Home Bancshares (HOMB)
NYSE:HOMB
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Home Bancshares
(NYSE:HOMB)
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Rating:72Outperform
Price Target:
$30.00
â–²(11.57% Upside)
Action:UpgradedDate:05/09/26
The score is driven primarily by strong underlying financial quality (profitability, improving leverage, healthy ROE) and supportive valuation (low P/E plus ~3% yield). These are tempered by weaker technical momentum and earnings-call-flagged near-term risks (large nonperforming credit, elevated payoff-driven growth headwinds, and integration-related margin/expense pressure).
Positive Factors
Robust capital and high loan-loss reserves
Very strong regulatory capital and unusually high reserve coverage create a durable cushion against credit shocks. This supports ongoing buybacks and M&A while reducing the probability that a single credit stress materially impairs solvency or regulatory flexibility over the medium term.
Negative Factors
Elevated loan payoff runoff
High scheduled payoffs materially reduce earning asset balances absent offsetting production, pressuring net interest income and loan-growth metrics for multiple quarters. Persistent runoff forces higher origination needs and can compress long-term organic growth if cyclical demand remains weak.
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Positive Factors
Negative Factors
Robust capital and high loan-loss reserves
Very strong regulatory capital and unusually high reserve coverage create a durable cushion against credit shocks. This supports ongoing buybacks and M&A while reducing the probability that a single credit stress materially impairs solvency or regulatory flexibility over the medium term.
Read all positive factors
Home Bancshares (HOMB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.39B
Dividend Yield2.85%
Average Volume (3M)1.43M
Price to Earnings (P/E)11.2
Beta (1Y)0.69
Revenue Growth0.57%
EPS Growth15.88%
CountryUS
Employees2,552
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.43
Shares Outstanding201,413,420
10 Day Avg. Volume1,556,507
30 Day Avg. Volume1,428,084
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 Cap0.97
Enterprise Value/Revenue3.81
Enterprise Value/Gross Profit4.88
Enterprise Value/Ebitda8.49
Forecast
1Y Price Target
$31.40Price Target Upside16.77% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)2.48
Revenue Forecast (FY)$1.16B
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 municipal...
How the Company Makes Money
Home Bancshares primarily makes money through its banking subsidiary by (1) generating net interest income and (2) earning noninterest income (fees), with operating expenses and credit costs affecting net earnings.
1) Net interest income (core ea...
Home Bancshares Earnings Call Summary
Earnings Call Date:Apr 15, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 16, 2026
Earnings Call Sentiment Positive
Overall the call presents a positive operational and capital position: record book-value metrics, strong profitability (2.09% ROA, 16.56% ROTCE), robust capital ratios, high reserves, disciplined private-credit de-risking, and active capital return/M&A activity. Near-term headwinds include one large nonperforming credit, elevated payoff activity that may slow organic loan growth in Q2–Q3, modest QoQ NIM compression, and temporary expense pressure from the Mountain Commerce integration. Management communicates confidence in reserves, capital and the ability to manage the Texas credit and payoff cycles while pursuing buybacks and accretive M&A.Positive Updates
Record Book Value and Tangible Book Growth
Book value per share of $22.15 and tangible book value per share of $14.87, a $1.72 per share increase year-over-year (13% YoY growth).
Negative Updates
Large Texas Credit Moved to Nonperforming
A ~$110 million Texas commercial & industrial credit was placed on nonperforming status this quarter. Management does not expect material loss but noted increased nonaccrual balances and limited visibility until resolution. Impact to loan yield/NIM was roughly 5 bps and 4 bps, respectively, for the quarter (~$1.6 million).
Read all updates
Q1-2026 Updates
Positive
Negative
Record Book Value and Tangible Book Growth
Book value per share of $22.15 and tangible book value per share of $14.87, a $1.72 per share increase year-over-year (13% YoY growth).
Read all positive updates
Company Guidance
Management’s guidance emphasized continued conservative capital and liquidity positioning and steady core earnings: record book value per share $22.15 and tangible book $14.87 (+$1.72, +13% YoY), Q1 net income $118.2M, ROA 2.09% and ROTCE 16.56%; capital ratios CET1 16.7%, Tier 1 16.7%, total risk‑based capital 19.5% and leverage 14.3%; ~ $300M loan loss reserves (reserve coverage of NPLs >160% and, management says, roughly 15 years of historical charge‑offs); a consistent pretax, pre‑provision net revenue run‑rate of ~$150–160M/quarter; Q1 NIM 4.51% (core 4.51%), loan yield 7.08% (production ~7.25%, community ~6.99–7.00%), interest‑bearing deposit cost 2.35% and total deposit cost 1.83% (exit 1.82%), noninterest‑bearing deposits ≈$4.0B (22.5% of deposits), Q1 loan production $917M; CCFG portfolio ≈$2.1B (Q1 new production $370M, payoffs just under $200M; private credit outstandings $87M, down >80% from ~$500M in 2022); scheduled payoffs anticipated near ~$1B in Q2 (and potentially Q3); Mountain Commerce adds >$1.4B loans with conversion in November (initially expected to add ~$7–7.5M/quarter in expenses until late‑2026 when full savings hit) and may cause modest near‑term margin pressure, management repurchased 507K shares (reported $1.314B) and plans continued buybacks (aiming to retire MCB shares of ~5.5M), and they do not expect the $110M Texas C&I nonaccrual to cause material earnings loss (interest reversal ≈$1.6M this quarter, ~5 bps loan yield / ~4 bps NIM impact).Home Bancshares Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
82
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.37B | 1.37B | 1.45B | 1.33B | 1.04B | 751.98M |
| Gross Profit | 1.07B | 1.06B | 952.60M | 967.81M | 855.30M | 704.54M |
| EBITDA | 615.89M | 617.62M | 551.54M | 542.81M | 426.43M | 436.26M |
| Net Income | 478.44M | 475.44M | 402.24M | 392.93M | 305.26M | 319.02M |
Balance Sheet | ||||||
| Total Assets | 23.20B | 22.88B | 22.49B | 22.66B | 22.88B | 18.05B |
| Cash, Cash Equivalents and Short-Term Investments | 5.17B | 2.24B | 2.65B | 4.51B | 4.77B | 6.77B |
| Total Debt | 937.09M | 935.32M | 1.20B | 1.88B | 1.22B | 911.98M |
| Total Liabilities | 18.85B | 18.59B | 18.53B | 18.87B | 19.36B | 15.29B |
| Stockholders Equity | 4.35B | 4.30B | 3.96B | 3.79B | 3.53B | 2.77B |
Cash Flow | ||||||
| Free Cash Flow | 417.72M | 377.02M | 422.12M | 357.20M | 393.59M | 379.10M |
| Operating Cash Flow | 433.10M | 399.28M | 460.65M | 379.67M | 413.17M | 389.38M |
| Investing Cash Flow | -323.73M | -470.32M | 5.67M | 578.46M | -1.02B | 624.66M |
| Financing Cash Flow | -293.18M | -171.97M | -556.18M | -682.71M | -2.31B | 1.37B |
Home Bancshares Technical Analysis
Negative
26.89
Price Trends
27.74
Negative
28.03
Negative
27.98
Negative
Market Momentum
0.04
Negative
43.99
Neutral
30.82
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 26.89 is below the 20-day moving average (MA) of 27.19, below the 50-day MA of 27.74, and below the 200-day MA of 27.98, indicating a bearish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 43.99 is Neutral, neither overbought nor oversold. The STOCH value of 30.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | $8.70B | 10.39 | 9.16% | 5.07% | 15.07% | 5.80% | |
79 Outperform | $5.50B | 7.77 | 11.63% | 3.68% | 0.67% | 0.52% | |
75 Outperform | $6.37B | 11.00 | 8.77% | 2.73% | 3.99% | 27.92% | |
73 Outperform | $7.43B | 10.41 | 8.49% | 3.69% | -0.22% | 62.53% | |
72 Outperform | $5.39B | 11.22 | 11.29% | 2.85% | 0.57% | 15.88% | |
71 Outperform | $6.35B | 17.68 | 6.83% | 2.89% | 18.22% | 14.79% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
HOMB
Home Bancshares
26.76
-1.98
-6.89%
OZK
Bank OZK
48.50
3.87
8.68%
COLB
Columbia Banking System
30.04
5.75
23.70%
FNB
F.N.B.
17.90
3.99
28.67%
GBCI
Glacier Bancorp
48.79
5.89
13.73%
VLY
Valley National Bancorp
13.41
4.58
51.90%
Home Bancshares Corporate Events
Executive/Board ChangesShareholder Meetings
Home BancShares Shareholders Approve Directors and Governance Proposals
Positive
Apr 17, 2026
At its 2026 Annual Meeting of Shareholders held on April 16, 2026, Home BancShares, Inc. shareholders elected all fourteen director nominees put forward in the company’s proxy materials, with each candidate receiving strong majority support ...
Business Operations and StrategyFinancial Disclosures
Home BancShares Posts Solid First-Quarter 2026 Earnings Performance
Positive
Apr 15, 2026
Home BancShares reported first-quarter 2026 net income of $118.2 million, flat sequentially but higher year on year, with diluted EPS of $0.60 and a robust return on assets of 2.09%. Management highlighted that the bank’s consistent philosop...
Business Operations and StrategyM&A Transactions
Home BancShares completes Mountain Commerce Bancorp all-stock acquisition
Positive
Apr 1, 2026
On April 1, 2026, Home BancShares, Inc. completed its previously announced all-stock acquisition of Mountain Commerce Bancorp, Inc., the parent of Mountain Commerce Bank, in a transaction valued at about $146 million. The deal adds roughly $1.77 b...
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
Home BancShares Gains Approvals for Mountain Commerce Acquisition
Positive
Mar 24, 2026
On March 24, 2026, Home BancShares, Inc. announced that it has received regulatory approvals from the Federal Reserve and the Arkansas State Bank Department to acquire Mountain Commerce Bancorp, Inc., the parent of Mountain Commerce Bank. The regu...
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
Home Bancshares Issues Supplemental Disclosures on MCBI Merger
Positive
Mar 2, 2026
On December 7, 2025, Home BancShares agreed to acquire Mountain Commerce Bancorp, Inc. and its subsidiary Mountain Commerce Bank, with MCBI merging into Home and MCB into Centennial Bank, further extending Home’s regional banking presence. O...
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.