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Bank OZK
(NASDAQ:OZK)
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Rating:76Outperform
Price Target:
$52.00
▲(5.69% Upside)
Action:Reiterated
Date:10/21/26
The score is driven primarily by strong financial health (solid profitability, conservative leverage, and strong free cash flow) and attractive valuation (low P/E and high dividend yield). Offsetting these positives are a mixed technical picture (below key longer-term moving averages) and near-term operational/credit headwinds highlighted on the earnings call (RESG payoffs causing loan-balance retracement and elevated charge-offs/foreclosed assets).
Positive Factors
Conservative Leverage
Very low debt relative to equity gives Bank OZK financial flexibility to absorb credit volatility, support organic loan growth, and maintain capital deployment options. Healthy TTM return on equity also indicates that the bank is generating meaningful profits without relying on aggressive balance-sheet leverage.
Negative Factors
Revenue Contraction
The recent revenue decline and margin normalization indicate that earnings momentum has weakened from prior expansionary periods. Although profitability remains strong, slower top-line growth can limit operating leverage, reduce reinvestment capacity, and make future earnings more dependent on execution and credit outcomes.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Leverage
Very low debt relative to equity gives Bank OZK financial flexibility to absorb credit volatility, support organic loan growth, and maintain capital deployment options. Healthy TTM return on equity also indicates that the bank is generating meaningful profits without relying on aggressive balance-sheet leverage.
Read all positive factors
Bank OZK (OZK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.54B
Dividend Yield3.74%
Average Volume (3M)1.82M
Price to Earnings (P/E)8.5
Beta (1Y)0.86
Revenue Growth-0.40%
EPS Growth-1.91%
CountryUS
Employees3,280
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)5.97
Shares Outstanding109,165,880
10 Day Avg. Volume2,174,554
30 Day Avg. Volume1,821,886
Financial Highlights & Ratios
PEG Ratio9.13
Price to Book (P/B)0.83
Price to Sales (P/S)1.81
P/FCF Ratio6.94
Enterprise Value/Market Cap0.93
Enterprise Value/Revenue2.13
Enterprise Value/Gross Profit3.35
Enterprise Value/Ebitda7.11
Forecast
1Y Price Target
$52.60Price Target Upside6.91% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)5.88
Revenue Forecast (FY)$1.74B
Bank OZK Business Overview & Revenue Model
Company Description
Bank OZK is a financial institution offering a comprehensive range of banking services to both retail and commercial clients. Its deposit offerings encompass a wide array of account types, such as demand deposit accounts (both interest and non-int...
How the Company Makes Money
Bank OZK makes money primarily through traditional bank revenue streams. (1) Net interest income: The largest driver is typically the spread between interest earned on loans and other interest-earning assets and the interest paid on deposits and o...
Bank OZK Earnings Call Summary
Earnings Call Date:Oct 20, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 21, 2027
Earnings Call Sentiment Positive
The call was broadly optimistic. Management highlighted strong CIB growth, improving credit indicators, meaningful balance-sheet diversification, capital flexibility, deposit and fee-income initiatives, and continued opportunities in the securities portfolio. The main challenges were near-term RESG payoffs and loan-balance retracement, elevated foreclosed assets and net charge-offs, early-stage deposit-mix progress, and ongoing commercial real estate leasing work. Highlights significantly outweighed the lowlights.Positive Updates
Strong Third-Quarter Loan Growth and 2027 Outlook
Management described Q3 loan growth as very good, driven primarily by Corporate and Institutional Banking (CIB), with additional contributions from Indirect Marine and RV and Community Banking. The bank expects full-year 2026 loan growth of 3%-5% and expects 2027 loan growth of 10%-12%, with growth expected to accelerate further in 2028.
Negative Updates
Expected Fourth-Quarter Loan Balance Retracement
RESG recorded approximately $690 million of payoffs and paydowns in the first 19 days of October. Management expects near record RESG payoffs and possibly record RESG payoffs in Q4, which is expected to produce some retracement in total loan balances. Full-year 2026 loan growth guidance of 3%-5% is approximately one percentage point below the guidance given at the beginning of the year.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Third-Quarter Loan Growth and 2027 Outlook
Management described Q3 loan growth as very good, driven primarily by Corporate and Institutional Banking (CIB), with additional contributions from Indirect Marine and RV and Community Banking. The bank expects full-year 2026 loan growth of 3%-5% and expects 2027 loan growth of 10%-12%, with growth expected to accelerate further in 2028.
Read all positive updates
Company Guidance
Bank OZK expects full-year 2026 loan growth of 3%-5%, with “a little bit of retracement in balances in Q4,” and “near record RESG payoffs and perhaps record RESG payoffs in Q4,” including $690 million or so of RESG payoffs and pay downs in the first 19 days of October; it expects loan growth of 10%-12% in 2027, with the loan growth number expected to “accelerate further in 2028,” while RESG balances are expected to “inflect at some point in 2028.” The 2027 net interest income guidance is for low single-digit growth relative to 2026, assuming no further Fed increases; a 100 basis point increase would imply about a 4% increase in NII over that time period. Non-interest income in 2027 is expected to be up high single digits versus 2026, Q4 is expected to be another record quarter of non-interest income, securities cash flow is expected to be about $100 million a quarter over the next five quarters through the end of next year, with a range of maybe $90 million to maybe $110 million in a particular quarter and an average roll-off rate of about 3.5%, and the efficiency ratio is expected to remain in the 30-something range. Net charge-offs will likely remain elevated in 2026 and 2027, then see an improving trend in 2027; the CRE guideline is below 300%, and the bank expects to be below the 100% guideline in the next quarter or two, probably three at the most.Bank OZK Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
86
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.43B | 2.81B | 2.77B | 2.25B | 1.38B | 1.19B |
| Gross Profit | 1.54B | 1.56B | 1.48B | 1.40B | 1.17B | 1.18B |
| EBITDA | 726.62M | 1.06B | 1.02B | 930.80M | 777.05M | 796.05M |
| Net Income | 675.06M | 715.48M | 716.46M | 690.78M | 564.14M | 579.00M |
Balance Sheet | ||||||
| Total Assets | 43.19B | 40.79B | 38.26B | 34.24B | 27.66B | 26.53B |
| Cash, Cash Equivalents and Short-Term Investments | 0.00 | 0.00 | 3.35B | 5.39B | 4.53B | 5.97B |
| Total Debt | 1.21B | 463.58M | 883.04M | 1.27B | 1.08B | 1.23B |
| Total Liabilities | 37.04B | 34.66B | 32.55B | 29.10B | 22.97B | 21.69B |
| Stockholders Equity | 6.15B | 6.13B | 5.71B | 5.14B | 4.69B | 4.84B |
Cash Flow | ||||||
| Free Cash Flow | 576.42M | 731.73M | 738.85M | 852.41M | 735.09M | 494.28M |
| Operating Cash Flow | 650.42M | 837.73M | 834.47M | 881.55M | 764.95M | 528.20M |
| Investing Cash Flow | -1.58B | -2.34B | -3.25B | -5.53B | -2.43B | 140.21M |
| Financing Cash Flow | -634.26M | 1.56B | 3.05B | 5.77B | 644.92M | -1.01B |
Bank OZK Technical Analysis
Positive
49.20
Price Trends
47.39
Positive
48.85
Positive
47.54
Positive
Market Momentum
0.94
Negative
66.97
Neutral
89.68
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OZK, the sentiment is Positive. The current price of 49.2 is above the 20-day moving average (MA) of 46.59, above the 50-day MA of 47.39, and above the 200-day MA of 47.54, indicating a bullish trend. The MACD of 0.94 indicates Negative momentum. The RSI at 66.97 is Neutral, neither overbought nor oversold. The STOCH value of 89.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OZK.
Bank OZK Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $5.54B | 8.50 | 10.93% | 3.74% | -0.40% | -1.91% | |
76 Outperform | $6.00B | 12.15 | 10.95% | 2.87% | 2.37% | 5.57% | |
73 Outperform | $4.45B | 12.96 | 17.61% | 1.87% | 4.88% | 34.03% | |
70 Outperform | $5.54B | 14.41 | 9.44% | 0.97% | 3.39% | -1.12% | |
69 Neutral | $5.81B | 14.44 | 9.34% | 2.69% | -0.63% | -10.24% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $5.54B | 10.74 | 0.04% | 3.75% | 20.79% | 94.69% |
* Financial Sector Average
OZK
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.