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TEXAS CAPITAL BANCSHARES INC (TCBI) Stock Fundamental Analysis

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

64.21  -1.82 (-2.76%)

After market: 64.21 0 (0%)

Fundamental Rating

4

TCBI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 398 industry peers in the Banks industry. TCBI scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. 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.
In the past 5 years TCBI always reported a positive cash flow from operatings.
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's Return On Assets of 0.20% is on the low side compared to the rest of the industry. TCBI is outperformed by 87.19% of its industry peers.
The Return On Equity of TCBI (1.79%) is worse than 87.19% of its industry peers.
Industry RankSector Rank
ROA 0.2%
ROE 1.79%
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 6.46% is on the low side compared to the rest of the industry. TCBI is outperformed by 86.93% of its industry peers.
In the last couple of years the Profit Margin of TCBI has declined.
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) 6.46%
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.
The number of shares outstanding for TCBI has been reduced compared to 1 year ago.
Compared to 5 years ago, TCBI has less shares outstanding
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

The Debt to FCF ratio of TCBI is 1.59, which is an excellent value as it means it would take TCBI, only 1.59 years of fcf income to pay off all of its debts.
TCBI has a better Debt to FCF ratio (1.59) than 62.31% of its industry peers.
TCBI has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
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 1.59
Altman-Z N/A
ROIC/WACCN/A
WACC18.31%
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.
TCBI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -13.31%.
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)-13.31%
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 17.90% on average over the next years. This is quite good.
Based on estimates for the next years, TCBI will show a quite strong growth in Revenue. The Revenue will grow by 10.77% on average per year.
EPS Next Y32.88%
EPS Next 2Y23.86%
EPS Next 3Y17.9%
EPS Next 5YN/A
Revenue Next Year20.46%
Revenue Next 2Y14.51%
Revenue Next 3Y10.77%
Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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

A Price/Earnings ratio of 13.46 indicates a correct valuation of TCBI.
Based on the Price/Earnings ratio, TCBI is valued a bit more expensive than the industry average as 66.33% of the companies are valued more cheaply.
TCBI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.29.
A Price/Forward Earnings ratio of 9.71 indicates a reasonable valuation of TCBI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TCBI is on the same level as its industry peers.
TCBI is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.32, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 13.46
Fwd PE 9.71
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 79.65% of the companies in the same industry.
Industry RankSector Rank
P/FCF 7.11
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 17.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.41
PEG (5Y)N/A
EPS Next 2Y23.86%
EPS Next 3Y17.9%

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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 (4/21/2025, 4:30:01 PM)

After market: 64.21 0 (0%)

64.21

-1.82 (-2.76%)

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 Change0.74%
Ins Owners1.67%
Ins Owner Change6.68%
Market Cap2.96B
Analysts69.47
Price Target86.62 (34.9%)
Short Float %2.87%
Short Ratio2.71
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0.37
Dividend Growth(5Y)13.5%
DP28.63%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)49.17%
Min EPS beat(2)29.63%
Max EPS beat(2)68.72%
EPS beat(4)2
Avg EPS beat(4)16.24%
Min EPS beat(4)-24.46%
Max EPS beat(4)68.72%
EPS beat(8)4
Avg EPS beat(8)4.58%
EPS beat(12)4
Avg EPS beat(12)-6.33%
EPS beat(16)7
Avg EPS beat(16)-3.51%
Revenue beat(2)0
Avg Revenue beat(2)-26.68%
Min Revenue beat(2)-51.56%
Max Revenue beat(2)-1.8%
Revenue beat(4)0
Avg Revenue beat(4)-14.05%
Min Revenue beat(4)-51.56%
Max Revenue beat(4)-0.78%
Revenue beat(8)1
Avg Revenue beat(8)-7.95%
Revenue beat(12)4
Avg Revenue beat(12)1.75%
Revenue beat(16)5
Avg Revenue beat(16)0.26%
PT rev (1m)-0.78%
PT rev (3m)-1.61%
EPS NQ rev (1m)-3.44%
EPS NQ rev (3m)-12.05%
EPS NY rev (1m)0.57%
EPS NY rev (3m)-1.34%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-0.11%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)1.62%
Valuation
Industry RankSector Rank
PE 13.46
Fwd PE 9.71
P/S 3.18
P/FCF 7.11
P/OCF 6.16
P/B 0.88
P/tB 0.88
EV/EBITDA N/A
EPS(TTM)4.77
EY7.43%
EPS(NY)6.61
Fwd EY10.3%
FCF(TTM)9.03
FCFY14.06%
OCF(TTM)10.43
OCFY16.25%
SpS20.22
BVpS73.03
TBVpS72.99
PEG (NY)0.41
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.2%
ROE 1.79%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 6.46%
GM N/A
FCFM 44.65%
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 1.59
Debt/EBITDA N/A
Cap/Depr 119.57%
Cap/Sales 6.95%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 690.83%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score5
WACC18.31%
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)-13.31%
Revenue growth 3Y0.92%
Revenue growth 5Y-2.75%
Sales Q2Q%9.42%
Revenue Next Year20.46%
Revenue Next 2Y14.51%
Revenue Next 3Y10.77%
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 1Y16.49%
FCF growth 3Y-13.94%
FCF growth 5YN/A
OCF growth 1Y28.73%
OCF growth 3Y-9.88%
OCF growth 5YN/A