Home Bancshares (HOMB) AI Stock Analysis

• Market Cap: $5.61B
• Dividend Yield: 2.79%
• Average Volume (3M): 1.01M
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.71
• Revenue Growth: 1.43%
• EPS Growth: 19.58%
• Country: US
• Employees: 2,552
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.61
• Shares Outstanding: 195,304,900
• 10 Day Avg. Volume: 1,383,123
• 30 Day Avg. Volume: 1,012,980
• PEG Ratio: 3.90
• Price to Book (P/B): 1.43
• Price to Sales (P/S): 3.90
• P/FCF Ratio: 13.40
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 4.64
• Enterprise Value/Gross Profit: 6.11
• Enterprise Value/Ebitda: 10.50
• 1Y Price Target: $33.00
• Price Target Upside: 14.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 2.36
• Revenue Forecast (FY): $1.08B

• Rating: 77 Outperform
• Price Target: $32.00 ▲(10.80% Upside)

Home Bancshares scores well due to strong financial performance and positive technical indicators. The strategic merger announcement further boosts its prospects, positioning the company for growth. Valuation remains attractive, providing a balanced investment opportunity.

Positive Factors

Strategic Merger

The merger with Mountain Commerce Bancorp expands Home BancShares' market presence into high-growth Tennessee areas, enhancing its competitive position and operational profile.

Profitability

Sustained profitability reflects strong financial management and operational efficiency, supporting long-term growth and stability.

Cash Generation

Strong cash generation relative to earnings indicates robust financial health, enabling reinvestment and strategic initiatives.

Negative Factors

Revenue Growth Challenges

Declining revenue growth may impact future earnings potential, necessitating strategic adjustments to sustain growth.

Operating Cash Flow

Low conversion of earnings to operating cash flow could signal potential liquidity issues, affecting financial flexibility.

Equity Financing Reliance

Moderate reliance on equity financing may dilute shareholder value and impact return on equity over time.

Home Bancshares Business Overview & Revenue Model

Company Description

Home Bancshares, Inc. (HOMB) is a bank holding company headquartered in Conway, Arkansas. The company operates through its subsidiary, Centennial Bank, which provides a comprehensive range of financial services including commercial and retail banking, mortgage lending, and wealth management. Home Bancshares primarily serves communities in Arkansas, Florida, and Alabama, focusing on delivering personalized banking services to individuals, small businesses, and corporate clients. The bank is known for its commitment to customer service and community involvement, as well as its strategic growth through acquisitions.

How the Company Makes Money

Home Bancshares generates revenue primarily through interest income earned on loans and investments, as well as non-interest income from service fees and other banking services. Key revenue streams include interest from commercial and residential loans, consumer loans, and mortgages. The bank also earns fees from deposit accounts, transaction services, and wealth management services. Additionally, Home Bancshares has grown its earnings through strategic acquisitions, expanding its footprint and customer base, which contributes to increased loan and deposit volumes. Partnerships with local businesses and community organizations also enhance customer loyalty and drive revenue growth.

Home Bancshares Financial Statement Overview

Summary

Home Bancshares demonstrates strong profitability with high margins and effective financial management. Despite a decline in revenue growth, the company maintains solid cash flow metrics and prudent leverage, supporting its financial stability.

Income Statement

Home Bancshares shows strong profitability with a TTM gross profit margin of 75.91% and a net profit margin of 33.65%. However, the revenue growth rate has declined by 6.36% in the TTM, indicating potential challenges in revenue generation. Despite this, the EBIT and EBITDA margins remain robust at 42.44% and 44.17%, respectively, showcasing efficient operational management.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.23, reflecting prudent financial leverage. Return on equity is solid at 11.23%, indicating effective use of shareholder funds. However, the equity ratio stands at 18.56%, suggesting a moderate reliance on equity financing relative to total assets.

Cash Flow

Free cash flow growth is positive at 3.86%, and the free cash flow to net income ratio is strong at 89.60%, indicating good cash generation relative to earnings. However, the operating cash flow to net income ratio is low, suggesting potential challenges in converting earnings into cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.36B	1.45B	1.33B	1.04B	751.98M	777.97M
Gross Profit	1.03B	952.60M	967.81M	855.30M	704.54M	555.31M
EBITDA	600.96M	551.54M	542.81M	426.43M	436.26M	297.79M
Net Income	457.78M	402.24M	392.93M	305.26M	319.02M	214.45M
Balance Sheet
Total Assets	22.71B	22.49B	22.66B	22.88B	18.05B	16.40B
Cash, Cash Equivalents and Short-Term Investments	2.39B	2.65B	4.51B	4.77B	6.77B	3.74B
Total Debt	975.59M	1.20B	1.88B	1.22B	911.98M	939.26M
Total Liabilities	18.49B	18.53B	18.87B	19.36B	15.29B	13.79B
Stockholders Equity	4.21B	3.96B	3.79B	3.53B	2.77B	2.61B
Cash Flow
Free Cash Flow	353.63M	422.12M	357.20M	393.59M	379.10M	280.18M
Operating Cash Flow	385.68M	460.65M	379.67M	413.17M	389.38M	291.73M
Investing Cash Flow	-57.76M	5.67M	578.46M	-1.02B	624.66M	-651.94M
Financing Cash Flow	-544.68M	-556.18M	-682.71M	-2.31B	1.37B	1.13B

Home Bancshares Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 28.88 is above the 20-day moving average (MA) of 28.22, above the 50-day MA of 27.49, and above the 200-day MA of 27.87, indicating a bullish trend. The MACD of 0.36 indicates Negative momentum. The RSI at 61.92 is Neutral, neither overbought nor oversold. The STOCH value of 78.62 is Neutral, 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	$5.61B	12.42	11.20%	2.79%	1.43%	19.58%
COLB	77 Outperform	$8.65B	13.01	7.32%	5.01%	-0.30%	-3.80%
FNB	75 Outperform	$6.26B	12.49	7.87%	2.75%	4.54%	27.56%
GBCI	74 Outperform	$5.76B	21.65	6.92%	2.92%	8.73%	26.19%
VLY	73 Outperform	$6.64B	13.57	7.07%	3.70%	-1.94%	41.35%
OZK	70 Outperform	$5.45B	7.76	12.35%	3.60%	2.79%	2.11%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Home Bancshares Corporate Events

Home BancShares Announces Merger with Mountain Commerce Bancorp

On December 7, 2025, Home BancShares, Inc. and its subsidiary Centennial Bank announced a merger agreement to acquire Mountain Commerce Bancorp, Inc. and its subsidiary Mountain Commerce Bank. The all-stock transaction is valued at approximately $150.1 million and is expected to close in the first half of 2026, subject to regulatory and shareholder approvals. This merger will allow Home BancShares to expand into key Tennessee markets, including Knoxville, Nashville, and Johnson City, enhancing its market presence and positioning it among the 75 largest banks in the United States. The merger is anticipated to be immediately accretive to Home BancShares’ earnings and book value, with strategic benefits expected from the expanded geographic footprint and enhanced operational profile.

Home Bancshares Reports Record Q3 2025 Net Income

Home BancShares reported a record-breaking net income of $123.6 million for the third quarter of 2025, demonstrating a sustained upward trend in profitability over the past five quarters. The company’s strong financial performance is attributed to its powerful margins, efficient revenue generation, and disciplined asset management, which have resulted in improved return on average assets and operational efficiency.