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Bank OZK
(NASDAQ:OZK)
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Rating:81Outperform
Price Target:
$51.00
â–²(3.66% Upside)
Action:Reiterated
Date:08/09/26
OZK’s score is driven primarily by strong underlying financial quality (healthy profitability, conservative leverage, and solid free cash flow) and attractive valuation (low P/E with a meaningful dividend yield). Technicals are supportive with price above key moving averages and neutral momentum. The latest earnings call adds modest risk due to payoff-driven pressure on earning assets/NII and some credit volatility, partially offset by diversification progress in CIB and ongoing buybacks.
Positive Factors
Strong profitability and cash generation
Strong profitability is supported by substantial free cash flow that closely tracks earnings, indicating meaningful internal cash generation. This gives Bank OZK greater capacity to fund lending, absorb credit costs, support dividends, and maintain strategic flexibility over the next several quarters.
Negative Factors
Revenue and margin deterioration
The decline in revenue and normalization of margins show that Bank OZK's strong profitability is not currently accompanied by durable top-line momentum. Continued pressure could reduce operating leverage and constrain the pace at which the bank can reinvest in growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and cash generation
Strong profitability is supported by substantial free cash flow that closely tracks earnings, indicating meaningful internal cash generation. This gives Bank OZK greater capacity to fund lending, absorb credit costs, support dividends, and maintain strategic flexibility over the next several quarters.
Read all positive factors
Bank OZK (OZK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.85B
Dividend Yield4.19%
Average Volume (3M)1.36M
Price to Earnings (P/E)7.3
Beta (1Y)0.92
Revenue Growth-0.40%
EPS Growth-1.91%
CountryUS
Employees3,286
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)6.06
Shares Outstanding109,165,880
10 Day Avg. Volume1,930,229
30 Day Avg. Volume1,356,990
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 Cap1.07
Enterprise Value/Revenue1.87
Enterprise Value/Gross Profit3.33
Enterprise Value/Ebitda5.17
Forecast
1Y Price Target
$51.71Price Target Upside5.11% Upside
Rating ConsensusHold
Number of Analyst Covering8
EPS Forecast (FY)5.79
Revenue Forecast (FY)$1.73B
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:Jul 21, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 20, 2026
Earnings Call Sentiment Neutral
The call balances clear strategic progress and constructive execution with near-term headwinds. Highlights include meaningful growth and diversification via CIB (now >$7B), improved new-loan spreads in CIB, a 4-basis-point NIM improvement in the quarter, rapid RESG portfolio recycling (nearly $10B of payoffs over the last four quarters), reduced regulatory CRE concentration, disciplined ACL realization, and active, accretive share repurchases. Offsetting these positives are material, front-loaded RESG repayments that depressed average earning assets and tempered NII guidance, negative loan growth in Q2 (despite mid-single-digit annual guidance), stress in segments like life science and office with associated charge-offs, an increase in special mention loans, slightly elevated net charge-offs year-to-date versus the industry, and modest upward pressure on deposit costs (CDs ~10 bps above prior lows). Overall, the company projects confidence in its multi-year strategy and improved franchise diversification but acknowledges near-term earnings and credit variability driven primarily by payoff timing and a handful of problem assets.Positive Updates
Commercial & Institutional Banking (CIB) Rapid Growth and Diversification
CIB has grown to over $7 billion, now includes 7+ major business lines (corporate banking, sponsor finance, fund finance, lender finance, natural resources, franchise capital solutions, asset-based lending, equipment finance, emerging middle market) and represents diversification across 42 unique NAICS; management expects CIB to equal RESG in size sometime in 2027, supporting fee income, deposit gathering, and cross-sell opportunities.
Negative Updates
Elevated RESG Repayments Pressure Average Earning Assets and NII Guidance
A large, front-loaded wave of RESG repayments early in Q2 (approaching $3 billion this quarter) depressed average earning assets, prompting management to moderate NII guidance and note that sequence/timing of paydowns — not just volume — is a principal headwind to achieving higher NII this year.
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Q2-2026 Updates
Positive
Negative
Commercial & Institutional Banking (CIB) Rapid Growth and Diversification
CIB has grown to over $7 billion, now includes 7+ major business lines (corporate banking, sponsor finance, fund finance, lender finance, natural resources, franchise capital solutions, asset-based lending, equipment finance, emerging middle market) and represents diversification across 42 unique NAICS; management expects CIB to equal RESG in size sometime in 2027, supporting fee income, deposit gathering, and cross-sell opportunities.
Read all positive updates
Company Guidance
Management reiterated full‑year mid‑single‑digit loan growth and said average earning assets should pick up in Q3/Q4 after Q2’s heavy payoff activity (about $3.0B of RESG repayments in Q2 and roughly $10B over the trailing four quarters, ~ $2.5B/qtr average), noting RESG repayments will remain elevated into 2027 but likely taper next year; CIB has grown to >$7B (over 7 business lines and 42+ NAICS) while RESG is ~$15B and the firm expects CIB and RESG to be roughly equal in 2027 as the bank sits under a 300% CRE concentration and expects to fall below the 100% C&D guideline by year‑end/early 2027. On margin and funding, NIM improved 4 bps in Q2 (Q1 NIM was ~4.20%) but management cautioned NIM/NII may be slightly below Q1/last‑year comparatives due primarily to the timing of payoffs and lower average earning assets; COIBD fell ~5 bps in Q2 (CD specials are ~10 bps above their low point) and Tim expects average earning assets to rise in Q3 and Q4. On credit and capital, the ACL has been reduced as charge‑offs were realized (including ~$22M on an office and ~$3.7M on a life‑science asset), special‑mention volume rose but many loans are progressing toward remediation, net charge‑offs have been a touch above industry through six months but management expects to get back below industry for the year, and the bank repurchased ~$175M of a $200M authorization (and approved a new $200M buyback authorization).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 | 2.77B | 2.81B | 2.77B | 2.25B | 1.38B | 1.19B |
| Gross Profit | 1.55B | 1.56B | 1.48B | 1.40B | 1.17B | 1.18B |
| EBITDA | 999.49M | 1.06B | 1.02B | 930.80M | 777.05M | 796.05M |
| Net Income | 691.28M | 715.48M | 716.46M | 690.78M | 564.14M | 579.00M |
Balance Sheet | ||||||
| Total Assets | 41.70B | 40.79B | 38.26B | 34.24B | 27.66B | 26.53B |
| Cash, Cash Equivalents and Short-Term Investments | 1.55B | 0.00 | 3.35B | 5.39B | 4.53B | 5.97B |
| Total Debt | 668.23M | 463.58M | 883.04M | 1.27B | 1.08B | 1.23B |
| Total Liabilities | 35.43B | 34.66B | 32.55B | 29.10B | 22.97B | 21.69B |
| Stockholders Equity | 6.28B | 6.13B | 5.71B | 5.14B | 4.69B | 4.84B |
Cash Flow | ||||||
| Free Cash Flow | 762.42M | 731.73M | 738.85M | 852.41M | 735.09M | 494.28M |
| Operating Cash Flow | 865.69M | 837.73M | 834.47M | 881.55M | 764.95M | 528.20M |
| Investing Cash Flow | -1.29B | -2.34B | -3.25B | -5.53B | -2.43B | 140.21M |
| Financing Cash Flow | -725.00M | 1.56B | 3.05B | 5.77B | 644.92M | -1.01B |
Bank OZK Technical Analysis
Negative
49.20
Price Trends
48.73
Negative
49.34
Negative
47.91
Negative
Market Momentum
-1.14
Positive
40.56
Neutral
40.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OZK, the sentiment is Negative. The current price of 49.2 is above the 20-day moving average (MA) of 46.42, above the 50-day MA of 48.73, and above the 200-day MA of 47.91, indicating a bearish trend. The MACD of -1.14 indicates Positive momentum. The RSI at 40.56 is Neutral, neither overbought nor oversold. The STOCH value of 40.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $4.85B | 7.33 | 11.21% | 4.19% | -0.40% | -1.91% | |
81 Outperform | $5.65B | 11.58 | 11.01% | 3.04% | 1.86% | 10.69% | |
74 Outperform | $5.81B | 14.06 | 9.61% | 2.69% | -3.22% | -5.23% | |
74 Outperform | $4.20B | 13.06 | 17.06% | 1.98% | 3.05% | 28.29% | |
70 Outperform | $5.30B | 14.26 | 9.25% | 1.01% | 2.30% | -2.55% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
61 Neutral | $5.40B | 11.28 | 9.68% | 3.92% | 35.21% | 61.65% |
* Financial Sector Average
OZK
Bank OZK
45.32
-3.07
-6.34%
ABCB
Ameris Bancorp
79.36
7.56
10.53%
HWC
Hancock Whitney
72.64
13.86
23.57%
HOMB
Home Bancshares
28.50
2.16
8.18%
AUB
Atlantic Union Bankshares
37.84
4.62
13.90%
SFBS
ServisFirst Bancshares
38.73
0.47
1.23%
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.