Texas Community Bancshares, Inc. (TCBS)
Valuation Overview•Is Texas Community Bancshares, Inc. Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
Moderate quality score of 48/100, reflecting stable operating margins and manageable leverage.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Average quality business weighed down by significant solvency concerns.
Wall Street sentiment is generally neutral. This outlook is strongly supported by highly attractive capital returns, driven predominantly by aggressive share repurchases.
TCBS demonstrates adequate business quality with stable profitability. However, this is severely offset by a highly leveraged balance sheet (Debt/EBITDA > 4.0x) and elevated financial risk.
The company maintains stable top-line performance paired with robust earnings compounding (19.9% EPS 3Y CAGR). Operating efficiency remains adequate with margins around 13.9%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $6.3M | +22.7% | — | — | — | |
| EBITDA | $1.1M | — | +14.9% | — | — | |
| Net Income | $836K | +317.8% | +17.5% | — | — | |
| EPS (Diluted) | $0.29 | +327.3% | +19.9% | +44.3% | — | |
| Free Cash Flow | -$178K | +31.5% | -29.2% | -2.5% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 62.2% | 56.6% | 67.0% | 69.5% |
| Operating Margin | 13.9% | -0.1% | 4.0% | 5.5% |
| Net Margin | 11.8% | 0.4% | 3.5% | 4.7% |
| FCF Margin | 9.2% | -3.3% | 4.5% | 7.0% |
Total return is +10.4% (1Y), lagging the benchmark by -10.4%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -1.2% | -8.6% | — |
| 1Y | +10.4% | -10.4% | +1.4% |
| 3YCAGR | +15.1% | -2.5% | +4.5% |
| 5YCAGR | +12.8% | +2.2% | +5.8% |
| 10YCAGR | +6.2% | -7.0% | — |
The S&P 500 is at 30.6x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Texas Community Bancshares, Inc. (TCBS) valuation, health, and returns.
Based on peer relative multiples, Texas Community Bancshares, Inc. appears Slightly cheap versus peers compared to industry peers.
Texas Community Bancshares, Inc. has multiple valuation anchors: Peer Relative Fair Value: $20.36. A convergence of these signals offers higher conviction.
Texas Community Bancshares, Inc. displays fair financial health with a composite quality score of 48/100, supported by a Piotroski F-Score of 7/9, Return on Invested Capital (ROIC) of 2.5%.
Texas Community Bancshares, Inc. pays a 1.2% dividend yield, covered by a 21% payout ratio with 0 years of growth, supplemented by a 6.2% buyback yield.
Texas Community Bancshares, Inc.'s current growth trajectory is Accelerating. The company achieved +22.7% 1Y revenue growth and +327.3% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Hold based on 0 analysts. The consensus price target represents a N/A change from current levels.
Investment risks for Texas Community Bancshares, Inc. include: -10.9% 1-year max drawdown. Volatility risk is characterized by a beta of 0.03x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.