Texas Capital Bancshares, Inc. (TCBI) AI Stock Analysis

Texas Capital Bancshares, Inc. serves as the bank holding company for Texas Capital Bank, providing comprehensive financial services headquartered in Dallas, Texas. Established in 1996, the company delivers commercial banking solutions such as commercial checking accounts, lockbox services, and cash concentration accounts. It also offers consumer checking, savings, money market accounts, and certificates of deposit. Its lending services span commercial loans for working capital and acquisitions, consumer loans, mortgages, small business administration loans, and equipment financing. In addition, the bank provides specialized financing for commercial real estate, exploration and production companies, residential homebuilders, and wealth management services.

Texas Capital Bancshares generated $2.00B in revenue for FY2025, representing revenue growth of 13.5% after a 1.7% contraction in FY2024 to $1.76B. Net income expanded to $330.2M in FY2025 with a net margin of 16.5% and EPS of $6.81, up from $77.5M and EPS of $1.27 in FY2024. Over the five years from FY2020 to FY2025, revenue achieved a CAGR of 11.2%. For the trailing twelve months, revenue was $1.27B with a profit margin of 28.7% and an operating margin of 36.7%. In the latest quarter ended June 30, 2026, quarterly revenue growth was 8.6% year-over-year while quarterly earnings growth reached 15.8%.

As of June 30, 2026, the company held $8.26B in cash and short-term investments against total debt of $850.9M, resulting in net cash of $7.41B and a debt-to-equity ratio of 0.23. Total assets stood at $33.91B and shareholders' equity was $3.65B, alongside a current ratio of 26.12. In FY2025, operating cash flow was $360.2M and free cash flow reached $347.6M. Capital allocation in FY2025 included capital expenditures of $12.6M, share buybacks of $185.8M, and dividends paid of $17.2M, contributing to a share count change of -11.3% over 5 years.

TCBI trades at a trailing P/E of 12.0x, in line with the 12.1x median of its US-listed Financial Services peers. Its forward P/E of 11.1x sits slightly above the peer median of 10.8x, while its price-to-sales multiple is 3.1x compared to the peer median of 3.2x. The bank has a price-to-book ratio of 1.2x and a PEG ratio of 1.47. Over the past year, the stock returned 18.7%, outperforming the S&P 500 (SPY) return of 16.8%. Over a 5-year period, TCBI gained 52.0% versus 83.0% for the S&P 500.

TCBI offers an annual forward dividend of $0.80, representing a dividend yield of 0.88% based on the last close of $91.15. Dividends are distributed on a Quarterly frequency, with the last ex-dividend date recorded on September 1, 2026. The company maintains a payout ratio of 5.2% and paid $17.2M in dividends during FY2025.

Among analysts tracked, recommendations include 2 Strong Buy, 2 Buy, 8 Hold, 1 Sell, and 0 Strong Sell ratings. For next fiscal year, 12 analysts follow the company. The mean price target is $105.08, which is 15.3% above the last close of $91.15. For the current fiscal year ending December 31, 2026, analysts estimate EPS of $7.45 on revenue of $1.34B. Texas Capital posted 4 EPS beats over the last 4 quarters, with the next earnings date set for October 28, 2026.

This page is an AI-written research summary of Texas Capital Bancshares, Inc. (TCBI). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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