Trico Bancshares (TCBK) AI Stock Analysis

• Market Cap: $1.25B
• Dividend Yield: 3.65%
• Average Volume (3M): 120.15K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 1.08
• Revenue Growth: 6.25%
• EPS Growth: -1.62%
• Country: US
• Employees: 1,172
• Sector: Financial
• Sector Strength: 79
• Industry: Banks - Regional
• EPS (TTM): 3.46
• Shares Outstanding: 32,970,425
• 10 Day Avg. Volume: 137,103
• 30 Day Avg. Volume: 120,146
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.42
• Price to Cash Flow (P/CF): 13.70
• P/FCF Ratio: 6.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $51.67
• Price Target Upside: 36.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Trico Bancshares demonstrates strong financial performance with robust revenue growth and a solid equity position, underscoring its stability in the banking industry. The technical indicators suggest a potential oversold condition, which could offer a buying opportunity if the downward momentum reverses. Valuation metrics are attractive, with a reasonable P/E ratio and a solid dividend yield enhancing the stock's appeal to investors seeking income. While liquidity management and cash flow conversion pose challenges, the company's strategic positioning for future growth contributes positively to its overall score.

Positive Factors

Profitability Metrics

The stock currently trades at a small blended premium to midcap peers, justified by the bank's superior profitability metrics and clean credit quality history.

Valuation

The shares deserve a premium valuation based on premium performance.

Negative Factors

Growth Projections

Loan and NII growth projections for TCBK are below median projections and meaningfully below high growth peers.

M&A Activity

A return to M&A deals could serve as an overhang, as TCBK stock has historically underperformed following deal announcements.

Stock Performance

Projected stock upside appears limited, with just approximately 10% total return potential implied by the revised price target.

Trico Bancshares Business Overview & Revenue Model

Company Description

TriCo Bancshares (TCBK) is a financial holding company headquartered in Chico, California. It primarily operates through its wholly-owned subsidiary, Tri Counties Bank, which provides a wide range of banking services to both retail and commercial customers. The bank offers traditional banking services such as checking and savings accounts, loans, credit cards, and wealth management solutions. It serves a diverse clientele including individuals, small-to-medium-sized businesses, and agricultural enterprises across Northern and Central California.

How the Company Makes Money

TriCo Bancshares generates revenue primarily through its banking operations conducted by Tri Counties Bank. The company earns money through interest income from loans extended to customers, such as commercial, residential, and consumer loans. Additionally, it generates non-interest income from fees and service charges on deposit accounts, wealth management services, and other financial products. Tri Counties Bank also benefits from interest earned on investment securities and various treasury activities. The company's financial performance is influenced by factors such as interest rate fluctuations, economic conditions, and its ability to maintain a strong deposit base and customer relationships.

Trico Bancshares Financial Statement Overview

Summary

Trico Bancshares exhibits strong revenue growth and solid equity health, reflecting a stable financial foundation. While operational efficiency remains strong, the decline in net income and cash flow ratios suggest areas for improvement. The company's lack of leverage is a key strength, providing financial flexibility. However, liquidity management and cash flow conversion are potential areas of risk. Overall, the company is well-positioned in the banking industry, with room to enhance profitability and cash flow efficiency.

Income Statement

Trico Bancshares demonstrated a strong revenue growth of 18.42% from 2023 to 2024, reflecting its expanding business. The company maintained a stable gross profit margin at 100%, typical for the banking industry. However, the decline in net income from 2023 to 2024 indicates potential cost pressures or non-operational factors impacting profitability. The EBIT margin of 40.85% in 2023 shows strong operational efficiency before interest and tax considerations.

Balance Sheet

The company shows a solid equity position with a debt-to-equity ratio of 0.00 in 2024, indicating no leverage risk. Return on Equity (ROE) was 9.41% for 2024, suggesting efficient use of equity to generate profits. The equity ratio was 12.62%, underscoring a strong asset base funded by equity. The decrease in cash and short-term investments raises concerns about liquidity management.

Cash Flow

Operating cash flow in 2024 was robust at $109.7 million, but showed a decrease from the previous year, suggesting challenges in cash generation. The free cash flow remained stable, but the ratio of operating cash flow to net income was below 1, indicating that net income is not fully translating into cash. The negative investing cash flow highlights ongoing investments in the business, while the negative financing cash flow suggests debt repayment or shareholder distributions.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
466.64M	394.06M	404.42M	333.72M	309.26M
	Gross Profit
466.64M	394.06M	404.42M	333.72M	309.26M
	EBIT
-306.38M	160.93M	183.44M	169.21M	108.65M
	EBITDA
0.00	0.00	192.29M	180.98M	104.99M
	Net Income Common Stockholders
114.87M	117.39M	125.42M	117.66M	64.81M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
88.02M	98.70M	2.56B	2.98B	2.08B
	Total Assets
9.67B	9.91B	9.93B	8.61B	7.64B
	Total Debt
216.24M	761.94M	394.65M	134.45M	112.52M
	Net Debt
71.28M	663.24M	287.42M	-633.98M	-557.03M
	Total Liabilities
8.45B	8.75B	8.88B	7.61B	6.71B
	Stockholders Equity
1.22B	1.16B	1.05B	1.00B	925.11M
Cash Flow		Free Cash Flow
109.71M	134.00M	159.27M	129.01M	111.99M
	Operating Cash Flow
109.71M	138.89M	162.90M	132.21M	114.80M
	Investing Cash Flow
285.00M	28.57M	-723.22M	-883.81M	-816.33M
	Financing Cash Flow
-348.45M	-175.98M	-100.86M	850.47M	1.09B

Trico Bancshares Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 37.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TCBK, the sentiment is Negative. The current price of 37.88 is below the 20-day moving average (MA) of 39.75, below the 50-day MA of 41.87, and below the 200-day MA of 42.88, indicating a bearish trend. The MACD of -0.69 indicates Positive momentum. The RSI at 34.81 is Neutral, neither overbought nor oversold. The STOCH value of 13.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TCBK.

Trico Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STBA	73 Outperform	$1.29B	9.84	9.85%	4.00%	5.36%	-8.74%
VBTX	73 Outperform	$1.23B	11.60	6.85%	3.77%	2.74%	-1.34%
TCBK	70 Outperform	$1.25B	10.96	9.65%	3.65%	6.25%	-1.62%
HOPE	69 Neutral	$1.24B	11.83	4.68%	6.13%	-6.33%	-25.89%
WABC	69 Neutral	$1.24B	8.95	16.67%	3.94%	-5.00%	-14.23%
Sector *	64 Neutral	$13.44B	9.41	9.19%	4.92%	16.30%	-8.66%
TFIN	53 Neutral	$1.25B	98.62	1.83%	―	2.91%	-66.09%

Trico Bancshares Corporate Events

TriCo Bancshares Reports Stable Q4 2024 Earnings

TriCo Bancshares reported a net income of $29.0 million and diluted earnings per share of $0.88 for the fourth quarter of 2024, showing stability compared to the previous quarter. The company experienced growth in loan and deposit balances, alongside an increase in net interest margin despite reductions in the Federal Funds rate, positioning itself for future opportunities in the financial sector.