Veritex (VBTX) AI Stock Analysis

• Market Cap: $1.36B
• Dividend Yield: 3.2%
• Average Volume (3M): 321.84K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 1.31
• Revenue Growth: 2.74%
• EPS Growth: -1.34%
• Country: US
• Employees: 858
• Sector: Financial
• Sector Strength: 82
• Industry: Banks - Regional
• EPS (TTM): 1.95
• Shares Outstanding: 54,469,376
• 10 Day Avg. Volume: 302,324
• 30 Day Avg. Volume: 321,838
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.28
• Price to Cash Flow (P/CF): -50.40
• P/FCF Ratio: 4.10
• 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: $32.90
• Price Target Upside: 33.52% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

Veritex Holdings scores a 73, reflecting its robust financial health with strong revenue growth and a solid balance sheet. Despite profitability pressures and challenges in cash flow, the company shows potential for long-term stability. Technical indicators suggest caution in the short term, while fair valuation supports its attractiveness. The earnings call and corporate events highlight strategic improvements and shareholder-friendly actions, contributing positively to the overall score.

Veritex Business Overview & Revenue Model

Company Description

Veritex Holdings, Inc. operates as the bank holding company for Veritex Community Bank that provides various commercial banking products and services to small and medium-sized businesses, and professionals. The company accepts deposit products include demand, savings, money market, and time accounts. Its loan products include commercial real estate and general commercial, mortgage warehouse loans, residential real estate, construction and land, farmland, consumer, paycheck protection program, 1-4 family residential, agricultural, multi-family residential, and consumer loans, as well as purchased receivables financing. The company also provides interest rate swap services; and a range of online banking solutions, such as access to account balances, online transfers, online bill payment and electronic delivery of customer statements, and ATMs, as well as mobile banking, mail, and personal appointment. In addition, it offers debit cards, night depository services, direct deposits, cashier's checks, and letters of credit; treasury management services, including balance reporting, transfers between accounts, wire transfer initiation, automated clearinghouse origination, and stop payments; and cash management deposit products and services consisting of lockbox, remote deposit capture, positive pay, reverse positive pay, account reconciliation services, zero balance accounts, and sweep accounts. As of December 31, 2021, the company operated 18 full-service branches located in the Dallas-Fort Worth metroplex, and 10 full-service branches in the Houston metropolitan area. Veritex Holdings, Inc. was incorporated in 2009 and is headquartered in Dallas, Texas.

How the Company Makes Money

Veritex makes money primarily through the interest income generated from its loan portfolio and securities investments. The company provides commercial, real estate, and consumer loans to its clients, earning interest on these financial products. Additionally, it generates non-interest income through service charges on deposit accounts, fees from treasury management services, and other banking-related fees. Veritex also leverages strategic acquisitions to expand its market presence and enhance its financial performance. Key factors contributing to its earnings include the quality and growth of its loan portfolio, interest rate environment, and effective risk management practices.

Veritex Financial Statement Overview

Summary

Veritex shows strong revenue growth and operational efficiency with a robust EBIT margin. The balance sheet is excellent with zero debt, enhancing stability. However, profitability pressures and declining cash flow metrics could pose challenges if not addressed.

Income Statement

Veritex has demonstrated strong revenue growth, with a notable increase from $377.75M in 2023 to $757.22M in 2024. The gross profit margin is stable at 100%, as the company operates without cost of goods sold in its revenue model. The net profit margin shows a decline from 28.65% in 2023 to 14.16% in 2024, indicating pressure on profitability despite revenue growth. EBIT margin is robust at 95.86% for 2024, reflecting efficient operational management. However, net income decreased slightly from 2023, suggesting increased expenses or other cost pressures.

Balance Sheet

The company presents a strong balance sheet with no total debt as of 2024, significantly improving its leverage position compared to previous years. The equity ratio has improved to 12.54% in 2024, reflecting a stable capital structure. The return on equity (ROE) has slightly decreased to 6.7% in 2024 from 7.07% in 2023, but remains within a healthy range, indicating decent returns on shareholders' funds. The company has shown significant growth in stockholder equity from $1.53B in 2023 to $1.6B in 2024.

Cash Flow

Operating cash flow decreased from $144.09M in 2023 to $136.38M in 2024, which is concerning given the revenue increase. Free cash flow also saw a decline, although it remains positive. The operating cash flow to net income ratio is strong, suggesting good cash conversion from earnings. However, the free cash flow to net income ratio is slightly weaker, indicating potential challenges in maintaining cash flow growth in line with profitability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
757.22M	377.75M	422.62M	333.43M	313.14M
	Gross Profit
757.22M	377.75M	422.62M	333.43M	313.14M
	EBIT
725.88M	174.87M	262.20M	176.31M	88.09M
	EBITDA
0.00	0.00	205.30M	192.04M	103.92M
	Net Income Common Stockholders
107.24M	108.26M	146.31M	139.58M	73.88M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
52.49M	629.06M	558.53M	1.37B	1.26B
	Total Assets
12.77B	12.39B	12.15B	9.76B	8.82B
	Total Debt
230.74M	329.78M	1.40B	1.01B	1.04B
	Net Debt
-52.49M	-299.28M	967.70M	625.54M	809.67M
	Total Liabilities
11.17B	10.86B	10.70B	8.44B	7.62B
	Stockholders Equity
1.60B	1.53B	1.45B	1.32B	1.20B
Cash Flow		Free Cash Flow
136.38M	142.23M	188.11M	179.92M	104.79M
	Operating Cash Flow
136.38M	144.09M	192.73M	193.49M	107.65M
	Investing Cash Flow
-180.71M	-47.50M	-2.40B	-816.39M	-874.55M
	Financing Cash Flow
270.47M	96.40M	2.26B	771.86M	746.18M

Veritex Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VBTX, the sentiment is Negative. The current price of 24.64 is above the 20-day moving average (MA) of 24.52, below the 50-day MA of 25.64, and below the 200-day MA of 25.28, indicating a neutral trend. The MACD of -0.23 indicates Negative momentum. The RSI at 49.44 is Neutral, neither overbought nor oversold. The STOCH value of 47.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VBTX.

Veritex Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HOMB	76 Outperform	$5.61B	14.06	10.38%	2.71%	8.83%	3.77%
CUBI	75 Outperform	$1.58B	9.99	10.44%	―	-3.61%	-29.58%
VBTX	73 Outperform	$1.36B	12.80	6.85%	3.20%	2.74%	-1.34%
PB	72 Outperform	$6.80B	14.14	6.60%	3.17%	11.96%	11.66%
FFIN	69 Neutral	$5.14B	23.02	14.39%	2.00%	18.54%	12.22%
TCBI	67 Neutral	$3.45B	58.44	2.36%	―	8.15%	-64.06%
Sector *	63 Neutral	$14.35B	9.94	8.94%	4.37%	16.34%	-11.76%

Veritex Corporate Events

Veritex Extends Stock Buyback Program Through 2026

On March 25, 2025, Veritex Holdings, Inc. announced the extension of its stock buyback program through March 31, 2026, allowing the company to repurchase up to $50 million of its outstanding common stock. The program, initially approved in 2024, has already seen the repurchase of 555,016 shares valued at $13.1 million. The extension aims to utilize the company’s cash on hand and operational cash flow, with repurchases subject to market conditions and regulatory requirements, reflecting Veritex’s strategic financial management and commitment to enhancing shareholder value.

Veritex Announces CFO Retirement and Successor Appointment

On January 29, 2025, Veritex Holdings, Inc. and Veritex Community Bank announced the retirement of their Chief Financial Officer, Terry S. Earley, effective June 30, 2025. Upon retirement, Earley will join the bank’s board of directors and continue as a consultant. William L. Holford, currently Director of Strategic Corporate Development, will succeed Earley as CFO starting July 1, 2025, ensuring a seamless transition with no familial or regulatory conflicts disclosed.

Veritex Reports Strong 2024 Results and Dividend Increase

Veritex Holdings announced its financial results for the fourth quarter and full year of 2024, highlighting significant achievements such as improved credit risk profile, reduced criticized loans, and increased capital. The company declared a quarterly cash dividend of $0.20 per share, showcasing its ongoing commitment to shareholder returns and strategic growth, which are expected to drive profitability in 2025.