Last Updated: 19 Sep 2024
Executive Summary
Texas Capital Bancshares Inc. (TCBI) is a leading regional bank holding company headquartered in Dallas, Texas. The company has a strong financial position, with a market capitalization of $3.32 billion and a trailing price-to-earnings (PE) ratio of 25.97. TCBI has a solid track record of earnings growth and profitability, with a return on assets (ROA) of 0.0051 and a return on equity (ROE) of 0.0478. The company's stock price is currently trading at $71.93, which is below its 52-week high of $74.31.
Company Overview
Texas Capital Bancshares Inc. is the banking holding company for Texas Capital Bank, a National Association that offers various banking products and services for commercial companies, professionals, and entrepreneurs. The company was founded in 1998 and is headquartered in Dallas, Texas. TCBI operates through a network of 66 branches and 154 ATMs in Texas, Oklahoma, and New Mexico. The company's primary business segments include commercial banking, mortgage banking, and wealth management.
Fundamental Analysis
TCBI's financial performance has been strong in recent years. The company's revenue has grown at a compound annual growth rate (CAGR) of 7.5% over the past five years. Net income has also grown at a CAGR of 10.2% over the same period. TCBI's profitability metrics are also strong. The company's ROA has averaged 0.0051 over the past five years, and its ROE has averaged 0.0478.
TCBI's balance sheet is also strong. The company has a low level of debt and a high level of capital. TCBI's Tier 1 capital ratio is 11.2%, which is well above the regulatory minimum of 8%.
Technical Analysis
TCBI's stock price has been in a downtrend since early 2023. The stock price broke below its 50-day moving average in April and has continued to trend lower since then. The stock price is currently trading below its 200-day moving average, which is a sign of weakness.
The relative strength index (RSI) is a momentum indicator that measures the magnitude of recent price changes. The RSI is currently at 34.5, which is below the neutral level of 50. This indicates that TCBI's stock price is oversold and may be due for a rebound.
Short Term Outlook
TCBI's stock price is likely to remain under pressure in the short term. The stock price is trading below its moving averages and the RSI is oversold. However, the stock price may be due for a rebound if the RSI rises above 50.
Long Term Outlook
TCBI's long-term outlook is positive. The company has a strong financial position, a solid track record of earnings growth, and a favorable industry outlook. TCBI is well-positioned to benefit from the continued growth of the Texas economy.
Analyst Recommendations
Analysts have a mixed view on TCBI's stock. One analyst has a strong buy rating on the stock, two analysts have a buy rating, eight analysts have a hold rating, three analysts have a sell rating, and one analyst has a strong sell rating. The average analyst target price is $68.85.
