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HOMB : NASDAQ : Financial
$22.79 | %
Today's Range: 22.57 - 22.90
Avg. Daily Volume: 506,500
08/26/16 - 4:00 PM ET

Financial Analysis


HOME BANCSHARES INC's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago.

During the same period, stockholders' equity ("net worth") has increased by 19.14% from the same quarter last year.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)130.26107.34
EBITDA ($mil)85.1868.36
EBIT ($mil)81.6864.71
Net Income ($mil)43.5133.91


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)185.92204.41
Total Assets ($mil)9582.138074.38
Total Debt ($mil)1552.791078.48
Equity ($mil)1264.921061.7


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin89.9190.46
EBITDA Margin65.3863.68
Operating Margin62.7160.28
Sales Turnover0.050.05
Return on Assets1.651.51
Return on Equity12.4911.52
Debt Q2 FY16 Q2 FY15
Current Ratio0.00.0
Debt/Capital0.550.5
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)140.38135.55
Div / share0.090.06
EPS0.310.25
Book value / share9.017.83
Institutional Own % n/a n/a
Avg Daily Volume460047.0248832.0

Valuation


BUY. This stock's P/E ratio indicates a premium compared to an average of 12.98 for the Commercial Banks industry and a discount compared to the S&P 500 average of 25.30. Conducting a second comparison, its price-to-book ratio of 2.40 indicates a discount versus the S&P 500 average of 2.83 and a premium versus the industry average of 1.07. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, HOME BANCSHARES INC proves to trade at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
HOMB 19.04 Peers 12.98   HOMB 16.07 Peers 9.01

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

HOMB is trading at a significant premium to its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

HOMB is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
HOMB 16.37 Peers 12.40   HOMB NM Peers 2.41

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

HOMB is trading at a significant premium to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

HOMB's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
HOMB 2.40 Peers 1.07   HOMB 25.41 Peers -8.40

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

HOMB is trading at a significant premium to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

HOMB is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
HOMB 6.17 Peers 2.28   HOMB 24.01 Peers 1.29

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

HOMB is trading at a significant premium to its industry.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

HOMB has a sales growth rate that significantly exceeds its peers.

 

 

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