TCBI

Texas Capital BancsharesNasdaqGS:TCBI Stock Report

Market Cap

US$2.8b

7D

-3.3%

1Y

84.8%

Updated

22 Sep, 2021

Data

Company Financials +
TCBI fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance5/6
Financial Health6/6
Dividends0/6

TCBI Overview

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.

Texas Capital Bancshares Competitors

Signature Bank

NasdaqGS:SBNY

US$15.1b

Western Alliance Bancorporation

NYSE:WAL

US$10.0b

Cullen/Frost Bankers

NYSE:CFR

US$7.1b

People's United Financial

NasdaqGS:PBCT

US$6.7b

Price History & Performance

Summary of all time highs, changes and price drops for Texas Capital Bancshares
Historical stock prices
Current Share PriceUS$55.94
52 Week HighUS$29.45
52 Week LowUS$93.26
Beta1.85
1 Month Change-14.78%
3 Month Change-14.71%
1 Year Change84.80%
3 Year Change-33.56%
5 Year Change2.96%
Change since IPO366.56%

Recent News & Updates

Shareholder Returns

TCBIUS BanksUS Market
7D-3.3%-1.0%-1.7%
1Y84.8%75.2%36.2%

Return vs Industry: TCBI exceeded the US Banks industry which returned 67.8% over the past year.

Return vs Market: TCBI exceeded the US Market which returned 31.5% over the past year.

Price Volatility

Is TCBI's price volatile compared to industry and market?
TCBI volatility
TCBI Beta1.85
Industry Beta1.37
Market Beta1

Stable Share Price: TCBI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: TCBI's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19961,619Rob Holmeshttps://www.texascapitalbank.com

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.

Texas Capital Bancshares Fundamentals Summary

How do Texas Capital Bancshares's earnings and revenue compare to its market cap?
TCBI fundamental statistics
Market CapUS$2.83b
Earnings (TTM)US$247.74m
Revenue (TTM)US$963.09m

11.4x

P/E Ratio

1.0x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TCBI income statement (TTM)
RevenueUS$963.09m
Cost of RevenueUS$0
Gross ProfitUS$963.09m
ExpensesUS$715.35m
EarningsUS$247.74m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)4.91
Gross Margin100.00%
Net Profit Margin25.72%
Debt/Equity Ratio96.5%

How did TCBI perform over the long term?

See historical performance and comparison

Valuation

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

0.02%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TCBI ($55.94) is trading below our estimate of fair value ($55.95)

Significantly Below Fair Value: TCBI is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: TCBI is poor value based on its PE Ratio (11.4x) compared to the US Banks industry average (10.6x).

PE vs Market: TCBI is good value based on its PE Ratio (11.4x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TCBI's PB Ratio (1x) is in line with the US Banks industry average.


Future Growth

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

-6.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TCBI's earnings are forecast to decline over the next 3 years (-6.4% per year).

Earnings vs Market: TCBI's earnings are forecast to decline over the next 3 years (-6.4% per year).

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

Revenue vs Market: TCBI's revenue (6.1% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: TCBI's revenue (6.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TCBI's Return on Equity is forecast to be low in 3 years time (6.5%).


Past Performance

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

1.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TCBI has high quality earnings.

Growing Profit Margin: TCBI's current net profit margins (25.7%) are higher than last year (11%).


Past Earnings Growth Analysis

Earnings Trend: TCBI's earnings have grown by 1% per year over the past 5 years.

Accelerating Growth: TCBI's earnings growth over the past year (170%) exceeds its 5-year average (1% per year).

Earnings vs Industry: TCBI earnings growth over the past year (170%) exceeded the Banks industry 36%.


Return on Equity

High ROE: TCBI's Return on Equity (8.4%) is considered low.


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's Assets to Equity ratio (11.3x) is moderate.

Allowance for Bad Loans: TCBI has a sufficient allowance for bad loans (256%).

Low Risk Liabilities: 90% of TCBI's liabilities are made up of primarily low risk sources of funding.

Loan Level: TCBI has an appropriate level of Loans to Assets ratio (67%).

Low Risk Deposits: TCBI's Loans to Deposits ratio (82%) is appropriate.

Level of Bad Loans: TCBI has an appropriate level of bad loans (0.4%).


Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if TCBI'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's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

0.6yrs

Average management tenure


CEO

Rob Holmes (56 yo)

0.67

Tenure

Mr. Robert C. Holmes, also known as Rob, has been Independent Director of Dillard's, Inc. since May 15, 2021. He is the President, Chief Executive Officer and Director of Texas Capital Bancshares, Inc. and...


Leadership Team

Experienced Management: TCBI's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: TCBI's board of directors are considered experienced (7.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: TCBI insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Texas Capital Bancshares, Inc.
  • Ticker: TCBI
  • Exchange: NasdaqGS
  • Founded: 1996
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$2.830b
  • Shares outstanding: 50.60m
  • Website: https://www.texascapitalbank.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/22 22:31
End of Day Share Price2021/09/22 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.