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Veritex (VBTX)
NASDAQ:VBTX
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Veritex
(NASDAQ:VBTX)
72Outperform
Veritex (VBTX) vs. S&P 500 (SPY)
Market Cap
$1.28B
Dividend Yield3.34%
Average Volume (3M)429.67K
Price to Earnings (P/E)11.7
Beta (1Y)1.22
Revenue Growth1.52%
EPS Growth19.00%
CountryUS
Employees858
SectorFinancial
Sector Strength89
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.53
Shares Outstanding54,469,376
10 Day Avg. Volume405,693
30 Day Avg. Volume429,670
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.13
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit1.92
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$31.50Price Target Upside31.47% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Veritex Business Overview & Revenue Model
Company DescriptionVeritex Holdings, Inc. operates as the bank holding company for Veritex Community Bank that provides various commercial banking products and services to small and medium-sized businesses, and professionals. The company accepts deposit products include demand, savings, money market, and time accounts. Its loan products include commercial real estate and general commercial, mortgage warehouse loans, residential real estate, construction and land, farmland, consumer, paycheck protection program, 1-4 family residential, agricultural, multi-family residential, and consumer loans, as well as purchased receivables financing. The company also provides interest rate swap services; and a range of online banking solutions, such as access to account balances, online transfers, online bill payment and electronic delivery of customer statements, and ATMs, as well as mobile banking, mail, and personal appointment. In addition, it offers debit cards, night depository services, direct deposits, cashier's checks, and letters of credit; treasury management services, including balance reporting, transfers between accounts, wire transfer initiation, automated clearinghouse origination, and stop payments; and cash management deposit products and services consisting of lockbox, remote deposit capture, positive pay, reverse positive pay, account reconciliation services, zero balance accounts, and sweep accounts. As of December 31, 2021, the company operated 18 full-service branches located in the Dallas-Fort Worth metroplex, and 10 full-service branches in the Houston metropolitan area. Veritex Holdings, Inc. was incorporated in 2009 and is headquartered in Dallas, Texas.
How the Company Makes MoneyVeritex makes money primarily through the interest income generated from its loan portfolio and securities investments. The company provides commercial, real estate, and consumer loans to its clients, earning interest on these financial products. Additionally, it generates non-interest income through service charges on deposit accounts, fees from treasury management services, and other banking-related fees. Veritex also leverages strategic acquisitions to expand its market presence and enhance its financial performance. Key factors contributing to its earnings include the quality and growth of its loan portfolio, interest rate environment, and effective risk management practices.
Veritex Financial Statement Overview
Summary
Veritex shows strong revenue growth and operational efficiency with a robust EBIT margin. The balance sheet is excellent with zero debt, enhancing stability. However, profitability pressures and declining cash flow metrics could pose challenges if not addressed.Income Statement
Veritex has demonstrated strong revenue growth, with a notable increase from $377.75M in 2023 to $757.22M in 2024. The gross profit margin is stable at 100%, as the company operates without cost of goods sold in its revenue model. The net profit margin shows a decline from 28.65% in 2023 to 14.16% in 2024, indicating pressure on profitability despite revenue growth. EBIT margin is robust at 95.86% for 2024, reflecting efficient operational management. However, net income decreased slightly from 2023, suggesting increased expenses or other cost pressures.78
Positive
Balance Sheet
The company presents a strong balance sheet with no total debt as of 2024, significantly improving its leverage position compared to previous years. The equity ratio has improved to 12.54% in 2024, reflecting a stable capital structure. The return on equity (ROE) has slightly decreased to 6.7% in 2024 from 7.07% in 2023, but remains within a healthy range, indicating decent returns on shareholders' funds. The company has shown significant growth in stockholder equity from $1.53B in 2023 to $1.6B in 2024.85
Very Positive
Cash Flow
Operating cash flow decreased from $144.09M in 2023 to $136.38M in 2024, which is concerning given the revenue increase. Free cash flow also saw a decline, although it remains positive. The operating cash flow to net income ratio is strong, suggesting good cash conversion from earnings. However, the free cash flow to net income ratio is slightly weaker, indicating potential challenges in maintaining cash flow growth in line with profitability.72
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 757.22M | 377.75M | 422.62M | 333.43M | 313.14M | Gross Profit |
| 757.22M | 377.75M | 422.62M | 333.43M | 313.14M | EBIT |
| 725.88M | 174.87M | 262.20M | 176.31M | 88.09M | EBITDA |
| 0.00 | 0.00 | 205.30M | 192.04M | 103.92M | Net Income Common Stockholders |
| 107.24M | 108.26M | 146.31M | 139.58M | 73.88M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 52.49M | 629.06M | 558.53M | 1.37B | 1.26B | Total Assets |
| 12.77B | 12.39B | 12.15B | 9.76B | 8.82B | Total Debt |
| 230.74M | 329.78M | 1.40B | 1.01B | 1.04B | Net Debt |
| -52.49M | -299.28M | 967.70M | 625.54M | 809.67M | Total Liabilities |
| 11.17B | 10.86B | 10.70B | 8.44B | 7.62B | Stockholders Equity |
| 1.60B | 1.53B | 1.45B | 1.32B | 1.20B |
| Cash Flow | Free Cash Flow | |||
| 136.38M | 142.23M | 188.11M | 179.92M | 104.79M | Operating Cash Flow |
| 136.38M | 144.09M | 192.73M | 193.49M | 107.65M | Investing Cash Flow |
| -180.71M | -47.50M | -2.40B | -816.39M | -874.55M | Financing Cash Flow |
| 270.47M | 96.40M | 2.26B | 771.86M | 746.18M |
Veritex Technical Analysis
Positive
23.96
Price Trends
23.36
Positive
24.86
Negative
25.27
Negative
Market Momentum
0.18
Negative
58.80
Neutral
65.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VBTX, the sentiment is Positive. The current price of 23.96 is above the 20-day moving average (MA) of 22.61, above the 50-day MA of 23.36, and below the 200-day MA of 25.27, indicating a neutral trend. The MACD of 0.18 indicates Negative momentum. The RSI at 58.80 is Neutral, neither overbought nor oversold. The STOCH value of 65.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VBTX.
Veritex Risk Analysis
Veritex disclosed 56 risk factors in its most recent earnings report. Veritex reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Veritex Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $1.28B | 11.70 | 7.07% | 3.34% | 1.52% | 19.00% | |
71 Outperform | $1.10B | 9.91 | 11.70% | 0.36% | 4.17% | -0.91% | |
71 Outperform | $1.30B | 9.76 | 15.54% | 3.61% | -7.38% | -15.58% | |
68 Neutral | $1.29B | 12.85 | 4.44% | 5.64% | -11.99% | ― | |
68 Neutral | $1.29B | 11.42 | 9.38% | 3.27% | 3.01% | 4.55% | |
64 Neutral | $12.57B | 9.74 | 7.88% | 16985.68% | 12.42% | -5.45% | |
57 Neutral | $1.27B | 147.55 | 1.35% | ― | 2.37% | -72.01% |
* Financial Sector Average
Performance Comparison
VBTX
Veritex
23.96
4.05
20.34%
HOPE
Hope Bancorp
10.15
-0.45
-4.25%
QCRH
QCR Holdings
67.06
8.05
13.64%
TCBK
Trico Bancshares
40.27
3.49
9.49%
WABC
Westamerica Bancorporation
49.85
1.56
3.23%
TFIN
Triumph Financial
57.44
-16.15
-21.95%
Veritex Earnings Call Summary
Earnings Call Date:Apr 22, 2025
(Q1-2025)
| % Change Since: 9.36%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Neutral
Veritex Holdings showed a strong financial performance with significant net operating profits, increased loan production, and improved credit trends. However, challenges remain with decreased loan totals due to elevated payoffs and increased non-accrual loans. Deposit management and dividend growth provide positive outlooks, but elevated deposit costs are a concern.Q1-2025 Updates
Positive Updates
Strong Net Operating Profit
Veritex reported a net operating profit of $29 million, or $0.54 per share, indicating a strong performance for the quarter.
Pre-tax, Pre-provision Earnings
The company achieved pre-tax, pre-provision earnings of $43.4 million, or 1.41%, reflecting solid financial management.
Significant Increase in Loan Production
Loan production for Q1 stood at $750 million, with a year-over-year increase of 130%, totaling $2.8 billion over the last four quarters.
Stable Credit Trends
The company realized a net decrease in past due and criticized loans, with charge-offs below forecast and a decline in criticized assets by 26% from Q1 2024.
Improved Deposit Strategy
Veritex reduced reliance on wholesale funding to 13.7% and achieved a decrease in the loan-to-deposit ratio to 89%, indicating effective deposit management.
Increase in Tangible Book Value
Tangible book value per share increased to $22.33, up by 13.8% year-over-year, showcasing shareholder value growth.
Dividend Increase
The bank increased its quarterly dividend by 10% to $0.22 per share, reflecting confidence in future performance.
Negative Updates
Decrease in Loan Totals
Loans decreased by $125 million, or 5% annualized, due to elevated payoffs, impacting overall loan growth.
Increase in Non-accrual Loans
Non-accruals increased by $17 million from year-end, with non-performing assets rising from $79 million to $97 million, primarily due to retail and office exposures.
Elevated Payoffs Impacting Loan Growth
Loan growth is expected to remain muted in 2025 due to higher-than-normal payoffs, affecting loan growth projections.
Higher Deposit Costs
Deposit costs remained elevated, with certain unattractively priced deposits carrying a cost 185 basis points above core business deposits.
Company Guidance
In the Veritex Holdings First Quarter 2025 Earnings Conference Call, the management provided guidance indicating a focus on maintaining a strong balance sheet, with net operating profit reported at $29 million, or $0.54 per share, and pre-tax, pre-provision earnings at $43.4 million, reflecting a 1.41% return. The company's goal is to achieve a Return on Average Assets (ROAA) exceeding 1% by the year's end. Despite a 5% annualized decrease in loans for the quarter, the bank demonstrated a robust $750 million in gross loan production, although only $237 million, or 31%, was funded. Deposit growth was solid, with $440 million in wholesale funding moved out, reducing deposit costs. The allowance for credit losses increased to 119 basis points, with a focus on maintaining a conservative economic outlook. The net interest margin (NIM) increased to 3.31%, supported by deposit repricing efforts, while fee income rose to 13.4% of total revenue, with a target to exceed 15%. Operating expenses were managed effectively, with an operating efficiency ratio decline to 60.4%. The management remained committed to addressing challenges related to loan growth and elevated deposit costs, aiming for stable performance amid economic uncertainties.Veritex Corporate Events
Stock BuybackDividendsFinancial Disclosures
Veritex Reports Strong Q1 2025 Financial Results
Positive
Apr 22, 2025
On April 22, 2025, Veritex Holdings, Inc. announced its first quarter 2025 financial results, highlighting a net income of $29.07 million and a diluted EPS of $0.53. The company declared a quarterly cash dividend of $0.22 per share, payable on May 22, 2025. Key performance metrics showed improvement, with a net interest margin increase to 3.31% and a decrease in criticized assets by $17.7 million. Veritex also redeemed $75 million in subordinated notes and repurchased 377,346 shares of common stock, extending its Stock Buyback Program through March 2026. These actions reflect Veritex’s focus on financial stability and shareholder value amidst a challenging banking environment.
Spark’s Take on VBTX Stock
According to Spark, TipRanks’ AI Analyst, VBTX is a Outperform.
Veritex demonstrates strengths in revenue growth and financial stability, supported by strategic initiatives like stock buybacks and dividend increases. However, the stock faces challenges with declining profitability metrics and bearish technical indicators. Despite these issues, the attractive valuation and potential for a rebound provide a balanced outlook.
To see Spark’s full report on VBTX stock, click here.
Stock BuybackBusiness Operations and Strategy
Veritex Extends Stock Buyback Program Through 2026
Positive
Mar 31, 2025
On March 25, 2025, Veritex Holdings, Inc. announced the extension of its stock buyback program through March 31, 2026, allowing the company to repurchase up to $50 million of its outstanding common stock. The program, initially approved in 2024, has already seen the repurchase of 555,016 shares valued at $13.1 million. The extension aims to utilize the company’s cash on hand and operational cash flow, with repurchases subject to market conditions and regulatory requirements, reflecting Veritex’s strategic financial management and commitment to enhancing shareholder value.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.