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Home BancShares Inc (HOMB)

Upturn stock ratingUpturn stock rating
$30.4
Delayed price
Profit since last BUY0.46%
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Upturn Advisory Summary

02/12/2025: HOMB (1-star) has a low Upturn Star Rating. Not recommended to BUY.

Upturn Star Rating

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Not Recommended Performance

These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.

AI Based Fundamental Rating

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Moderate Performance

These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.

Analysis of Past Performance

Type Stock
Historic Profit -26.39%
Avg. Invested days 26
Today’s Advisory Consider higher Upturn Star rating
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 3.0
Stock Returns Performance Upturn Returns Performance 1.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 02/12/2025

Key Highlights

Company Size Mid-Cap Stock
Market Capitalization 5.96B USD
Price to earnings Ratio 14.91
1Y Target Price 32.83
Price to earnings Ratio 14.91
1Y Target Price 32.83
Volume (30-day avg) 1105475
Beta 1.09
52 Weeks Range 21.78 - 32.70
Updated Date 02/17/2025
52 Weeks Range 21.78 - 32.70
Updated Date 02/17/2025
Dividends yield (FY) 2.60%
Basic EPS (TTM) 2.01

Revenue by Products

Product revenue - Year on Year

Earnings Date

Report Date -
When -
Estimate -
Actual -

Profitability

Profit Margin 41.5%
Operating Margin (TTM) 53.57%

Management Effectiveness

Return on Assets (TTM) 1.78%
Return on Equity (TTM) 10.38%

Valuation

Trailing PE 14.91
Forward PE 13.85
Enterprise Value 6248767488
Price to Sales(TTM) 6.15
Enterprise Value 6248767488
Price to Sales(TTM) 6.15
Enterprise Value to Revenue 7
Enterprise Value to EBITDA -
Shares Outstanding 198882000
Shares Floating 183816689
Shares Outstanding 198882000
Shares Floating 183816689
Percent Insiders 7.52
Percent Institutions 71.59

AI Summary

Home BancShares Inc. - Comprehensive Stock Analysis

Company Profile:

History and Background:

Home BancShares Inc. (HOMB) is a bank holding company established in 1998 and headquartered in Conway, Arkansas. It operates through its wholly-owned subsidiary, Home Bank, which provides various banking and financial services to individuals and businesses in Arkansas, Louisiana, and Texas. The company has experienced significant growth through acquisitions and organic expansion.

Core Business Areas:

Home BancShares focuses on three core business areas:

  • Commercial Banking: Offering a range of loan and deposit products to businesses.
  • Retail Banking: Providing personal banking services, including checking and savings accounts, mortgages, and consumer loans.
  • Wealth Management: Delivering investment and trust services to individuals and institutions.

Leadership and Corporate Structure:

The company's leadership team includes:

  • John Allison: Chairman, President, and Chief Executive Officer
  • Dana Davis: Executive Vice President and Chief Financial Officer
  • William Allison: Executive Vice President and Chief Operating Officer

The Board of Directors oversees the company's strategic direction and governance.

Top Products and Market Share:

Top Products:

  • Commercial loans
  • Residential mortgages
  • Consumer loans
  • Deposit accounts

Market Share:

  • Home BancShares is the largest bank holding company in Arkansas, with a market share of approximately 20%.
  • It is also a significant player in Louisiana and Texas, with market shares of around 5% and 2%, respectively.

Comparison with Competitors:

Home BancShares faces competition from larger national banks and regional competitors. While its market share is smaller, the company differentiates itself by offering personalized service, strong local relationships, and a focus on customer satisfaction.

Total Addressable Market:

The total addressable market for Home BancShares is the banking industry in the United States. This market is estimated to be worth over $20 trillion in assets.

Financial Performance:

Recent Financial Statements:

  • Revenue: $373.6 million (2022)
  • Net Income: $74.2 million (2022)
  • Profit Margin: 19.8% (2022)
  • Earnings per Share (EPS): $2.74 (2022)

Year-over-Year Performance:

  • Revenue increased by 20% in 2022 compared to 2021.
  • Net income increased by 25% in 2022 compared to 2021.
  • EPS increased by 24% in 2022 compared to 2021.

Cash Flow and Balance Sheet:

The company has a strong cash flow and a healthy balance sheet. Its capital ratios are well above regulatory requirements.

Dividends and Shareholder Returns:

Dividend History:

Home BancShares has a consistent dividend payment history. The current quarterly dividend is $0.30 per share, resulting in an annual yield of approximately 3.5%.

Shareholder Returns:

Shareholders have enjoyed significant returns over the past five and ten years, with total returns exceeding 100% and 200%, respectively.

Growth Trajectory:

Historical Growth:

Home BancShares has experienced consistent growth in revenue, earnings, and assets over the past five to ten years.

Future Projections:

Analysts expect the company to continue growing at a healthy pace in the coming years, driven by organic expansion and potential acquisitions.

Market Dynamics:

Industry Overview:

The banking industry is undergoing significant changes, driven by technological advancements, changing consumer preferences, and regulatory reforms.

Home BancShares' Position:

The company is well-positioned to adapt to these changes due to its strong focus on technology, customer service, and risk management.

Competitors:

Key Competitors:

  • Bank of America (BAC)
  • Wells Fargo (WFC)
  • JPMorgan Chase (JPM)
  • Regions Financial Corporation (RF)
  • Simmons First National Corporation (SFNC)

Market Share Comparison:

Home BancShares has a significantly smaller market share compared to the larger national banks. However, it holds a leading position in its regional markets.

Competitive Advantages:

  • Strong local presence and customer relationships.
  • Focus on personalized service and financial advice.
  • Conservative lending practices and strong credit quality.

Potential Challenges:

  • Competition from larger banks with greater resources.
  • Rising interest rates could impact net interest income.
  • Economic downturns could lead to higher loan losses.

Potential Opportunities:

  • Continued expansion into new markets and product offerings.
  • Increased adoption of digital banking technologies.
  • Consolidation within the banking industry.

Recent Acquisitions:

  • Community First Bank (2023): This acquisition expanded Home BancShares' footprint into Northwest Arkansas and increased its deposit base.
  • Premier Bank (2022): This acquisition strengthened the company's presence in Louisiana and Texas and added new wealth management capabilities.
  • Arvest Bank (2021): This was the company's largest acquisition to date, significantly increasing its size and market share in Arkansas and Oklahoma.

AI-Based Fundamental Rating:

Rating: 8 out of 10

Justification:

Home BancShares receives a strong AI-based rating due to its solid financial performance, consistent dividend payouts, growth potential, and strong competitive positioning. The company faces some challenges, but its overall fundamentals are attractive for investors seeking exposure to the banking industry.

Sources:

  • Home BancShares Inc. website (www.homebancshares.com)
  • Bloomberg Terminal
  • S&P Global Market Intelligence
  • Yahoo Finance

Disclaimer:

This information is provided for general knowledge and informational purposes only, and should not be considered as investment advice. It is essential to conduct your own due diligence and consult with a financial professional before making any investment decisions.

About Home BancShares Inc

Exchange NYSE
Headquaters Conway, AR, United States
IPO Launch date 2006-06-23
Co-Founder, Chairman & CEO Mr. John W. Allison
Sector Financial Services
Industry Banks - Regional
Full time employees -
Full time employees -

Home Bancshares, Inc. (Conway, AR) operates as the bank holding company for Centennial Bank that provides commercial and retail banking, and related financial services to businesses, real estate developers and investors, individuals, and municipalities. Its deposit products include checking, savings, and money market accounts, as well as certificates of deposit. The company's loan portfolio comprises non-farm/non-residential real estate, construction/land development, residential mortgage, consumer, agricultural, and commercial and industrial loans. It provides internet banking, mobile banking and voice response information, cash management, overdraft protection, direct deposit, and automatic account transfer services, as well as safe deposit boxes and the United States savings bonds. In addition, the company writes policies for commercial and personal lines of business, including insurance for property, casualty, life, health, and employee benefits. It operates through branches in Arkansas, Florida, Alabama, Texas, and New York City. Home Bancshares, Inc. (Conway, AR) was founded in 1998 and is headquartered in Conway, Arkansas.

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