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TEXAS CAPITAL BANCSHARES INC (TCBI) Stock Fundamental Analysis

NASDAQ:TCBI - Nasdaq - US88224Q1076 - Common Stock - Currency: USD

79.58  -1.48 (-1.83%)

After market: 79.58 0 (0%)

Fundamental Rating

4

Overall TCBI gets a fundamental rating of 4 out of 10. We evaluated TCBI against 405 industry peers in the Banks industry. While TCBI seems to be doing ok healthwise, there are quite some concerns on its profitability. TCBI has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

TCBI had positive earnings in the past year.
In the past year TCBI had a positive cash flow from operations.
TCBI had positive earnings in each of the past 5 years.
TCBI had a positive operating cash flow in 4 of the past 5 years.
TCBI Yearly Net Income VS EBIT VS OCF VS FCFTCBI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B

1.2 Ratios

The Return On Assets of TCBI (0.03%) is worse than 90.98% of its industry peers.
TCBI has a worse Return On Equity (0.28%) than 91.23% of its industry peers.
Industry RankSector Rank
ROA 0.03%
ROE 0.28%
ROIC N/A
ROA(3y)0.64%
ROA(5y)0.55%
ROE(3y)5.83%
ROE(5y)5.35%
ROIC(3y)N/A
ROIC(5y)N/A
TCBI Yearly ROA, ROE, ROICTCBI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

1.3 Margins

TCBI's Profit Margin of 1.05% is on the low side compared to the rest of the industry. TCBI is outperformed by 90.98% of its industry peers.
TCBI's Profit Margin has declined in the last couple of years.
The Operating Margin and Gross Margin are not available for TCBI so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) 1.05%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-37.07%
PM growth 5Y-25.53%
GM growth 3YN/A
GM growth 5YN/A
TCBI Yearly Profit, Operating, Gross MarginsTCBI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

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4

2. Health

2.1 Basic Checks

TCBI does not have a ROIC to compare to the WACC, probably because it is not profitable.
TCBI has less shares outstanding than it did 1 year ago.
The number of shares outstanding for TCBI has been reduced compared to 5 years ago.
TCBI has a better debt/assets ratio than last year.
TCBI Yearly Shares OutstandingTCBI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M 50M
TCBI Yearly Total Debt VS Total AssetsTCBI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

2.2 Solvency

TCBI has a debt to FCF ratio of 1.12. This is a very positive value and a sign of high solvency as it would only need 1.12 years to pay back of all of its debts.
TCBI has a Debt to FCF ratio of 1.12. This is in the better half of the industry: TCBI outperforms 76.19% of its industry peers.
A Debt/Equity ratio of 0.20 indicates that TCBI is not too dependend on debt financing.
TCBI has a Debt to Equity ratio (0.20) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.2
Debt/FCF 1.12
Altman-Z N/A
ROIC/WACCN/A
WACC15.67%
TCBI Yearly LT Debt VS Equity VS FCFTCBI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
TCBI Yearly Current Assets VS Current LiabilitesTCBI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

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5

3. Growth

3.1 Past

TCBI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.75%, which is quite impressive.
The Earnings Per Share has been decreasing by -7.07% on average over the past years.
Looking at the last year, TCBI shows a very negative growth in Revenue. The Revenue has decreased by -13.31% in the last year.
TCBI shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.75% yearly.
EPS 1Y (TTM)21.75%
EPS 3Y-2.08%
EPS 5Y-7.07%
EPS Q2Q%333.33%
Revenue 1Y (TTM)-13.31%
Revenue growth 3Y0.92%
Revenue growth 5Y-2.75%
Sales Q2Q%15.39%

3.2 Future

The Earnings Per Share is expected to grow by 21.97% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 12.16% on average over the next years. This is quite good.
EPS Next Y32.13%
EPS Next 2Y23.05%
EPS Next 3Y21.97%
EPS Next 5YN/A
Revenue Next Year20.56%
Revenue Next 2Y14.72%
Revenue Next 3Y12.16%
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
TCBI Yearly Revenue VS EstimatesTCBI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B
TCBI Yearly EPS VS EstimatesTCBI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6

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5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 18.46, which indicates a rather expensive current valuation of TCBI.
Compared to the rest of the industry, the Price/Earnings ratio of TCBI indicates a slightly more expensive valuation: TCBI is more expensive than 77.44% of the companies listed in the same industry.
TCBI is valuated rather cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 13.97 indicates a correct valuation of TCBI.
66.42% of the companies in the same industry are cheaper than TCBI, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of TCBI to the average of the S&P500 Index (22.68), we can say TCBI is valued slightly cheaper.
Industry RankSector Rank
PE 18.46
Fwd PE 13.97
TCBI Price Earnings VS Forward Price EarningsTCBI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Compared to the rest of the industry, the Price/Free Cash Flow ratio of TCBI indicates a rather cheap valuation: TCBI is cheaper than 90.23% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 6.22
EV/EBITDA N/A
TCBI Per share dataTCBI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as TCBI's earnings are expected to grow with 21.97% in the coming years.
PEG (NY)0.57
PEG (5Y)N/A
EPS Next 2Y23.05%
EPS Next 3Y21.97%

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0

5. Dividend

5.1 Amount

TCBI does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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TEXAS CAPITAL BANCSHARES INC

NASDAQ:TCBI (2/21/2025, 8:00:01 PM)

After market: 79.58 0 (0%)

79.58

-1.48 (-1.83%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)01-23 2025-01-23/bmo
Earnings (Next)04-16 2025-04-16/bmo
Inst Owners101.29%
Inst Owner Change2.26%
Ins Owners1.67%
Ins Owner Change6.72%
Market Cap3.66B
Analysts69.47
Price Target87.3 (9.7%)
Short Float %3.27%
Short Ratio3.36
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0.36
Dividend Growth(5Y)12.84%
DP184.21%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)29.89%
Min EPS beat(2)-8.93%
Max EPS beat(2)68.72%
EPS beat(4)1
Avg EPS beat(4)-5.44%
Min EPS beat(4)-57.08%
Max EPS beat(4)68.72%
EPS beat(8)3
Avg EPS beat(8)-6.57%
EPS beat(12)4
Avg EPS beat(12)-6.54%
EPS beat(16)6
Avg EPS beat(16)-5.45%
Revenue beat(2)0
Avg Revenue beat(2)-26.8%
Min Revenue beat(2)-51.56%
Max Revenue beat(2)-2.04%
Revenue beat(4)0
Avg Revenue beat(4)-14.76%
Min Revenue beat(4)-51.56%
Max Revenue beat(4)-0.78%
Revenue beat(8)2
Avg Revenue beat(8)3.28%
Revenue beat(12)5
Avg Revenue beat(12)2.13%
Revenue beat(16)6
Avg Revenue beat(16)0.63%
PT rev (1m)-0.84%
PT rev (3m)6.69%
EPS NQ rev (1m)-3.57%
EPS NQ rev (3m)-2.81%
EPS NY rev (1m)-1.89%
EPS NY rev (3m)-1.31%
Revenue NQ rev (1m)-0.74%
Revenue NQ rev (3m)-0.44%
Revenue NY rev (1m)1.7%
Revenue NY rev (3m)1.62%
Valuation
Industry RankSector Rank
PE 18.46
Fwd PE 13.97
P/S 4.09
P/FCF 6.22
P/OCF 5.63
P/B 1.09
P/tB 1.09
EV/EBITDA N/A
EPS(TTM)4.31
EY5.42%
EPS(NY)5.69
Fwd EY7.16%
FCF(TTM)12.8
FCFY16.09%
OCF(TTM)14.14
OCFY17.76%
SpS19.44
BVpS72.9
TBVpS72.87
PEG (NY)0.57
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.03%
ROE 0.28%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 1.05%
GM N/A
FCFM 65.86%
ROA(3y)0.64%
ROA(5y)0.55%
ROE(3y)5.83%
ROE(5y)5.35%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-37.07%
PM growth 5Y-25.53%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.03
Health
Industry RankSector Rank
Debt/Equity 0.2
Debt/FCF 1.12
Debt/EBITDA N/A
Cap/Depr 126.25%
Cap/Sales 6.84%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 6277.43%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score5
WACC15.67%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)21.75%
EPS 3Y-2.08%
EPS 5Y-7.07%
EPS Q2Q%333.33%
EPS Next Y32.13%
EPS Next 2Y23.05%
EPS Next 3Y21.97%
EPS Next 5YN/A
Revenue 1Y (TTM)-13.31%
Revenue growth 3Y0.92%
Revenue growth 5Y-2.75%
Sales Q2Q%15.39%
Revenue Next Year20.56%
Revenue Next 2Y14.72%
Revenue Next 3Y12.16%
Revenue Next 5YN/A
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y452.66%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y441.96%
OCF growth 3YN/A
OCF growth 5YN/A