Trico Bancshares / (NASDAQ: TCBK)

Sector: Financial Services Industry: Banks - Regional CIK: 0000356171
Market Cap 1.55 Bn
P/B 1.19
P/E 13.24
P/S 3.88
ROIC (Qtr) 8.29
Div Yield % 3.63
Rev 1y % (Qtr) 8.10
Total Debt (Qtr) 85.96 Mn
Debt/Equity (Qtr) 0.07

About

TriCo Bancshares, a bank holding company listed on the Nasdaq Global Select Market under the ticker symbol "TCBK", operates primarily in the banking and financial services industry. The company's main business activities involve serving as the parent company of Tri Counties Bank, a California-chartered commercial bank, offering a range of financial services to individuals and businesses in California. TriCo Bancshares generates revenue through its primary products and services, which include deposit accounts, loans, and other banking services....

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 123.07M provides robust 1.43x coverage of total debt 85.96M, indicating excellent debt servicing capability and financial flexibility.
  • Strong tangible asset base of 9.57B provides 111.32x coverage of total debt 85.96M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 123.07M provides strong 25.77x coverage of stock compensation 4.78M, indicating sustainable incentive practices.
  • Robust free cash flow of 117.18M exceeds capital expenditure of 5.89M by 19.89x, indicating strong organic growth funding capability.
  • Retained earnings of 723.67M provide strong 2.34x coverage of intangibles 309.39M, indicating quality earnings retention.

Bear case

  • Operating cash flow of 123.07M barely covers its investment activities of (63.59M), with a coverage ratio of -1.94, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 123.07M provides thin coverage of dividend payments of (44.24M) with a -2.78 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Free cash flow of 117.18M represents just -0.38x of debt issuance (309.68M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Retained earnings of 723.67M provide limited buffer against comprehensive income items of (104.96M), which is -6.89x, indicating elevated exposure to market risks.
  • Operating cash flow of 123.07M is outpaced by equity issuance of (24.22M) (-5.08 ratio), indicating concerning reliance on equity markets for funding operations.

Peer comparison

Companies in the Banks - Regional
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 USB Us Bancorp \De\ 84.44 Bn 12.40 3.25 77.98 Bn
2 PNC Pnc Financial Services Group, Inc. 84.36 Bn 13.61 3.73 62.34 Bn
3 NU Nu Holdings Ltd. 81.47 Bn 32.21 5.79 4.49 Bn
4 NWG NatWest Group plc 66.53 Bn 9.88 3.05 169.04 Bn
5 TFC Truist Financial Corp 64.60 Bn 13.18 3.53 71.11 Bn
6 MTB M&T Bank Corp 32.73 Bn 12.47 3.60 14.99 Bn
7 FITB Fifth Third Bancorp 31.96 Bn 14.15 3.93 18.94 Bn
8 FCNCA First Citizens Bancshares Inc /De/ 28.98 Bn 12.78 3.26 40.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.14 0.14
EV to Cash from Ops. EV/CFO 11.19 7.21
EV to Debt EV to Debt 16.02 5.20
EV to EBIT EV/EBIT 8.69 14.98
EV to EBITDA EV/EBITDA 7.96 8.92
EV to Free Cash Flow [EV/FCF] EV/FCF 11.75 8.87
EV to Market Cap EV to Market Cap 0.89 1.04
EV to Revenue EV/Rev 3.45 -3.76
Price to Book Value [P/B] P/B 1.19 1.17
Price to Earnings [P/E] P/E 13.24 15.63
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 2.64 271.44
Dividend Payout Ratio % Div Payout % (Qtr) 37.90 35.28
Dividend per Basic Share Div per Share (Qtr) 1.35 0.89
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 37.51 34.52
Interest Coverage Interest Coverage 0.00 -0.05
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -38.60 -73.15
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -6.65 15.78
Dividend Growth (1y) % Div 1y % (Qtr) 4.65 5.32
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 4.51 110.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 2.36 38.80
EBIT Growth (1y) % EBIT 1y % (Qtr) 3.84 61.46
EBT Growth (1y) % EBT 1y % (Qtr) 3.84 61.37
EPS Growth (1y) % EPS 1y % (Qtr) 5.64 76.34
FCF Growth (1y) % FCF 1y % (Qtr) -0.46 161.72
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 3.14 14.15
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.04 0.04
Cash Payout Ratio Cash Payout (Qtr) 0.34 0.26
Cash Ratio Cash Ratio 0.00 0.00
Current Ratio Current Ratio 0.00 0.01
Debt to Equity Ratio Debt/Equity (Qtr) 0.07 0.53
Interest Cover Ratio Interest Cover Ratio 0.00 -0.05
Times Interest Earned Times Interest Earned 0.00 -0.05
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 43.30 147.97
EBIT Margin % EBIT Margin % (Qtr) 39.68 155.41
EBT Margin % EBT Margin % (Qtr) 39.68 154.66
Gross Margin % Gross Margin % (Qtr) 100.00 97.82
Net Profit Margin % Net Margin % (Qtr) 29.30 115.63