Texas Capital Bancshares Inc (TCBI, Financial) has recently experienced a notable fluctuation in its stock price. Over the past week, the stock has decreased by 2.39%, settling at $67.87. However, looking at a broader timeline, TCBI has seen an impressive increase of 11.31% over the past three months. Currently, the stock is fairly valued at $68.35 according to the GF Value, a slight adjustment from being modestly undervalued three months ago when the GF Value was at $70.7.
Overview of Texas Capital Bancshares Inc
Texas Capital Bancshares Inc, operating under the ticker TCBI, is a prominent player in the banking industry. The company specializes in providing secured lending products, primarily excluding mortgage finance loans and other national lines of business. Its operations are concentrated in major Texas metropolitan areas including Austin, Dallas, Fort Worth, Houston, and San Antonio. This strategic focus allows TCBI to leverage local economic growth and maintain a strong presence in its primary markets.
Assessing Profitability
TCBI's Profitability Rank stands at 5/10, indicating an average level of profitability within the industry. The company's Return on Equity (ROE) is 4.76%, which ranks better than 22.75% of 1,591 companies in the banking sector. Additionally, its Return on Assets (ROA) of 0.51% also places it above 27.67% of its industry peers. Notably, TCBI has maintained profitability for the past decade, a commendable feat that surpasses 99.94% of its competitors.
Growth Prospects
The Growth Rank of TCBI is currently at 4/10, reflecting moderate growth potential. The company has achieved a 3-year revenue growth rate per share of 4.20%, which is better than 35.16% of 1,536 companies in the same industry. Looking ahead, TCBI is expected to grow its revenue by 4.23% over the next 3 to 5 years. In terms of earnings, the 3-year EPS growth rate stands at an impressive 37.10%, significantly higher than many of its peers.
Influence of Major Holders
Top shareholders of TCBI include Barrow, Hanley, Mewhinney & Strauss holding 2.68% of shares, followed by Ken Fisher (Trades, Portfolio) with 0.51%, and Renaissance Technologies (Trades, Portfolio) at 0.33%. The involvement of these prominent investors can provide a layer of stability and confidence in the stock, potentially influencing its market performance and investor perception.
Competitive Landscape
TCBI faces competition from companies like First National of Nebraska Inc (FINN, Financial), First Hawaiian Inc (FHB, Financial), and First Interstate BancSystem Inc (FIBK, Financial), all of which have similar market capitalizations around $3 billion. This close competition in market cap highlights the competitive environment in which TCBI operates, necessitating continuous improvement and innovation to maintain its market position.
Conclusion
Overall, Texas Capital Bancshares Inc exhibits a solid financial foundation and a competitive stance in the banking industry. Despite recent fluctuations, the stock's significant quarterly rise and fair valuation suggest a positive outlook. Investors should consider both the profitability metrics and growth prospects of TCBI, alongside its competitive position, to make informed investment decisions. The influence of major holders also adds an interesting dimension to its stock stability and potential future performance.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
