Home Sectors Financial Services Buy or Sell: Texas Capital Bancshares (NASDAQ: TCBI)

Buy or Sell: Texas Capital Bancshares (NASDAQ: TCBI)


Texas Capital Bancshares is in the financial services sector and is part of the banking industry. The company CEO is C. Keith Cargill. Texas Capital Bancshares Inc is engaged in providing lending services to businesses. Its services included credit solutions, treasury and liquidity services, mortgage finance, private wealth solution and personal banking solution.

Previous Intraday Trading Performance:

The TCBI stock showed a previous change of 4.61% with an open at 59.25 and a close of 61.06. It reached an intraday high of 61.20 and a low of 59.25.

SeekingAlpha:  Texas Capital Bancshares, Inc. 2019 Q1 – Results – Earnings Call Slides


The stock has a market cap of $3.1b with 50.3m shares outstanding, of which the float is 49.1m shares. Trading volume reached 456,284 shares compared to its average volume of 552,117 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, Texas Capital Bancshares shares returned 0.54% and in the past 30 trading days it returned -4.95%. Over three months, it changed -0.16%. In one year it has changed -38.35% and within that year its 52-week high was 102.75 and its 52-week low was 47.86. TCBI stock is 27.58% above its 52 Week Low.

Our calculations show a 200 day moving average of 65.49 and a 50 day moving average of 60.45. Currently TCBI stock is trading -6.77% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

SeekingAlpha:  Texas Capital Bancshares, Inc. (TCBI) CEO Keith Cargill on Q1 2019 Results – Earnings Call Transcript


The last annual fiscal EPS for the company was reported at 5.79 that ended on 31st of December 2018, which according to the previous close, that is a PE of 10.55. Based on 10 analyst estimates, the consensus EPS for the next quarter is 1.39. The TTM EPS is 5.79, which comes to a TTM PE of 10.55. Historically, the PE high was 30.60 and the PE low was 10.20. If the stock reached its PE low, that would represent a price of 59.03, which is a decrease of -3.32%.

Below was the last reported quarterly diluted earnings per share:

1stQtr of 2019 1.60
4thQtr of 2018 1.38
3rdQtr of 2018 1.65
2ndQtr of 2018 1.38
1stQtr of 2018 1.38

Base on our calculations, the intrinsic value per share is 71.44, which means it is possibly undervalued and has a margin of safety of 14.53%.

Indicators to Watch:

The current calculated beta is 1.84.

SeekingAlpha:  Texas Capital Bancshares, Inc. (TCBI) CEO Keith Cargill on Q1 2019 Results – Earnings Call Transcript

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 13.83%, return on assets is 1.19%, profit margin is 24.03%, price-to-sales is 2.24 and price-to-book is 1.21.

Company Scores:

All scores are out of six:
 2  :Valuation Score
 3  :Past Performance Score
 6  :Financial Strength Score
 1  :Future Growth Score
 0  :Dividend Score
 3  :Overall Score

Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.