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Home BancShares ROE %

: 11.84% (As of Jun. 2021)
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ROE % is calculated as Net Income attributable to Common Stockholders (Net Income minus dividends to participating security holders) divided by its average Total Stockholders Equity over a certain period of time. Home BancShares's annualized net income attributable to common stockholders for the quarter that ended in Jun. 2021 was $316.3 Mil. Home BancShares's average Total Stockholders Equity over the quarter that ended in Jun. 2021 was $2,670.7 Mil. Therefore, Home BancShares's annualized ROE % for the quarter that ended in Jun. 2021 was 11.84%.

The historical rank and industry rank for Home BancShares's ROE % or its related term are showing as below:

NAS:HOMB' s ROE % Range Over the Past 10 Years
Min: 7.65   Med: 12.05   Max: 14.02
Current: 12.38

7.65
14.02

During the past 13 years, Home BancShares's highest ROE % was 14.02%. The lowest was 7.65%. And the median was 12.05%.

NAS:HOMB's ROE % is ranked higher than
85% of the 934 Companies
in the Banks industry.

( Industry Median: 11.10 vs. NAS:HOMB: 12.38 )

Home BancShares ROE % Historical Data

The historical data trend for Home BancShares's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Home BancShares Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.02 7.65 13.19 11.91 8.38

Home BancShares Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
ROE % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.02 12.71 13.96 11.84 11.04

Competitive Comparison

For the Banks - Regional subindustry, Home BancShares's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Home BancShares ROE % Distribution

For the Banks industry and Financial Services sector, Home BancShares's ROE % distribution charts can be found below:

* The bar in red indicates where Home BancShares's ROE % falls into.



Home BancShares ROE % Calculation

Home BancShares's annualized ROE % for the fiscal year that ended in Dec. 2020 is calculated as

ROE %=Net Income attributable to Common Stockholders (A: Dec. 2020 )/( (Total Stockholders Equity (A: Dec. 2019 )+Total Stockholders Equity (A: Dec. 2020 ))/ count )
=214.448/( (2511.531+2605.758)/ 2 )
=214.448/2558.6445
=8.38 %

Home BancShares's annualized ROE % for the quarter that ended in Jun. 2021 is calculated as

ROE %=Net Income attributable to Common Stockholders (Q: Jun. 2021 )/( (Total Stockholders Equity (Q: Mar. 2021 )+Total Stockholders Equity (Q: Jun. 2021 ))/ count )
=316.28/( (2645.204+2696.189)/ 2 )
=316.28/2670.6965
=11.84 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income attributable to common stockholders of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income attributable to common stockholders data used here is four times the quarterly (Jun. 2021) net income attributable to common stockholders data. ROE % is displayed in the 30-year financial page.


Home BancShares  (NAS:HOMB) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %**(Q: Jun. 2021 )
=Net Income/Total Stockholders Equity
=316.28/2670.6965
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(316.28 / 678.024)*(678.024 / 17433.7165)*(17433.7165 / 2670.6965)
=Net Margin %*Asset Turnover*Equity Multiplier
=46.65 %*0.0389*6.5278
=ROA %*Equity Multiplier
=1.81 %*6.5278
=11.84 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %**(Q: Jun. 2021 )
=Net Income/Total Stockholders Equity
=316.28/2670.6965
=(Net Income /Pre-Tax Income) * (Pre-Tax Income/Operating Income) * (Operating Income/Revenue) * (Revenue/Total Assets) * (Total Assets/Total Stockholders Equity)
= (316.28 / 416.568) * (416.568 / 0) * (0 / 678.024) * (678.024 / 17433.7165) * (17433.7165 / 2670.6965)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7593 * N/A * 0 % * 0.0389 * 6.5278
=11.84 %

Note: The net income attributable to common stockholders data used here is four times the quarterly (Jun. 2021) net income attributable to common stockholders data. The Revenue data used here is four times the quarterly (Jun. 2021) revenue data. The same rule applies to Pre-Tax Income and Operating Income.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.


Be Aware

Net income attributable to common stockholders is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Home BancShares ROE % Related Terms

Thank you for viewing the detailed overview of Home BancShares's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Home BancShares Business Description

Home BancShares logo
Industry
Financial Services » Banks NAICS : 522110 SIC : 6022
Traded in Other Exchanges
N/A
Address
72032, Suite 100, Conway, AR, USA, 72032
Home BancShares is a bank holding company that primarily operates through its wholly owned community bank subsidiary, Centennial Bank. The bank provides a broad range of commercial and retail banking, as well as related financial services, to a diverse customer base. Its customer base includes businesses, real estate developers and investors, individuals, and municipalities. The company's loan portfolio, while diversified, is typically between half and two thirds in commercial real estate loans. The company's strategy emphasizes growth, both through strategic acquisitions and organically within its existing markets. The bank also emphasizes attracting experienced bankers, strong credit quality, and a solid balance sheet. The bank's main source of net revenue is net interest income.
Executives
Carter Russell Davis Iii officer: Centennial Bank Regional Pres. 15 GETTYSBURG SOUTH CABOT AR 72023
Hinkle James G director P.O. BOX 1228 MOUNTAIN VIEW AR 72560
French Tracy director, officer: Centennial Bank CEO/President 78 GREYSTONE BLVD CABOT AR 72023
Floyd Jennifer C. officer: Chief Accounting Officer P.O. BOX 966 CONWAY AR 72033
Beebe Mike director 2200 WEST DON TYSON PARKWAY SPRINGDALE AR 72762
Garrett Karen director P.O. BOX 966 CONWAY AR 72033
Rankin Jim director P.O. BOX 966 CONWAY AR 72033
Townsell Donna director, officer: Director of Investor Relations P.O. BOX 966 CONWAY AR 72033
Adams Milburn director 1502 DOGWOOD TRAIL CONWAY AR 72032
Adcock Robert H Jr director P O BOX 966 CONWAY AR 72033
Engelkes Jack director P O BOX 1167 CONWAY AR 72032
Davis Brian director, officer: Chief Financial Officer 6 GATEWOOD CV LITTLE ROCK AR 72206
Ashley Richard H director 2851 LAKEWOOD VILLAGE DR. NORTH LITTLE ROCK AR 72116
Longe Thomas J director TIB BANK 599 9TH STREET NO. SUITE 101 NAPLES FL 34102
Lieblong Alex R director 210 E. ELM STREET P. O. BOX 7200 EL DORADO AR 71730

Home BancShares Headlines

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