Texas Capital Bancshares Inc (TCBI.PB) stock analysis

P/E below its 5-year median

Texas Capital Bancshares's P/E of 13.2 is below its own 5-year median of 15.1.

P/E above the industry

Texas Capital Bancshares's P/E of 13.2 is above the Commercial Banks median of 12.0.

P/S below the industry

Texas Capital Bancshares's price-to-sales of 3.34 is below the Commercial Banks median of 3.57.

P/B above the industry

Texas Capital Bancshares's price-to-book of 1.29 is above the Commercial Banks median of 1.27.

Trading above fair value

The share price of $103.09 is above our fair value estimate of $99.03.

Margin of safety under 20%

The price is 4.1% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 0.8% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 3.2% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 20.8% over the last twelve months, against a 5-year average of 37.9% a year.

Growing slower than the industry

Revenue grew 10.9% over the last twelve months; the Commercial Banks median is 11.2%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

Banks and insurers do not report gross profit.

Return on equity under 15%

Return on equity was 10.2% over the last twelve months and averaged 7.4% over five years; we look for 15% on both.

Return on assets over 1%

Return on assets was 1.1%; for a bank or insurer, 1% or more is considered good.

Return on equity below the industry

Texas Capital Bancshares's return on equity of 10.2% is below the Commercial Banks median of 11.5%.

Earnings grew over 5 years

Net income grew 37.9% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 27.0% over the last twelve months, against a 5-year average of 21.5%.

Net margin below the industry

Texas Capital Bancshares's net margin of 27.0% is below the Commercial Banks median of 30.2%.

Well capitalized

Equity is 10.8% of total assets; 8% or more is a comfortable cushion.

Loans funded by deposits

Loans equal 85.9% of deposits, so lending is funded by customer deposits.

Adequate loan-loss reserve

The allowance for credit losses is 1.1% of loans; we look for at least 1%.

High cost base

Non-interest expense takes 60.1% of revenue; under 60% is efficient for a bank.

Deposits growing

Deposits grew 0.8% over the past year.

Borrowings

Needs debt and equity figures.

Pays a dividend

Texas Capital Bancshares paid dividends worth 0.4% of the share price over the last twelve months.

Yield below Treasuries

The 0.4% yield is below the 4.3% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 4.0% or more; Texas Capital Bancshares yields 0.4%.

Dividend stability

Fewer than five years of dividend history.

Earnings cover

Needs dividends paid and net income.

Cash-flow cover

Needs dividends paid and free cash flow.