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TEXAS CAPITAL BANCSHARES INC (TCBI) Stock Fundamental Analysis

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

70.38  -0.13 (-0.18%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to TCBI. TCBI was compared to 397 industry peers in the Banks industry. Both the profitability and financial health of TCBI have multiple concerns. TCBI has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

TCBI had positive earnings in the past year.
TCBI had a positive operating cash flow in the past year.
TCBI had positive earnings in each of the past 5 years.
Each year in the past 5 years TCBI had a positive operating cash flow.
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 (0.26%) is worse than 85.39% of its industry peers.
TCBI has a Return On Equity of 2.37%. This is amonst the worse of the industry: TCBI underperforms 86.40% of its industry peers.
Industry RankSector Rank
ROA 0.26%
ROE 2.37%
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 8.49% is on the low side compared to the rest of the industry. TCBI is outperformed by 85.64% 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) 8.49%
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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3

2. Health

2.1 Basic Checks

TCBI does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, TCBI has less shares outstanding
The number of shares outstanding for TCBI has been reduced compared to 5 years ago.
Compared to 1 year ago, TCBI has an improved debt to assets ratio.
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

The Debt to FCF ratio of TCBI is 1.95, which is an excellent value as it means it would take TCBI, only 1.95 years of fcf income to pay off all of its debts.
TCBI has a Debt to FCF ratio (1.95) which is in line with its industry peers.
TCBI has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
TCBI has a Debt to Equity ratio (0.19) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.19
Debt/FCF 1.95
Altman-Z N/A
ROIC/WACCN/A
WACC17.79%
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 44.55%, which is quite impressive.
TCBI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.07% yearly.
The Revenue has decreased by -9.69% in the past year.
Measured over the past years, TCBI shows a decrease in Revenue. The Revenue has been decreasing by -2.75% on average per year.
EPS 1Y (TTM)44.55%
EPS 3Y-2.08%
EPS 5Y-7.07%
EPS Q2Q%100%
Revenue 1Y (TTM)-9.69%
Revenue growth 3Y0.92%
Revenue growth 5Y-2.75%
Sales Q2Q%9.42%

3.2 Future

TCBI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.90% yearly.
The Revenue is expected to grow by 11.01% on average over the next years. This is quite good.
EPS Next Y32.88%
EPS Next 2Y23.86%
EPS Next 3Y17.9%
EPS Next 5YN/A
Revenue Next Year20.36%
Revenue Next 2Y14.68%
Revenue Next 3Y11.01%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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

Based on the Price/Earnings ratio of 14.75, the valuation of TCBI can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of TCBI indicates a slightly more expensive valuation: TCBI is more expensive than 68.51% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.10. TCBI is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 10.64, the valuation of TCBI can be described as reasonable.
TCBI's Price/Forward Earnings is on the same level as the industry average.
TCBI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.74, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 14.75
Fwd PE 10.64
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

Based on the Price/Free Cash Flow ratio, TCBI is valued a bit cheaper than the industry average as 66.50% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 9.54
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 17.90% in the coming years.
PEG (NY)0.45
PEG (5Y)N/A
EPS Next 2Y23.86%
EPS Next 3Y17.9%

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0

5. Dividend

5.1 Amount

No dividends for TCBI!.
Industry RankSector Rank
Dividend Yield N/A

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TEXAS CAPITAL BANCSHARES INC

NASDAQ:TCBI (5/6/2025, 3:11:57 PM)

70.38

-0.13 (-0.18%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)04-17 2025-04-17/bmo
Earnings (Next)07-16 2025-07-16/bmo
Inst Owners101.29%
Inst Owner Change0.26%
Ins Owners1.67%
Ins Owner Change6.76%
Market Cap3.23B
Analysts70
Price Target79.82 (13.41%)
Short Float %3.5%
Short Ratio2.8
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0.37
Dividend Growth(5Y)13.5%
DP21.25%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)11.43%
Min EPS beat(2)-6.76%
Max EPS beat(2)29.63%
EPS beat(4)2
Avg EPS beat(4)20.66%
Min EPS beat(4)-8.93%
Max EPS beat(4)68.72%
EPS beat(8)4
Avg EPS beat(8)6.36%
EPS beat(12)4
Avg EPS beat(12)-6.29%
EPS beat(16)6
Avg EPS beat(16)-5.11%
Revenue beat(2)0
Avg Revenue beat(2)-2.62%
Min Revenue beat(2)-3.45%
Max Revenue beat(2)-1.8%
Revenue beat(4)0
Avg Revenue beat(4)-14.71%
Min Revenue beat(4)-51.56%
Max Revenue beat(4)-1.8%
Revenue beat(8)0
Avg Revenue beat(8)-8.45%
Revenue beat(12)4
Avg Revenue beat(12)2.01%
Revenue beat(16)5
Avg Revenue beat(16)0.45%
PT rev (1m)-7.85%
PT rev (3m)-9.01%
EPS NQ rev (1m)-8.6%
EPS NQ rev (3m)-6.1%
EPS NY rev (1m)0.17%
EPS NY rev (3m)1.02%
Revenue NQ rev (1m)-1.42%
Revenue NQ rev (3m)-0.48%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)1.54%
Valuation
Industry RankSector Rank
PE 14.75
Fwd PE 10.64
P/S 3.38
P/FCF 9.54
P/OCF 8.38
P/B 0.94
P/tB 0.94
EV/EBITDA N/A
EPS(TTM)4.77
EY6.78%
EPS(NY)6.61
Fwd EY9.39%
FCF(TTM)7.37
FCFY10.48%
OCF(TTM)8.4
OCFY11.94%
SpS20.84
BVpS74.72
TBVpS74.69
PEG (NY)0.45
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.26%
ROE 2.37%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 8.49%
GM N/A
FCFM 35.38%
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-Score6
Asset Turnover0.03
Health
Industry RankSector Rank
Debt/Equity 0.19
Debt/FCF 1.95
Debt/EBITDA N/A
Cap/Depr 89.86%
Cap/Sales 4.94%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 417.01%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score6
WACC17.79%
ROIC/WACCN/A
Cap/Depr(3y)61.66%
Cap/Depr(5y)38.62%
Cap/Sales(3y)3.13%
Cap/Sales(5y)2.02%
Profit Quality(3y)314.03%
Profit Quality(5y)1177.45%
High Growth Momentum
Growth
EPS 1Y (TTM)44.55%
EPS 3Y-2.08%
EPS 5Y-7.07%
EPS Q2Q%100%
EPS Next Y32.88%
EPS Next 2Y23.86%
EPS Next 3Y17.9%
EPS Next 5YN/A
Revenue 1Y (TTM)-9.69%
Revenue growth 3Y0.92%
Revenue growth 5Y-2.75%
Sales Q2Q%9.42%
Revenue Next Year20.36%
Revenue Next 2Y14.68%
Revenue Next 3Y11.01%
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 1Y306.31%
FCF growth 3Y-13.94%
FCF growth 5YN/A
OCF growth 1Y313.36%
OCF growth 3Y-9.88%
OCF growth 5YN/A