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Home BancSharesHOMB +0.35%70 ROE % is 10.73% as of Jun. 2026, which is 4% below its 10-year median of 11.13. 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 1,522 Banks companies, Home BancShares ranks better than 56.64% on this metric.
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:
Note:
The net income data used here is four times the quarterly (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income 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
Home BancShares ROE % Historical Data
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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.
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 % vs Banks Industry
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.
* 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 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 data used here is four times the quarterly (Jun. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Home BancShares (HOMB) has a ROE % of 10.73% as of Jun. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Home BancShares and its competitors. This is near median its historical median of 11.13. Over the past decade, Home BancShares' ROE % has ranged from 7.65 to 14.02. According to the industry distribution chart, Home BancShares ranks #660 out of 1522 companies in the Banks industry, placing it in the top 43.4%.
Is Home BancShares' ROE % too high?
Home BancShares' current ROE % of 10.73% is near median its 10-year median of 11.13. Over the past 10 years, this metric has ranged from a low of 7.65 to a high of 14.02. The Banks industry median ROE % is 10.33. Home BancShares' value of 10.73% is 3.9% above this industry median. Based on the distribution chart, Home BancShares ranks #660 out of 1522 companies in the Banks industry, which is above the industry midpoint. 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' ROE % compare to HWC and AUB?
According to the Banks industry distribution chart, Home BancShares ranks #660 out of 1522 companies for ROE %. This puts Home BancShares in the upper half of its industry. The industry median ROE % is 10.33. Home BancShares' value of 10.73% is 3.9% above this benchmark. Historically, Home BancShares' own ROE % has ranged from 7.65 to 14.02 over the past decade. While the company's 10-year median is 11.13 vs. the industry median of 10.33, 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 ROE % for a Banks company?
The median ROE % among Banks companies is 10.33, based on 1,522 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Home BancShares's current ROE % of 10.73% is 3.9% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Home BancShares and its competitors. For the Banks industry, the median ROE % is 10.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Home BancShares's current ROE % is 10.73%, which is near median its own 10-year median of 11.13. 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 ROE % is 10.73%, which is near median its 10-year median of 11.13 and 3.9% above the Banks industry median of 10.33. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Home BancShares (HOMB), the current ROE % is 10.73% 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:
ROE %: 10.73% (near median its 10-year median of 11.13)
GF Value™: $29.78 vs. price of $31.12 (4.5% above fair value)
Industry Position: 3.9% above the Banks median (#660 of 1522)
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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