Simmons First National Corp (SFNC, Financial) has recently caught the attention of investors with its notable stock performance. Over the past week, the company's stock price has seen a gain of 3.67%, and looking at a broader timeframe, it has surged by an impressive 26.42% over the past three months. With a current market capitalization of $2.4 billion and a stock price of $19.2, SFNC is currently considered modestly undervalued according to the GF Value, which stands at $22.86. This valuation is slightly down from the past GF Value of $23.89, yet the company maintains its status as modestly undervalued both currently and in the past valuation.
Introduction to Simmons First National Corp
Simmons First National Corp, operating in the banking industry, is a financial holding company that provides a wide array of services. These include consumer and commercial loans, checking and savings accounts, as well as trust services, investments, and more. The company's loan portfolio is diverse, encompassing construction, residential, and commercial loans, along with credit card, student, and other consumer loans. SFNC also offers agricultural finance lending, equipment lending, insurance, consumer finance, and small business administration lending, primarily within the United States. 
Assessing Profitability
When it comes to profitability, SFNC holds a Profitability Rank of 5/10, which is a moderate score indicating a fair level of profitability. The company's Return on Equity (ROE) is 7.14%, which is better than 29.33% of its industry peers. Its Return on Assets (ROA) stands at 0.85%, surpassing 43.25% of competitors. Notably, SFNC has maintained profitability for the past 10 years, a testament to its consistent performance in the banking sector. 
Growth Prospects and Challenges
Despite its solid profitability, SFNC's growth metrics present a mixed picture. The company's Growth Rank is currently at 2/10, indicating a lower growth trajectory compared to its peers. SFNC has experienced a 3-Year Revenue Growth Rate per Share of -4.20% and a 5-Year Revenue Growth Rate per Share of -0.30%. Its 3-Year EPS without NRI Growth Rate also declined by 4.20%. However, the 5-Year EPS without NRI Growth Rate shows a positive sign with a 5.80% increase. These figures suggest that while SFNC has faced some growth headwinds, it has managed to improve its earnings per share over a five-year period. 
Notable Shareholders
Among the significant holders of SFNC stock, Ken Fisher (Trades, Portfolio) leads with 530,000 shares, representing a 0.42% share percentage. Following closely is HOTCHKIS & WILEY, holding 484,020 shares, which accounts for 0.39% of the company's shares. Paul Tudor Jones (Trades, Portfolio) also has a stake in SFNC, with 23,406 shares, equating to 0.02% share percentage. These prominent investors' commitment to SFNC reflects their confidence in the company's financial health and future prospects.
Competitive Landscape
In comparison to its competitors, SFNC is positioned within a tight market cap range. Eastern Bankshares Inc (EBC, Financial) has a slightly higher market cap of $2.46 billion, while Seacoast Banking Corp of Florida (SBCF, Financial) and BankUnited Inc (BKU, Financial) have market caps of $2.27 billion and $2.19 billion, respectively. This close competition underscores the importance of SFNC's strategic initiatives to maintain and enhance its market position.
Conclusion
In summary, Simmons First National Corp's stock performance has been robust in recent months, with a significant 26.42% gain over the past quarter. The company's current valuation suggests it is modestly undervalued, offering potential for investors. While SFNC's profitability is stable, its growth rates indicate some challenges, although there is a positive trend in its 5-year EPS growth. The presence of notable shareholders like Ken Fisher (Trades, Portfolio) and HOTCHKIS & WILEY demonstrates investor confidence. Finally, SFNC's competitive stance is strong, with a market cap that holds its own against close industry rivals. For value investors seeking opportunities in the banking sector, SFNC presents an interesting case for consideration.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
