Home Bancshares (HOMB) AI Stock Analysis

• Market Cap: $5.90B
• Dividend Yield: 2.64%
• Average Volume (3M): 982.18K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.85
• Revenue Growth: 4.40%
• EPS Growth: 14.01%
• Country: US
• Employees: 2,552
• Sector: Financial
• Sector Strength: 74
• Industry: Banks - Regional
• EPS (TTM): 0.58
• Shares Outstanding: 197,078,660
• 10 Day Avg. Volume: 758,979
• 30 Day Avg. Volume: 982,183
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 4.49
• Enterprise Value/Gross Profit: 6.71
• Enterprise Value/Ebitda: 11.46
• 1Y Price Target: $32.25
• Price Target Upside: 7.32% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 77 Outperform
• Price Target: $32.00 ▲(6.49% Upside)

Home Bancshares scores well due to its strong financial performance and positive earnings call, which highlight record earnings and robust growth. The technical analysis suggests a neutral trend, while the valuation indicates the stock is fairly priced. These factors collectively contribute to a solid overall 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 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

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

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

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.

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

Home Bancshares Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 30.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 30.05 is above the 20-day moving average (MA) of 28.46, above the 50-day MA of 28.62, and above the 200-day MA of 28.54, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 64.85 is Neutral, neither overbought nor oversold. The STOCH value of 87.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HOMB.

Home Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HOMB	77 Outperform	$5.90B	13.60	10.94%	2.64%	4.40%	14.01%
CADE	77 Outperform	$6.86B	13.12	9.59%	2.79%	17.47%	―
GBCI	74 Outperform	$5.75B	24.98	6.60%	2.72%	8.37%	17.00%
VLY	72 Outperform	$5.83B	13.14	6.33%	4.23%	0.20%	9.86%
UBSI	71 Outperform	$5.45B	13.47	7.71%	3.83%	7.80%	6.87%
Sector *	68 Neutral	$17.69B	11.82	10.30%	3.73%	9.66%	0.42%
FFIN	65 Neutral	$5.27B	21.96	15.09%	1.92%	14.53%	21.78%

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.