Home Bancshares, Inc.
Home Bancshares, Inc. Fundamental Analysis
Home Bancshares, Inc. (HOMB) shows moderate financial fundamentals with a PE ratio of 10.89, profit margin of 34.84%, and ROE of 11.29%. The company generates $1.4B in annual revenue with weak year-over-year growth of -5.35%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 42.6/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HOMB's fundamental strength across five key dimensions:
Efficiency Score
WeakHOMB struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHOMB trades at attractive valuation levels.
Growth Score
ModerateHOMB shows steady but slowing expansion.
Financial Health Score
ModerateHOMB shows balanced financial health with some risks.
Profitability Score
ModerateHOMB maintains healthy but balanced margins.
Key Financial Metrics
Is HOMB Expensive or Cheap?
P/E Ratio
HOMB trades at 10.89 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, HOMB's PEG of 0.69 indicates potential undervaluation.
Price to Book
The market values Home Bancshares, Inc. at 1.20 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.96 times EBITDA. This is generally considered low.
How Well Does HOMB Make Money?
Net Profit Margin
For every $100 in sales, Home Bancshares, Inc. keeps $34.84 as profit after all expenses.
Operating Margin
Core operations generate 44.18 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.29 in profit for every $100 of shareholder equity.
ROA
Home Bancshares, Inc. generates $2.06 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Home Bancshares, Inc. generates strong operating cash flow of $359.32M, reflecting robust business health.
Free Cash Flow
Home Bancshares, Inc. generates strong free cash flow of $318.75M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.58 in free cash annually.
FCF Yield
HOMB converts 5.82% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.89
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.69
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.20
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.89
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.22
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.29
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How HOMB Stacks Against Its Sector Peers
| Metric | HOMB Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.89 | 19.02 | Better (Cheaper) |
| ROE | 11.29% | 814.00% | Weak |
| Net Margin | 34.84% | 1811.00% | Weak |
| Debt/Equity | 0.22 | 0.98 | Strong (Low Leverage) |
| Current Ratio | 0.29 | 670.41 | Weak Liquidity |
| ROA | 2.06% | -24626.00% (disorted) | Weak |
HOMB outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Home Bancshares, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
48.27%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
86.07%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
45.17%
Industry Style: Value, Dividend, Cyclical
High Growth