OZK

Bank OZK

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Financial Services

industry

Banks - Regional

Exchange

Nasdaq

County of HQ

United States

Next Earnings Date

04/21/26

Business Summary

OZK operates as a regional banking institution, generating cash primarily through net interest income — borrowing at lower rates and lending at higher spreads — supplemented by fee-based services. Its competitive position relies on disciplined underwriting, regional market expertise, and balance sheet structuring rather than brand dominance. Profitability hinges on managing credit risk and maintaining spread discipline across cycles, which directly impacts operating margin and return metrics. The moat is not wide in a structural sense, but execution-driven — superior loan selection and capital allocation are what convert deposits into sustainable returns.

VALUATION

P/E

7.8

Market Cap ($M USD)

$5,240

Forward P/E

7.4

PEG

0.9

PRICE TO SALES

3.1

PRICE TO BOOK

0.9

EV / EBITDA

-

5-Year Average P/E

DIVIDEND

Yield

3.80%

Annual Payout

$1.82

Payout Ratio

28.10%

Consecutive Years of Dividend Growth

10+

5-Year Dividend Growth Rate

10.60%

Financial Health & Profitability

Earnings Per Share

$6.20

Next Year EPS Growth Estimate

$6.43

Next Year Revenue Growth Estimate

6.30%

Return on Equity (ROE)

11.40%

Operating Margin

64.10%

Debt-to-Equity

0.1

Piotroski F-Score

5

Altman Z-Score

0.4

Return on Invested Capital (ROIC)

27.00%%

Current Ratio

-

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 7.8x earnings and 7.4x forward earnings with a 0.9 forward PEG, OZK screens statistically cheap, and the sub-1.0 Price/Book of 0.9 suggests the market is valuing it below its accounting equity despite a 27.00% ROIC. That combination typically signals either deep value or deep distress. The problem is the Altman Z-Score of 0.4, which is firmly in distress territory and materially weakens the “cheap for a reason” debate, especially when paired with a modest 6.30% ROE and 11.40% operating margin. The market is clearly discounting balance sheet risk more than earnings power, and the low multiple reflects skepticism about durability rather than a clean mispricing.

AI Exposure / Tech Reliance

As a Regional Bank in Financial Services, OZK’s AI exposure is indirect but meaningful through credit underwriting automation, risk modeling, and cost optimization. Banks that successfully deploy data-driven lending and operational automation can expand margins beyond the current 11.40% operating level. However, AI will be a defensive efficiency tool here rather than a disruptive growth engine.

The Bull Case

A value or GARP investor will immediately focus on the 7.4 Forward P/E, 0.9 PEG, and 0.9 Price/Book — this is classic statistically discounted territory for a profitable bank with a 27.00% ROIC. That level of capital return efficiency, even against a 6.30% ROE, implies strong underlying investment discipline and potentially mispriced earnings durability. The Piotroski F-Score of 5 is neutral but not broken, suggesting financial conditions are stable rather than deteriorating sharply. With institutional ownership at 53.22%, there is meaningful professional sponsorship, and the 3.80% dividend per share combined with a payout ratio of $1.82 suggests capital return is part of the thesis. If earnings stabilize and the distress narrative fades, multiple expansion from 7.4x to even a market-average financial multiple could drive asymmetric upside.

The Bear Case

The red flag is unmistakable: an Altman Z-Score of 0.4 signals elevated financial stress risk, which cannot be ignored in a leveraged institution with 64.10% Debt/Equity. A 10.60% short float indicates a meaningful portion of the market is actively betting against the stock, reinforcing concerns around asset quality or capital structure. While the PEG of 0.9 looks attractive, it presumes growth materializes, yet ROE at 6.30% and operating margin at 11.40% are not robust enough to comfortably offset macro credit shocks. The low valuation may not be a bargain but a pricing of balance sheet fragility in a rate-sensitive, credit-sensitive industry.

Market Sentiment & Smart Money

Short Interest %

15.30%

Analyst Consensus

2.45

Average Analyst Price Target

$53.22

Institutional Ownership %

98.70%

1-Year Beta

1

Insider Buying % (6 Mo)

6.70%%

Distance to 52-Week High

89.30%%

Distance to 52-Week Low

131.30%%