Home Bancshares (HOMB)
NYSE:HOMB
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Home Bancshares
(NYSE:HOMB)
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Rating:68Neutral
Price Target:
$29.00
â–²(9.72% Upside)
Action:ReiteratedDate:03/25/26
The score is supported by solid fundamentals (strong profitability and improving leverage) and an attractive valuation (low P/E with a ~3.1% dividend). Offsetting these positives are weak technicals (below key moving averages with negative MACD) and recent cash flow deterioration, while corporate events provide a modest tailwind through positive acquisition progress.
Positive Factors
Profitability and margins
Sustained high margins, a sub-40% efficiency ratio and record 2025 earnings (ROA ~2.10%) indicate durable operating leverage and core net interest income strength. This supports repeatable internal capital generation, dividend coverage and reinvestment capacity over the medium term.
Negative Factors
Cash flow volatility and deterioration
A marked drop in free and operating cash flow reduces the quality of reported earnings and limits internal funding for dividends, buybacks or acquisitions. Persistent volatility would constrain capital allocation choices and increase reliance on balance sheet maneuvers to support growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability and margins
Sustained high margins, a sub-40% efficiency ratio and record 2025 earnings (ROA ~2.10%) indicate durable operating leverage and core net interest income strength. This supports repeatable internal capital generation, dividend coverage and reinvestment capacity over the medium term.
Read all positive factors
Home Bancshares (HOMB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.20B
Dividend Yield2.85%
Average Volume (3M)1.43M
Price to Earnings (P/E)11.5
Beta (1Y)0.72
Revenue Growth1.43%
EPS Growth19.58%
CountryUS
Employees2,552
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.60
Shares Outstanding196,634,170
10 Day Avg. Volume1,497,125
30 Day Avg. Volume1,426,243
Financial Highlights & Ratios
PEG Ratio0.58
Price to Book (P/B)1.27
Price to Sales (P/S)3.98
P/FCF Ratio11.35
Enterprise Value/Market Cap1.05
Enterprise Value/Revenue3.97
Enterprise Value/Gross Profit5.14
Enterprise Value/Ebitda8.84
Forecast
1Y Price Target
$32.80Price Target Upside24.10% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)2.51
Revenue Forecast (FY)$1.17B
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:Jul 16, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Apr 15, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with record earnings, robust loan growth, and high returns to shareholders. However, minor challenges such as a slight deposit decline, non-accrual loan issues, and increased expenses due to legal settlements were noted. Despite these challenges, the company's overall financial health and growth prospects remain positive.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 higher than the last quarter's $115.2 million earnings and 2.07% ROA.
Negative Updates
Deposit Decline
Deposits ended slightly lower in Q2, down $53 million due to seasonal tax payments, though balances grew in May and June.
Read all updates
Q2-2025 Updates
Positive
Negative
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 higher than the last quarter's $115.2 million earnings and 2.07% ROA.
Read all positive updates
Company Guidance
During the Home Bancshares, Inc. second quarter 2025 earnings call, the company reported record earnings of $118.4 million, or $0.60 per share, with a return on assets of 2.08%. The non-GAAP return on tangible common equity was 18.26%, while the GAAP figure was 17.68%. The company maintained a strong loan loss reserve at 1.86% and continued building Tier 1 capital at 15.6%, with a leverage ratio of 13.4% and total risk-based capital of 19.3%. Over the past year, tangible common equity grew by 11.25% to $13.44 per share, while the company repurchased over 3 million shares and paid $150 million in dividends. The net interest margin stood at 4.44%, with a core margin of 4.43%, slightly up from the previous quarter. Loan growth was robust, with $500 million in new commitments for the quarter, while deposits decreased by $53 million due to seasonal tax payments. The company expressed optimism for the second half of the year, targeting a potential $450 million in income for 2025.Home Bancshares Financial Statement Overview
Summary
Income Statement
80
Positive
Balance Sheet
82
Very Positive
Cash Flow
58
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.37B | 1.45B | 1.33B | 1.04B | 751.98M |
| Gross Profit | 1.06B | 952.60M | 967.81M | 855.30M | 704.54M |
| EBITDA | 617.62M | 551.54M | 542.81M | 426.43M | 436.26M |
| Net Income | 475.44M | 402.24M | 392.93M | 305.26M | 319.02M |
Balance Sheet | |||||
| Total Assets | 22.88B | 22.49B | 22.66B | 22.88B | 18.05B |
| Cash, Cash Equivalents and Short-Term Investments | 3.11B | 2.65B | 4.51B | 4.77B | 6.77B |
| Total Debt | 935.32M | 1.20B | 1.88B | 1.22B | 911.98M |
| Total Liabilities | 18.59B | 18.53B | 18.87B | 19.36B | 15.29B |
| Stockholders Equity | 4.30B | 3.96B | 3.79B | 3.53B | 2.77B |
Cash Flow | |||||
| Free Cash Flow | 482.33M | 422.12M | 357.20M | 393.59M | 379.10M |
| Operating Cash Flow | 504.60M | 460.65M | 379.67M | 413.17M | 389.38M |
| Investing Cash Flow | -86.83M | 5.67M | 578.46M | -1.02B | 624.66M |
| Financing Cash Flow | -398.59M | -556.18M | -682.71M | -2.31B | 1.37B |
Home Bancshares Technical Analysis
Negative
26.43
Price Trends
28.10
Negative
27.93
Negative
27.99
Negative
Market Momentum
-0.49
Negative
38.32
Neutral
64.44
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 26.43 is below the 20-day moving average (MA) of 26.75, below the 50-day MA of 28.10, and below the 200-day MA of 27.99, indicating a bearish trend. The MACD of -0.49 indicates Negative momentum. The RSI at 38.32 is Neutral, neither overbought nor oversold. The STOCH value of 64.44 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $5.05B | 7.10 | 11.93% | 3.68% | 2.79% | 2.11% | |
71 Outperform | $7.89B | 9.60 | 8.39% | 5.07% | -0.30% | -3.80% | |
71 Outperform | $5.78B | 10.86 | 8.58% | 2.73% | 4.54% | 27.56% | |
69 Neutral | $6.64B | 8.34 | 7.82% | 3.69% | -1.94% | 41.35% | |
68 Neutral | $5.20B | 11.51 | 11.43% | 2.85% | 1.43% | 19.58% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $5.65B | 22.44 | 6.53% | 2.89% | 8.73% | 26.19% |
* Financial Sector Average
HOMB
Home Bancshares
26.43
-1.05
-3.81%
OZK
Bank OZK
44.52
2.72
6.49%
COLB
Columbia Banking System
26.70
3.07
12.99%
FNB
F.N.B.
16.18
3.13
23.99%
GBCI
Glacier Bancorp
43.47
0.57
1.33%
VLY
Valley National Bancorp
11.95
3.42
40.09%
Home Bancshares Corporate Events
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...
Executive/Board Changes
Home BancShares appoints John W. Allison II to board
Neutral
Jan 20, 2026
On January 16, 2026, Home BancShares, Inc. announced that its Board of Directors appointed John W. Allison II to serve as a director of the company, with his term effective immediately and running until the next annual meeting or until a successor...
Business Operations and StrategyFinancial DisclosuresLegal Proceedings
Home BancShares Delivers Record 2025 Earnings and Growth
Positive
Jan 14, 2026
On January 14, 2026, Home BancShares reported a strong fourth quarter and full-year 2025, highlighted by $400.2 million in Q4 loan growth, a sub-40% efficiency ratio, and a robust net interest margin that helped drive an 18% year-over-year increas...
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.