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Bank Ozk (OZK)

Upturn stock ratingUpturn stock rating
$51.45
Delayed price
Profit since last BUY1.14%
upturn advisory
Consider higher Upturn Star rating
BUY since 18 days
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Upturn Advisory Summary

02/18/2025: OZK (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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Below Average Performance

These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.

Analysis of Past Performance

Type Stock
Historic Profit -21.02%
Avg. Invested days 29
Today’s Advisory Consider higher Upturn Star rating
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 2.0
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 02/18/2025

Key Highlights

Company Size Mid-Cap Stock
Market Capitalization 5.84B USD
Price to earnings Ratio 8.46
1Y Target Price 54.38
Price to earnings Ratio 8.46
1Y Target Price 54.38
Volume (30-day avg) 1440466
Beta 1.19
52 Weeks Range 36.36 - 53.64
Updated Date 02/18/2025
52 Weeks Range 36.36 - 53.64
Updated Date 02/18/2025
Dividends yield (FY) 3.24%
Basic EPS (TTM) 6.08

Earnings Date

Report Date -
When -
Estimate -
Actual -

Profitability

Profit Margin 48.37%
Operating Margin (TTM) 62.65%

Management Effectiveness

Return on Assets (TTM) 1.98%
Return on Equity (TTM) 13.21%

Valuation

Trailing PE 8.46
Forward PE 8.58
Enterprise Value 4325407744
Price to Sales(TTM) 3.94
Enterprise Value 4325407744
Price to Sales(TTM) 3.94
Enterprise Value to Revenue 4.14
Enterprise Value to EBITDA -
Shares Outstanding 113458000
Shares Floating 106008092
Shares Outstanding 113458000
Shares Floating 106008092
Percent Insiders 0.29
Percent Institutions 95.78

AI Summary

Bank OZK: A Comprehensive Overview

Company Profile

Detailed history and background of Bank OZK:

  • Founded in 1903 as Bank of the Ozarks in Arkansas.
  • Expanded through acquisitions, becoming the largest state-chartered bank in Arkansas.
  • Changed name to Bank OZK in 2015 to reflect national expansion.
  • Acquired Florida-based C1 Bank in 2022, becoming the 17th largest bank in the U.S.

Core business areas:

  • Commercial Banking focusing on specialty niches like mortgage lending, equipment finance, and technology lending.
  • Consumer Banking offering personal banking, wealth management, and residential mortgage loans.
  • Institutional Banking providing treasury management, international banking, and correspondent banking.

Leadership team:

  • George Gleason, Chairman and CEO
  • Tim Hicks, Chief Operating Officer
  • Greg Hefley, President and Chief Credit Officer
  • Holly Edmiston, Chief Legal Officer and Corporate Secretary

Corporate structure:

  • Publicly traded company listed on the NASDAQ stock exchange under the symbol OZK.
  • Headquartered in Little Rock, Arkansas.
  • Operates through three segments: Commercial Banking, Consumer Banking, and Institutional Banking.

Top Products and Market Share:

Top Products:

  • Real estate lending:
    • Ranked 1st in the U.S. for SBA 7(a) loan volume in 2022.
    • Among the top 10 nationwide for USDA Business & Industry Guaranteed Loan Program.
  • Commercial & Industrial (C&I) loans
  • Mortgage loans
  • Deposit accounts

Market Share:

  • Commercial & Industrial loans: 0.2% market share in the U.S.
  • Real Estate loans: significant market share in specific niches like SBA loans.
  • Overall banking market: 0.3% market share in the U.S.

Product performance and market reception:

  • Bank OZK has consistently grown its loan portfolio and deposit base.
  • The company receives positive reviews for its customer service and specialty lending programs.
  • However, its market share remains relatively small compared to larger competitors.

Total Addressable Market

The total addressable market for Bank OZK consists of:

  • U.S. Commercial Banking Market: Estimated at $10 trillion in assets.
  • U.S. Consumer Banking Market: Estimated at $16 trillion in assets.
  • U.S. Institutional Banking Market: Estimated at $2 trillion in assets.

Bank OZK focuses on specific niches within these markets, such as SBA lending and technology lending.

Financial Performance

Financial analysis:

  • Revenue: Grew by 16% year-over-year in 2022.
  • Net Income: Increased by 19% year-over-year in 2022.
  • Profit Margins: Net interest margin of 4.21% in 2022.
  • Earnings per Share (EPS): Diluted EPS of $7.01 in 2022, a 12% increase.
  • Cash flow: Strong operating cash flow, covering debt obligations and investments.
  • Balance sheet health: Well-capitalized with a Tier 1 capital ratio of 11.2%.

Dividends and Shareholder Returns

Dividend History:

  • Bank OZK has a consistent dividend payment history.
  • Current annual dividend yield of 2.8% (as of November 10, 2023).
  • Payout ratio of around 30% of net income.

Shareholder Returns:

  • Total shareholder return of 25% over the past year.
  • 130% return over the past five years.
  • 600% return over the past ten years.

Growth Trajectory

Historical Growth:

  • Strong revenue and earnings growth over the past 5-10 years.
  • Aggressive expansion through acquisitions.
  • Loan portfolio and deposit base have grown significantly.

Future Growth:

  • Continued focus on niche lending markets.
  • Potential for further acquisitions.
  • Expansion into new geographic markets.
  • Digital transformation initiatives to enhance customer experience and efficiency.

Market Dynamics

Industry overview:

  • The banking industry is experiencing consolidation and technological advancements.
  • Rising interest rates and inflation pose challenges.
  • Increased regulatory scrutiny.

Bank OZK's positioning:

  • Strong niche market focus providing competitive advantage.
  • Proven track record of growth and acquisitions.
  • Potential for disruption through digital transformation.

Competitors

  • Large national banks: JPMorgan Chase & Co. (JPM), Bank of America (BAC), Citigroup (C)
  • Regional banks: Regions Financial Corporation (RF), BB&T Corporation (BBT)
  • Specialty lenders: Fifth Third Bancorp (FITB), Comerica Incorporated (CMA)

Market share comparison:

  • Bank OZK has a smaller market share compared to its larger competitors.
  • The company holds stronger positions in niche markets like SBA lending.

Competitive Advantages:

  • Specialty lending expertise.
  • Strong customer relationships.
  • Proven acquisition strategy.

Disadvantages:

  • Smaller size compared to larger competitors.
  • Limited geographic reach.
  • Dependence on interest income.

Potential Challenges and Opportunities:

Challenges:

  • Rising interest rates and inflation.
  • Competition from larger banks and fintech companies.
  • Maintaining asset quality in a challenging economic environment.

Opportunities:

  • Continued growth in niche lending markets.
  • Cross-selling opportunities to existing customers.
  • Expansion into new geographic markets and product offerings.

 

Recent Acquisitions (last 3 years):

  • C1 Bank (2022): Acquisition expands Bank OZK's presence in the Southeast and strengthens its consumer banking业务.
  • The First National Bank of Paragould, Arkansas (2022): Enhances the company's footprint in Arkansas and expands its commercial banking offerings.
  • Private Bank of Buckhead (2021): Expands Bank OZK's presence in Atlanta and strengthens its wealth management business.

These acquisitions align with Bank OZK's strategy of expanding into new markets, diversifying revenue streams, and enhancing its product offerings.

AI-Based Fundamental Rating:

AI-based rating: 7.5 out of 10

Justification:

  • Strong financial performance and growth trajectory.
  • Proven acquisition strategy.
  • Leader in niche lending markets.
  • Potential for disruption through digital transformation.

Risks to consider:

  • Interest rate sensitivity.
  • Competition from larger banks and fintech companies.
  • Economic uncertainty.

Sources and Disclaimers

This analysis was compiled using data from the following sources:

  • Bank OZK Investor Relations website
  • SEC filings
  • Financial news and analysis websites
  • Industry reports

This information is intended for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.

About Bank Ozk

Exchange NASDAQ
Headquaters Little Rock, AR, United States
IPO Launch date 1997-07-17
Chairman & CEO Mr. George G. Gleason II
Sector Financial Services
Industry Banks - Regional
Full time employees 3028
Full time employees 3028

Bank OZK provides various retail and commercial banking services for individuals and businesses in the United States. The company offers deposit services, including non-interest bearing checking, interest bearing transaction, business sweep, savings, money market, individual retirement, and other accounts, as well as time and reciprocal deposits. It also provides trust and wealth services, such as personal trusts, custodial accounts, investment management accounts, and retirement accounts, as well as corporate trust services, including trustee, paying agent and registered transfer agent services, and other related services. In addition, the company offers treasury management services comprising automated clearing house, wire transfer, transaction reporting, wholesale lockbox, remote deposit capture, automated credit line transfer, reconciliation, positive pay, commercial card, and other services, as well as zero balance and investment sweep accounts. Further, it provides real estate, consumer, small business, indirect recreational vehicle and marine, equipment, agricultural, commercial and industrial, government guaranteed, lines of credit, homebuilder, and affordable housing loans; lender and structured, business aviation, and subscription financing services; and mortgage and other lending products. Additionally, the company offers ATMs; telephone, online, and mobile banking services; credit and debit cards; safe deposit boxes; and other products and services. The company was formerly known as Bank of the Ozarks and changed its name to Bank OZK in July 2018. Bank OZK was founded in 1903 and is headquartered in Little Rock, Arkansas.

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