Investment Thesis
TRICO Bancshares shows modest earnings growth (+5.8% YoY net income) with a conservative capital structure and positive free cash flow, but fundamental profitability metrics are severely concerning. Return on equity of 2.5% and return on assets of 0.3% are critically low for a regional bank, combined with weak interest coverage of 1.4x and apparent data quality issues that undermine analytical confidence.
Strengths
- Net income growing 5.8% YoY with EPS growth of 6.9%
- Strong capital position with no long-term debt (0.00x debt-to-equity ratio)
- Positive free cash flow generation of 33.0M despite minimal capital expenditure
Risks
- Severely depressed return on equity (2.5%) and return on assets (0.3%) indicate poor asset utilization and profitability
- Interest coverage ratio of 1.4x is dangerously low and suggests limited capacity to service debt obligations
- Significant data quality concerns: revenue of 13.2M for a 9.9B asset bank is implausibly low, and operating/net margins exceeding 100% are financially impossible
- Flat revenue growth (0% YoY) indicates stagnant top-line performance
Key Metrics to Watch
- Net interest margin and yield on earning assets trends
- Return on equity (target >10% for healthy bank)
- Interest coverage ratio improvement
- Asset quality indicators and loan loss provisions
Financial Metrics
Revenue
13.2M
Net Income
33.7M
EPS (Diluted)
$1.04
Free Cash Flow
33.0M
Total Assets
9.9B
Cash
301.3M
Profitability Ratios
Gross Margin
N/A
Operating Margin
348.6%
Net Margin
256.0%
ROE
2.5%
ROA
0.3%
FCF Margin
250.7%
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.00x
Debt/Assets
86.7%
Interest Coverage
1.40x
Long-term Debt
N/A
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-09T06:57:11.167553 |
Data as of: 2026-03-31 |
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