Bank OZK (OZK) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Pinnacle Financial Partners, Inc.

SouthState Corp.

Wintrust Financial Corp.

Western Alliance Bancorp.

Bank OZK

Home Bancshares, Inc. (Arkansas)

Popular, Inc.

Commerce Bancshares, Inc. (Missouri)

Prosperity Bancshares, Inc.

Cullen/Frost Bankers, Inc.

First Horizon Corp. (Tennessee)

Why is Bank OZK ?

High Profitability with a Net Interest Margin of 11.39%

Strong Long Term Fundamental Strength with an average Return on Assets (ROA) of 1.49%

Flat results in Dec 25

OPERATING CASH FLOW(Y) Lowest at USD 631.29 MM
GROSS NPA (%)(Q) Highest at 1.06%
OPERATING PROFIT MARGIN(Q) Lowest at 34.04 %

With ROA of 1.59%, it has a attractive valuation with a 0.86 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 1.07%, its profits have risen by 1.7% ; the PEG ratio of the company is 4.2

High Institutional Holdings at 99.19%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks

Underperformed the market in the last 1 year

The stock has generated a return of 1.07% in the last 1 year, much lower than market (S&P 500) returns of 20.12%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Bank OZK should be less than 10%
Overall Portfolio exposure to Regional Banks should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Regional Banks)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Bank OZK for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Bank OZK

1.07%

0.44

30.15%

S&P 500

20.12%

1.04

19.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

19.83%

EBIT Growth (5y)

17.51%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

28.16%

Pledged Shares

Institutional Holding

99.19%

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.86

EV to EBIT

3.37

EV to EBITDA

3.03

EV to Capital Employed

0.77

EV to Sales

1.07

PEG Ratio

4.19

Dividend Yield

106.01%

ROCE (Latest)

22.84%

ROE (Latest)

11.84%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 0

DIVIDEND PAYOUT RATIO(Y)

Highest at 29.41%

CASH AND EQV(HY)

Highest at USD 5,954.75 MM

-6What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 631.29 MM

GROSS NPA (%)

OPERATING PROFIT MARGIN(Q)

Lowest at 34.04 %

Here's what is working for Bank OZK

Dividend per share

Highest at USD 0 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Cash and Eqv

Highest at USD 5,954.75 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend Payout Ratio

Highest at 29.41%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Bank OZK

Operating Cash Flow

Lowest at USD 631.29 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Non Performing Loans (%)

Highest at 1.06%

in the last four Semi-Annual periods

MOJO Watch

Proportion of stressed loans given by the bank are increasing

Non Performing Loans (%)

Operating Profit Margin

Lowest at 34.04 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales