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Home BancSharesHOMB +0.35%70 Return-on-Tangible-Equity is 15.93% as of Jun. 2026, which is 10% below its 10-year median of 17.73. GuruFocus rates HOMB with a GF Score™ of 70/100 and a GF Value™ of $29.78 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,520 Banks companies, Home BancShares ranks better than 80.72% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Home BancShares's annualized net income for the quarter that ended in Jun. 2026 was $477 Mil. Home BancShares's average shareholder tangible equity for the quarter that ended in Jun. 2026 was $2,996 Mil. Therefore, Home BancShares's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 15.93%.
The historical rank and industry rank for Home BancShares's Return-on-Tangible-Equity or its related term are showing as below:
HOMB'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 12.52 Med: 17.73 Max: 23.33
Current: 16.77
During the past 13 years, Home BancShares's highest Return-on-Tangible-Equity was 23.33%. The lowest was 12.52%. And the median was 17.73%.
HOMB's Return-on-Tangible-Equity is ranked better than 80.72% of 1520
companies
in the Banks industry
Industry Median: 11.375
vs HOMB: 16.77
Home BancShares (NYSE:HOMB) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity 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 Return-on-Tangible-Equitys can be extremely high.
Home BancShares Return-on-Tangible-Equity Related Terms
Home BancShares Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Home BancShares's Return-on-Tangible-Equity 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.
HOMB vs HWC, AUB, ABCB: Return-on-Tangible-Equity Comparison
For the Banks - Regional subindustry, Home BancShares's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, Home BancShares's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Home BancShares's Return-on-Tangible-Equity falls into.
* 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 Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 15.93% mean?
Home BancShares (HOMB) has a Return-on-Tangible-Equity of 15.93% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Home BancShares and its competitors. This is 10% below median its historical median of 17.73. Over the past decade, Home BancShares' Return-on-Tangible-Equity has ranged from 12.52 to 23.33. According to the industry distribution chart, Home BancShares ranks #293 out of 1520 companies in the Banks industry, placing it in the top 19.3%.
Is Home BancShares' Return-on-Tangible-Equity too high?
Home BancShares' current Return-on-Tangible-Equity of 15.93% is 10% below median its 10-year median of 17.73. Over the past 10 years, this metric has ranged from a low of 12.52 to a high of 23.33. The Banks industry median Return-on-Tangible-Equity is 11.38. Home BancShares' value of 15.93% is 40% above this industry median. Based on the distribution chart, Home BancShares ranks #293 out of 1520 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Home BancShares has a GF Score™ of 70/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Home BancShares' Return-on-Tangible-Equity compare to HWC and AUB?
According to the Banks industry distribution chart, Home BancShares ranks #293 out of 1520 companies for Return-on-Tangible-Equity. This places Home BancShares in the top 19% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 11.38. Home BancShares' value of 15.93% is 40% above this benchmark. Historically, Home BancShares' own Return-on-Tangible-Equity has ranged from 12.52 to 23.33 over the past decade. While the company's 10-year median is 17.73 vs. the industry median of 11.38, Home BancShares has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Banks company?
The median Return-on-Tangible-Equity among Banks companies is 11.38, based on 1,520 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Home BancShares's current Return-on-Tangible-Equity of 15.93% is 40% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Home BancShares and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Home BancShares's current Return-on-Tangible-Equity is 15.93%, which is 10% below median its own 10-year median of 17.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Home BancShares stock overvalued right now?
Based on GuruFocus' analysis, Home BancShares (HOMB) is currently considered Fairly Valued. The stock's GF Value™ is $29.78, compared to a current price of $31.12 — trading 4.5% above its estimated fair value. The current Return-on-Tangible-Equity is 15.93%, which is 10% below median its 10-year median of 17.73 and 40% above the Banks industry median of 11.38. Home BancShares' overall GF Score™ is 70/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Home BancShares (HOMB), the current Return-on-Tangible-Equity is 15.93% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Home BancShares (HOMB) Overvalued in 2026?
Based on GuruFocus' analysis, Home BancShares stock appears to be overvalued.
The current stock price of $31.12 is trading 4.5% above its estimated GF Value™ of $29.78.
GuruFocus considers Home BancShares to be Fairly Valued.
Key valuation signals for HOMB:
Return-on-Tangible-Equity: 15.93% (10% below median its 10-year median of 17.73)
GF Value™: $29.78 vs. price of $31.12 (4.5% above fair value)
Industry Position: 40% above the Banks median (#293 of 1520)
No single metric tells the full story. See the HOMB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Home BancShares Inc is a bank holding company that 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 plan emphasizes growth, both through strategic acquisitions and organically within its existing markets. The company has one reportable segment: The Banking Segment.
70GF Score
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