revenue beat(4)-10.2%
Min Revenue beat(4)-16.37%
Max Revenue beat(4)-4.21%
Revenue beat(8)0
Avg Revenue beat(8)-8.24%
Revenue beat(12)0
Avg Revenue beat(12)-7.21%
Revenue beat(16)1
Avg Revenue beat(16)-5.74%
PT rev (1m)-4%
PT rev (3m)-0.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-2.05%
EPS NY rev (3m)-2.35%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)-1.52%
Revenue NY rev (3m)-1.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.35 | ||
| Fwd PE | 13.38 | ||
| P/S | 3.65 | ||
| P/FCF | 3.77 | ||
| P/OCF | 3.56 | ||
| P/B | 0.77 | ||
| P/tB | 1.29 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.41
EY6.51%
EPS(NY)1.62
Fwd EY7.48%
FCF(TTM)5.75
FCFY26.55%
OCF(TTM)6.08
OCFY28.07%
SpS5.93
BVpS28.08
TBVpS16.77
PEG (NY)1.04
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.47% | ||
| ROE | 3.64% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 17.22% | ||
| GM | N/A | ||
| FCFM | 96.98% |
ROA(3y)0.71%
ROA(5y)0.88%
ROE(3y)5.76%
ROE(5y)6.84%
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-17.14%
PM growth 5Y-7.92%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.6 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 88.43% | ||
| Cap/Sales | 5.56% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 563% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC17.22%
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)-11.32%
EPS 3Y-17.05%
EPS 5Y-10.24%
EPS Q2Q%-2.5%
EPS Next Y14.79%
EPS Next 2Y15.83%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-3.72%
Revenue growth 3Y-0.33%
Revenue growth 5Y-0.61%
Sales Q2Q%17.4%
Revenue Next Year7.31%
Revenue Next 2Y7.1%
Revenue Next 3YN/A
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 1Y300.56%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y252.88%
OCF growth 3YN/A
OCF growth 5YN/A