| 2018 | 2019 (projected) | Texas Capital Net Income | 300,824,000 | 308,500,000 | Texas Capital Gross Profit | 561,234,600 | 905,880,000 |
Is it time to opt in on Texas Capital?
 | By Ellen Johnson | Macroaxis Story |
This feature is directed to investors considering to exit their positions in Texas Capital. I will examine why in spite of prevalent disturbance, the overall long-run investment outlook of the entity is still stable. The company current daily volatility is 2.19 percent, with beta of 1.14 and alpha of -0.18 over S&P 500. What is Texas Capital Target Price Odds to finish over Current Price? In reference to normal probability distribution, the odds of Texas Capital to move above current price in 30 days from now is close to 99%. The Texas Capital Bancshares probability density function shows the probability of Texas Capital Stock to fall within a particular range of prices over 30 days . Given the investment horizon of 30 days, the stock has beta coefficient of 1.1431 . This entails Texas Capital Bancshares market returns are reactive to returns on the market. As the market goes up or down, Texas Capital is expected to follow. Additionally, the company has a negative alpha implying that the risk taken by holding this equity is not justified. Texas Capital Bancsh is significantly underperforming S&P 500.
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Rifka Kats
Texas Capital Bancsh currently holds 4.09B in liabilities with Debt to Equity (D/E) ratio of 10.64 indicating the stock 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. Lets now check Texas Capital Market Capitalization. Based on recorded statements the market capitalization of Texas Capital Bancshares is about 2.73B. This is 87.16% lower than that of the Financial Services sector, and 48.52% lower than that of Banks - Regional - US industry, The Market Capitalization for all stocks is 85.65% higher than Texas Capital. Texas Capital financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Texas Capital, including all of Texas Capital's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Texas Capital assets, the company is considered highly leveraged. Understanding the composition and structure of overall Texas Capital debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.
Understanding Texas Total Debt
Texas Capital Bancshares liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Texas Capital Bancshares has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Texas Capital balance sheet include debt obligations and money owed to different Texas Capital vendors, workers, and loan providers. Below is the chart of Texas main long-term debt accounts currently reported on its balance sheet. You can use Texas Capital Bancshares financial leverage analysis tool to get a better grip on understanding its financial positionHow important is Texas Capital's Liquidity
Texas Capital financial leverage refers to using borrowed capital as a funding source to finance Texas Capital Bancshares ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Texas Capital financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Texas Capital's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Texas Capital's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Texas Capital's total debt and its cash.
Breaking down Texas Capital Further
Texas Capital price decrease over the last few months has created some momentum for investors as it was traded today as low as 53.71 and as high as 55.575 per share. The company executives were not very successful in positioning the company components to exploit market volatility in July. 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 2.1906. The current volatility is consistent with the ongoing market swings in July 2019 as well as with Texas Capital Bancsh unsystematic, company specific events. Texas Capital preserves 4.09b of total debt. Texas Capital is selling at 54.26. That is 3.12 percent down. Day Low was 53.71. Texas Capital Revenues USD is increasing over the last 4 years. The prevalent value of Texas Capital Revenues USD is 400,290,158. Also, Texas Capital Accumulated Retained Earnings Deficit is nearly stable at the moment.
On the whole, I belive Texas Capital is currently undervalued. It Almost mirrors market and projects average odds of financial turmoil in the next two years. Our immediate buy-sell advice on the entity is Strong Hold.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Texas Capital Bancshares. Please refer to our Terms of Use for any information regarding our disclosure principles.