Bank OZK
Bank OZK Fundamental Analysis
Bank OZK (OZK) shows moderate financial fundamentals with a PE ratio of 7.57, profit margin of 25.27%, and ROE of 11.63%. The company generates $2.8B in annual revenue with weak year-over-year growth of 1.15%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 66.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze OZK's fundamental strength across five key dimensions:
Efficiency Score
WeakOZK struggles to generate sufficient returns from assets.
Valuation Score
ModerateOZK shows balanced valuation metrics.
Growth Score
WeakOZK faces weak or negative growth trends.
Financial Health Score
ExcellentOZK maintains a strong and stable balance sheet.
Profitability Score
ModerateOZK maintains healthy but balanced margins.
Key Financial Metrics
Is OZK Expensive or Cheap?
P/E Ratio
OZK trades at 7.57 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, OZK's PEG of 15.48 indicates potential overvaluation.
Price to Book
The market values Bank OZK at 0.87 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.27 times EBITDA. This is generally considered low.
How Well Does OZK Make Money?
Net Profit Margin
For every $100 in sales, Bank OZK keeps $25.27 as profit after all expenses.
Operating Margin
Core operations generate 32.97 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.63 in profit for every $100 of shareholder equity.
ROA
Bank OZK generates $1.70 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Bank OZK generates strong operating cash flow of $835.86M, reflecting robust business health.
Free Cash Flow
Bank OZK generates strong free cash flow of $730.10M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.61 in free cash annually.
FCF Yield
OZK converts 13.74% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.57
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
15.48
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.87
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.91
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.13
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.36
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How OZK Stacks Against Its Sector Peers
| Metric | OZK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.57 | 19.02 | Better (Cheaper) |
| ROE | 11.63% | 818.00% | Weak |
| Net Margin | 25.27% | 1593.00% | Weak |
| Debt/Equity | 0.13 | 0.99 | Strong (Low Leverage) |
| Current Ratio | 5.36 | 669.82 | Strong Liquidity |
| ROA | 1.70% | -24701.00% (disorted) | Weak |
OZK outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Bank OZK's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
179.27%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
187.16%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
77.81%
Industry Style: Value, Dividend, Cyclical
High Growth