Bank OZK 4.625% Series A Non-Cumulative Perpetual Preferred Stock (OZKAP)

FairStock Score: 66/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at this preferred as a loan to the bank, not as an ownership share in the common. The 4.625% Series A is non-cumulative and perpetual, so I am promised a fixed dividend only if the board declares it; there is no maturity and no make-up if a payment is skipped. At the 2026-10-13 close of $15.06, the 7.68% yield is generous, but generous yields in bank preferreds are usually the market asking to be paid for credit and rate risk. The issuer looks reasonably profitable. In the second quarter of 2026, revenue was $430.0M, net income was $167.4M, and the margin was 38.92%. FairStock's calculations show an ROE of 11.33%, a Piotroski F-Score of 7/9, and at the 2026-10-13 close a P/E of 3.46 and P/B of 0.28. Revenue growth was 6.87%, but profit growth was -3.41%, so the trend is mixed. A $167.4M quarterly profit can cover a modest preferred dividend, but I cannot see CET1, net interest margin, or credit-quality ratios in the data; combined ratio is an insurance measure and does not apply to a bank. Without those, I cannot judge capital adequacy or underwriting as Graham would demand. The common-equity metrics suggest the bank is cheap, but the preferred's non-cumulative feature means a skipped dividend would be a permanent loss to income. This is a high-yield perpetual bank preferred with a margin of safety only if the loan book stays sound. I would want more bank-specific disclosure before treating the coupon as safe.

In plain English: Bank OZK is a regional bank that takes deposits and makes loans. Its 4.625% preferred stock pays a fixed dividend, and at the last close of $15.06 the yield was 7.68%, but the dividend is not guaranteed and does not build up if skipped. The bank looks profitable and the stock looks cheap against the supplied numbers, though profit growth has slipped and important bank safety details are missing.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer