Trustmark (TRMK) AI Stock Analysis

• Market Cap: $2.05B
• Dividend Yield: 2.83%
• Average Volume (3M): 251.24K
• Price to Earnings (P/E): 314.4
• Beta (1Y): 1.02
• Revenue Growth: -17.36%
• EPS Growth: -95.37%
• Country: US
• Employees: 2,506
• Sector: Financial
• Sector Strength: 74
• Industry: Banks - Regional
• EPS (TTM): 0.88
• Shares Outstanding: 60,477,580
• 10 Day Avg. Volume: 248,964
• 30 Day Avg. Volume: 251,236
• PEG Ratio: -0.59
• Price to Book (P/B): 1.43
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.14
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 0.70
• Enterprise Value/Gross Profit: 3.11
• Enterprise Value/Ebitda: 13.89
• 1Y Price Target: $42.33
• Price Target Upside: 25.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 63 Neutral
• Price Target: ―

Trustmark's overall stock score reflects a mixed performance. Financial growth and low leverage are strengths, but operational efficiency issues and high valuation are concerns. Technical indicators suggest caution, while earnings call insights are positive but highlight potential risks. These factors balance out to a moderate score.

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 Corporation generates revenue primarily through its banking operations, which include interest income from loans and advances, and fees from various financial services. Interest income is a vital revenue stream, driven by the spread between the interest rates on loans and the interest paid on deposits. The company also earns significant non-interest income from service charges, mortgage banking services, and fees associated with wealth management and insurance products. Additionally, Trustmark's insurance segment contributes to its earnings through premiums collected from various insurance policies. Strategic partnerships and a diversified portfolio of services further enhance the company’s revenue-generating capabilities.

Trustmark Financial Statement Overview

Summary

Trustmark's financial statements show strong revenue growth and low leverage, indicating a solid financial foundation. However, operational challenges such as negative EBIT and declining cash flow generation need to be addressed to sustain growth.

Income Statement

Trustmark's income statement shows strong revenue growth over the years, with the most recent period seeing a 32.27% increase from the previous year. However, the company reported a negative EBIT in the latest annual data, indicating operational challenges. The gross profit margin is healthy at 100%, typical for the banking industry where gross profit equals total revenue. Net profit margin has improved to 22.92%, suggesting efficient cost management, but the negative EBIT is a concern.

Balance Sheet

The balance sheet reflects a stable financial structure with a debt-to-equity ratio of 0.22, indicating low leverage and financial stability. The company's equity ratio of 10.81% signifies a moderate reliance on equity financing. Return on Equity (ROE) is strong at 11.36%, though slightly lower than the previous year, showing effective use of equity to generate profits. Overall, the balance sheet suggests a well-managed capital structure with room for growth.

Cash Flow

Cash flow analysis reveals a decrease in free cash flow from the previous year, with a negative growth rate of -40.41%. The operating cash flow to net income ratio is 0.52, indicating moderate cash conversion efficiency. The free cash flow to net income ratio is 0.40, which is adequate but shows room for improvement in generating cash from operations. The company needs to focus on improving cash flow generation to support ongoing operations and investments.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
769.20M	831.37M	735.25M	536.20M	543.66M	468.33M
	Gross Profit
659.67M	455.46M	565.80M	536.20M	543.66M	468.33M
	EBIT
94.69M	34.06M	374.97M	335.81M	159.98M	189.78M
	EBITDA
79.33M	72.12M	0.00	98.99M	159.98M	0.00
	Net Income Common Stockholders
235.11M	223.01M	165.49M	71.89M	147.37M	160.03M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.96B	2.26B	2.74B	2.76B	5.51B	3.94B
	Total Assets
13.50B	18.23B	18.72B	18.02B	17.60B	16.55B
	Total Debt
435.63M	849.80M	628.83M	1.20B	227.93M	244.16M
	Net Debt
-179.31M	282.55M	-346.52M	469.40M	-2.04B	-1.71B
	Total Liabilities
11.84B	16.19B	17.06B	16.52B	15.85B	14.81B
	Stockholders Equity
1.66B	1.96B	1.66B	1.49B	1.74B	1.74B
Cash Flow		Free Cash Flow
232.12M	88.34M	148.23M	262.50M	317.57M	34.52M
	Operating Cash Flow
255.41M	116.93M	196.89M	296.52M	348.77M	65.35M
	Investing Cash Flow
194.75M	284.59M	-411.17M	-2.28B	-1.01B	-1.22B
	Financing Cash Flow
-468.86M	-809.62M	455.04M	451.84M	970.57M	2.75B

Trustmark Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 33.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRMK, the sentiment is Negative. The current price of 33.64 is below the 20-day moving average (MA) of 34.56, below the 50-day MA of 33.97, and below the 200-day MA of 34.57, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 40.74 is Neutral, neither overbought nor oversold. The STOCH value of 6.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TRMK.

Trustmark Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NBTB	74 Outperform	$2.11B	13.34	9.55%	3.34%	12.11%	16.67%
HTH	70 Outperform	$1.89B	14.98	5.89%	2.44%	0.59%	14.96%
PPBI	70 Outperform	$2.00B	13.43	4.94%	6.42%	23.09%	1086.91%
SYBT	65 Neutral	$2.17B	17.82	13.18%	1.68%	14.34%	16.24%
FBK	65 Neutral	$1.98B	15.87	8.27%	1.76%	3.30%	14.32%
Sector *	64 Neutral	$12.86B	9.79	7.84%	78.10%	12.05%	-7.99%
TRMK	63 Neutral	$2.05B	314.38	3.28%	2.83%	-17.36%	-95.37%

Trustmark Corporate Events

Trustmark Appoints Lea B. Turnipseed to Board

Lea B. Turnipseed has been appointed to the Board of Directors of Trustmark Corporation and its subsidiary, Trustmark National Bank, effective January 1, 2025. With extensive experience in financial and customer service roles at Entergy Corporation, her independent status aligns with Nasdaq’s standards. As a non-employee director, Turnipseed will receive a $45,000 annual retainer and a restricted stock award worth approximately $55,000, marking a strategic addition to Trustmark’s leadership.