Texas Capital Bancshares (TCBI) AI Stock Analysis

• Market Cap: $4.28B
• Dividend Yield: N/A
• Average Volume (3M): 465.68K
• Price to Earnings (P/E): 15.4
• Beta (1Y): 0.83
• 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: 559,878
• 30 Day Avg. Volume: 465,684
• 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: 0.48
• Enterprise Value/Revenue: 1.04
• Enterprise Value/Gross Profit: 1.79
• Enterprise Value/Ebitda: 4.71
• 1Y Price Target: $93.38
• Price Target Upside: -0.45% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: $107.00 ▲(14.07% Upside)

Texas Capital Bancshares is on a strong financial trajectory with robust revenue growth and profitability improvements. Technical indicators support a bullish outlook, while strategic initiatives like the share buyback program enhance shareholder value. Valuation remains reasonable, though the absence of a dividend yield may limit appeal to income investors. Overall, the company is well-positioned for continued success, with some caution warranted due to interest rate pressures.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and product adoption, supporting long-term business sustainability.

Cash Generation

Strong cash generation enhances liquidity and financial flexibility, allowing for strategic investments and resilience in downturns.

Strategic Transformation

Successful strategic transformation improves operational efficiency and competitive positioning, driving long-term growth.

Negative Factors

Interest Rate Pressure

Interest rate pressures can compress margins, affecting profitability and limiting growth potential in a competitive banking environment.

Mortgage Finance Volatility

Volatility in mortgage finance can lead to unpredictable revenue streams, impacting stability and planning in the financial sector.

Leverage Risk

High leverage can strain financial resources and limit flexibility, posing risks during economic downturns or financial stress.

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 from loans and investments, as well as non-interest income from various service fees. The bank's loan portfolio, which includes commercial loans, real estate loans, and consumer loans, is a significant source of interest income. Additionally, TCBI earns fees from deposit services, treasury management, and wealth management services, contributing to its non-interest income. The company's focus on relationship-based banking allows it to build strong ties with clients, leading to repeat business and sustained revenue streams. Furthermore, strategic partnerships and collaborations enhance its service offerings, driving growth and profitability.

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	30.73B	28.36B	28.41B	34.73B	37.73B
Cash, Cash Equivalents and Short-Term Investments	6.87B	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	27.36B	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: Positive
• Last Price: 93.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TCBI, the sentiment is Positive. The current price of 93.8 is above the 20-day moving average (MA) of 93.47, above the 50-day MA of 88.08, and above the 200-day MA of 81.07, indicating a bullish trend. The MACD of 1.54 indicates Positive momentum. The RSI at 57.78 is Neutral, neither overbought nor oversold. The STOCH value of 27.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TCBI.

Texas Capital Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INDB	80 Outperform	$3.75B	18.45	5.51%	3.05%	11.05%	-10.78%
TCBI	79 Outperform	$4.28B	15.36	8.60%	―	5.19%	3454.95%
UCB	77 Outperform	$3.95B	12.86	9.01%	3.02%	5.63%	65.11%
FIBK	76 Outperform	$3.69B	15.11	7.20%	5.24%	-5.43%	4.19%
RNST	72 Outperform	$3.44B	18.26	4.54%	2.47%	20.26%	-35.00%
FULT	71 Outperform	$3.65B	10.57	10.92%	3.52%	9.60%	20.38%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Texas Capital Bancshares Corporate Events

Texas Capital Bancshares Announces 2026 Share Buyback Plan

On December 1, 2025, Texas Capital Bancshares announced a new share repurchase program for 2026, allowing the company to buy back up to $200 million of its common stock. This program, effective December 12, 2025, replaces the current program and reflects the company’s strategic approach to managing its capital and market positioning.

Texas Capital Bancshares Reports Record Q3 2025 Performance

On November 3, 2025, Texas Capital Bancshares presented its annual governance discussion materials to stockholders, highlighting significant financial achievements and strategic growth since its transformation plan in 2021. The company reported record financial performance for the third quarter of 2025, including a 30% increase in Pre-Provision Net Revenue (PPNR) compared to the previous year, and a total capital ratio increase to 16.10%, placing it in the top quintile among peers. These results reflect Texas Capital’s commitment to enhancing client relevance and expanding its banking capabilities in Texas and national markets.