Home Bancshares (HOMB) AI Stock Analysis

• Market Cap: $5.25B
• Dividend Yield: 2.9%
• Average Volume (3M): 1.19M
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.82
• Revenue Growth: 1.43%
• EPS Growth: 19.58%
• Country: US
• Employees: 2,552
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.61
• Shares Outstanding: 197,078,660
• 10 Day Avg. Volume: 1,335,244
• 30 Day Avg. Volume: 1,185,277
• PEG Ratio: 3.90
• Price to Book (P/B): 1.43
• Price to Sales (P/S): 3.90
• P/FCF Ratio: 13.40
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 4.32
• Enterprise Value/Gross Profit: 6.31
• Enterprise Value/Ebitda: 10.70
• 1Y Price Target: $33.00
• Price Target Upside: 23.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 77 Outperform
• Price Target: $32.00 ▲(20.17% Upside)

Home Bancshares demonstrates strong financial performance and positive earnings call sentiment, which are the most significant factors driving the score. The stock's valuation is reasonable, providing a solid income yield. Technical analysis presents a mixed outlook, with potential short-term weakness but possible oversold conditions. Overall, the company's robust financial health and growth prospects support a favorable stock score.

Home Bancshares Business Overview & Revenue Model

Company Description

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 also 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. As of December 31, 2021, it operated through 160 branch locations that included 76 branches in Arkansas, 78 branches in Florida, 5 branches in Alabama, and 1 branch in New York City. Home Bancshares, Inc. (Conway, AR) was founded in 1998 and is headquartered in Conway, Arkansas.

How the Company Makes Money

Home Bancshares generates revenue primarily through net interest income, which is earned from the interest on loans provided to customers minus the interest paid on deposits and borrowings. The company offers various types of loans, including commercial, consumer, and mortgage loans, contributing significantly to its interest income. In addition to interest income, Home Bancshares earns non-interest income from service fees, transaction fees, and wealth management services. The company has strategic partnerships with various organizations that enhance its service offerings and customer reach. Furthermore, its expansion strategy includes acquiring other banks and financial institutions, which has helped increase its market presence and revenue streams over time.

Home Bancshares Financial Statement Overview

Summary

Home Bancshares exhibits strong financial health with consistent revenue growth and robust profitability margins. The balance sheet reflects moderate leverage and effective equity utilization, while cash flow metrics indicate efficient cash generation. The company should focus on improving its equity ratio and addressing the recent decline in free cash flow growth to enhance long-term financial stability.

Income Statement

Home Bancshares has demonstrated strong revenue growth with a TTM (Trailing-Twelve-Months) revenue growth rate of 9.9%. The company maintains healthy profitability metrics, with a gross profit margin of 68.5% and a net profit margin of 29.8% in the TTM period. EBIT and EBITDA margins are also robust at 38.3% and 39.8%, respectively. The consistent growth and strong margins indicate a well-managed income statement, though there is a slight decline in gross profit margin compared to previous years.

Balance Sheet

The balance sheet shows a stable financial position with a debt-to-equity ratio of 0.28 in the TTM period, reflecting moderate leverage. Return on equity is solid at 10.8%, indicating effective use of equity to generate profits. The equity ratio stands at 17.8%, suggesting a balanced capital structure. While the company has reduced its debt levels over time, the equity ratio could be improved to enhance financial stability.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 7.4% in the TTM period, which could be a concern. However, the operating cash flow to net income ratio remains positive at 0.90, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is also strong at 0.90, suggesting good cash conversion. Despite the recent decline in free cash flow growth, the company maintains a solid cash flow position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.45B	1.45B	1.33B	1.04B	751.98M	777.97M
Gross Profit	993.80M	952.60M	967.81M	855.30M	704.54M	555.31M
EBITDA	586.49M	551.54M	542.81M	426.43M	436.26M	297.79M
Net Income	434.21M	402.24M	392.93M	305.26M	319.02M	214.45M
Balance Sheet
Total Assets	22.91B	22.49B	22.66B	22.88B	18.05B	16.40B
Cash, Cash Equivalents and Short-Term Investments	2.71B	2.65B	4.51B	4.77B	6.77B	3.74B
Total Debt	1.13B	1.20B	1.88B	1.22B	911.98M	939.26M
Total Liabilities	18.82B	18.53B	18.87B	19.36B	15.29B	13.79B
Stockholders Equity	4.09B	3.96B	3.79B	3.53B	2.77B	2.61B
Cash Flow
Free Cash Flow	357.62M	422.12M	357.20M	393.59M	379.10M	280.18M
Operating Cash Flow	399.13M	460.65M	379.67M	413.17M	389.38M	291.73M
Investing Cash Flow	99.04M	5.67M	578.46M	-1.02B	624.66M	-651.94M
Financing Cash Flow	-455.81M	-556.18M	-682.71M	-2.31B	1.37B	1.13B

Home Bancshares Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 26.63
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HOMB, the sentiment is Negative. The current price of 26.63 is below the 20-day moving average (MA) of 27.43, below the 50-day MA of 28.53, and below the 200-day MA of 28.36, indicating a bearish trend. The MACD of -0.41 indicates Negative momentum. The RSI at 38.48 is Neutral, neither overbought nor oversold. The STOCH value of 37.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HOMB.

Home Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HOMB	―	$5.25B	11.74	11.20%	2.90%	1.43%	19.58%
OZK	―	$5.11B	7.33	12.35%	3.83%	2.79%	2.11%
FNB	―	$5.56B	11.21	7.86%	3.07%	4.74%	27.01%
COLB	―	$7.88B	10.66	10.24%	5.37%	-1.39%	11.31%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
GBCI	―	$4.82B	20.92	6.92%	3.25%	8.73%	26.19%
VLY	―	$6.13B	12.75	7.07%	4.34%	-1.94%	41.35%

Home Bancshares Corporate Events

Home Bancshares Reports Record Q2 2025 Earnings

On July 16, 2025, Home BancShares reported record quarterly earnings for Q2 2025, with a net income of $118.4 million and diluted earnings per share of $0.60. The company also repurchased 1.0 million shares of common stock, resulting in a shareholder buyback yield of 0.49%, and increased its quarterly dividend to $0.20 per share. These results underscore the company’s strong financial performance and commitment to returning value to shareholders.