Texas Capital Bancshares (TCBI) AI Stock Analysis

• Market Cap: $3.80B
• Dividend Yield: N/A
• Average Volume (3M): 518.17K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.88
• Revenue Growth: 5.19%
• EPS Growth: 3454.95%
• Country: US
• Employees: 1,818
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 2.18
• Shares Outstanding: 45,643,585
• 10 Day Avg. Volume: 768,682
• 30 Day Avg. Volume: 518,168
• PEG Ratio: -0.73
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 2.07
• P/FCF Ratio: 8.75
• Enterprise Value/Market Cap: 0.54
• Enterprise Value/Revenue: 1.04
• Enterprise Value/Gross Profit: 1.79
• Enterprise Value/Ebitda: 4.71
• 1Y Price Target: $90.86
• Price Target Upside: 9.04% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 7

• Rating: 74 Outperform
• Price Target: $96.00 ▲(15.20% Upside)

Texas Capital Bancshares scores well due to strong financial performance and positive earnings call highlights. The company's strategic transformation and record financial achievements are significant strengths. However, mixed technical indicators and valuation concerns slightly temper the overall score. The absence of a dividend yield and challenges in mortgage finance and interest rate pressures are noted risks.

Positive Factors

Revenue Growth

Sustained revenue growth indicates robust demand for the bank's services and effective client engagement, supporting long-term expansion.

Strategic Transformation

Successful strategic transformation enhances operational efficiency and asset utilization, strengthening the company's competitive position.

Treasury Solutions Growth

Growth in treasury solutions reflects successful diversification of revenue streams and reduced reliance on high-cost deposits.

Negative Factors

Interest Rate Pressure

Interest rate pressures could constrain net interest margins, affecting profitability and necessitating strategic adjustments.

Mortgage Finance Volatility

Volatility in mortgage finance can impact revenue stability, requiring adaptive strategies to manage market fluctuations.

Leverage Risk

Despite improved leverage management, existing leverage risk could limit financial flexibility and increase vulnerability to economic shifts.

Texas Capital Bancshares Business Overview & Revenue Model

Company Description

Texas Capital Bancshares, Inc. operates as the bank holding company for Texas Capital Bank, is a full-service financial services firm that delivers customized solutions to businesses, entrepreneurs, and individual customers. The company offers commercial banking, consumer banking, investment banking, and wealth management services. It offers business deposit products and services, including commercial checking accounts, lockbox accounts, and cash concentration accounts, as well as information, wire transfer initiation, ACH initiation, account transfer, and service integration services; 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 working capital, internal growth, acquisitions, and business insurance premiums, as well as consumer loans; loans to exploration and production companies; mortgage finance loans; commercial real estate and residential homebuilder finance loans; first and second lien loans for the purpose of purchasing or constructing 1-4 family residential dwellings, as well as home equity revolving lines of credit and loans to purchase lots for future construction of 1-4 family residential dwellings; and real estate loans originated through a small business administration program, as well as equipment finance and leasing services, and letters of credit. In addition, it offers online and mobile banking, and debit and credit card services; escrow services; personal wealth management and trust services; and depositors American Airlines AAdvantage miles. It operates in Austin, Fort Worth, Dallas, Houston, and San Antonio metropolitan areas of Texas. Texas Capital Bancshares, Inc. was incorporated in 1996 and is headquartered in Dallas, Texas.

How the Company Makes Money

Texas Capital Bancshares generates revenue primarily through interest income earned on loans and securities, as well as non-interest income from various banking services. The main revenue streams include interest from commercial loans, real estate loans, and consumer loans. Additionally, the bank earns fees from deposit accounts, treasury management services, and wealth management offerings. Key partnerships with local businesses and real estate developers enhance its loan portfolio, while a focus on customer service helps maintain strong relationships and customer retention. Overall, TCBI's financial performance is closely tied to the economic conditions in Texas and its ability to effectively manage its interest rate risk and operational expenses.

Texas Capital Bancshares Financial Statement Overview

Summary

Texas Capital Bancshares demonstrates strong financial performance with notable improvements in revenue growth and profitability margins. The balance sheet reflects improved leverage management, though some risk remains. Cash flow metrics are particularly strong, indicating excellent liquidity and cash management. Overall, the company is on a positive financial trajectory with opportunities for further operational enhancements.

Income Statement

Texas Capital Bancshares shows a strong revenue growth rate of 9.39% in the TTM, indicating a positive trajectory. The gross profit margin is healthy at 41.37%, although it has decreased from previous years. The net profit margin improved significantly to 15.13% in the TTM, reflecting enhanced profitability. However, the EBIT and EBITDA margins, while improved, suggest room for operational efficiency gains.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.25 in the TTM, indicating better leverage management compared to previous years. Return on equity is moderate at 8.62%, showing decent profitability from shareholders' investments. The equity ratio is stable, suggesting a balanced asset structure. However, the overall leverage remains a potential risk factor.

Cash Flow

Free cash flow growth is robust at 74.52% in the TTM, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is healthy at 1.51, indicating efficient cash conversion. The free cash flow to net income ratio is also strong at 0.93, underscoring effective cash management. These metrics suggest solid liquidity and financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.96B	1.76B	1.79B	1.25B	987.05M	1.18B
Gross Profit	1.14B	865.35M	1.00B	910.76M	909.30M	731.72M
EBITDA	432.93M	161.29M	287.07M	477.04M	431.46M	166.87M
Net Income	287.99M	77.51M	189.14M	332.48M	253.94M	66.29M
Balance Sheet
Total Assets	32.54B	30.79B	28.36B	28.41B	34.73B	37.73B
Cash, Cash Equivalents and Short-Term Investments	4.01B	3.37B	6.47B	7.63B	11.53B	12.40B
Total Debt	895.42M	1.55B	2.36B	2.13B	3.13B	3.51B
Total Liabilities	28.90B	27.42B	25.16B	25.36B	31.52B	34.85B
Stockholders Equity	3.64B	3.37B	3.20B	3.06B	3.21B	2.87B
Cash Flow
Free Cash Flow	675.93M	416.28M	357.36M	136.70M	653.19M	2.64B
Operating Cash Flow	686.34M	481.12M	373.74M	147.97M	657.32M	2.64B
Investing Cash Flow	-2.18B	-2.48B	-1.76B	3.31B	1.23B	-2.94B
Financing Cash Flow	-2.48B	1.94B	-387.67M	-6.39B	-3.15B	5.08B

Texas Capital Bancshares Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 83.33
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TCBI, the sentiment is Negative. The current price of 83.33 is below the 20-day moving average (MA) of 83.46, below the 50-day MA of 85.05, and above the 200-day MA of 78.99, indicating a neutral trend. The MACD of -0.31 indicates Negative momentum. The RSI at 48.62 is Neutral, neither overbought nor oversold. The STOCH value of 76.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TCBI.

Texas Capital Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TCBI	―	$3.80B	13.65	8.60%	―	5.19%	3454.95%
INDB	―	$3.34B	16.64	5.51%	3.49%	11.09%	-10.78%
UCB	―	$3.55B	11.81	9.01%	3.25%	5.45%	65.11%
RNST	―	$3.20B	17.62	4.54%	2.61%	20.35%	-35.00%
FULT	―	$3.19B	9.43	10.92%	4.11%	9.58%	20.38%
FIBK	―	$3.37B	14.53	6.91%	5.85%	-2.11%	-8.95%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Texas Capital Bancshares Corporate Events

Texas Capital Bancshares Reports Record Earnings and Strategic Success

Texas Capital Bancshares recently held an earnings call that painted a picture of impressive financial performance and strategic success, albeit with some challenges on the horizon. The company showcased significant achievements in investment banking, credit quality, and treasury solutions. However, it also acknowledged the hurdles posed by mortgage finance volatility and interest rate pressures.

Texas Capital Bancshares Reports Record Q3 2025 Earnings

Texas Capital Bancshares, Inc., the parent company of Texas Capital Bank, is a full-service financial services firm headquartered in Dallas, Texas. It provides customized banking solutions to businesses, entrepreneurs, and individual customers across the United States.