tiprankstipranks
Trending News
More News >
Home Bancshares (HOMB)
NYSE:HOMB
Advertisement

Home Bancshares (HOMB) AI Stock Analysis

Compare
146 Followers

Top Page

HOMB

Home Bancshares

(NYSE:HOMB)

Rating:69Neutral
Price Target:
$31.00
▲(12.32%Upside)
Home Bancshares' strong financial performance and positive earnings call sentiment are offset by technical indicators suggesting short-term bearish sentiment. Valuation remains reasonable, offering a balanced risk-reward profile for investors.

Home Bancshares (HOMB) vs. SPDR S&P 500 ETF (SPY)

Home Bancshares Business Overview & Revenue Model

Company DescriptionHome 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 MoneyHome Bancshares makes money primarily through its subsidiary, Centennial Bank, by earning interest on loans and investments, which constitutes the largest portion of its revenue. The bank provides a variety of loan products, including commercial real estate loans, residential real estate loans, construction loans, and consumer loans, each generating interest income. Additionally, the bank earns revenue from service charges and fees related to its deposit accounts, such as overdraft fees, account maintenance fees, and transaction fees. Another significant revenue stream is derived from the sale of investment securities and the provision of other financial services. Key factors contributing to its earnings include its strategic focus on community banking, maintaining strong asset quality, and leveraging a robust network of branches and digital banking platforms to attract and retain customers.

Home Bancshares Earnings Call Summary

Earnings Call Date:Jul 16, 2025
(Q2-2025)
|
% Change Since: -3.23%|
Next Earnings Date:Oct 16, 2025
Earnings Call Sentiment Positive
Home Bancshares had a strong quarter with record earnings and significant shareholder returns. The company demonstrated robust loan growth and maintained a strong capital position. However, challenges such as deposit declines, high legal expenses, and unresolved nonaccrual loans were noted.
Q2-2025 Updates
Positive Updates
Record Earnings Achieved
Home Bancshares reported record earnings of $118.4 million or $0.60 earnings per share with a return on assets of 2.08%, slightly up from last quarter's $115.2 million and 2.07% ROA.
Strong Shareholder Returns
The company bought back over 3 million shares, equaling about $86 million worth, and paid $150 million in dividends over the past 12 months, while also growing tangible common equity by 11.25%.
Significant Loan Growth
Loan growth was strong with approximately $500 million in new commitments for the quarter, bringing the year-to-date total to over $800 million.
Solid Capital Position
Tier 1 capital ratio stood at 15.6%, leverage ratio at 13.4%, and total risk-based capital at 19.3%.
Consistent Return on Tangible Common Equity
Non-GAAP ROTCE was 18.26%, and GAAP return on tangible common equity was 17.68%.
Negative Updates
Deposit Decline
Deposits ended slightly lower in Q2, down $53 million due to seasonal tax payments.
High Legal Expenses
Legal expenses were elevated this quarter, primarily due to a lawsuit settlement that cost the company $3.5 million.
Nonaccrual Loan Challenges
A large nonaccrual yacht loan was still unresolved, although the company expects a full payoff once legal processes are completed.
Company Guidance
During Home Bancshares, Inc.'s second quarter 2025 earnings call, the company reported record earnings of $118.4 million, equating to $0.60 earnings per share, and a return on assets of 2.08%. This represented an increase from the previous quarter's earnings of $115.2 million and a return on assets of 2.07%. The company also highlighted a strong non-GAAP return on tangible common equity (ROTCE) of 18.26% and a GAAP ROTCE of 17.68%. Home Bancshares maintained a robust loan loss reserve at 1.86%, tier 1 capital at 15.6%, a leverage ratio of 13.4%, and total risk-based capital of 19.3%. Over the past year, the company has increased tangible common equity by $1.36, or 11.25%, and repurchased over 3 million shares worth approximately $86 million while distributing around $150 million in dividends. The company's net interest margin stood at 4.44%, with a slight increase in core margin, excluding event income, to 4.43% from the previous quarter's 4.42%. Looking forward, the company aims to achieve $450 million in income this year and targets $500 million in 2026, with plans to acquire additional assets to support this growth.

Home Bancshares Financial Statement Overview

Summary
Home Bancshares demonstrates strong financial performance with consistent revenue growth, a robust profit margin, and solid cash flow generation. The balance sheet is stable with manageable debt levels, although there is room for improvement in the equity ratio.
Income Statement
85
Very Positive
Home Bancshares has demonstrated consistent revenue growth over the years, with Total Revenue increasing from $751.98M in 2021 to $1.45B in the TTM (Trailing-Twelve-Months) period ending March 2025. The Gross Profit Margin is strong at 66.9% for TTM, and the Net Profit Margin is also robust at 28.8%. The EBIT and EBITDA margins are healthy, indicating efficient operational management. Revenue growth is steady, showcasing the company's ability to expand its top line.
Balance Sheet
78
Positive
The balance sheet of Home Bancshares reflects a stable financial position with Stockholders' Equity increasing to $4.04B in the TTM. The Debt-to-Equity Ratio stands at a manageable 0.30, which shows a moderate level of leverage. Return on Equity (ROE) for TTM is 10.3%, indicating decent profitability relative to the equity base. The Equity Ratio is at 17.6%, suggesting a solid equity base relative to total assets, although there is room for improvement.
Cash Flow
80
Positive
The company has shown an increasing trend in Free Cash Flow, with a growth rate of 8.2% from 2024 to TTM, indicating strong cash generation capability. The Operating Cash Flow to Net Income Ratio is 1.03, suggesting that the company converts net income into cash effectively. The Free Cash Flow to Net Income Ratio is 0.93, showing efficient cash flow management relative to net income.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.45B1.33B1.04B751.98M777.97M
Gross Profit952.60M967.81M855.30M704.54M555.31M
EBITDA551.54M542.81M426.43M436.26M297.79M
Net Income402.24M392.93M305.26M319.02M214.45M
Balance Sheet
Total Assets22.49B22.66B22.88B18.05B16.40B
Cash, Cash Equivalents and Short-Term Investments2.65B4.51B4.77B6.77B3.74B
Total Debt1.20B1.88B1.22B911.98M939.26M
Total Liabilities18.53B18.87B19.36B15.29B13.79B
Stockholders Equity3.96B3.79B3.53B2.77B2.61B
Cash Flow
Free Cash Flow422.12M357.20M393.59M379.10M280.18M
Operating Cash Flow460.65M379.67M413.17M389.38M291.73M
Investing Cash Flow5.67M578.46M-1.02B624.66M-651.94M
Financing Cash Flow-556.18M-682.71M-2.31B1.37B1.13B

Home Bancshares Technical Analysis

Technical Analysis Sentiment
Negative
Last Price27.60
Price Trends
50DMA
28.64
Negative
100DMA
28.11
Negative
200DMA
28.57
Negative
Market Momentum
MACD
-0.14
Positive
RSI
36.56
Neutral
STOCH
8.55
Positive
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 27.6 is below the 20-day moving average (MA) of 29.10, below the 50-day MA of 28.64, and below the 200-day MA of 28.57, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 36.56 is Neutral, neither overbought nor oversold. The STOCH value of 8.55 is Positive, 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 29 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

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$6.20B12.049.59%3.09%17.47%
75
Outperform
$4.87B22.266.60%3.08%8.37%17.00%
74
Outperform
$5.14B11.826.33%4.79%0.20%9.86%
69
Neutral
$5.45B12.6310.94%2.84%4.40%14.01%
69
Neutral
$4.98B12.367.71%4.22%8.07%6.94%
67
Neutral
$17.01B11.599.13%3.95%10.67%1.30%
65
Neutral
$4.87B19.8715.09%2.14%14.53%21.78%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HOMB
Home Bancshares
27.60
2.56
10.22%
CADE
Cadence Bank
33.94
6.32
22.88%
FFIN
First Financial Bankshares
34.05
0.23
0.68%
GBCI
Glacier Bancorp
42.86
3.39
8.59%
UBSI
United Bankshares
35.03
1.13
3.33%
VLY
Valley National Bancorp
9.18
1.67
22.24%

Home Bancshares Corporate Events

Stock BuybackDividendsFinancial Disclosures
Home Bancshares Reports Record Q2 2025 Earnings
Positive
Jul 16, 2025

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.

The most recent analyst rating on (HOMB) stock is a Hold with a $30.00 price target. To see the full list of analyst forecasts on Home Bancshares stock, see the HOMB Stock Forecast page.

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.Date of analysis: Jul 31, 2025