Trustmark (TRMK) AI Stock Analysis

• Market Cap: $2.67B
• Dividend Yield: 2.38%
• Average Volume (3M): 266.78K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.91
• Revenue Growth: 17.95%
• EPS Growth: N/A
• Country: US
• Employees: 2,506
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.97
• Shares Outstanding: 59,958,256
• 10 Day Avg. Volume: 331,691
• 30 Day Avg. Volume: 266,784
• PEG Ratio: 5.46
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 2.10
• P/FCF Ratio: 9.63
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 2.61
• Enterprise Value/Gross Profit: 4.04
• Enterprise Value/Ebitda: 9.74
• 1Y Price Target: $44.00
• Price Target Upside: 2.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: $46.00 ▲(6.93% Upside)
• Action: Downgraded Date: 02/24/26
• Date: Action: Downgraded 02/24/26

The score is driven primarily by solid but not best-in-class fundamentals: good profitability and improving leverage are offset by revenue instability and uneven cash-flow consistency. Technicals are moderately supportive with neutral momentum, while valuation is favorable (P/E ~12 and a ~2.17% dividend). Earnings call commentary and 2026 guidance add a positive tilt, despite acknowledged deposit and expense headwinds.

Positive Factors

Improving Leverage & Capital

Material deleveraging since 2022 and rising equity provide durable balance-sheet resilience for a regional bank. Stronger capital ratios increase loss-absorption, support measured buybacks/dividends, and preserve optionality for opportunistic M&A or loan growth without pressuring regulatory buffers.

Healthy Profitability & Margins

Sustained, above-average operating and net margins indicate structurally profitable core banking and wealth operations. Consistent ROE near double digits supports internal capital generation, dividend capacity, and competitive reinvestment even if top-line growth moderates over the medium term.

Diversified Fee Income & Wealth/Mortgage Strength

Growing wealth and mortgage franchises diversify revenue beyond interest income, reducing sensitivity to loan cycle swings. Durable fee streams and improved MSR hedging enhance earnings stability, supporting noninterest income growth and smoothing net income across rate and credit cycles.

Negative Factors

Revenue Volatility

Persistent top-line volatility undermines earnings predictability and makes margin maintenance harder over time. If revenue falls short, incremental expenses and credit costs can erode profits faster than capital can absorb, limiting strategic investments and increasing execution risk over the next several quarters.

Inconsistent Free Cash Flow

Irregular FCF growth reduces the firm’s reliable internal funding for dividends, buybacks, and balance-sheet growth. Multiyear FCF inconsistency means the bank may rely more on capital markets or restrict capital returns during stress, constraining strategic flexibility across economic cycles.

Deposit Volatility & Rising Expenses

Concentration in public funds and quarter-to-quarter deposit swings increase funding cost and liquidity management complexity. Concurrent expense growth from investments and merit increases pressures efficiency and could compress durable margins if deposit trends or funding costs worsen.

Trustmark Business Overview & Revenue Model

Company Description

Trustmark Corporation operates as the bank holding company for Trustmark National Bank that provides banking and other financial solutions to individuals and corporate institutions in the United States. The company operates through three segments: General Banking, Wealth Management, and Insurance. It offers checking, savings, and money market accounts; certificates of deposits and individual retirement accounts; financing for commercial and industrial projects, income-producing commercial real estate, owner-occupied real estate, and construction and land development; and installment and real estate loans, and lines of credit, as well as treasury management services. The company also provides mortgage banking services, including construction financing, production of conventional and government-insured mortgages, and secondary marketing and mortgage servicing. In addition, it provides wealth management and trust services, such as administration of personal trusts and estates; management of investment accounts for individuals, employee benefit plans, and charitable foundations; and corporate trust and institutional custody, securities brokerage, financial and estate planning, retirement plan, and investment management services. Further, the company offers business insurance products and services for medical professionals, construction, manufacturing, hospitality, real estate, and group life and health plans; and life and health insurance, and personal line policies for individual customers. As of December 31, 2021, it operated 167 full-service branches and 13 limited service branches; and 198 automated teller machines and 69 interactive teller machines. The company was founded in 1889 and is headquartered in Jackson, Mississippi.

How the Company Makes Money

Trustmark generates revenue through multiple key streams. Primarily, it earns interest income from loans provided to customers, including commercial and consumer loans, which represent a significant portion of its earnings. Additionally, the bank collects fees from various services, such as account maintenance, transaction fees, and investment services. Trustmark also benefits from non-interest income through wealth management fees, insurance premiums, and fees from investment advisory services. Strategic partnerships with financial technology firms and community organizations enhance its service offerings and client reach, contributing to its overall revenue growth.

Trustmark Financial Statement Overview

Summary

Profitability is solid (2025 operating margin ~25.5%, net margin ~20%) and leverage has improved meaningfully since 2022 (debt-to-equity down to ~0.53 in 2025) with steady ~10–11% ROE. Offsetting this, revenue has been volatile and notably negative in 2024–2025, and cash-flow trends are uneven with multiple years of negative FCF growth despite 2025 FCF matching net income.

Income Statement

Profitability is solid overall, with 2025 showing strong operating profitability (operating margin ~25.5%) and healthy bottom-line profitability (net margin ~20.0%). However, revenue has been volatile and recently weak: revenue growth is negative in 2024 and sharply negative in 2025, which raises questions about earnings durability despite stable net income. Margins also swung meaningfully across years, indicating less consistency than top-tier peers.

Balance Sheet

Leverage looks manageable for a regional bank, with debt-to-equity improving versus the 2022 peak (from ~1.16 in 2022 down to ~0.53 in 2025). Equity has grown over time (2025 equity ~$2.12B vs. ~$1.49B in 2022), supporting balance-sheet resilience. Returns on equity are steady around ~10–11% in 2023–2025, though not meaningfully accelerating, and the historical leverage spike in 2022 highlights that capital structure can shift materially.

Cash Flow

Cash generation is generally supportive of earnings, with 2025 free cash flow matching net income (free cash flow to net income = 1.0) and operating cash flow also improving versus 2024. The main weakness is the lack of consistency: free cash flow growth is negative in multiple years (including 2023–2025), and operating cash flow relative to the company’s asset/debt footprint appears modest based on the provided coverage figures, suggesting less cash-flow cushion than the income statement alone might imply.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.12B	831.37M	916.33M	583.32M	567.82M
Gross Profit	794.92M	414.20M	565.80M	513.31M	568.11M
EBITDA	285.73M	72.12M	216.79M	98.99M	221.23M
Net Income	224.13M	223.01M	165.49M	71.89M	147.37M
Balance Sheet
Total Assets	18.93B	18.15B	18.72B	18.02B	17.60B
Cash, Cash Equivalents and Short-Term Investments	2.54B	2.26B	2.74B	2.76B	5.51B
Total Debt	1.12B	849.80M	1.11B	1.72B	550.97M
Total Liabilities	16.80B	16.19B	17.06B	16.52B	15.85B
Stockholders Equity	2.12B	1.96B	1.66B	1.49B	1.74B
Cash Flow
Free Cash Flow	243.90M	88.34M	148.23M	262.50M	317.57M
Operating Cash Flow	243.90M	116.93M	196.89M	296.52M	348.77M
Investing Cash Flow	-586.20M	284.59M	-411.17M	-2.28B	-1.01B
Financing Cash Flow	443.05M	-809.62M	455.04M	451.84M	970.57M

Trustmark Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 43.02
• 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 TRMK, the sentiment is Positive. The current price of 43.02 is below the 20-day moving average (MA) of 43.47, above the 50-day MA of 41.68, and above the 200-day MA of 38.54, indicating a neutral trend. The MACD of 0.81 indicates Positive momentum. The RSI at 49.89 is Neutral, neither overbought nor oversold. The STOCH value of 49.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TRMK.

Trustmark Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FRME	82 Outperform	$2.67B	10.90	9.47%	3.72%	-1.76%	32.44%
FFBC	78 Outperform	$3.16B	11.35	9.82%	3.79%	5.15%	16.42%
CUBI	75 Outperform	$2.52B	11.60	11.34%	―	-0.37%	-20.30%
FBNC	74 Outperform	$2.53B	22.78	6.39%	1.69%	-5.72%	-3.86%
WAFD	69 Neutral	$2.51B	11.45	7.49%	3.27%	-1.58%	6.34%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
TRMK	66 Neutral	$2.67B	12.05	10.98%	2.38%	17.95%	―

Trustmark Corporate Events

Trustmark Announces New Stock Repurchase Program

Trustmark Corporation has announced a new stock repurchase program effective January 1, 2026, allowing for the acquisition of up to $100 million of its common shares by December 31, 2026. This program replaces the previous one set to expire on December 31, 2025, and offers flexibility in purchasing shares based on market conditions, with no obligation on the number or value of shares repurchased.

The most recent analyst rating on (TRMK) stock is a Hold with a $42.00 price target. To see the full list of analyst forecasts on Trustmark stock, see the TRMK Stock Forecast page.