NasdaqGS:TCBI.P

Stock Analysis Report

Texas Capital Bancshares

Executive Summary

Texas Capital Bancshares, Inc. operates as the bank holding company for Texas Capital Bank, National Association that provides various banking products and services for commercial businesses, and professionals and entrepreneurs.


Snowflake Analysis

Undervalued with excellent balance sheet.


Similar Companies

Share Price & News

How has Texas Capital Bancshares's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TCBI.P's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.9%

TCBI.P

-7.0%

US Banks

-2.6%

US Market


1 Year Return

-25.1%

TCBI.P

-32.9%

US Banks

-13.3%

US Market

Return vs Industry: TCBI.P exceeded the US Banks industry which returned -32.9% over the past year.

Return vs Market: TCBI.P underperformed the US Market which returned -13.3% over the past year.


Shareholder returns

TCBI.PIndustryMarket
7 Day-7.9%-7.0%-2.6%
30 Day-23.6%-24.6%-15.2%
90 Day-25.5%-41.9%-22.2%
1 Year-20.3%-25.1%-30.8%-32.9%-11.5%-13.3%
3 Year-8.9%-24.7%-21.4%-27.3%13.2%5.7%
5 Year6.2%-22.7%2.7%-9.2%31.8%17.2%

Price Volatility Vs. Market

How volatile is Texas Capital Bancshares's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Texas Capital Bancshares undervalued compared to its fair value and its price relative to the market?

41.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TCBI.P ($19.39) is trading below our estimate of fair value ($33.4)

Significantly Below Fair Value: TCBI.P is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TCBI.P is good value based on its PE Ratio (3.7x) compared to the Banks industry average (8.6x).

PE vs Market: TCBI.P is good value based on its PE Ratio (3.7x) compared to the US market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: TCBI.P's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: TCBI.P is good value based on its PB Ratio (0.4x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is Texas Capital Bancshares forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

-22.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TCBI.P's earnings are forecast to decline over the next 3 years (-22.1% per year).

Earnings vs Market: TCBI.P's earnings are forecast to decline over the next 3 years (-22.1% per year).

High Growth Earnings: TCBI.P's earnings are forecast to decline over the next 3 years.

Revenue vs Market: TCBI.P's revenue (4.2% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: TCBI.P's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TCBI.P's Return on Equity is forecast to be low in 3 years time (6.9%).


Next Steps

Past Performance

How has Texas Capital Bancshares performed over the past 5 years?

22.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TCBI.P has high quality earnings.

Growing Profit Margin: TCBI.P's current net profit margins (31.9%) are lower than last year (32.1%).


Past Earnings Growth Analysis

Earnings Trend: TCBI.P's earnings have grown significantly by 22.1% per year over the past 5 years.

Accelerating Growth: TCBI.P's earnings growth over the past year (7.6%) is below its 5-year average (22.1% per year).

Earnings vs Industry: TCBI.P earnings growth over the past year (7.6%) underperformed the Banks industry 10.9%.


Return on Equity

High ROE: TCBI.P's Return on Equity (11.4%) is considered low.


Next Steps

Financial Health

How is Texas Capital Bancshares's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: TCBI.P's level of assets compared to its equity is moderate.

Allowance for Bad Loans: TCBI.P has a low allowance for bad loans.

Low Risk Liabilities: TCBI.P's liabilities are made up of primarily low risk sources of funding.

Loan Level: TCBI.P has an acceptable proportion of non-loan assets held.

Low Risk Deposits: TCBI.P's loans are broadly funded by customer deposits.

Level of Bad Loans: TCBI.P has an appropriate level of bad loans (0.91%)


Next Steps

Dividend

What is Texas Capital Bancshares's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate TCBI.P's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate TCBI.P's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TCBI.P's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TCBI.P's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TCBI.P's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

  • Explore strong dividend paying companies in the Banks industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

C. Cargill (66yo)

6.25s

Tenure

US$4,908,814

Compensation

Mr. C. Keith Cargill is the founder of Texas Capital Bancshares, Inc. and serves as the President and Chief Executive Officer since January 1, 2014 and also serves as a Director since January 1, 2014. He h ...


CEO Compensation Analysis

Compensation vs Market: C.'s total compensation ($USD4.91M) is above average for companies of similar size in the US market ($USD3.25M).

Compensation vs Earnings: C.'s compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
C. Cargill
President6.25yrsUS$4.91m0.25% $2.9m
Julie Anderson
CFO & Secretary2.75yrsUS$1.70m0.083% $969.5k
Vince Ackerson
Vice Chairman of of Texas Capital Bank0.67yrUS$1.88m0.075% $881.9k
John Turpen
Chief Risk Officer1.25yrsUS$1.41m0.0033% $38.9k
Heather Worley
Senior VP & Director of Investor Relations6.25yrsno datano data
Shannon Wherry
Senior VP & Director of Communicationsno datano datano data
Ellen Detrich
Controllerno datano data0.0075% $88.0k

2.8yrs

Average Tenure

51yo

Average Age

Experienced Management: TCBI.P's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
C. Cargill
President6.25yrsUS$4.91m0.25% $2.9m
Larry Helm
Independent Chairman7.92yrsUS$219.24k0.041% $478.4k
Robert Stallings
Independent Director18.67yrsUS$139.24k0.017% $195.8k
Elysia Ragusa
Independent Director10.25yrsUS$167.24k0.012% $144.5k
Steven Rosenberg
Independent Director18.58yrsUS$156.49k0.063% $741.6k
Ian Turpin
Independent Director18.92yrsUS$144.99k0.043% $505.2k
Charles Hyle
Independent Director6.5yrsUS$176.49k0.0078% $91.4k
Dale Tremblay
Independent Director8.92yrsUS$154.99k0.015% $172.5k
James Browning
Independent Director10.5yrsUS$192.24k0.023% $265.3k
Patricia Watson
Independent Director4.17yrsUS$139.99k0.010% $123.3k

9.6yrs

Average Tenure

67.5yo

Average Age

Experienced Board: TCBI.P's board of directors are considered experienced (9.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Texas Capital Bancshares, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Texas Capital Bancshares, Inc.
  • Ticker: TCBI.P
  • Exchange: NasdaqGS
  • Founded: 1996
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$1.175b
  • Shares outstanding: 50.35m
  • Website: https://www.texascapitalbank.com

Number of Employees


Location

  • Texas Capital Bancshares, Inc.
  • 2000 McKinney Avenue
  • Suite 700
  • Dallas
  • Texas
  • 75201
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TCBINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 2003
TCADB (Deutsche Boerse AG)YesCommon StockDEEURAug 2003
TCBI.LNasdaqGS (Nasdaq Global Select)SUB NT 6.50%42USUSDSep 2012
TCBI.PNasdaqGS (Nasdaq Global Select)PFD PERP SR-AUSUSDMar 2013

Biography

Texas Capital Bancshares, Inc. operates as the bank holding company for Texas Capital Bank, National Association that provides various banking products and services for commercial businesses, and professionals and entrepreneurs. It offers business deposit products and services, including commercial checking accounts, lockbox accounts, and cash concentration accounts, as well as other treasury management services, including information services, wire transfer initiation, ACH initiation, account transfer, and service integration; and consumer deposit products, such as checking accounts, savings accounts, money market accounts, and certificates of deposit. The company also provides commercial loans for general corporate purposes comprising financing for working capital, internal growth, and acquisitions, as well as financing for business insurance premiums; real estate term and construction loans; mortgage warehouse lending; mortgage correspondent aggregation; equipment finance and leasing; treasury management services, including online banking and debit and credit card services; escrow services; and letters of credit. In addition, it offers personal wealth management and trust services; secured and unsecured loans; and online and mobile banking services. Further, the company provides American Airlines AAdvantage, an all-digital branch offering depositors. It operates in Austin, Dallas, Fort Worth, Houston, and San Antonio metropolitan areas of Texas. Texas Capital Bancshares, Inc. was founded in 1996 and is headquartered in Dallas, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 04:57
End of Day Share Price2020/04/06 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.