Home BancShares Story

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HOMB -- USA Stock  

USD 21.11  0.16  0.75%

Home BancShares is scheduled to announce its earnings today. The next earnings report is expected on the 21st of January 2021. Home BancShares Net Income Per Employee is projected to increase significantly based on the last few years of reporting. The past year's Net Income Per Employee was at 150,802. The current year Calculated Tax Rate is expected to grow to 32.93, whereas Revenue Per Employee is forecasted to decline to about 356.7 K. As many millenniums are trying to avoid financial services space, it makes sense to go over Home BancShares a little further and try to understand its current market patterns.
Published over three months ago
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Continue to hold Home BancShares (NASDAQ:HOMB) based on its current debt obligations?
Home BancShares currently holds 1.11 B in liabilities with Debt to Equity (D/E) ratio of 6.74, indicating Home BancShares may have difficulties to generate enough cash to satisfy its financial obligations. Home BancShares has performance score of 2 on a scale of 0 to 100. The company retains a Market Volatility (i.e. Beta) of 1.1933, which attests to a somewhat significant risk relative to the market. Let's try to break down what Home BancShares's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Home BancShares will likely underperform. Although it is extremely important to respect Home BancShares current price history, it is better to be realistic regarding the information on equity current price movements. The philosophy towards determining future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By evaluating Home BancShares technical indicators, you can presently evaluate if the expected return of 0.0773% will be sustainable into the future. Home BancShares right now retains a risk of 2.33%. Please check out Home BancShares downside variance, daily balance of power, and the relationship between the maximum drawdown and skewness to decide if Home BancShares will be following its current trending patterns.
Home BancShares financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Home BancShares, including all of Home BancShares's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Home BancShares assets, the company is considered highly leveraged. Understanding the composition and structure of overall Home BancShares debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Home BancShares Total Debt

Home BancShares liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Home BancShares has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Home BancShares balance sheet include debt obligations and money owed to different Home BancShares vendors, workers, and loan providers. Below is the chart of Home BancShares main long-term debt accounts currently reported on its balance sheet.
You can use Home BancShares financial leverage analysis tool to get a better grip on understanding its financial position

How important is Home BancShares's Liquidity

Home BancShares financial leverage refers to using borrowed capital as a funding source to finance Home BancShares ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Home BancShares financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Home BancShares's total debt and its cash.

Home BancShares exotic insider transaction detected

Legal trades by Home BancShares insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Home BancShares insider trading alert for general transaction of stock option by Donna Townsell, Director of Investor Relations, on 16th of December 2020. This event was filed by Home Bancshares Inc with SEC on 2020-12-16. Statement of changes in beneficial ownership - SEC Form 4. Donna Townsell currently serves as senior executive vice president of Home BancShares [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down Home BancShares Indicators

The current indifference towards the small price fluctuations of Home BancShares may raise some interest from investors. The stock closed today at a share price of 16.60 on slow start in trading volume. The company executives did not add any value to Home BancShares investors in September. However, most investors can still diversify their portfolios with Home BancShares to hedge their inherited risk against high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.33. The current volatility is consistent with the ongoing market swings in September 2020 as well as with Home BancShares unsystematic, company-specific events.

Asset Breakdown

Total Assets12.77 Billion
Goodwill1.07 Billion
Tax Assets54.1 Million

Some Home BancShares technical indicators suggest collapse

Current variance is at 5.86. Home BancShares currently demonstrates below-verage downside deviation. It has Information Ratio of 0.02 and Jensen Alpha of 0.02. However, we do advice investors to further question Home BancShares expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Final Take On Home BancShares

Whereas other entities within the banks?regional industry are still a little expensive, even after the recent corrections, Home BancShares may offer a potential longer-term growth to investors. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither purchase nor trade any shares of Home BancShares at this time. The Home BancShares risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Home BancShares.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Home BancShares. Please refer to our Terms of Use for any information regarding our disclosure principles.

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