Simmons 1st Nat'l (SFNC) AI Stock Analysis

• Market Cap: $2.56B
• Dividend Yield: 4.18%
• Average Volume (3M): 632.82K
• Price to Earnings (P/E): 17.5
• Beta (1Y): 1.07
• Revenue Growth: 2.91%
• EPS Growth: -12.82%
• Country: US
• Employees: 2,949
• Sector: Financial
• Sector Strength: 82
• Industry: Banks - Regional
• EPS (TTM): 0.26
• Shares Outstanding: 125,952,420
• 10 Day Avg. Volume: 912,316
• 30 Day Avg. Volume: 632,821
• PEG Ratio: -3.80
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.47
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 0.52
• Enterprise Value/Gross Profit: 4.15
• Enterprise Value/Ebitda: 3.59
• 1Y Price Target: $21.60
• Price Target Upside: 6.19% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 67 Neutral
• Price Target: $20.00 ▼(-1.67%Downside)

The overall score reflects solid financial stability with strong margins and cash flow, albeit with concerns about revenue growth and profitability. Technical analysis suggests potential bearish sentiment, while the earnings call provides a mixed outlook with positive developments tempered by credit challenges. The valuation appears moderately attractive.

Simmons 1st Nat'l Business Overview & Revenue Model

Company Description

Simmons First National Corporation operates as the holding company for Simmons Bank that provides banking and other financial products and services to individuals and businesses. It offers checking, savings, and time deposits; consumer, real estate, and commercial loans; agricultural finance, equipment, and small business administration lending; trust and fiduciary services; credit cards; investment management products; insurance products; and securities and investment services. The company also provides ATM services; Internet and mobile banking platforms; overdraft facilities; and safe deposit boxes. As of January 27, 2022, the company operated through 199 financial centers in Arkansas, Missouri, Tennessee, Texas, Oklahoma, and Kansas. Simmons First National Corporation was founded in 1903 and is headquartered in Pine Bluff, Arkansas.

How the Company Makes Money

Simmons First National Corporation generates revenue primarily through interest income from its lending activities, which include personal loans, commercial loans, and mortgages. Additionally, the company earns money from non-interest income sources such as service charges on deposit accounts, mortgage banking income, trust and investment management fees, and credit card fees. The company also benefits from its wealth management and investment services, which provide advisory and asset management services to individual and institutional clients. Partnerships with other financial service providers and its strategic acquisitions further contribute to the company's revenue growth.

Simmons 1st Nat'l Financial Statement Overview

Summary

Simmons 1st Nat'l demonstrates financial stability with strong margins and solid cash flow metrics. However, the decline in revenue growth and profitability margins, along with a slight reduction in ROE, highlight areas of concern. The balance sheet remains stable with modest leverage, but the company should focus on improving revenue growth and profitability to enhance overall financial performance.

Income Statement

Simmons 1st Nat'l has shown a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) gross profit margin is strong at 91.26%. However, the net profit margin has declined to 19.63% in TTM, down from 20.02% in the previous year, indicating a slight reduction in profitability. Revenue has shown a negative growth rate of -2.35% in TTM, suggesting challenges in maintaining revenue levels. The EBIT margin has also decreased to 39.92% from 45.57% in 2024. Overall, while margins are strong, the declining revenue and profitability trends present concerns.

Balance Sheet

The balance sheet of Simmons 1st Nat'l indicates solid stability with a debt-to-equity ratio of 0.37 in TTM, reflecting conservative leverage. The return on equity (ROE) has decreased to 4.14% in TTM from 4.33% in 2024, suggesting reduced efficiency in generating returns. The equity ratio is stable at 13.18%, indicating a healthy proportion of equity financing. Overall, the balance sheet reflects financial stability, but the decline in ROE suggests potential areas for improvement in profitability.

Cash Flow

The cash flow statement portrays a strong position with a free cash flow of $355.31 million in TTM and a free cash flow growth rate of -6.60%. The operating cash flow to net income ratio is robust at 2.74 in TTM, indicating strong cash generation from operations. The free cash flow to net income ratio is 2.43, highlighting efficient conversion of earnings into cash. Despite a decline in free cash flow growth, the company maintains solid cash flow metrics overall.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.43B	1.45B	1.34B	1.02B	847.94M	980.92M
Gross Profit	714.16M	715.97M	750.42M	861.07M	799.62M	785.96M
EBITDA	209.85M	217.42M	248.48M	355.52M	379.68M	368.83M
Net Income	146.21M	152.69M	175.06M	256.41M	271.16M	254.90M
Balance Sheet
Total Assets	26.79B	26.88B	27.35B	27.46B	24.72B	22.36B
Cash, Cash Equivalents and Short-Term Investments	3.13B	2.08B	3.77B	4.54B	8.77B	6.95B
Total Debt	1.30B	1.15B	1.41B	1.39B	1.91B	2.02B
Total Liabilities	23.26B	23.35B	23.92B	24.19B	21.48B	19.38B
Stockholders Equity	3.53B	3.53B	3.43B	3.27B	3.25B	2.98B
Cash Flow
Free Cash Flow	355.31M	380.42M	507.89M	286.93M	229.92M	189.27M
Operating Cash Flow	401.13M	425.92M	540.98M	322.20M	277.78M	202.54M
Investing Cash Flow	400.20M	369.51M	-183.59M	-946.23M	-2.54B	1.19B
Financing Cash Flow	-770.35M	-722.15M	-425.42M	-344.50M	438.46M	1.08B

Simmons 1st Nat'l Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SFNC, the sentiment is Positive. The current price of 20.34 is above the 20-day moving average (MA) of 18.84, above the 50-day MA of 18.88, and below the 200-day MA of 20.88, indicating a neutral trend. The MACD of 0.26 indicates Negative momentum. The RSI at 71.12 is Negative, neither overbought nor oversold. The STOCH value of 93.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SFNC.

Simmons 1st Nat'l Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRK	78 Outperform	$2.87B	18.20	12.98%	2.41%	11.80%	23.34%
FFBC	76 Outperform	$2.48B	10.76	9.58%	3.71%	8.05%	-3.31%
CVBF	74 Outperform	$2.89B	14.43	9.35%	3.81%	-1.39%	-4.00%
BKU	71 Outperform	$2.86B	11.84	8.63%	3.26%	-0.61%	39.49%
TOWN	70 Outperform	$2.71B	15.25	8.36%	3.00%	8.59%	17.97%
Sector *	67 Neutral	$17.01B	11.90	9.70%	3.76%	11.63%	-9.47%
SFNC	67 Neutral	$2.56B	17.54	4.20%	4.18%	2.91%	-12.82%

Simmons 1st Nat'l Corporate Events

Simmons 1st Nat’l Holds Annual Shareholder Meeting

On May 7, 2025, Simmons First National Corporation held its Annual Meeting of Shareholders in Little Rock, Arkansas, where key corporate governance matters were addressed. The meeting resulted in the election of fourteen directors, approval of executive compensation, and ratification of Forvis Mazars, LLP as the independent auditors for the fiscal year ending December 31, 2025, reflecting shareholder support for the board’s decisions.

Simmons 1st Nat’l Reports Q1 2025 Financial Results

On April 16, 2025, Simmons First National Corporation reported its first quarter 2025 financial results, highlighting a continued improvement in profitability fundamentals. The company experienced increases in loans and customer deposits, contributing to a healthy rise in net interest margin and positive revenue trends. Despite increasing the loss provision on two specific credit relationships due to unfavorable events, Simmons maintains that its asset quality remains sound. The company is cautiously monitoring economic volatility, which could impact business investment, but remains committed to investing in its business and the communities it serves.