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Simmons First National (SFNC)
NASDAQ:SFNC
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Simmons 1st Nat'l
(NASDAQ:SFNC)
65Neutral
Simmons 1st Nat'l (SFNC) vs. S&P 500 (SPY)
Market Cap
$2.51B
Dividend Yield4.21%
Average Volume (3M)552.04K
Price to Earnings (P/E)17.0
Beta (1Y)1.22
Revenue Growth6.86%
EPS Growth-12.06%
CountryUS
Employees3,007
SectorFinancial
Sector Strength77
IndustryBanking
Share Statistics
EPS (TTM)1.21
Shares Outstanding125,807,110
10 Day Avg. Volume714,641
30 Day Avg. Volume552,041
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.55
Price to Cash Flow (P/CF)7.80
P/FCF Ratio2.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$24.50Price Target Upside24.49% Upside
Rating ConsensusHold
Number of Analyst Covering4
Simmons 1st Nat'l Business Overview & Revenue Model
Company DescriptionSimmons First National Corporation (SFNC) is a financial holding company headquartered in Pine Bluff, Arkansas. The company primarily operates through its wholly-owned subsidiary, Simmons Bank, offering a wide range of financial services. These services include traditional banking operations such as consumer and commercial lending, deposit services, and wealth management. Simmons Bank has a significant presence across the southern United States, with numerous branch locations providing community-focused banking solutions.
How the Company Makes MoneySimmons First National Corporation generates revenue primarily through interest income from its lending operations, which include consumer, commercial, and real estate loans. The company also earns significant non-interest income from service charges on deposit accounts, fees from trust and wealth management services, and mortgage banking activities. Additionally, Simmons Bank benefits from strategic partnerships and acquisitions that expand its geographical reach and customer base, thus enhancing its revenue-generating capabilities. The company's earnings are influenced by factors such as interest rate fluctuations, economic conditions, and regulatory changes, which can impact its lending margins and fee-based services.
Simmons 1st Nat'l Financial Statement Overview
Summary
Simmons 1st Nat'l demonstrates financial resilience with a robust balance sheet and zero debt in 2024. Revenue growth is notable, but profitability challenges persist. Strong equity backing supports stability despite fluctuating cash flows and declining net profit margins.Income Statement
Simmons 1st Nat'l shows fluctuating revenue with a significant increase in 2024 compared to 2023. However, the net profit margin declined from 23.05% in 2023 to 11.64% in 2024, indicating pressure on profitability. The absence of EBIT and EBITDA in 2024 limits insight into operating efficiency.65
Positive
Balance Sheet
The company maintains a strong equity position with an increasing equity ratio, reaching 35.06% in 2024. The debt-to-equity ratio improved to 0.00 in 2024 due to the absence of debt, enhancing financial stability. However, the decline in total assets since 2022 is a potential concern.70
Positive
Cash Flow
Operating cash flow decreased significantly in 2024, while free cash flow remained stable. The free cash flow to net income ratio remained strong, but the operating cash flow to net income ratio dropped due to reduced cash generation from operations.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 762.75M | 759.66M | 875.14M | 768.41M | 860.94M | Gross Profit |
| 1.31B | 781.54M | 0.00 | 0.00 | 0.00 | EBIT |
| -901.02M | 388.25M | 404.00M | 332.46M | 319.79M | EBITDA |
| 0.00 | 0.00 | 355.52M | 379.68M | 368.83M | Net Income Common Stockholders |
| 152.69M | 175.06M | 256.41M | 271.16M | 254.90M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 3.91B | 3.77B | 4.54B | 8.77B | 6.95B | Total Assets |
| 26.88B | 27.35B | 27.46B | 24.72B | 22.36B | Total Debt |
| 1.11B | 1.34B | 1.23B | 1.72B | 1.72B | Net Debt |
| 424.19M | 724.32M | 542.37M | 69.57M | -1.75B | Total Liabilities |
| 23.35B | 23.92B | 24.19B | 21.48B | 19.38B | Stockholders Equity |
| 8.37B | 3.43B | 3.27B | 3.25B | 2.98B |
| Cash Flow | Free Cash Flow | |||
| 229.33M | 507.89M | 286.93M | 229.92M | 189.27M | Operating Cash Flow |
| 229.33M | 540.98M | 322.20M | 277.78M | 202.54M | Investing Cash Flow |
| 81.00K | -183.59M | -946.23M | -2.54B | 1.19B | Financing Cash Flow |
| -106.78M | -425.42M | -344.50M | 438.46M | 1.08B |
Simmons 1st Nat'l Technical Analysis
Negative
19.68
Price Trends
22.13
Negative
22.90
Negative
21.02
Negative
Market Momentum
-0.55
Positive
25.27
Positive
11.38
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SFNC, the sentiment is Negative. The current price of 19.68 is below the 20-day moving average (MA) of 21.75, below the 50-day MA of 22.13, and below the 200-day MA of 21.02, indicating a bearish trend. The MACD of -0.55 indicates Positive momentum. The RSI at 25.27 is Positive, neither overbought nor oversold. The STOCH value of 11.38 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SFNC.
Simmons 1st Nat'l Risk Analysis
Simmons 1st Nat'l disclosed 46 risk factors in its most recent earnings report. Simmons 1st Nat'l 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
Simmons 1st Nat'l Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $5.50B | 14.04 | 10.38% | 2.71% | 8.83% | 3.77% | |
73 Outperform | $3.60B | 16.82 | 14.16% | 1.64% | 12.93% | 1.40% | |
70 Outperform | $6.82B | 14.43 | 6.60% | 3.10% | 11.96% | 11.66% | |
65 Neutral | $2.51B | 16.98 | 4.39% | 4.21% | 6.86% | -12.06% | |
64 Neutral | $13.80B | 10.64 | 9.23% | 4.22% | 17.66% | -7.66% | |
62 Neutral | $3.18B | 11.71 | 9.69% | 3.95% | 21.10% | -4.20% | |
61 Neutral | $4.87B | 12.51 | 7.62% | 4.30% | 6.80% | 1.48% |
* Financial Sector Average
Performance Comparison
SFNC
Simmons 1st Nat'l
19.68
1.33
7.25%
BANF
BancFirst
108.45
21.72
25.04%
FULT
Fulton Financial
17.24
2.57
17.52%
HOMB
Home Bancshares
27.68
4.54
19.62%
PB
Prosperity Bancshares
70.66
10.15
16.77%
UBSI
United Bankshares
34.04
0.70
2.10%
Simmons 1st Nat'l Earnings Call Summary
Earnings Call Date: Jan 21, 2025 | % Change Since: -13.65% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted positive achievements in net interest margin improvement and consumer checking account growth, while also addressing challenges such as below-normalized loan growth and competitive pressures on pricing. The retirement of key executives poses potential risks but is mitigated by the company's confidence in the replacement leadership.Highlights
Net Interest Margin Improvement
The company's net interest margin (NIM) increased to 2.87% in Q4, outperforming expectations due to better-than-expected loan and deposit pricing.
Consumer Checking Account Growth
The company grew consumer checking accounts by 1.5% for the year, indicating strong core consumer banking performance.
Cost Optimization Achievements
Simmons First optimized its funding base, reducing deposit costs significantly, with customer time deposits declining and interest-bearing deposits increasing.
Lowlights
Loan Growth Below Normalized Rate
Loan growth guidance for 2025 is in the low single digits, below the company's normalized growth rate, due to disciplined approach to running off higher costing deposits.
Retirement of Key Executives
Five key executives, including the CEO and Chief Credit Officer, retired at the end of 2024, representing a significant loss of experienced leadership.
Competitive Pressure on Loan and Deposit Pricing
Intense competitive environment for both loan and deposit pricing persists, potentially impacting future profitability.
Company Guidance
During the Simmons First National Corporation's Q4 2024 earnings call, the executives provided guidance on several key metrics, outlining expectations and the strategic direction for 2025. They highlighted a focus on achieving a net interest margin (NIM) above 3% in the latter half of the year, driven by disciplined loan pricing and a strategic shift in deposit costs. Loan growth is expected to rise in the low single digits, reflecting an emphasis on soundness and profitability over rapid expansion. The company anticipates capital growth, with priorities on organic growth initiatives, balance sheet restructuring, dividend maintenance, and authorized share buybacks. Credit quality remains stable, with a focus on managing a small runoff portfolio. The guidance is underpinned by a cautiously optimistic outlook, contingent on favorable economic conditions and potential rate changes by the Federal Reserve.Simmons 1st Nat'l Corporate Events
Executive/Board Changes
Simmons 1st Nat’l CEO Robert Fehlman Resigns
Neutral
Mar 10, 2025
Simmons First National Corporation announced the resignation of CEO Robert A. Fehlman, effective December 31, 2024, with his advisory role continuing until March 31, 2025, when he will retire. The company’s board of directors has adjusted Fehlman’s equity awards, extending the exercise period for stock options and waiving employment requirements for restricted stock units and performance share units, impacting the vesting and payment schedules.
Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
Simmons First National Reports Strong Q4 2024 Results
Positive
Jan 21, 2025
On January 21, 2025, Simmons First National Corporation reported its fourth-quarter results for 2024, showing a significant improvement in profitability compared to previous quarters. The company achieved a net income of $48.3 million, with diluted earnings per share of $0.38, reflecting an optimistic outlook as they enter 2025. Despite the positive results, Simmons is cautious about potential impacts from a new administration, inflation, interest rates, and regulatory changes that could affect its operations and growth. The company also bid farewell to several retiring leaders, while expressing optimism for its future leadership.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.