Texas Community (TCBS) AI Stock Analysis

• Market Cap: $47.41M
• Dividend Yield: 0.99%
• Average Volume (3M): 4.22K
• Price to Earnings (P/E): 20.4
• Beta (1Y): 0.14
• Revenue Growth: 13.47%
• EPS Growth: N/A
• Country: US
• Employees: 60
• Sector: Financial
• Sector Strength: 71
• Industry: Banks - Regional
• EPS (TTM): 0.67
• Shares Outstanding: 2,966,743
• 10 Day Avg. Volume: 2,530
• 30 Day Avg. Volume: 4,223
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.92
• Enterprise Value/Revenue: 3.77
• Enterprise Value/Gross Profit: 8.26
• Enterprise Value/Ebitda: 28.34
• 1Y Price Target: $16.50
• Price Target Upside: 2.48% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 57 Neutral
• Price Target: $16.50 ▲(2.48% Upside)

Texas Community's stock score is primarily driven by its financial performance, with strong revenue growth and improved profitability. However, cash flow challenges and moderate leverage pose risks. Technical analysis indicates stability but weak momentum, while valuation suggests the stock is fairly priced with limited dividend yield.

Texas Community Business Overview & Revenue Model

Company Description

Texas 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 Money

TCBS 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 shows strong revenue growth and improved profitability, but faces challenges with cash flow and moderate leverage. The company is stabilizing, but needs to focus on cash flow and leverage management for sustainable growth.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.19M	20.84M	19.33M	14.43M	12.25M	12.36M
Gross Profit	11.04M	10.78M	11.06M	11.94M	10.09M	9.37M
EBITDA	3.22M	-1.21M	-515.00K	2.61M	1.05M	1.37M
Net Income	2.35M	-1.30M	-733.00K	1.75M	518.00K	749.00K
Balance Sheet
Total Assets	444.08M	443.46M	452.04M	417.35M	364.83M	299.64M
Cash, Cash Equivalents and Short-Term Investments	78.11M	88.92M	111.04M	116.11M	77.41M	32.95M
Total Debt	49.24M	49.88M	76.90M	62.49M	27.57M	30.77M
Total Liabilities	391.21M	391.35M	398.36M	361.48M	304.69M	268.04M
Stockholders Equity	52.87M	52.11M	53.69M	55.87M	60.13M	31.94M
Cash Flow
Free Cash Flow	245.00K	740.00K	-3.31M	2.74M	1.62M	1.10M
Operating Cash Flow	265.00K	1.94M	2.29M	3.13M	1.76M	1.91M
Investing Cash Flow	-11.04M	8.80M	-31.15M	-72.18M	-52.80M	-29.91M
Financing Cash Flow	-10.21M	-10.51M	33.00M	56.07M	64.88M	30.54M

Texas Community Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.10
• 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 TCBS, the sentiment is Positive. The current price of 16.1 is above the 20-day moving average (MA) of 15.95, above the 50-day MA of 16.08, and above the 200-day MA of 15.66, indicating a bullish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 54.06 is Neutral, neither overbought nor oversold. The STOCH value of 87.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TCBS.

Texas Community Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPHC	77 Outperform	$49.94M	3.30	14.85%	―	25.77%	12.09%
Sector *	68 Neutral	$17.49B	11.70	10.34%	3.85%	9.75%	0.63%
TCBS	57 Neutral	$47.41M	20.38	4.50%	0.99%	13.47%	―
BAFN	57 Neutral	$34.97M	4.90	8.93%	4.14%	7.07%	96.65%
CLST	57 Neutral	$52.15M	22.67	2.69%	―	107.33%	―
CFSB	54 Neutral	$91.03M	―	>-0.01%	―	13.69%	77.14%

Texas Community Corporate Events

Texas Community Elects New Director at Annual Meeting

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.