Are Analysts Underestimating Bank OZK (OZK)?

The 7 analysts following Bank OZK give it n rating of hold, but according to our metrics the company may be undervalued. Their target prices range from $40.0 to $58.0 per share, for an average of $50.14. At today's price of $43.2, Bank OZK is trading -13.84% away from its average target price, suggesting there is an analyst consensus of some upside potential for the stock.

Bank OZK offers a variety of retail and commercial banking services. The mid-cap Technology company is based in Little Rock, AR. Bank OZK has provided a 2.95% dividend yield over the last 12 months.

Bank OZK has a trailing twelve month P/E ratio of 9.52, compared to an average of 27.16 for the Technology sector. Based on its EPS guidance of 5.77, the company has a forward P/E ratio of 7.49.

On the other hand, the market is potentially undervaluing Bank OZK in terms of its book value because its P/B ratio is 1.139. In comparison, the sector average P/B ratio is 6.23. The company's shares are currently -21.44% below their Graham number, indicating that its shares have a margin of safety.

2019-12-31 2020-12-31 2021-12-31 2022-12-31
Revenue (MM) $984 $985 $1,097 $1,249
Revenue Growth n/a 0.07% 11.38% 13.86%
Net Margins 43.27% 29.64% 52.78% 45.17%
Net Margins Growth n/a -31.5% 78.07% -14.42%
Earnings Per Share $3.3 $2.26 $4.47 $4.81
EPS Growth n/a -31.52% 97.79% 7.61%
Diluted Shares (MM) 129 129 130 117
Free Cash Flow (MM) $326 $502 $509 $735
FCF Growth n/a 54.11% 1.27% 44.49%
Capital Expenditures (MM) $99 $50 $34 $30
LT Debt to Equity 0.17 0.26 0.25 0.23
The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.