Home Bancshares, Inc. (Conway, AR) (HOMB) AI Stock Analysis

Home Bancshares, Inc. (Conway, AR) operates as the bank holding company for Centennial Bank, delivering commercial and retail banking along with associated financial solutions. Serving businesses, real estate developers, investors, individuals, and municipalities, its deposit products include checking, savings, money market accounts, and certificates of deposit. The bank's lending portfolio spans non-farm/non-residential real estate, construction, residential mortgages, consumer, agricultural, and commercial and industrial loans. Across 160 branch locations in Arkansas, Florida, Alabama, and New York City, it also provides cash management, online and mobile banking, and commercial and personal insurance lines covering property, casualty, life, health, and employee benefits.

Home Bancshares expanded annual revenue from $752.0M in FY2021 to $1.45B in FY2024 before revenue declined 5.3% to $1.37B in FY2025, recording a 5-year revenue CAGR of 12.1%. Despite the FY2025 top-line contraction, net income rose to $475.4M and EPS reached $2.35, supported by an operating margin of 43.8% and a net margin of 34.6%. Over the trailing twelve months, revenue totaled $1.12B alongside an operating margin of 57.8% and net profit margin of 43.5%. In the latest quarter ended September 30, 2026, quarterly revenue increased 5.8% year-over-year while quarterly earnings grew 3.3%.

As of September 30, 2026, Home Bancshares held $4.72B in cash and short-term investments against $691.1M in total debt, resulting in net cash of $4.03B. Shareholders' equity totaled $4.53B with a debt-to-equity ratio of 0.15 and a current ratio of 0.26. During FY2025, the bank generated $399.3M in operating cash flow and $377.0M in free cash flow. Capital allocation in FY2025 included $22.3M for capital expenditures, $82.2M for share buybacks, and $158.9M in dividends paid.

Home Bancshares trades at a trailing P/E of 12.0x, slightly below the 12.1x median of its US-listed Financial Services peers. Its forward P/E of 11.0x stands slightly above the peer median of 10.8x, while its price-to-sales multiple of 5.2x exceeds the peer median of 3.2x. The stock carries a price-to-book ratio of 1.3x and an enterprise value of $5.65B. Over the past year, the stock returned 13.5% compared to 16.8% for the S&P 500, and its 5-year return of 41.0% compares to 83.0% for the index.

Home Bancshares pays an annualized forward dividend of $0.86 per share, representing a 2.95% dividend yield with a payout ratio of 27.7%. The bank has paid dividends for 21 consecutive years and achieved a 5-year annualized dividend growth rate of 8.7%. Its most recent ex-dividend date was August 12, 2026.

Wall Street coverage consists of 3 Strong Buy, 1 Buy, and 6 Hold recommendations, with no Sell ratings. The mean 12-month price target is $32.75, representing a 12.2% upside from the closing price of $29.20 on October 16, 2026. For the fiscal year ending December 31, 2026, consensus estimates anticipate revenue of $1.15B and EPS of $2.53, reflecting 7.8% EPS growth. The bank beat EPS estimates in 3 of the last 4 quarters.

This page is an AI-written research summary of Home Bancshares, Inc. (Conway, AR) (HOMB). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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