| 2018 | 2019 (projected) | Texas Capital Net Income | 300,824,000 | 301,970,000 | Texas Capital Gross Profit | 561,234,600 | 905,880,000 |
What is August outlook for Texas Capital?
 | By Rifka Kats | Macroaxis Story |
Despite nearly stable fundamental indicators, Texas Capital is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholder. Macroaxis considers Texas Capital to be very steady. Texas Capital Bancsh owns Efficiency Ratio (i.e. Sharpe Ratio) of -0.0048 which indicates the firm had -0.0048% of return per unit of risk over the last 1 month. Macroaxis philosophy towards measuring risk of any stock is to look at both systematic and un-systematic factors of the business, including all available market data and technical indicators. Texas Capital Bancshares exposes twenty-one different technical indicators which can help you to evaluate volatility that cannot be diversified away. Please be advised to validate Texas Capital Coefficient Of Variation of (2,172) and Risk Adjusted Performance of (0.025232) to confirm risk estimate we provide.
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Reviewed by Michael Smolkin
The company currently holds 5.01B in liabilities with Debt to Equity (D/E) ratio of 10.64 indicating the organisation may have difficulties to generate enough cash to satisfy its financial obligations. This firm dividends can provide a clue to current valuation of the stock. Texas Capital is not expected to issue dividends this year as it trying to preserve or re-invest any of the funds available for distribution to stakeholders. Let me now analyze Texas Capital Cash per Share. In accordance with recently published financial statements Texas Capital Bancshares has Cash per Share of 46.36 times. This is 29.06% higher than that of the Financial Services sector, and 292.55% higher than that of Banks - Regional - US industry, The Cash per Share for all stocks is 825.35% lower than Texas Capital Bancsh.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Texas Capital income statement, its balance sheet, and the statement of cash flows. Potential Texas Capital investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Texas Capital investors may use each financial statement separately, they are all related. The changes in Texas Capital's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Texas Capital's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of Texas Capital fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Texas Capital performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Texas Capital shares is the value that is considered the true value of the share. If the intrinsic value of Texas is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Texas Capital. Please read more on our fundamental analysis page. How effective is Texas Capital in utilizing its assets?
Texas Capital Bancshares reports assets on its Balance Sheet. It represents the amount of Texas resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Texas Capital aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Regional Banks space. To get a better handle on how balance sheet or income statements item affect Texas volatility, please check the breakdown of all its fundamentals.Are Texas Capital Earnings Expected to grow?
The future earnings power of Texas Capital involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Texas Capital factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Texas Capital stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Texas expected earnings.
Texas Capital Gross Profit
Texas Capital Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Texas Capital previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Texas Capital Gross Profit growth over the last 10 years. Please check Texas Capital's gross profit and other fundamental indicators for more details.
Breaking down Texas Capital Further
Texas Capital Bancsh has beta of 1.79. As market goes up, the company is expected to significantly outperform it. However, if the market returns are negative, Texas Capital will likely underperform. The small decline in market price for the last few months has created some momentum for investors as it was traded today as low as 59.19 and as high as 61.285 per share. The company executives did not add much value to Texas Capital Bancsh investors in June. However, diversifying your holdings with Texas Capital Bancshares or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.8894. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. Texas Capital is selling for under 61.13. That is 2.57 percent increase. Day high is 61.285. Texas Capital Total Debt is increasing over the last 4 years. The previous year value of Texas Capital Total Debt was 5,010,000,000. Also, Texas Capital Total Assets Per Share is increasing over the last 5 years. The prevalent value of Texas Capital Total Assets Per Share is 437.72.
To summarize, our up-to-date 'Buy/Hold/Sell' recommendation on the entity is Strong Hold. We believe Texas Capital is undervalued with close to average odds of financial distress for the next two years.
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