Fact based stock research
Simmons First National (NasdaqGS:SFNC)

US8287302009

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

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Simmons First National stock research in summary

ir.simmonsbank.com

ANALYSIS: With an Obermatt Combined Rank of 29 (worse than 71% compared with investment alternatives), Simmons First National (Regional Banks, USA) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Simmons First National are a good value (attractively priced) with a consolidated Value Rank of 75 (better than 75% of alternatives) but show below-average growth (Growth Rank of 15), and are riskily financed (Safety Rank of 41), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 29, is a hold recommendation based on Simmons First National's financial characteristics. As the company Simmons First National's key financial metrics exhibit good value (Obermatt Value Rank of 75) but low growth (Obermatt Growth Rank of 15) and risky financing practices (Obermatt Safety Rank of 41), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 75% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	75
Growth Rank	15
Safety Rank	41
Combined Rank	29

Country	USA
Industry	Regional Banks
Index	Dividends USA, NASDAQ
Size class	Medium

26-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Simmons First National

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	46	75	83	75
GROWTH
GROWTH	11	5	15	15
SAFETY
SAFETY	66	97	56	41
SENTIMENT
SENTIMENT	n/a	28	27	^new
360° VIEW
360° VIEW	n/a	53	30	^new

Most recent update of the stock research: 26-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Simmons First National is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	46	75	83	75
GROWTH
GROWTH	11	5	15	15
SAFETY
SAFETY	66	97	56	41
COMBINED
COMBINED	24	81	46	29

Last update of combined financial performance: 26-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Simmons First National the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 75 (better than 75% compared with alternatives) for 2024, Simmons First National shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, where three out of four indicators are above average for Simmons First National. Price-to-Sales (P/S) is 52 which means that the stock price compared with what market professionals expect for future sales is lower than for 52% of comparable companies, indicating a good value for Simmons First National's revenue size. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 95. Finally, compared with other companies in the same industry, dividend yields of Simmons First National are expected to be higher than for 80% of all competitors (a Dividend Yield rank of 80). The only low rank is for expected profits with a Price-to-Profit Rank of 19, indicating that the market expects the company's profit to be low despite a high dividend. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 75, is a buy recommendation based on Simmons First National's stock price compared with the company's operational size and dividend yields. The low Profit Rank could result from a one-off charge, for instance, for an accident, a legal settlement, or a restructuring project. If the company keeps its dividends high, the low expected profit may be transitory. If that is the case, the three good value ranks for Sales, Capital, and Dividends are reliable indicators for good stock price value, a low stock price. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	31	55	54	52
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	43	17	19	19
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	69	86	97	95
DIVIDEND YIELD
DIVIDEND YIELD	45	77	87	80
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	46	75	83	75

Last update of Value Rank: 26-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Simmons First National; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 15 (better than 15% compared with alternatives), Simmons First National shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Simmons First National. Sales Growth has a rank of 59 which means that currently professionals expect the company to grow more than 59% of its competitors. Stock Returns are also above average with a rank of 55. But Capital Growth has only a rank of 15, which means that currently professionals expect the company to grow its invested capital less than 85% of its competitors. Profit Growth is also low, with a rank of only 18, which means that, currently, professionals expect the company to grow its profits below average. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 15, is a sell recommendation for growth and momentum investors. This is a surprising picture, as the messages from the operating growth indicators of revenues, profits, and invested capital are mixed, while stock returns are above average. It may indicate new intellectual properties, such as brand improvement or a strong market position that shows in revenues but not in the capital. The low profit-growth rate may indicate an early phase where costs are still high, and revenues don't fully cover upfront investments or fixed costs. The positive investor outlook with a 55% peer outperformance is reaffirmed in this case which may be a good sign for an investment into a well-protected high-growth company. This fact needs to be confirmed by researching the company website and press. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	2	82	20	59
PROFIT GROWTH
PROFIT GROWTH	18	8	20	18
CAPITAL GROWTH
CAPITAL GROWTH	n/a	7	56	15
STOCK RETURNS
STOCK RETURNS	61	25	43	55
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	11	5	15	15

Last update of Growth Rank: 26-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Simmons First National.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 41 (better than 41% compared with alternatives), the company Simmons First National has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Simmons First National is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators where two out of three are above average for Simmons First National.Leverage is at 60, meaning the company has a below-average debt-to-equity ratio. It has less debt than 60% of its competitors.Refinancing is at a rank of 68, meaning that the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 68% of its competitors. Liquidity is at 13, meaning that the company generates less profit to service its debt than 87% of its competitors. This indicates that the company is on the riskier side regarding debt service. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 41 (worse than 59% compared with alternatives), Simmons First National has a financing structure that is riskier than that of its competitors. Low leverage and low refinancing risk mean a safer financing situation. However, low liquidity means that current company cash flows are low in relation to the level of debt. This is a sign of caution in case it is expected for profits to remain low. Investors should compare Obermatt’s Value, Growth, and Sentiment Ranks before deciding. They may also want to investigate why cash flows are expected to be low, making debt service for Simmons First National more challenging. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	33	34	47	60
REFINANCING
REFINANCING	73	92	67	68
LIQUIDITY
LIQUIDITY	74	84	54	13
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	66	97	56	41

Last update of Safety Rank: 26-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Simmons First National and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	15	3	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	46	57	^new
MARKET PULSE
MARKET PULSE	n/a	48	52	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	28	27	^new

Last update of Sentiment Rank: 26-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Simmons First National.
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