3rd Quarter 2017 report for OZRK Date: 10-18-17
Percentage change in Sales from year ago quarter___66.8%______
Percentage change in Earnings per Share from year ago quarter_____26.0%______
Is company meeting our target sales & earnings estimates? Beating both
Pre-tax Profit on sales trend? (up, even, down) Up
Return on equity trends? (up, even, down) up by 1.27%
Debt? (up, even, down)even
Current PE is ___15.8____
Where does it fall in my estimated High/low range of PE's? middle of estimated range
Signature PE =___18.5______
Club cost basis for this stock is __$48.08______. Current price is _$45.14 (10/18/17)___
(from latest valuation)
Current fair value: Morningstar: doesn’t report on OZRK _ New Constructs (8/11/17): $32.42
My SSG Total Return is ______24%___ Projected Average Return (Average PE):_18%__
We bought 70 shares after June meeting (4.2% of club portfolio).
What does OZRK do?
Bank of the Ozarks, Inc. is a bank holdingfirm with $18.45 billion in total assets at September 30,2016 for Bank of the Ozarks, which provides retail andcommercial banking products and services. It offers checking, savings, money market, time deposit, and IRAs; andreal estate, consumer, commercial, and agricultural loans.
The bank also provides mortgage loans; treasury management services; trust and wealth management services; realestate appraisals; credit-related life and disability insurance;online banking; and debit cards and safe deposit boxes. Inaddition, it offers credit cards for consumers and businesses;processing of merchant credit card transactions; and investment brokerage services. At December 31, 2016, the company had 250 offices, including offices in Arkansas, Georgia, Florida, North Carolina, Texas, Alabama, and SouthCarolina, New York, and California. Bank of the Ozarks,Inc. was founded in 1981.
OZRK Press release: George Gleason, Chairman and Chief Executive Officer, stated, “We are pleased to report another quarter of great results, including record net income for the eighth consecutive quarter, record diluted earnings per share, excellent asset quality and growth of $1.02 billion in non-purchased loans and leases.”
Reuters says Increases quarterly dividend by 2.8 percent
What will drive future growth:
VL (10/18/17) Does not do an analysis of OZRK.
MStar (10/18/17): We do not currently publish an Analyst Report for this company.
NEW CONSTRUCTS (10/18/17) Didn’t locate the New Constructs Report.
MANIFEST INVESTING gives OZRK a 61 Quality rating and 8.1% PAR.
ZAQS says:The results reflect improvement in margins and loan growth. Bank of the Ozarks is well positioned for steady earnings growth driven by rising revenues and inorganic growth strategy.
However, continued increase in provision for loan losses is a major concern. Further, its exposure to real estate loans remains a concern, as any deterioration in real estate prices might hurt its financials.
Also, escalating costs act as a headwind for the company. In fact, expenses are expected to continue rising as the company is expanding into newer areas organically as well as through acquisitions.
Forward Strategy:
Represents 4.2% of our portfolio
Recommend: Buy More __, __Hold___, Challenge with a better investment______, Sell___
Even though SSG indicates buy, percentage of club holding and analysts’ cautionary stance indicate hold.