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HOMB : NASDAQ : Financial
$20.56 -0.36 | -1.70%
Today's Range: 20.42 - 20.93
Avg. Daily Volume: 552,600
07/25/16 - 3:59 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 ($mil)85.1864.71
Net Income ($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 Margin65.3960.28
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 Volume430895.0300833.0

Valuation


BUY. This stock's P/E ratio indicates a premium compared to an average of 11.99 for the Commercial Banks industry and a discount compared to the S&P 500 average of 25.05. Conducting a second comparison, its price-to-book ratio of 2.27 indicates a discount versus the S&P 500 average of 2.81 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 18.01 Peers 11.99   HOMB NA Peers 4.80

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.

 

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

Ratio not available.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
HOMB 15.66 Peers 12.08   HOMB NM Peers 2.92

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 2.27 Peers 1.07   HOMB 25.41 Peers 0.00

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 5.83 Peers 2.36   HOMB 24.01 Peers -0.10

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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