Texas Capital Bancshares Inc. Depositary Shares 5.75% Fixed Rate Non-Cumulative Perpetual Preferred Stock Series B (TCBIO)

FairStock Score: 80/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at this as a preferred claim on a Texas bank, not as a common stock. Texas Capital Bancshares is the holding company for Texas Capital Bank, serving businesses and individuals. The preferred pays a fixed 5.75% dividend, is non-cumulative and perpetual, so my first question is whether the bank earns enough to cover it through a cycle. The filed figures show profitability but not consistency: in fiscal 2025, the year ended 2025-12-31, net income was $330.2 million and diluted EPS was $6.79, versus $77.5 million and $1.28 in fiscal 2024 and $189.1 million and $3.54 in fiscal 2023. More recently, fiscal Q2 2026, the quarter ended 2026-06-30, produced net income of $84.9 million and diluted EPS of $1.83, up from $73.8 million and $1.56 in fiscal Q1 2026. FairStock calculations based on the 2026-10-13 close show P/E 4.62, P/B 0.24, ROE 10.19%, dividend yield 7.88%, beta 0.63, and a FairStock score of 80/100. Its computed Lynch category is STALWART, citing 37.9% annual profit growth over five years. For a bank preferred, P/E matters less than capital and credit. I do not have CET1, NIM, or credit-cost data. ROE 10.19% is decent but not fortress-like, and a 0.24 P/B hints the market doubts book value. At $18.30, the yield is attractive, but the non-cumulative feature means a suspended dividend would not be owed later. Margin of safety depends on asset quality I cannot see.

In plain English: Texas Capital Bancshares is a Texas bank holding company. This security is a preferred share that pays a fixed 5.75% dividend before common shareholders, but the dividend is not cumulative, so missed payments do not build up. The bank has been profitable, though earnings have jumped around; at $18.30 the calculated yield is about 7.88%, which looks high and also hints at risk.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer