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Home Bancshares
(NYSE:HOMB)
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Rating:76Outperform
Price Target:
$33.00
â–²(10.37% Upside)
Action:Reiterated
Date:10/16/26
The score is driven primarily by strong financial performance (high margins, improved leverage, and solid TTM cash flow) and supportive valuation (low P/E with ~3% yield). This is tempered by a neutral-to-soft technical picture (negative MACD and trading below mid-term averages), while a positive earnings call—highlighting record results, strong capital, and continued shareholder returns—provides an additional lift despite noted deposit/loan and competitive pressures.
Positive Factors
Strong profitability and cash generation
Strong profitability and free cash flow indicate substantial earnings power for a regional bank. Improved margins versus 2024 and free cash flow equal to about 98% of net income support internal capital formation, resilience, and continued investment or shareholder distributions.
Negative Factors
Loan growth pressured by payoffs and weaker production
When loan payoffs exceed new production, earning assets and net interest income can be pressured even if credit standards remain sound. Persistently elevated payoffs would make positive loan growth harder to achieve and could limit operating leverage over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and cash generation
Strong profitability and free cash flow indicate substantial earnings power for a regional bank. Improved margins versus 2024 and free cash flow equal to about 98% of net income support internal capital formation, resilience, and continued investment or shareholder distributions.
Read all positive factors
Home Bancshares (HOMB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.00B
Dividend Yield2.87%
Average Volume (3M)1.77M
Price to Earnings (P/E)12.1
Beta (1Y)0.60
Revenue Growth2.37%
EPS Growth5.57%
CountryUS
Employees2,543
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.47
Shares Outstanding200,049,640
10 Day Avg. Volume2,118,832
30 Day Avg. Volume1,766,560
Financial Highlights & Ratios
PEG Ratio0.58
Price to Book (P/B)1.27
Price to Sales (P/S)3.98
P/FCF Ratio14.52
Enterprise Value/Market Cap1.01
Enterprise Value/Revenue4.03
Enterprise Value/Gross Profit5.44
Enterprise Value/Ebitda9.29
Forecast
1Y Price Target
$32.17Price Target Upside7.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)2.53
Revenue Forecast (FY)$1.15B
Home Bancshares Business Overview & Revenue Model
Company Description
Based in Conway, Arkansas, Home Bancshares, Inc. functions as the parent company for Centennial Bank. Through Centennial Bank, it delivers a comprehensive suite of commercial and retail banking solutions, alongside other financial services, cateri...
How the Company Makes Money
Home Bancshares primarily makes money through its bank subsidiary by earning interest income on loans and investment securities and by generating fee-based (noninterest) income from banking services. The largest driver is net interest income: the ...
Home Bancshares Earnings Call Summary
Earnings Call Date:Oct 14, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 21, 2027
Earnings Call Sentiment Positive
The call was strongly positive overall. Home BancShares reported record earnings, expanding margins, strong profitability, capital strength, continued shareholder returns and expected recoveries on a major Texas credit. The main challenges were deposit and loan-balance declines, elevated payoffs, weak CCFG origination activity, higher AOCI, intense competition and uncertain M&A progress, but management expressed confidence in loan opportunities, liquidity, asset quality and the outlook for finishing 2026 strongly.Positive Updates
Record Quarterly Earnings and Progress Toward $0.5 Billion Goal
Home BancShares reported record third-quarter earnings of $129.1 million, or $0.65 per share. Adjusted earnings for the first nine months of 2026 were $380 million, keeping the company on a path toward its $500 million, or $0.5 billion, earnings goal. The primary difference between reported and adjusted earnings was approximately $12 million to $13 million of Mountain Commerce merger expense.
Negative Updates
Legacy Deposit Balances Declined
Legacy deposit balances declined by $358 million in the third quarter, due to lower municipal deposit balances, quarterly tax payments in September and a reduction in wholesale deposits from the Mountain Commerce acquisition.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Quarterly Earnings and Progress Toward $0.5 Billion Goal
Home BancShares reported record third-quarter earnings of $129.1 million, or $0.65 per share. Adjusted earnings for the first nine months of 2026 were $380 million, keeping the company on a path toward its $500 million, or $0.5 billion, earnings goal. The primary difference between reported and adjusted earnings was approximately $12 million to $13 million of Mountain Commerce merger expense.
Read all positive updates
Company Guidance
Home BancShares remains on a path toward its goal of $500 million, or $0.5 billion, and expects additional benefits from the Mountain Commerce back-office integration during the fourth quarter, with annualized cost savings of a little over $5 million targeted. Management expects the two Texas C&I asset-sale transactions to close this quarter, with proceeds of $101 million, $102 million, versus a $91 million book balance, resulting in about a $10 million recovery. It expects positive loan growth, while payoffs could be close to last quarter, and expects deposits to return in the fourth quarter, with the goal of funding loan growth with deposit growth. Asset liability modeling shows a nearly 6% increase in net interest income in an up 100 basis point scenario, while management said it shows a 5.6% increase to NII in an up 100 basis point scenario; management would be pleased to run in the 4.5% range, maybe a little higher, for core NIM. Management expects noninterest income to migrate back closer to $50 million, Q4 expenses to be a flattish kind of number, no provision this quarter, and plans to continue stock repurchases, including 1 million or so this quarter and potentially completing the buyback by the first half of next year.Home Bancshares Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
79
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.50B | 1.37B | 1.45B | 1.33B | 1.04B | 751.98M |
| Gross Profit | 1.11B | 1.06B | 952.60M | 967.81M | 855.30M | 704.54M |
| EBITDA | 650.65M | 630.50M | 551.54M | 542.81M | 426.43M | 436.26M |
| Net Income | 485.21M | 475.44M | 402.24M | 392.93M | 305.26M | 319.02M |
Balance Sheet | ||||||
| Total Assets | 24.14B | 22.88B | 22.49B | 22.66B | 22.88B | 18.05B |
| Cash, Cash Equivalents and Short-Term Investments | 4.72B | 2.24B | 2.65B | 4.51B | 4.77B | 6.77B |
| Total Debt | 691.11M | 935.32M | 1.20B | 1.88B | 1.22B | 911.98M |
| Total Liabilities | 19.62B | 18.59B | 18.53B | 18.87B | 19.36B | 15.29B |
| Stockholders Equity | 4.53B | 4.30B | 3.96B | 3.79B | 3.53B | 2.77B |
Cash Flow | ||||||
| Free Cash Flow | 317.62M | 377.02M | 422.12M | 357.20M | 393.59M | 379.10M |
| Operating Cash Flow | 336.98M | 399.28M | 460.65M | 379.67M | 413.17M | 389.38M |
| Investing Cash Flow | 38.50M | -470.32M | 5.67M | 578.46M | -1.02B | 624.66M |
| Financing Cash Flow | -123.89M | -171.97M | -556.18M | -682.71M | -2.31B | 1.37B |
Home Bancshares Technical Analysis
Positive
29.90
Price Trends
29.40
Positive
29.37
Positive
28.24
Positive
Market Momentum
0.20
Negative
62.85
Neutral
88.60
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HOMB, the sentiment is Positive. The current price of 29.9 is above the 20-day moving average (MA) of 28.94, above the 50-day MA of 29.40, and above the 200-day MA of 28.24, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 62.85 is Neutral, neither overbought nor oversold. The STOCH value of 88.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HOMB.
Home Bancshares Risk Analysis
Home Bancshares disclosed 32 risk factors in its most recent earnings report. Home Bancshares reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Home Bancshares Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $4.33B | 14.88 | 15.14% | 2.72% | 8.03% | 19.76% | |
76 Outperform | $6.00B | 12.15 | 10.95% | 2.87% | 2.37% | 5.57% | |
76 Outperform | $5.54B | 8.50 | 10.93% | 3.74% | -0.40% | -1.91% | |
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 | $3.80B | 11.55 | 8.13% | 2.26% | 27.48% | 31.72% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
HOMB
Home Bancshares
30.01
3.70
14.08%
ABCB
Ameris Bancorp
82.56
10.28
14.22%
OZK
Bank OZK
50.77
7.11
16.28%
FFIN
First Financial Bankshares
30.20
-0.34
-1.12%
HWC
Hancock Whitney
72.48
17.20
31.12%
RNST
Renasant
41.58
7.40
21.65%
Home Bancshares Corporate Events
Business Operations and StrategyFinancial Disclosures
Home BancShares Posts Record Third-Quarter 2026 Earnings
Positive
Oct 14, 2026
Home BancShares, Inc., headquartered in Conway, Ark., is a regional banking company and parent of Centennial Bank, operating in the commercial and retail banking industry. The company focuses on traditional lending and deposit services, emphasizin...
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.