Veritex (VBTX) AI Stock Analysis

• Market Cap: $1.90B
• Dividend Yield: 2.45%
• Average Volume (3M): 787.47K
• Price to Earnings (P/E): 16.5
• Beta (1Y): 1.19
• Revenue Growth: -1.28%
• EPS Growth: 32.40%
• Country: US
• Employees: 858
• Sector: Financial
• Sector Strength: 77
• Industry: Banks - Regional
• EPS (TTM): 0.56
• Shares Outstanding: 54,745,472
• 10 Day Avg. Volume: 862,765
• 30 Day Avg. Volume: 787,468
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 2.44
• Enterprise Value/Gross Profit: 1.97
• Enterprise Value/Ebitda: 14.62
• 1Y Price Target: $36.67
• Price Target Upside: 7.16% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 75 Outperform
• Price Target: $39.00 ▲(13.97% Upside)

Veritex's strong financial performance and positive corporate events, particularly the merger with Huntington Bancshares, are the most significant factors driving the score. The technical analysis suggests strong momentum, though caution is warranted due to overbought signals. The valuation is fair, but not overly compelling.

Veritex Business Overview & Revenue Model

Company Description

Veritex 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 Money

Veritex generates revenue primarily through interest income from loans and investments, as well as fees from various banking services. The main revenue streams include interest earned on commercial and consumer loans, which constitute a significant portion of their earnings. Additionally, the bank earns non-interest income through service charges, mortgage origination fees, and wealth management services. Veritex also benefits from partnerships with local businesses and organizations, enhancing its customer base and driving growth. The bank's focus on strategic lending practices and efficient operations contributes to its financial performance, while its community engagement efforts help build a strong reputation and customer loyalty.

Veritex Financial Statement Overview

Summary

Veritex shows strong revenue growth and operational efficiency with a robust EBIT margin. The balance sheet is excellent, featuring zero debt, which enhances financial stability. However, there are pressures on profitability and declining cash flow metrics that could pose challenges if unaddressed.

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.

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.

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	425.65M	377.75M	422.62M	333.43M	313.14M
Gross Profit	425.65M	377.75M	422.62M	333.43M	313.14M
EBITDA	0.00	0.00	205.30M	192.04M	103.92M
Net Income	107.24M	108.26M	146.31M	139.58M	73.88M
Balance Sheet
Total Assets	12.77B	12.39B	12.15B	9.76B	8.82B
Cash, Cash Equivalents and Short-Term Investments	52.49M	629.06M	558.53M	1.37B	1.26B
Total Debt	230.74M	329.78M	1.40B	1.01B	1.04B
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	123.83M	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

• Technical Analysis Sentiment: Positive
• Last Price: 34.22
• 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 VBTX, the sentiment is Positive. The current price of 34.22 is above the 20-day moving average (MA) of 32.96, above the 50-day MA of 31.16, and above the 200-day MA of 26.70, indicating a bullish trend. The MACD of 1.00 indicates Negative momentum. The RSI at 64.97 is Neutral, neither overbought nor oversold. The STOCH value of 78.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VBTX.

Veritex Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QCRH	78 Outperform	$1.34B	11.76	11.36%	0.31%	-0.76%	-1.60%
TCBK	76 Outperform	$1.50B	13.59	9.17%	2.99%	1.15%	-0.39%
WABC	75 Outperform	$1.28B	10.47	14.60%	3.63%	-10.55%	-16.51%
VBTX	75 Outperform	$1.90B	16.49	7.25%	2.45%	-1.28%	32.40%
Sector *	68 Neutral	$18.06B	11.97	10.24%	3.74%	9.75%	1.30%
TFIN	68 Neutral	$1.52B	145.98	1.52%	―	2.02%	-60.54%
HOPE	65 Neutral	$1.44B	31.65	1.92%	5.04%	-12.55%	-59.97%

Veritex Corporate Events

Veritex Declares Cash Dividend for September 2025

On September 3, 2025, Veritex Holdings, Inc. announced that its Board of Directors declared a cash dividend of $0.22 per share on its outstanding common stock. This dividend will be distributed on September 30, 2025, to shareholders recorded by September 16, 2025. This announcement reflects Veritex’s ongoing commitment to providing value to its shareholders and may positively influence its market perception and investor relations.

Veritex Reports Q2 2025 Results and Dividend Declaration

On July 18, 2025, Veritex Holdings, Inc. reported its second-quarter 2025 operating results, showing a net income of $30.9 million and a diluted EPS of $0.56, reflecting growth compared to previous quarters. The company also declared a quarterly cash dividend of $0.22 per share, payable on August 21, 2025. Additionally, Veritex announced a merger agreement with Huntington Bancshares Incorporated, expected to close in the fourth quarter of 2025, which could significantly impact its market positioning and stakeholder interests.

Veritex Enters Merger Agreement with Huntington

On July 13, 2025, Veritex Holdings, Inc. entered into a Merger Agreement with Huntington Bancshares Incorporated, whereby Veritex will merge into Huntington, with the latter continuing as the surviving corporation. The merger, unanimously approved by both companies’ boards, will see Veritex shareholders receive Huntington shares, and involves a $10 million contribution from Huntington to the markets where Veritex operates. The merger is subject to customary conditions including regulatory approvals and shareholder consent.

Veritex Announces Merger with Huntington Bancshares

On July 14, 2025, Veritex Holdings, Inc. and Huntington Bancshares Incorporated announced a merger agreement where Veritex will merge into Huntington, with Huntington as the surviving entity. This strategic acquisition is expected to enhance Huntington’s growth in Texas, particularly in the Dallas/Fort Worth and Houston markets, and aligns with their long-term commitment to the state. The merger, valued at $1.9 billion, is anticipated to close in the fourth quarter of 2025, subject to regulatory approvals. Huntington will maintain Veritex’s branch network and invest in its growth, while Veritex’s Chairman, Malcolm Holland, will join Huntington in a non-executive role. The merger is expected to be modestly accretive to Huntington’s earnings per share and neutral to regulatory capital at close.

Veritex Appoints New CFO Amid Leadership Transition

Veritex Holdings, Inc. announced the retirement of Terry S. Earley as Chief Financial Officer, effective June 30, 2025. Following his retirement, Earley will serve as a consultant to the company and has been appointed to the Board of Directors of Veritex Community Bank, starting July 1, 2025. William L. Holford has been appointed as the new Chief Financial Officer, effective July 1, 2025. Holford, who has been with Veritex since 2011, brings 20 years of experience in the financial services industry and will work closely with Earley to ensure a smooth transition. His appointment includes an Executive Employment Agreement outlining his compensation and severance terms.