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Bank Ozk (OZK)
NASDAQ:OZK
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Bank OZK
(NASDAQ:OZK)
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Rating:70Outperform
Price Target:
$53.00
â–²(7.48% Upside)
Action:ReiteratedDate:11/18/25
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
$5.52B
Dividend Yield3.68%
Average Volume (3M)1.36M
Price to Earnings (P/E)7.9
Beta (1Y)1.03
Revenue Growth2.79%
EPS Growth2.11%
CountryUS
Employees3,096
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.53
Shares Outstanding113,431,900
10 Day Avg. Volume1,001,145
30 Day Avg. Volume1,355,998
Financial Highlights & Ratios
PEG Ratio8.75
Price to Book (P/B)0.83
Price to Sales (P/S)1.81
P/FCF Ratio0.00
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue2.02
Enterprise Value/Gross Profit3.65
Enterprise Value/Ebitda5.53
Forecast
1Y Price Target
$53.71Price Target Upside8.92% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)5.94
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:Jan 20, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 16, 2026
Earnings Call Sentiment Positive
The call balanced conservative risk management and active capital returns against ongoing CRE-related credit work. Management emphasized a strong earnings base (near $700M), improved capital ratios, accretive buybacks and a prudent, elevated allowance built through the CRE cycle. They also highlighted improving market liquidity (refinancings and leasing) and early-stage growth in fee-income channels. Offsetting these positives are remaining stressed RESG assets, several higher‑risk loans under active resolution or appraisal-based valuation pressure, and continued uncertainty in the life-sciences segment. Overall, the tone was cautious but constructive: the company appears positioned to absorb near-term CRE volatility while benefiting from improving market conditions and executing strategic diversification over the next 12–24 months.Q4-2025 Updates
Positive Updates
Near-Record Annual Earnings
Reported nearly $700 million in earnings for the year (described as "almost $700 million" and near-record), demonstrating strong profitability year-over-year.
Active Capital Return — Share Repurchase
Repurchased 2.25 million shares in the quarter at an average price of $44.45 (~$100 million), with roughly $100 million remaining on the authorization (expires end of June). Management noted buybacks were accretive to EPS and tangible book value.
Consistent Dividend Growth
Increased the quarterly dividend for the 62nd consecutive quarter, with combined preferred and common dividends of roughly $55 million in the period.
Prudent Allowance Build and Risk Positioning
Management built the ACL materially ahead of expected losses (described as rising from ~$300M to $632M — ~+111% — and discussed a peak near ~$680M at Sept 30), enabling the bank to absorb recent charge-offs largely already provided for and to navigate stressed credits.
CRE Liquidity and Refinancing Activity
Noted resurgence in liquidity in office and other CRE subsegments: four office projects refinanced in the quarter and office ranked second behind multifamily for project payoffs over the past 12 months; management described improving leasing and refinancing markets.
Fee Income and Business Diversification Initiatives
CIB (loan syndication, interest-rate hedging, capital markets, FX) and other initiatives (mortgage origination, trust & wealth, private banking, treasury services) are early-stage but showing tailwinds; management expects incremental noninterest income improvement in 2026 and more meaningful impact in 2027.
Strong Capital and CET1 Trends
Tangible common equity increased by ~35 basis points during the quarter despite ~$100M of share repurchases; management emphasized strong earnings power and improved capital ratios enabling continued opportunistic capital returns.
Loan Growth Guidance
Management reiterated mid-single-digit loan growth guidance for the year, expecting growth to be weighted to the second–fourth quarters (Q1 seen as positive but lighter due to payoff velocity).
Sponsor Support and Loan Workout Successes
High levels of sponsor support quantified: in the quarter 49 loans had term extensions with $56.7M in reserve deposits, $7.6M in modification fees, and $45.1M in unscheduled principal paydowns; since the Fed rate hikes this totals ~$1.3B in sponsor equity contributions, $866M in reserve deposits and $429M in unscheduled principal paydowns — evidence of sponsor engagement and loan remediation activity.
Negative Updates
Credit Stress — Nonperforming and Foreclosed RESG Assets
Four RESG assets reached foreclosure or title acquisition in the cycle; at the time of the call there were four loans in non-accrual. Management took charge-offs in the quarter, though noted much of those charges had been previously reserved for.
Life Sciences and Certain Office Credits Remain Challenged
Life sciences recovery is uneven and expected to take time (funding cuts, muted VC activity); several large life science loans require sponsor support and have limited executed leasing. Office has improved but pockets of stress persist; certain large loans remain in special mention or substandard categories.
Specific Troubled Assets and Appraisal Actions
Notable assets with active resolution work: Boston property moved from as-stabilized to as-is appraisal after capital partners declined further support; Chicago life-science loan pursuing a short sale; Santa Monica office targeted for quick sale; Baltimore land under active sale efforts—any of these could crystallize additional losses if not resolved favorably.
Allowance Volatility and Historical Reserve Peak
ACL had been built substantially (disclosed peaks in discussion at ~$632M–$680M), reflecting prolonged CRE stress; while management expects reserves to be sufficient, the level and need for future provisions depend on migration and macro outcomes and could fluctuate.
Near-Term Margin/Net Interest Income Headwinds
Q1 contains two fewer days (a headwind to net interest income) and some RESG loan rate resets will lag SOFR moves; while Q4 margin held up (help from deposit cost management and earlier SOFR levels), margin is sensitive to further rate moves and deposit cost dynamics.
Fee Income Benefits Are Longer-Term
Management reiterated fee-income initiatives are early-stage; material uplift is expected over a multiyear horizon (meaningful impact anticipated in 2027), so near-term fee-income contribution to offset CRE-related pressure will be limited.
Company Guidance
Management guidance: management said 2026 should look a lot like 2024–2025 while they’re optimistic about 2027, with credit trends and net charge‑offs expected to be similar to the prior two years and the allowance for credit losses (ACL) positioned to absorb remaining stress (ACL was built from roughly $300M to about $632M — noted as ~$680M at 9/30 in the comments — and could modestly decline as previously reserved losses are realized). They reaffirmed mid‑single‑digit loan growth for 2026 (weighted to Q2–Q4), expect incremental noninterest‑income gains in 2026 with more impact in 2027, noted Q4 margin held up (Q1 faces a two‑day NII headwind), and highlighted capital actions: Q4 buybacks of 2.25M shares at $44.45, roughly $100M of buyback authorization remaining (expires end‑June), a raised dividend (62nd consecutive quarterly increase) and nearly $700M of annual earnings.Bank OZK Financial Statement Overview
Summary
Bank OZK shows strong financial health with robust revenue growth and solid profitability metrics. The balance sheet is strong with low leverage and effective equity utilization. However, the recent decline in cash flow growth and slight pressure on profit margins suggest areas for monitoring.Income Statement
Bank OZK has demonstrated strong revenue growth with a TTM revenue growth rate of 55.6%, indicating robust expansion. The gross profit margin of 55.08% and net profit margin of 25.80% reflect solid profitability, although slightly lower than previous years. The EBIT and EBITDA margins are healthy at 33.64% and 37.02%, respectively, showcasing efficient operational management. However, the declining trend in gross profit margin from previous years suggests potential pressure on cost management.78
Positive
Balance Sheet
The balance sheet of Bank OZK is strong, with a low debt-to-equity ratio of 0.076, indicating prudent financial leverage. The return on equity is solid at 12.26%, reflecting effective use of shareholder funds. The equity ratio stands at 14.64%, suggesting a stable capital structure. The reduction in total debt over the years further strengthens the financial position, enhancing stability and reducing financial risk.82
Very Positive
Cash Flow
Cash flow analysis shows a decrease in free cash flow growth by 9.61% in the TTM period, which could be a concern if it continues. However, the free cash flow to net income ratio remains strong at 86.27%, indicating good cash conversion. The operating cash flow to net income ratio is not available, which limits a complete assessment of cash flow efficiency. Overall, while cash flow generation is solid, the recent decline in growth warrants attention.70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.81B | 2.77B | 2.25B | 1.38B | 1.19B |
| Gross Profit | 1.56B | 1.48B | 1.40B | 1.17B | 1.18B |
| EBITDA | 934.27M | 1.02B | 930.80M | 777.05M | 796.05M |
| Net Income | 715.48M | 716.46M | 690.78M | 564.14M | 579.00M |
Balance Sheet | |||||
| Total Assets | 40.79B | 38.26B | 34.24B | 27.66B | 26.53B |
| Cash, Cash Equivalents and Short-Term Investments | 0.00 | 3.35B | 5.39B | 4.53B | 5.97B |
| Total Debt | 463.58M | 883.04M | 1.27B | 1.08B | 1.23B |
| Total Liabilities | 34.66B | 32.55B | 29.10B | 22.97B | 21.69B |
| Stockholders Equity | 6.13B | 5.71B | 5.14B | 4.69B | 4.84B |
Cash Flow | |||||
| Free Cash Flow | 0.00 | 738.85M | 852.41M | 735.09M | 494.28M |
| Operating Cash Flow | 0.00 | 834.47M | 881.55M | 764.95M | 528.20M |
| Investing Cash Flow | 0.00 | -3.25B | -5.53B | -2.43B | 140.21M |
| Financing Cash Flow | 0.00 | 3.05B | 5.77B | 644.92M | -1.01B |
Bank OZK Technical Analysis
Positive
49.31
Price Trends
47.98
Positive
46.97
Positive
47.57
Positive
Market Momentum
0.34
Positive
53.71
Neutral
43.46
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 49.31 is below the 20-day moving average (MA) of 49.31, above the 50-day MA of 47.98, and above the 200-day MA of 47.57, indicating a neutral trend. The MACD of 0.34 indicates Positive momentum. The RSI at 53.71 is Neutral, neither overbought nor oversold. The STOCH value of 43.46 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 | $5.98B | 13.03 | 8.84% | 3.77% | 8.83% | 15.49% | |
71 Outperform | $6.28B | 11.23 | 8.66% | 2.73% | 4.54% | 27.56% | |
71 Outperform | $5.56B | 11.76 | 11.51% | 2.85% | 1.43% | 19.58% | |
70 Outperform | $5.52B | 7.87 | 12.09% | 3.68% | 2.79% | 2.11% | |
69 Neutral | $7.18B | 12.74 | 7.85% | 3.69% | -1.94% | 41.35% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $6.21B | 24.02 | 6.43% | 2.89% | 8.73% | 26.19% |
* Financial Sector Average
OZK
Bank OZK
49.31
3.12
6.75%
FNB
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25.22%
GBCI
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48.94
1.56
3.29%
HOMB
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28.87
-0.24
-0.82%
UBSI
United Bankshares
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8.88
25.58%
VLY
Valley National Bancorp
13.37
3.96
42.11%
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.