Trustmark (TRMK) AI Stock Analysis

• Market Cap: $2.31B
• Dividend Yield: 2.5%
• Average Volume (3M): 284.07K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.99
• Revenue Growth: 17.95%
• EPS Growth: N/A
• Country: US
• Employees: 2,506
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.94
• Shares Outstanding: 60,366,573
• 10 Day Avg. Volume: 258,747
• 30 Day Avg. Volume: 284,071
• PEG Ratio: 0.28
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 2.60
• P/FCF Ratio: 24.49
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $42.50
• Price Target Upside: 8.72% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $42.00 ▲(7.44% Upside)

Trustmark's strong financial performance, characterized by robust revenue growth and improved leverage, is a major positive factor. The stock's valuation is attractive with a low P/E ratio and decent dividend yield. However, technical indicators suggest a neutral trend, which tempers the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a positive trajectory and expanding market presence, enhancing long-term business sustainability.

Improved Leverage

Improved leverage suggests better financial management, reducing risk and enhancing the company's ability to invest in growth opportunities.

Deposit Growth

Strong deposit growth enhances liquidity and provides a stable funding base, supporting future lending and investment activities.

Negative Factors

Noninterest Expenses

Rising noninterest expenses can pressure margins and reduce profitability, necessitating efficiency improvements to sustain long-term growth.

Competitive Loan Pricing

Increased competition in loan pricing can compress margins, challenging profitability and requiring strategic adjustments to maintain competitiveness.

Increased Deposit Costs

Rising deposit costs can erode net interest margins, affecting profitability and necessitating careful management of interest rate risks.

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 channels. Its primary revenue streams include net interest income from loans and deposits, as well as non-interest income from service charges, fees, and investment management services. The company earns interest from commercial loans, residential mortgages, and consumer loans, while also benefiting from the interest spread between the rates it pays on deposits and the rates it charges on loans. Additionally, Trustmark's wealth management division contributes to its earnings through advisory fees and asset management. The bank also enhances its revenue through strategic partnerships with local businesses and community organizations, which help to expand its customer base and service offerings.

Trustmark Financial Statement Overview

Summary

Trustmark demonstrates a robust financial position with strong revenue growth and improved leverage. Profitability margins are solid, though there is room for operational efficiency improvements. Cash flow generation is positive, supporting the company's financial health.

Income Statement

Trustmark shows strong revenue growth with a TTM increase of 11.96%, indicating a positive trajectory. The gross profit margin is healthy at 62.59%, and the net profit margin is solid at 19.69%. However, the EBIT margin of 24.03% and EBITDA margin of 27.63% suggest room for improvement in operational efficiency.

Balance Sheet

The debt-to-equity ratio has improved to 0.25 in the TTM, indicating better leverage management compared to previous years. Return on equity is stable at 10.90%, reflecting consistent profitability. The equity ratio is not explicitly calculated, but the balance sheet shows a solid equity base.

Cash Flow

Free cash flow growth is positive at 10.50% in the TTM, showing improved cash generation. The free cash flow to net income ratio is strong at 91.34%, indicating efficient cash conversion. However, the operating cash flow to net income ratio is not available, which limits a full assessment of cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.13B	831.37M	916.33M	583.32M	567.82M	649.63M
Gross Profit	707.42M	414.20M	565.80M	513.31M	568.11M	562.79M
EBITDA	312.29M	72.12M	216.79M	98.99M	221.23M	231.11M
Net Income	222.57M	223.01M	165.49M	71.89M	147.37M	160.03M
Balance Sheet
Total Assets	18.80B	18.15B	18.72B	18.02B	17.60B	16.55B
Cash, Cash Equivalents and Short-Term Investments	2.30B	2.26B	2.74B	2.76B	5.51B	3.94B
Total Debt	851.19M	849.80M	1.11B	1.72B	550.97M	549.84M
Total Liabilities	16.69B	16.19B	17.06B	16.52B	15.85B	14.81B
Stockholders Equity	2.11B	1.96B	1.66B	1.49B	1.74B	1.74B
Cash Flow
Free Cash Flow	281.38M	88.34M	148.23M	262.50M	317.57M	34.52M
Operating Cash Flow	285.53M	116.93M	196.89M	296.52M	348.77M	65.35M
Investing Cash Flow	-446.80M	284.59M	-411.17M	-2.28B	-1.01B	-1.22B
Financing Cash Flow	88.66M	-809.62M	455.04M	451.84M	970.57M	2.75B

Trustmark Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 39.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 39.09 is above the 20-day moving average (MA) of 38.05, above the 50-day MA of 38.70, and above the 200-day MA of 36.54, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 55.97 is Neutral, neither overbought nor oversold. The STOCH value of 77.60 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
FFBC	72 Outperform	$2.47B	9.29	10.16%	4.12%	5.15%	16.42%
FBNC	70 Outperform	$2.14B	21.60	6.39%	1.75%	-5.72%	-3.86%
CUBI	70 Outperform	$2.36B	13.97	8.99%	―	-0.37%	-20.30%
TRMK	68 Neutral	$2.31B	10.45	10.87%	2.50%	17.95%	―
FRME	68 Neutral	$2.15B	9.30	9.90%	4.06%	-1.76%	32.44%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WAFD	64 Neutral	$2.36B	11.39	7.49%	3.35%	-1.58%	6.34%

Trustmark Corporate Events

Trustmark Corporation Reports Strong Q3 2025 Financial Results

Trustmark Corporation is a financial services company that provides banking and financial solutions across several states in the southeastern United States, including Alabama, Florida, Georgia, Mississippi, Tennessee, and Texas.

Trustmark’s Earnings Call Highlights Growth Amid Challenges

Trustmark’s recent earnings call painted a picture of robust financial health, marked by diversified loan and deposit growth, alongside improved credit quality. Despite facing challenges such as rising noninterest expenses and competitive pressures on loan pricing, the overall sentiment was positive, with growth and earnings performance overshadowing these hurdles.