Education
About Us
Working with TipRanks
Follow Us
Bank OZK (OZK)
NASDAQ:OZK
Top Page
Bank OZK
(NASDAQ:OZK)
Select Model
Select Model
Rating:70Outperform
Price Target:
$53.00
â–²(9.28% 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 (OZK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.50B
Dividend Yield3.68%
Average Volume (3M)991.92K
Price to Earnings (P/E)7.8
Beta (1Y)0.99
Revenue Growth2.79%
EPS Growth2.11%
CountryUS
Employees3,096
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.59
Shares Outstanding113,431,900
10 Day Avg. Volume1,193,724
30 Day Avg. Volume991,922
Financial Highlights & Ratios
PEG Ratio1.54
Price to Book (P/B)0.89
Price to Sales (P/S)1.82
P/FCF Ratio6.85
Enterprise Value/Market Cap0.68
Enterprise Value/Revenue1.34
Enterprise Value/Gross Profit2.44
Enterprise Value/Ebitda3.63
Forecast
1Y Price Target
$50.80Price Target Upside4.74% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)6.12
Revenue Forecast (FY)$1.74B
Bank OZK Business Overview & Revenue Model
Company DescriptionBank 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 MoneyBank OZK generates revenue primarily through interest income from loans, fees from banking services, and investment income. The main revenue stream comes from the interest earned on loans made to individuals and businesses, particularly in commercial real estate, which is a significant focus for the bank. Additionally, Bank OZK earns non-interest income from various banking fees, such as service charges on deposit accounts, transaction fees, and wealth management services. The bank also engages in investment activities that contribute to its earnings. Strategic partnerships with local businesses and real estate developers enhance its lending opportunities and support its growth in key markets, thereby bolstering its overall revenue generation capabilities.
Bank OZK Earnings Call Summary
Earnings Call Date:Oct 16, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Jan 20, 2026
Earnings Call Sentiment Neutral
The call was a mix of positive developments, particularly around sponsor support and origination growth in CIB, alongside some challenges in asset quality and the impact of high RESG payoffs. The management remains optimistic about the future, particularly with the growth and diversification strategy through CIB.Q3-2025 Updates
Positive Updates
Sponsor Support and Credit Quality
The quarter saw strong sponsor support with 41 loans reaching maturity being extended and modified, nearly $70 million of additional reserve deposits, $13.5 million in fees collected, and over $80 million of unscheduled paydowns.
CIB's Record Origination Growth
CIB originated nearly two dozen new relationships and upsized nearly a half dozen, showing record origination growth for the segment.
Successful Resolution of Foreclosed Assets
The sale of the Lincoln Yards land in Chicago at book value and the expected neutral to positive gains on two other largest OREO assets under contract reflect effective asset management.
Multifamily and Office Leasing Strength
Strong performance in the multifamily sector, with improved lease activity in both office and industrial spaces.
Strategic Focus on CIB for Growth
CIB is expected to carry the growth baton, contributing significantly to the loan book with more diversified and high-quality originations.
Negative Updates
Asset Quality Concerns
There were migrations of three loans to substandard status, including significant charge-offs, though these were identified credits.
RESG Payoffs Leading to Commitment Decline
A high level of RESG payoffs was noted, driven by loans reaching their natural 3-4 year life cycle, leading to a decline in RESG commitments.
Life Science Leasing Challenges
Life science sector has seen slower leasing, though there's potential for office leases to help fill the gap.
Company Guidance
During Bank OZK's Third Quarter 2025 Earnings Conference Call, the management provided forward-looking statements indicating expectations for mid-single-digit loan growth in 2026, with more substantial growth anticipated in 2027. The bank attributed this outlook to a strategic diversification of its loan portfolio, particularly through the Corporate and Institutional Banking (CIB) division, which demonstrated a notable increase in origination, expanding by $575 million in outstanding loans and $1.19 billion in commitments. The call highlighted a mixed asset quality picture, with some loans migrating to substandard status, yet overall special mention, substandard, and foreclosed assets decreased modestly. The management also projected a moderation in net interest margin compression, driven by anticipated Federal Reserve rate cuts and a substantial portion of loans benefiting from floor rates. Additionally, the call emphasized continued cautious optimism regarding the resolution of credit issues and the strategic build-out of CIB to enhance revenue and fee income opportunities.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.78
Positive
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.82
Very Positive
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.70
Positive
| 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
Positive
48.50
Price Trends
45.92
Positive
47.64
Positive
46.38
Positive
Market Momentum
0.36
Negative
60.87
Neutral
60.47
Neutral
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 48.5 is above the 20-day moving average (MA) of 47.02, above the 50-day MA of 45.92, and above the 200-day MA of 46.38, indicating a bullish trend. The MACD of 0.36 indicates Negative momentum. The RSI at 60.87 is Neutral, neither overbought nor oversold. The STOCH value of 60.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OZK.
Bank OZK Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $5.79B | 13.53 | 8.24% | 3.77% | 8.83% | 15.49% | |
75 Outperform | $6.16B | 12.30 | 7.87% | 2.73% | 4.54% | 27.56% | |
74 Outperform | $6.29B | 23.62 | 6.92% | 2.89% | 8.73% | 26.19% | |
73 Outperform | $6.70B | 13.69 | 7.07% | 3.69% | -1.94% | 41.35% | |
71 Outperform | $5.64B | 12.00 | 11.20% | 2.85% | 1.43% | 19.58% | |
70 Outperform | $5.50B | 7.82 | 12.35% | 3.68% | 2.79% | 2.11% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
OZK
Bank OZK
48.50
0.64
1.34%
FNB
F.N.B.
17.36
1.93
12.51%
GBCI
Glacier Bancorp
47.86
-2.81
-5.55%
HOMB
Home Bancshares
28.94
-0.33
-1.13%
UBSI
United Bankshares
41.22
4.22
11.41%
VLY
Valley National Bancorp
11.83
2.66
29.02%
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.