Company Overview
TriCo Bancshares functions as a bank holding company that manages Tri Counties Bank, an institution dedicated to providing comprehensive commercial and retail banking services to both individual and corporate clients. The firm accepts various forms of deposits including demand, savings, and time deposits while offering a suite of checking, specialized, money market, education, health savings, and certificate of deposit accounts to its customer base. Operating within the Financial Services sector and specifically classified in the Banks - Regional industry, the company serves a niche market focused on local and regional banking needs. The organization employs a workforce of 1135 individuals and holds a market capitalization of $1.51B, generating annual revenue of $405.78M. These valuation and revenue figures indicate that the company possesses a significant asset base and operational footprint within the regional banking landscape, positioning it as a substantial player capable of managing diverse liquidity and lending requirements for its clientele.
Financial Health
The company reported revenue of $405.78M over the trailing twelve months with a corresponding net income of $121.56M, while specific EBITDA data is not disclosed in the available financial records. The substantial gap between the reported revenue of $405.78M and the net income of $121.56M reveals a cost structure where operating expenses, provisions for loan losses, and interest expenses consume a significant portion of top-line earnings, resulting in a highly leveraged income statement typical of banking operations. Although free cash flow figures are not explicitly listed, the availability of $92.91M in cash on the balance sheet provides a baseline for immediate liquidity, suggesting the company maintains a buffer for operational needs despite the lack of direct free cash flow reporting. The firm demonstrates a gross margin of 0.0%, which is standard for financial institutions as interest income is netted against interest expense, an operating margin of 43.1% indicating efficient management of non-interest expenses relative to revenue, and a profit margin of 30.0% reflecting strong bottom-line profitability. When comparing total cash assets of $92.91M against total debt of $80.23M, the balance sheet appears conservative with cash exceeding debt obligations, although a specific debt-to-equity ratio is not provided in the current data. The current ratio is not disclosed in the available facts, so a direct assessment of short-term liquidity relative to current liabilities cannot be quantified using the provided metrics. Furthermore, the Return on Equity stands at 9.5% and the Return on Assets is 1.2%, metrics that collectively reveal management's effectiveness in generating returns from shareholders' capital and the broader asset base, respectively.
Valuation Assessment
TriCo Bancshares currently trades with a trailing P/E ratio of 12.57 and a forward P/E of 11.05, where the lower forward multiple implies that the market anticipates an upward trajectory in earnings growth that will compress the valuation multiple over time. The price-to-book ratio is recorded at 1.13, suggesting that the market values the company at a slight premium over its tangible book value, which is consistent with regional banks that maintain strong capitalization and asset quality. Alternative valuation metrics include a price-to-sales ratio of 3.73, while the EV/EBITDA ratio is not available due to missing EBITDA data, indicating that analysts may rely on price-to-book or price-to-sales to gauge relative value. The stock has demonstrated price volatility within a 52-week range bounded by a high of $53.18 and a low of $35.20, placing the current trading price contextually within this historical band relative to the peak and trough. The beta value is 0.62, which indicates that the stock exhibits lower price volatility relative to the broader market, moving less aggressively than the overall equity index during periods of market fluctuation.
Growth & Income
The company has achieved a revenue growth rate of 6.6% year-over-year alongside an earnings growth rate of 17.2%, demonstrating that earnings are expanding significantly faster than revenue, which implies improved operational leverage and efficiency in converting additional revenue into profit. As a dividend payer, the firm offers a dividend yield of 3.0% with a payout ratio of 37.3%, indicating a highly sustainable distribution policy given that the payout ratio is well below 100% and leaves ample room for reinvestment or special dividends. The low payout ratio of 37.3% relative to the strong 17.2% earnings growth suggests the company retains a majority of its earnings to bolster capital reserves or fund organic growth initiatives rather than distributing the full amount as dividends. The overall growth and income profile is characterized by double-digit earnings expansion supported by single-digit revenue growth and a conservative yet attractive dividend yield that provides income stability for shareholders.