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Texas Community (TCBS)
NASDAQ:TCBS
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Texas Community (TCBS) AI Stock Analysis

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TCBS

Texas Community

(NASDAQ:TCBS)

Rating:54Neutral
Price Target:
$16.50
▲(2.87%Upside)
Texas Community's overall score is primarily influenced by its strong revenue growth and improved profitability amidst cash flow challenges. The stock's valuation appears high, but its dividend yield is a potential draw for investors. Technical analysis suggests a neutral trend, with no extreme market conditions present.

Texas Community (TCBS) vs. SPDR S&P 500 ETF (SPY)

Texas Community Business Overview & Revenue Model

Company DescriptionTexas Community Bancshares, Inc. operates as the bank holding company for Mineola Community Bank, S.S.B. that provides loans and banking services to consumers and commercial customers in Mineola, Texas and the surrounding area, and the Dallas Fort Worth Metroplex. It generates a selection of deposit accounts, including savings accounts, checking accounts, certificates of deposit, and individual retirement accounts. The company also originates primarily one- to four-family residential mortgage loans, commercial real estate loans, and construction and land loans; and car, boat, share, unsecured loans, etc., as well as agricultural loans, commercial loans, and consumer and other loans. In addition, it invests in securities; and offers sweep account, safe deposit boxes, cards, online banking, and mobile banking services. The company was founded in 1934 and is headquartered in Mineola, Texas.
How the Company Makes MoneyTCBS generates revenue primarily through the interest earned on loans and mortgages it provides to individuals and businesses. Additionally, the company earns money from fees associated with account maintenance, overdraft protection, and transaction services. A significant portion of TCBS's income also comes from investment services and wealth management, where they offer personalized financial planning. Strategic partnerships with local businesses and community organizations further enhance their service offerings and client base, contributing to their overall earnings.

Texas Community Financial Statement Overview

Summary
Texas Community displays promising revenue growth and improved profitability metrics in the TTM period, although previous periods showed volatility. The balance sheet is moderately leveraged, with potential risks if liabilities grow faster than assets. Cash flow challenges persist, with negative free cash flow indicating liquidity management needs improvement. Overall, the company is stabilizing its performance, but further focus on cash flow and leverage management is essential for sustainable growth.
Income Statement
62
Positive
Texas Community has shown a strong revenue growth of 19% from 2023 to 2024 and a further 19% growth into TTM (Trailing-Twelve-Months). Gross profit margin improved to 58.4% in TTM from 51.7% in 2024, indicating efficient cost management. However, the company has experienced fluctuations in its EBIT margin, currently at 9.5% in TTM, bouncing back from negative margins in prior periods. Net profit margin improved to 8.2% in TTM from negative margins, reflecting better profitability, though still below industry leaders.
Balance Sheet
57
Neutral
The balance sheet reflects a moderate debt-to-equity ratio of 0.94, suggesting a balanced approach to leveraging. However, the equity ratio has slightly decreased to 11.9% in TTM from 11.8% in 2024, which could signal potential risks if liabilities continue to grow. Return on equity has improved to 3.8% in TTM, showing better utilization of equity, but still below optimal levels for significant value creation.
Cash Flow
49
Neutral
Texas Community's cash flow indicates challenges, with a negative free cash flow of -$476,000 in TTM, a decline from positive flows in 2024. The operating cash flow to net income ratio is negative, highlighting difficulties in converting earnings to cash. The free cash flow to net income ratio is also negative, signaling potential liquidity constraints and the need for improved cash flow management.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue20.84M19.33M14.43M12.25M12.36M
Gross Profit10.78M11.06M11.94M10.09M9.37M
EBITDA-1.21M-515.00K2.61M1.05M1.37M
Net Income-1.30M-733.00K1.75M518.00K749.00K
Balance Sheet
Total Assets443.46M452.04M417.35M364.83M299.64M
Cash, Cash Equivalents and Short-Term Investments88.92M111.04M116.11M77.41M32.95M
Total Debt49.88M76.90M62.49M27.57M30.77M
Total Liabilities391.35M398.36M361.48M304.69M268.04M
Stockholders Equity52.11M53.69M55.87M60.13M31.94M
Cash Flow
Free Cash Flow740.00K-3.31M2.74M1.62M1.10M
Operating Cash Flow1.94M2.29M3.13M1.76M1.91M
Investing Cash Flow8.80M-31.15M-72.18M-52.80M-29.91M
Financing Cash Flow-10.51M33.00M56.07M64.88M30.54M

Texas Community Technical Analysis

Technical Analysis Sentiment
Negative
Last Price16.04
Price Trends
50DMA
16.02
Positive
100DMA
15.93
Positive
200DMA
15.57
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
48.21
Neutral
STOCH
13.63
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TCBS, the sentiment is Negative. The current price of 16.04 is below the 20-day moving average (MA) of 16.21, above the 50-day MA of 16.02, and above the 200-day MA of 15.57, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 48.21 is Neutral, neither overbought nor oversold. The STOCH value of 13.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TCBS.

Texas Community Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$54.05M3.4515.30%43.98%37.57%
65
Neutral
£5.05B10.866.90%5.22%23.81%1.11%
61
Neutral
$62.55M8.778.93%2.34%7.07%96.94%
54
Neutral
$48.68M23.893.88%1.00%19.16%
$54.22M-0.80%
57
Neutral
$52.22M22.252.69%107.33%
54
Neutral
$91.03M>-0.01%13.69%77.14%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TCBS
Texas Community
16.04
2.31
16.82%
OPHC
Optimumbank Holdings
4.60
0.12
2.68%
FSEA
First Seacoast Bancorp
11.50
2.31
25.14%
BAFN
BayFirst Financial Corp
13.69
1.21
9.70%
CLST
Catalyst Bancorp
12.42
0.43
3.59%
CFSB
CFSB Bancorp, Inc
13.97
7.15
104.84%

Texas Community Corporate Events

Executive/Board ChangesShareholder Meetings
Texas Community Elects New Director at Annual Meeting
Neutral
May 21, 2025

On May 20, 2025, Texas Community Bancshares, Inc. held its Annual Meeting of Stockholders, where Mark A. Pickens was elected as a director for a three-year term. Additionally, the appointment of Forvis Mazars, LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, was ratified.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 30, 2025