Bank OZK (OZK) AI Stock Analysis

• Market Cap: $5.22B
• Dividend Yield: 3.78%
• Average Volume (3M): 1.38M
• Price to Earnings (P/E): 7.4
• Beta (1Y): 1.03
• Revenue Growth: 2.79%
• EPS Growth: 2.11%
• Country: US
• Employees: 3,096
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.59
• Shares Outstanding: 113,431,900
• 10 Day Avg. Volume: 1,152,718
• 30 Day Avg. Volume: 1,382,421
• PEG Ratio: 1.54
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 1.82
• P/FCF Ratio: 6.85
• Enterprise Value/Market Cap: 0.72
• Enterprise Value/Revenue: 1.34
• Enterprise Value/Gross Profit: 2.44
• Enterprise Value/Ebitda: 3.63
• 1Y Price Target: $54.14
• Price Target Upside: 17.64% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): 6.2
• Revenue Forecast (FY): $1.73B

• Rating: 70 Outperform
• Price Target: $47.00 ▲(2.13% Upside)

Bank OZK's overall stock score reflects strong financial performance and attractive valuation, offset by bearish technical indicators and mixed earnings call sentiment. The company's robust revenue growth and strategic diversification are positive, but technical weakness and asset quality concerns warrant caution.

Positive Factors

Revenue Growth

Consistent revenue growth reflects the bank's ability to expand its market reach and enhance its product offerings, supporting long-term financial stability.

Loan Portfolio Diversification

Diversification in the loan portfolio through CIB reduces risk and enhances growth potential, providing a more stable revenue stream.

Dividend Growth

Consistent dividend growth indicates strong cash flow and management's commitment to returning value to shareholders, enhancing investor confidence.

Negative Factors

Free Cash Flow Decline

A sharp decline in free cash flow growth can limit the bank's ability to invest in new opportunities and manage unforeseen expenses, impacting long-term growth.

Asset Quality Concerns

Deteriorating asset quality could lead to higher credit losses, affecting profitability and necessitating increased provisions, which may strain future earnings.

RESG Commitment Decline

Declining RESG commitments may reduce future loan growth opportunities, impacting revenue from this segment and potentially slowing overall business expansion.

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 from loans, which constitutes a significant portion of its earnings. The bank offers various types of loans, including commercial real estate loans, consumer loans, and agricultural loans, charging interest on these products. Additionally, Bank OZK earns non-interest income through fees associated with deposit accounts, transaction services, and investment management. The bank's mortgage lending division also contributes to revenue through origination fees and interest on mortgage loans. Strategic partnerships with local businesses and real estate developers further enhance its lending opportunities and customer base, thereby contributing to its overall profitability.

Bank OZK Financial Statement Overview

Summary

Bank OZK shows strong revenue growth and profitability, supported by a stable balance sheet with low leverage. However, the significant decline in free cash flow growth poses a potential risk to future cash flow stability.

Income Statement

Bank OZK has demonstrated strong revenue growth with a TTM revenue growth rate of 10.9%. The gross profit margin is healthy at 54.48%, and the net profit margin is stable at 25.83%. However, there is a slight decline in margins compared to previous years, indicating potential pressure on profitability.

Balance Sheet

The bank maintains a solid balance sheet with a low debt-to-equity ratio of 0.21, indicating prudent financial leverage. Return on equity is strong at 12.46%, reflecting effective use of equity capital. The equity ratio is robust, supporting financial stability.

Cash Flow

Operating cash flow remains positive, but free cash flow growth has significantly declined by 97.3% in the TTM period. The free cash flow to net income ratio is high at 88.53%, indicating efficient cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.80B	2.77B	2.25B	1.38B	1.19B	1.18B
Gross Profit	1.54B	1.48B	1.40B	1.17B	1.18B	781.27M
EBITDA	1.04B	1.02B	930.80M	777.05M	796.05M	419.97M
Net Income	721.70M	716.46M	690.78M	564.14M	579.00M	291.90M
Balance Sheet
Total Assets	41.61B	38.26B	34.24B	27.66B	26.53B	27.16B
Cash, Cash Equivalents and Short-Term Investments	3.54B	3.35B	5.39B	4.53B	5.97B	5.80B
Total Debt	763.39M	883.04M	1.27B	1.08B	1.23B	1.10B
Total Liabilities	35.51B	32.55B	29.10B	22.97B	21.69B	22.89B
Stockholders Equity	6.09B	5.71B	5.14B	4.69B	4.84B	4.27B
Cash Flow
Free Cash Flow	677.40M	738.85M	852.41M	735.09M	494.28M	502.34M
Operating Cash Flow	784.89M	834.47M	881.55M	764.95M	528.20M	551.95M
Investing Cash Flow	-3.65B	-3.25B	-5.53B	-2.43B	140.21M	-2.97B
Financing Cash Flow	3.30B	3.05B	5.77B	644.92M	-1.01B	3.32B

Bank OZK Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 46.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OZK, the sentiment is Negative. The current price of 46.02 is above the 20-day moving average (MA) of 44.42, below the 50-day MA of 47.29, and below the 200-day MA of 46.44, indicating a neutral trend. The MACD of -0.53 indicates Negative momentum. The RSI at 54.51 is Neutral, neither overbought nor oversold. The STOCH value of 87.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OZK.

Bank OZK Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FNB	75 Outperform	$5.97B	11.91	7.87%	3.03%	4.54%	27.56%
VLY	71 Outperform	$6.33B	12.93	7.07%	4.34%	-1.94%	41.35%
OZK	70 Outperform	$5.22B	7.42	12.35%	3.78%	2.79%	2.11%
UBSI	70 Outperform	$5.23B	12.22	8.24%	3.98%	8.83%	15.49%
GBCI	69 Neutral	$5.54B	20.83	6.92%	3.12%	8.73%	26.19%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
HOMB	63 Neutral	$5.51B	12.15	11.20%	2.87%	1.43%	19.58%

Bank OZK Corporate Events

Bank OZK’s Earnings Call: Growth Amid Challenges

Bank OZK’s recent earnings call presented a balanced view of its current financial standing and future prospects. The sentiment was a mix of optimism and caution, with positive developments in sponsor support and origination growth in the Corporate and Institutional Banking (CIB) segment, juxtaposed with challenges in asset quality and the effects of high Real Estate Specialties Group (RESG) payoffs. Management expressed confidence in their growth and diversification strategy, particularly through CIB.

Bank OZK Reports Record Third-Quarter Earnings

Bank OZK is a regional bank offering innovative financial solutions through a network of over 260 offices across nine states, with a focus on excellence in banking services.