South Plains Financial (SPFI) AI Stock Analysis

• Market Cap: $608.21M
• Dividend Yield: 1.6%
• Average Volume (3M): 37.85K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.75
• Revenue Growth: 8.76%
• EPS Growth: -18.66%
• Country: US
• Employees: 528
• Sector: Financial
• Sector Strength: 81
• Industry: Banks - Regional
• EPS (TTM): 0.72
• Shares Outstanding: 16,227,688
• 10 Day Avg. Volume: 62,833
• 30 Day Avg. Volume: 37,850
• PEG Ratio: 2.97
• Price to Book (P/B): 1.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.02
• Enterprise Value/Market Cap: 0.60
• Enterprise Value/Revenue: 0.41
• Enterprise Value/Gross Profit: 1.67
• Enterprise Value/Ebitda: 1.56
• 1Y Price Target: $41.67
• Price Target Upside: 11.18% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 74 Outperform
• Price Target: $39.00 ▲(4.06%Upside)

South Plains Financial is well-positioned with strong financial performance and a solid capital structure. While the technical indicators and valuation suggest some caution, the company's robust deposit growth and improved credit quality from the earnings call are significant positives. However, concerns over decreasing non-interest income and declining EPS temper the outlook.

South Plains Financial Business Overview & Revenue Model

Company Description

South Plains Financial, Inc. (SPFI) is a financial services company primarily engaged in providing a wide range of banking and financial solutions. The company operates through its subsidiary, City Bank, which offers a comprehensive suite of services including personal and commercial banking, mortgage lending, and financial advisory services. With a focus on community banking, SPFI serves a diverse client base across several regions, emphasizing personalized service and local decision-making.

How the Company Makes Money

South Plains Financial makes money through various revenue streams centered around traditional banking and financial services. The primary sources of revenue include interest income from loans and leases, which constitutes a significant portion of their earnings. Additionally, the company generates non-interest income through service charges on deposit accounts, mortgage banking fees, and wealth management services. The bank fosters local relationships to drive growth in both its lending and deposit-taking activities. Strategic partnerships with financial service providers also enhance its product offerings, contributing to its revenue model by attracting a diverse clientele and expanding its market presence.

South Plains Financial Financial Statement Overview

Summary

South Plains Financial demonstrates strong profitability with a high net profit margin and efficient cost management. The balance sheet is robust with no current debt, although the equity ratio suggests moderate leverage. Cash flow operations are stable, with room for improvement in free cash flow conversion.

Income Statement

South Plains Financial shows a solid performance with a consistent gross profit margin of 100% due to its banking operations. The net profit margin for the latest period is approximately 20.6%, indicating strong profitability. However, the revenue growth rate from 2023 to 2024 is relatively modest at 14.2%, and EBIT margin is notably high at approximately 98.4%, reflecting efficient cost management. Despite a decrease in EBITDA reporting, the company maintains a steady financial trajectory.

Balance Sheet

The company's balance sheet is robust with no current debt, indicating a strong financial position. The equity ratio stands at 10.4%, suggesting a stable equity base relative to total assets. Return on Equity (ROE) is 11.3%, showcasing effective use of equity to generate profits. However, the low equity ratio may indicate moderate leverage in the context of typical banking industry standards, which could pose risks if economic conditions worsen.

Cash Flow

South Plains Financial demonstrates stable cash flow operations with a healthy operating cash flow to net income ratio of 1.19. The free cash flow growth rate from 2023 to 2024 is 10.2%, reflecting positive cash management. However, the free cash flow to net income ratio is slightly lower at 1.19, indicating some room for improvement in converting income into free cash flow. Overall, cash flow management appears steady but could benefit from enhancements in free cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	215.21M	240.90M	210.95M	214.62M	219.23M	219.63M
Gross Profit	218.91M	189.30M	210.95M	214.62M	219.23M	221.57M
EBITDA	73.70M	69.80M	0.00	73.15M	85.12M	0.00
Net Income	51.14M	49.72M	62.74M	58.24M	58.61M	45.35M
Balance Sheet
Total Assets	4.41B	4.23B	4.20B	3.94B	3.90B	3.60B
Cash, Cash Equivalents and Short-Term Investments	753.63M	631.35M	952.92M	936.59M	1.21B	1.10B
Total Debt	110.40M	110.35M	110.17M	122.35M	122.17M	223.53M
Total Liabilities	3.96B	3.79B	3.80B	3.59B	3.49B	3.24B
Stockholders Equity	443.74M	438.95M	407.11M	357.01M	407.43M	370.05M
Cash Flow
Free Cash Flow	60.61M	56.03M	53.86M	119.12M	93.35M	2.32M
Operating Cash Flow	64.63M	59.38M	58.54M	123.59M	96.27M	5.63M
Investing Cash Flow	-34.51M	-13.93M	-143.38M	-408.86M	-159.84M	-156.23M
Financing Cash Flow	134.24M	-16.53M	180.11M	33.33M	250.08M	292.81M

South Plains Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 37.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPFI, the sentiment is Positive. The current price of 37.48 is above the 20-day moving average (MA) of 35.94, above the 50-day MA of 35.26, and above the 200-day MA of 34.77, indicating a bullish trend. The MACD of 0.39 indicates Negative momentum. The RSI at 65.94 is Neutral, neither overbought nor oversold. The STOCH value of 87.81 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SPFI.

South Plains Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRST	78 Outperform	$667.59M	13.11	7.63%	4.10%	5.63%	-3.82%
HTBK	74 Outperform	$651.06M	15.51	6.12%	4.92%	5.14%	-24.91%
SPFI	74 Outperform	$608.21M	12.51	12.00%	1.60%	8.76%	-18.66%
THFF	73 Outperform	$662.33M	12.07	10.02%	3.65%	16.84%	-1.03%
ORRF	71 Outperform	$650.02M	16.98	7.85%	3.12%	75.68%	-41.36%
Sector *	67 Neutral	$16.84B	11.72	9.71%	3.76%	11.61%	-9.60%
HIFS	67 Neutral	$600.03M	21.27	6.68%	0.92%	7.69%	13.82%

South Plains Financial Corporate Events

South Plains Financial Shareholders Approve Key Proposals

South Plains Financial, Inc. held its 2025 Annual Meeting of Shareholders virtually on May 20, 2025. During the meeting, shareholders approved four key proposals, including the election of two Class III directors, the ratification of Forvis Mazars, LLP as the independent accounting firm, and the approval of executive compensation and its advisory vote frequency. The company decided to hold annual advisory votes on executive compensation until at least 2031.

The most recent analyst rating on (SPFI) stock is a Buy with a $43.00 price target. To see the full list of analyst forecasts on South Plains Financial stock, see the SPFI Stock Forecast page.

South Plains Financial Reports Q1 2025 Financial Results

South Plains Financial, Inc. reported its financial results for the first quarter of 2025, showing a net income of $12.3 million, a decrease from the previous quarter but an increase from the same quarter in the previous year. The company experienced solid deposit growth and improved credit quality, with a net interest margin of 3.81% and a decrease in nonperforming assets. Despite a decrease in noninterest income due to lower mortgage banking revenues, the company maintained strong capital ratios and repurchased $8.3 million worth of shares. The company is positioned to expand in its markets, emphasizing a conservative credit culture and readiness to meet customer needs amid economic uncertainties.