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TEXAS CAPITAL BANCSHARES INC (TCBI) Stock Fundamental Analysis

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

78.96  +0.14 (+0.18%)

After market: 78.96 0 (0%)

Fundamental Rating

3

TCBI gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 395 industry peers in the Banks industry. Both the profitability and financial health of TCBI have multiple concerns. 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

In the past year TCBI was profitable.
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

TCBI has a worse Return On Assets (0.26%) than 86.08% of its industry peers.
TCBI's Return On Equity of 2.37% is on the low side compared to the rest of the industry. TCBI is outperformed by 86.08% 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

With a Profit Margin value of 8.49%, TCBI is not doing good in the industry: 84.30% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of TCBI has declined.
TCBI does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
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.
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 1.95. This is a very positive value and a sign of high solvency as it would only need 1.95 years to pay back of all of its debts.
TCBI has a Debt to FCF ratio (1.95) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.19 indicates that TCBI is not too dependend on debt financing.
TCBI has a Debt to Equity ratio (0.19) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.19
Debt/FCF 1.95
Altman-Z N/A
ROIC/WACCN/A
WACC17.71%
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.
Measured over the past years, TCBI shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.07% on average per year.
The Revenue has decreased by -9.69% in the past year.
TCBI shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.75% yearly.
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

The Earnings Per Share is expected to grow by 18.21% on average over the next years. This is quite good.
TCBI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.11% yearly.
EPS Next Y31.72%
EPS Next 2Y23.25%
EPS Next 3Y18.21%
EPS Next 5YN/A
Revenue Next Year20.46%
Revenue Next 2Y14.89%
Revenue Next 3Y12.11%
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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4

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 16.55 indicates a correct valuation of TCBI.
Based on the Price/Earnings ratio, TCBI is valued a bit more expensive than the industry average as 73.16% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 26.98. TCBI is valued slightly cheaper when compared to this.
TCBI is valuated correctly with a Price/Forward Earnings ratio of 12.06.
Based on the Price/Forward Earnings ratio, TCBI is valued a bit more expensive than the industry average as 67.85% of the companies are valued more cheaply.
TCBI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.49, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 16.55
Fwd PE 12.06
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

TCBI's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 10.71
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

TCBI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
TCBI's earnings are expected to grow with 18.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.52
PEG (5Y)N/A
EPS Next 2Y23.25%
EPS Next 3Y18.21%

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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 (6/27/2025, 8:00:00 PM)

After market: 78.96 0 (0%)

78.96

+0.14 (+0.18%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)04-17 2025-04-17/bmo
Earnings (Next)07-17 2025-07-17/bmo
Inst Owners103.19%
Inst Owner Change2.23%
Ins Owners1.71%
Ins Owner Change7.7%
Market Cap3.62B
Analysts70
Price Target79.9 (1.19%)
Short Float %3.77%
Short Ratio3.27
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)0.9%
PT rev (3m)-8.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.6%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-0.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.42%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)-0.08%
Valuation
Industry RankSector Rank
PE 16.55
Fwd PE 12.06
P/S 3.79
P/FCF 10.71
P/OCF 9.4
P/B 1.06
P/tB 1.06
EV/EBITDA N/A
EPS(TTM)4.77
EY6.04%
EPS(NY)6.55
Fwd EY8.29%
FCF(TTM)7.37
FCFY9.34%
OCF(TTM)8.4
OCFY10.64%
SpS20.84
BVpS74.72
TBVpS74.69
PEG (NY)0.52
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
WACC17.71%
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 Y31.72%
EPS Next 2Y23.25%
EPS Next 3Y18.21%
EPS Next 5YN/A
Revenue 1Y (TTM)-9.69%
Revenue growth 3Y0.92%
Revenue growth 5Y-2.75%
Sales Q2Q%9.42%
Revenue Next Year20.46%
Revenue Next 2Y14.89%
Revenue Next 3Y12.11%
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