TriCo Bancshares Fundamental Analysis (NASDAQ: TCBK)
TriCo Bancshares (NASDAQ: TCBK) shows moderate financial fundamentals with a PE ratio of 12.76, profit margin of 24.83%, and ROE of 10.23%. The company generates $0.5B in annual revenue with weak year-over-year growth of 1.78%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 62.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze TCBK's fundamental strength across five key dimensions:
Efficiency Score
WeakTCBK struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTCBK trades at attractive valuation levels.
Growth Score
WeakTCBK faces weak or negative growth trends.
Financial Health Score
ExcellentTCBK maintains a strong and stable balance sheet.
Profitability Score
ModerateTCBK maintains healthy but balanced margins.
Key Financial Metrics
Is TCBK Expensive or Cheap?
P/E Ratio
TCBK trades at 12.76 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, TCBK's PEG of 0.54 indicates potential undervaluation.
Price to Book
The market values TriCo Bancshares at 1.28 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.84 times EBITDA. This is generally considered low.
How Well Does TCBK Make Money?
Net Profit Margin
For every $100 in sales, TriCo Bancshares keeps $24.83 as profit after all expenses.
Operating Margin
Core operations generate 34.49 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.23 in profit for every $100 of shareholder equity.
ROA
TriCo Bancshares generates $1.36 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
TriCo Bancshares generates strong operating cash flow of $139.37M, reflecting robust business health.
Free Cash Flow
TriCo Bancshares generates strong free cash flow of $136.70M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.25 in free cash annually.
FCF Yield
TCBK converts 7.85% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.76
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.54
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.28
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.16
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.06
vs 25 benchmark
Current Ratio
Current assets to current liabilities
10.22
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How TCBK Stacks Against Its Sector Peers
| Metric | TCBK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.76 | 20.76 | Better (Cheaper) |
| ROE | 10.23% | 644.00% | Weak |
| Net Margin | 24.83% | -1529.00% (disorted) | Strong |
| Debt/Equity | 0.06 | 0.88 | Strong (Low Leverage) |
| Current Ratio | 10.22 | 830.27 | Strong Liquidity |
| ROA | 1.36% | -577.00% (disorted) | Weak |
TCBK outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews TriCo Bancshares's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
55.04%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
72.94%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
7.06%
Industry Style: Value, Dividend, Cyclical
Growing