Bank OZK (OZK) AI Stock Analysis

• Market Cap: $5.55B
• Dividend Yield: 3.51%
• Average Volume (3M): 610.20K
• Price to Earnings (P/E): 8.0
• Beta (1Y): 1.21
• Revenue Growth: 13.85%
• EPS Growth: 2.43%
• Country: US
• Employees: 3,096
• Sector: Financial
• Sector Strength: 81
• Industry: Banks - Regional
• EPS (TTM): 1.47
• Shares Outstanding: 113,431,900
• 10 Day Avg. Volume: 638,964
• 30 Day Avg. Volume: 610,200
• PEG Ratio: -14.95
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.79
• Enterprise Value/Market Cap: 0.63
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 2.37
• Enterprise Value/Ebitda: 0.89
• 1Y Price Target: $47.80
• Price Target Upside: -6.18% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 76 Outperform
• Price Target: $58.00 ▲(13.84%Upside)

Bank OZK's strong financial performance and strategic initiatives are key strengths, supported by a solid valuation and positive technical indicators. However, potential risks from macroeconomic uncertainties and overbought technical signals warrant cautious optimism. The bank's growth and diversification strategies are promising, but monitoring economic conditions and liquidity is essential.

Positive Factors

Credit Performance

Better credit performance led to a significant positive stock reaction.

Financial Performance

Operating earnings per share surpassed expectations with beats across net interest income, expenses, provision, and fees.

Loan Management

Loan diversification and sustained credit trend improvement are expected to drive the valuation multiple higher.

Negative Factors

Credit Charge-Offs

Charge-offs were up q/q but slightly better than expectations.

Credit Risks

Negative migration of some larger credits opens the door to additional charge-off/provisioning down the line, especially if rates stay higher for longer while the economy slows.

Credit Trends

OZK did see some idiosyncratic negative credit trends, including foreclosed loans and moved loans to substandard categories.

Bank OZK Business Overview & Revenue Model

Company Description

Bank OZK provides various retail and commercial banking services. It accepts various deposit products, including non-interest-bearing checking, interest bearing transaction, business sweep, savings, money market, individual retirement, and other accounts, as well as time deposits. The company also offers real estate, consumer and business purpose, indirect recreational vehicle and marine, commercial and industrial, government guaranteed, agricultural, small business, homebuilder, and affordable housing loans; business aviation and subscription financing services; and mortgage and other lending products. In addition, it provides trust and wealth services, such as personal, custodial, investment management, and retirement accounts, as well as corporate trust services comprising trustee, paying and registered transfer agent, and other incidental services. Further, the company offers treasury management services comprising automated clearing house, wire transfer, transaction reporting, wholesale lockbox, remote deposit capture, automated credit line transfer, reconciliation, positive pay, and merchant and commercial card services, as well as zero balance and investment sweep accounts. Additionally, it provides ATMs; telephone, online, and mobile banking services; debit and credit cards; safe deposit boxes; and other products and services, as well as processes merchant debit and credit card transactions. As of December 31, 2021, it operated approximately 240 offices in Arkansas, Georgia, Florida, North Carolina, Texas, Carolina, California, New York, and Mississippi. The company was formerly known as Bank of the Ozarks and changed its name to Bank OZK in July 2018. Bank OZK was founded in 1903 and is headquartered in Little Rock, Arkansas.

How the Company Makes Money

Bank OZK generates revenue primarily through interest income derived from its substantial portfolio of loans, including commercial real estate loans, construction financing, and residential mortgages. The bank also earns money through fees and service charges associated with its retail banking products such as checking and savings accounts, as well as transaction fees from debit and credit card usage. Additionally, Bank OZK invests in securities, generating income from interest and dividends. A key factor contributing to its earnings is its strategic focus on real estate lending, which allows the bank to leverage its expertise and relationships in the sector to maintain a robust loan portfolio. The bank's prudent risk management and cost-efficient operations further enhance its profitability.

Bank OZK Financial Statement Overview

Summary

Bank OZK exhibits strong financial health, with robust income statement performance and effective cash management. The bank maintains a stable capital structure with prudent leverage and strong profitability. However, there is room for improvement in increasing equity relative to total assets to enhance long-term financial stability.

Income Statement

Bank OZK has demonstrated a strong income statement performance with a gross profit margin of 100% for TTM, indicating efficient cost management. The net profit margin for TTM is approximately 28.8%, which is robust and suggests solid profitability despite a competitive banking environment. Revenue growth has been consistent, showing an upward trend from the prior years, and the EBIT and EBITDA margins are strong, reflecting good operational efficiency.

Balance Sheet

The balance sheet of Bank OZK is solid, with a debt-to-equity ratio of approximately 0.15 for TTM, indicating prudent leverage management. Return on equity (ROE) is strong at around 12.6% for TTM, reflecting effective use of shareholder capital. The equity ratio stands at 14.9% for TTM, suggesting a stable capital structure, though there is room for improvement in increasing equity relative to total assets.

Cash Flow

Bank OZK's cash flow performance is robust, with a positive free cash flow and a moderate free cash flow growth rate from the previous year. The operating cash flow to net income ratio is strong, indicating high-quality earnings. Furthermore, the free cash flow to net income ratio suggests effective cash management, although there has been a slight decrease compared to prior periods.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.78B	2.77B	2.25B	1.38B	1.19B	1.18B
Gross Profit	1.49B	1.48B	1.40B	1.17B	1.18B	781.27M
EBITDA	1.02B	1.02B	930.80M	777.05M	796.05M	419.97M
Net Income	712.88M	716.46M	690.78M	564.14M	579.00M	291.90M
Balance Sheet
Total Assets	39.17B	38.26B	34.24B	27.66B	26.53B	27.16B
Cash, Cash Equivalents and Short-Term Investments	2.83B	3.35B	5.39B	4.53B	5.97B	5.80B
Total Debt	763.03M	883.04M	1.27B	1.08B	1.23B	1.10B
Total Liabilities	33.33B	32.55B	29.10B	22.97B	21.69B	22.89B
Stockholders Equity	5.83B	5.71B	5.14B	4.69B	4.84B	4.27B
Cash Flow
Free Cash Flow	756.75M	738.85M	852.41M	735.09M	494.28M	502.34M
Operating Cash Flow	863.77M	834.47M	881.55M	764.95M	528.20M	551.95M
Investing Cash Flow	-3.22B	-3.25B	-5.53B	-2.43B	140.21M	-2.97B
Financing Cash Flow	2.41B	3.05B	5.77B	644.92M	-1.01B	3.32B

Bank OZK Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 50.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OZK, the sentiment is Positive. The current price of 50.95 is above the 20-day moving average (MA) of 46.17, above the 50-day MA of 45.15, and above the 200-day MA of 44.82, indicating a bullish trend. The MACD of 1.06 indicates Negative momentum. The RSI at 77.32 is Negative, neither overbought nor oversold. The STOCH value of 91.18 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OZK.

Bank OZK Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FNB	78 Outperform	$5.42B	11.88	7.40%	3.19%	10.34%	2.54%
OZK	76 Outperform	$5.55B	8.02	12.85%	3.51%	13.85%	2.43%
COLB	73 Outperform	$5.14B	10.33	9.73%	5.88%	-0.17%	1.69%
GBCI	73 Outperform	$5.16B	24.32	6.63%	2.90%	8.10%	6.95%
VLY	71 Outperform	$5.15B	13.39	5.48%	4.79%	1.48%	-18.84%
Sector *	64 Neutral	$6.58B	10.88	6.59%	5.04%	24.65%	0.99%
FLG	50 Neutral	$4.55B	―	-10.40%	0.36%	-8.17%	73.59%