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Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 60GRADE B
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
10.6%
Sector: 8.5%
Dividend Analysis audit
INCOME
2.81%
Trailing Yield
$2.81
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
34%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, HOME BANCSHARES INC (HOMB) receives a "Hold" rating with a composite score of 52.0/100, ranked #1292 out of 4446 stocks. Key factor scores: Quality 60/100, Value 74/100, Momentum 40/100. This is quantitative analysis only — not investment advice.
HOME BANCSHARES INC (HOMB) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does HOME BANCSHARES INC Do?
Home Bancshares, Inc. (Conway, AR) operates as the bank holding company for Centennial Bank that provides commercial and retail banking, and related financial services to businesses, real estate developers and investors, individuals, and municipalities. Its deposit products include checking, savings, and money market accounts, as well as certificates of deposit. The company's loan portfolio comprises non-farm/non-residential real estate, construction/land development, residential mortgage, consumer, agricultural, and commercial and industrial loans. It also provides internet banking, mobile banking and voice response information, cash management, overdraft protection, direct deposit, and automatic account transfer services, as well as safe deposit boxes and the United States savings bonds. In addition, the company writes policies for commercial and personal lines of business, including insurance for property, casualty, life, health, and employee benefits. As of December 31, 2021, it operated through 160 branch locations that included 76 branches in Arkansas, 78 branches in Florida, 5 branches in Alabama, and 1 branch in New York City. Home Bancshares, Inc. (Conway, AR) was founded in 1998 and is headquartered in Conway, Arkansas. HOME BANCSHARES INC (HOMB) is classified as a mid-cap stock in the Financials sector, specifically within the Banking industry. The company is led by CEO John W. Allison and employs approximately 2,770 people, headquartered in CONWAY, Arkansas. With a market capitalization of $5.3B, HOMB is one of the notable companies in the Financials sector.
HOME BANCSHARES INC (HOMB) Stock Rating — Hold (April 2026)
As of April 2026, HOME BANCSHARES INC receives a Hold rating with a composite score of 52.0/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.HOMB ranks #1,292 out of 4,446 stocks in our coverage universe. Within the Financials sector, HOME BANCSHARES INC ranks #393 of 891 stocks, placing it in the upper half of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
HOMB Stock Price and 52-Week Range
HOME BANCSHARES INC (HOMB) currently trades at $27.99. The stock lost $0.58 (2.0%) in the most recent trading session. The 52-week high for HOMB is $30.83, which means the stock is currently trading -9.2% from its annual peak. The 52-week low is $24.22, putting the stock 15.6% above its annual trough. Recent trading volume was 1.2M shares, reflecting moderate market activity.
Is HOMB Overvalued or Undervalued? — Valuation Analysis
HOME BANCSHARES INC (HOMB) carries a value factor score of 74/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 12.12x, compared to the Financials sector average of 14.88x — a discount of 19%. The price-to-book ratio stands at 1.29x, versus the sector average of 1.22x. The price-to-sales ratio is 4.57x, compared to 0.90x for the average Financials stock. On an enterprise value basis, HOMB trades at 9.03x EV/EBITDA, versus 3.26x for the sector.
Based on these multiples, HOME BANCSHARES INC appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
HOME BANCSHARES INC Profitability — ROE, Margins, and Quality Score
HOME BANCSHARES INC (HOMB) earns a quality factor score of 60/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 10.6%, compared to the Financials sector average of 8.5%, which is within a healthy range. Return on assets (ROA) comes in at 2.0% versus the sector average of 1.2%.
On a margin basis, HOME BANCSHARES INC reports gross margins of 0.0%. The operating margin is 48.0% (sector: 21.8%). Net profit margin stands at 37.7%, versus 17.7% for the average Financials stock. Revenue growth is running at -1.1% on a trailing basis, compared to 9.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
HOMB Debt, Balance Sheet, and Financial Health
HOME BANCSHARES INC has a debt-to-equity ratio of 433.0%, compared to the Financials sector average of 121.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.23x, suggesting adequate working capital coverage. Total debt on the balance sheet is $976M. Cash and equivalents stand at $285M.
HOMB has a beta of 0.79, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for HOME BANCSHARES INC is 86/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
HOME BANCSHARES INC Revenue and Earnings History — Quarterly Trend
In TTM 2026, HOME BANCSHARES INC reported revenue of $1.21B and earnings per share (EPS) of $2.41. Net income for the quarter was $457M. Gross margin was 0.0%. Operating income came in at $501M.
In FY 2025, HOME BANCSHARES INC reported revenue of $1.28B and earnings per share (EPS) of $2.41. Net income for the quarter was $475M. Revenue grew 25.7% year-over-year compared to FY 2024. Operating income came in at $612M.
In Q3 2025, HOME BANCSHARES INC reported revenue of $324M and earnings per share (EPS) of $0.63. Net income for the quarter was $124M. Revenue grew 25.4% year-over-year compared to Q3 2024. Operating income came in at $159M.
In Q2 2025, HOME BANCSHARES INC reported revenue of $319M and earnings per share (EPS) of $0.60. Net income for the quarter was $118M. Revenue grew -2.5% year-over-year compared to Q2 2024. Operating income came in at $152M.
Over the past 8 quarters, HOME BANCSHARES INC has demonstrated a growth trajectory, with revenue expanding from $327M to $1.21B. Investors analyzing HOMB stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
HOMB Dividend Yield and Income Analysis
HOME BANCSHARES INC (HOMB) currently pays a dividend yield of 2.8%. At this yield, a $10,000 investment in HOMB stock would generate approximately $$281.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning HOMB offers above-average income for its sector. With a net margin of 37.7%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
HOMB Momentum and Technical Analysis Profile
HOME BANCSHARES INC (HOMB) has a momentum factor score of 40/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 34/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 9/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
HOMB vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing HOMB against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full HOMB vs S&P 500 (SPY) comparison to assess how HOME BANCSHARES INC stacks up against the broader market across all factor dimensions.
HOMB Next Earnings Date
No upcoming earnings date has been announced for HOME BANCSHARES INC (HOMB) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy HOMB? — Investment Thesis Summary
HOME BANCSHARES INC presents a balanced picture with arguments on both sides. The quality score of 60/100 indicates above-average profitability and business fundamentals. The value score of 74/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 86/100) reduces downside risk.
In summary, HOME BANCSHARES INC (HOMB) earns a Hold rating with a composite score of 52.0/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on HOMB stock.
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Institutional Research Dossier
HOME BANCSHARES INC (HOMB) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Home Bancshares Inc. (HOMB) receives a Hold rating, justified by its solid profitability metrics and attractive valuation relative to the financial sector, offset by concerns regarding its negative revenue growth and high debt-to-equity ratio. While HOMB exhibits strong operational efficiency and stability, its future performance hinges on its ability to reverse revenue declines and manage its debt burden effectively.
The company's high profitability and low valuation multiples suggest potential upside, but the negative revenue growth and high leverage introduce significant risk. Investors should closely monitor HOMB's ability to generate revenue growth and improve its capital structure before considering a more bullish stance.
Business Strategy & Overview
Home Bancshares operates primarily through its subsidiary, Centennial Bank, providing a range of commercial and retail banking services. The company focuses on serving businesses, real estate developers, individuals, and municipalities across Arkansas, Florida, Alabama, and New York. Its core business revolves around deposit products like checking, savings, and money market accounts, alongside lending activities encompassing real estate, construction, consumer, agricultural, and commercial loans. The bank also offers digital banking services, cash management, and insurance products.
HOMB's strategic positioning involves a regional banking model, concentrating its operations in specific geographic areas to build strong customer relationships and local market expertise. This localized approach allows for tailored financial solutions and personalized service, fostering customer loyalty. The company's expansion strategy has historically involved organic growth and strategic acquisitions, extending its footprint within its target markets. The focus on real estate lending, particularly non-farm/non-residential and construction/land development, exposes it to cyclical trends in the real estate market.
The company's revenue generation is primarily driven by net interest income, the difference between interest earned on loans and interest paid on deposits. Fee income from services like cash management, insurance, and other banking activities also contributes to the top line. HOMB's ability to manage its net interest margin effectively is crucial for profitability, especially in a fluctuating interest rate environment. The bank's insurance operations provide diversification and additional revenue streams.
HOMB's competitive landscape includes other regional banks, national banks, and credit unions operating within its geographic footprint. Competition for deposits and loans is intense, requiring HOMB to differentiate itself through service quality, product offerings, and competitive pricing. The company's focus on community banking and local market knowledge provides a competitive edge against larger national players. The increasing adoption of digital banking necessitates ongoing investment in technology to maintain competitiveness and attract tech-savvy customers.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
-1.1%
Sector: 9.4%
-112% VS SCTR
Economic Moat Analysis
Home Bancshares' economic moat can be classified as Narrow. The company's competitive advantages stem primarily from its established regional presence and customer relationships, which create a degree of switching costs. Customers who have long-standing relationships with Centennial Bank and value its personalized service may be less inclined to switch to competitors, even if they offer slightly better rates or fees. This customer stickiness provides some pricing power and stability to HOMB's earnings.
The company's branch network in Arkansas, Florida, and Alabama also contributes to its moat. While the banking industry is increasingly moving towards digital channels, physical branches remain important for certain customer segments, particularly small businesses and older individuals. The established branch network provides a convenient and accessible platform for these customers, reinforcing HOMB's competitive position in its target markets.
However, the banking industry is highly competitive, and HOMB's moat is not particularly wide. The company faces competition from larger national banks with greater resources and brand recognition, as well as smaller community banks with strong local ties. The commoditized nature of many banking products and services limits HOMB's ability to differentiate itself significantly. The low short interest score of 6/100 suggests that the market does not perceive a strong competitive advantage for HOMB.
Furthermore, the rise of fintech companies and online lenders poses a growing threat to traditional banks like HOMB. These new entrants are often able to offer lower costs and more innovative products, potentially eroding HOMB's market share over time. To maintain its competitive position, HOMB must continue to invest in technology and adapt to changing customer preferences. The company's ability to leverage its regional expertise and customer relationships will be crucial in defending its narrow moat against these competitive pressures.
Financial Health & Profitability
Home Bancshares demonstrates a mixed financial profile. The company exhibits strong profitability, with a net margin of 37.7% and an operating margin of 48.0%, significantly exceeding the sector averages of 17.8% and 22.0%, respectively. This indicates efficient operations and effective cost management. The return on equity (ROE) of 10.6% is also higher than the sector average of 8.5%, suggesting superior returns on shareholder investments.
However, the company's revenue growth presents a concern. The trailing twelve-month (TTM) revenue shows a decline of 1.2%, contrasting sharply with the sector's average revenue growth of 9.3%. This negative revenue growth trend warrants close monitoring, as it could indicate weakening demand for HOMB's services or increased competitive pressures. The quarterly financial history reveals fluctuating revenue figures, with recent quarters showing some improvement compared to FY2024, but consistent growth remains elusive.
HOMB's balance sheet reveals a relatively high debt-to-equity (D/E) ratio of 433.00, significantly higher than the sector average of 115.00. This high leverage increases the company's financial risk, making it more vulnerable to economic downturns and interest rate fluctuations. While the current ratio of 1.23 indicates sufficient liquidity to meet short-term obligations, the high debt burden remains a concern. The company's free cash flow (FCF) generation is strong, with a TTM FCF of $812.40 million, providing some flexibility to manage its debt and invest in growth opportunities. However, the volatile FCF figures in the quarterly history, particularly the negative FCF in Q3 2024, highlight the potential for fluctuations in cash flow generation.
Overall, HOMB's financial health is characterized by strong profitability and cash flow generation, offset by concerns regarding negative revenue growth and high leverage. The company's ability to reverse the revenue decline and manage its debt burden effectively will be crucial for its long-term financial stability. Investors should closely monitor these factors before making investment decisions.
Valuation Assessment
Home Bancshares' valuation appears attractive relative to its peers in the financial sector. The company's price-to-earnings (P/E) ratio of 10.8x is significantly lower than the sector average of 15.5x, suggesting that the stock is undervalued based on its earnings. Similarly, the enterprise value-to-EBITDA (EV/EBITDA) ratio of 2.0x is substantially lower than the sector average of 3.5x, further indicating undervaluation.
However, it's crucial to consider the company's negative revenue growth when assessing its valuation. While the low multiples may appear appealing, they could reflect the market's concerns about HOMB's ability to generate future growth. A company with declining revenue typically warrants a lower valuation multiple compared to a company with strong growth prospects. The market may be discounting HOMB's future earnings potential due to its recent revenue performance.
The company's strong profitability metrics, such as its high net margin and ROE, partially offset the concerns about revenue growth. These metrics suggest that HOMB is efficiently managing its operations and generating strong returns on its investments. However, the sustainability of these high profitability levels depends on the company's ability to reverse the revenue decline and maintain its competitive position.
Overall, HOMB's valuation can be considered fair, given its mixed financial profile. The low valuation multiples suggest potential upside, but the negative revenue growth introduces significant risk. Investors should carefully weigh the potential benefits of the attractive valuation against the risks associated with the company's revenue challenges before making investment decisions. A more bullish stance would be warranted if HOMB can demonstrate a clear path to revenue growth and improve its capital structure.
Risk & Uncertainty
Home Bancshares faces several key risks that could impact its future performance. One of the most significant risks is the potential for increased competition in the banking industry. The rise of fintech companies and online lenders poses a growing threat to traditional banks like HOMB, as these new entrants often offer lower costs and more innovative products. Increased competition could erode HOMB's market share and pressure its profitability.
Another key risk is the company's exposure to the real estate market. A significant portion of HOMB's loan portfolio consists of real estate loans, particularly non-farm/non-residential and construction/land development loans. A downturn in the real estate market could lead to increased loan defaults and reduced profitability for HOMB. Changes in interest rates could also impact the demand for real estate loans and the company's net interest margin.
The company's high debt-to-equity ratio also presents a significant risk. High leverage increases HOMB's financial risk, making it more vulnerable to economic downturns and interest rate fluctuations. The company's ability to manage its debt burden effectively will be crucial for its long-term financial stability. Regulatory changes in the banking industry could also impact HOMB's operations and profitability. Increased regulatory scrutiny or stricter capital requirements could increase the company's compliance costs and limit its ability to grow.
Bulls Say / Bears Say
The Bull Case
BULL VIEWHOMB's superior profitability metrics, including high net and operating margins, demonstrate efficient operations and strong earnings potential, making it an attractive investment.
BULL VIEWThe company's low P/E and EV/EBITDA ratios relative to the sector suggest that the stock is undervalued, offering potential upside for investors.
BULL VIEWHOMB's strong free cash flow generation provides financial flexibility to manage debt, invest in growth opportunities, and potentially return capital to shareholders.
The Bear Case
BEAR VIEWHOMB's negative revenue growth indicates weakening demand for its services and raises concerns about its long-term growth prospects.
BEAR VIEWThe company's high debt-to-equity ratio increases its financial risk and vulnerability to economic downturns and interest rate fluctuations.
BEAR VIEWIncreased competition from fintech companies and online lenders could erode HOMB's market share and pressure its profitability.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score HOMB and 4,400+ other equities.
HOME BANCSHARES INC exhibits a 143% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
2.0%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
48.0%
Sector: 21.8%
Net Margin
Bottom-line profitability
37.7%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.48%
Yield Delta+13%
Income Projection audit
A $10,000 investment would generate approximately $281 annually in dividends at the current trailing rate.
