Third Coast Gross Profit vs. Operating Margin

TCBX Stock  USD 36.75  0.53  1.42%   
Based on Third Coast's profitability indicators, Third Coast Bancshares may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Third Coast's ability to earn profits and add value for shareholders.
 
Gross Profit  
First Reported
2010-12-31
Previous Quarter
266.5 M
Current Value
279.9 M
Quarterly Volatility
83.5 M
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Third Coast's Sales General And Administrative To Revenue is fairly stable compared to the past year. Operating Cash Flow Sales Ratio is likely to rise to 0.29 in 2024, whereas Price To Sales Ratio is likely to drop 1.81 in 2024. At this time, Third Coast's Accumulated Other Comprehensive Income is fairly stable compared to the past year. Total Other Income Expense Net is likely to rise to about 43.7 M in 2024, whereas Net Interest Income is likely to drop slightly above 97.5 M in 2024.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Profit Margin0.120.2362
Way Down
Slightly volatile
Operating Profit Margin0.470.44
Notably Up
Slightly volatile
Pretax Profit Margin0.150.2943
Way Down
Slightly volatile
Return On Assets0.00420.0076
Way Down
Slightly volatile
Return On Equity0.04940.0811
Way Down
Slightly volatile
For Third Coast profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Third Coast to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Third Coast Bancshares utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Third Coast's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Third Coast Bancshares over time as well as its relative position and ranking within its peers.
  
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Is Regional Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Third Coast. If investors know Third will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Third Coast listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
1.323
Earnings Share
2.56
Revenue Per Share
11.656
Quarterly Revenue Growth
0.212
Return On Assets
0.0099
The market value of Third Coast Bancshares is measured differently than its book value, which is the value of Third that is recorded on the company's balance sheet. Investors also form their own opinion of Third Coast's value that differs from its market value or its book value, called intrinsic value, which is Third Coast's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Third Coast's market value can be influenced by many factors that don't directly affect Third Coast's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Third Coast's value and its price as these two are different measures arrived at by different means. Investors typically determine if Third Coast is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Third Coast's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Third Coast Bancshares Operating Margin vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Third Coast's current stock value. Our valuation model uses many indicators to compare Third Coast value to that of its competitors to determine the firm's financial worth.
Third Coast Bancshares is rated fifth in gross profit category among its peers. It is rated below average in operating margin category among its peers . The ratio of Gross Profit to Operating Margin for Third Coast Bancshares is about  282,721,278 . At this time, Third Coast's Gross Profit is fairly stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Third Coast's earnings, one of the primary drivers of an investment's value.

Third Operating Margin vs. Gross Profit

Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Third Coast

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
111.48 M
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Third Coast

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.39 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.

Third Operating Margin Comparison

Third Coast is currently under evaluation in operating margin category among its peers.

Third Coast Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Third Coast, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Third Coast will eventually generate negative long term returns. The profitability progress is the general direction of Third Coast's change in net profit over the period of time. It can combine multiple indicators of Third Coast, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income933 K979.6 K
Net Interest Income134.3 M97.5 M
Interest Income240.6 M138 M
Operating Income41.6 M29.7 M
Net Income From Continuing Ops31.2 M16.7 M
Income Before Tax41.6 M21.6 M
Total Other Income Expense Net41.6 M43.7 M
Net Income Applicable To Common Shares19.8 M11.9 M
Net Income33.4 M17.2 M
Income Tax Expense8.2 M4.4 M
Change To Netincome13.3 M8.4 M
Net Income Per Share 2.46  2.58 
Income Quality 1.17  0.63 
Net Income Per E B T 0.80  0.62 

Third Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Third Coast. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Third Coast position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Third Coast's important profitability drivers and their relationship over time.

Use Third Coast in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Third Coast position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Third Coast will appreciate offsetting losses from the drop in the long position's value.

Third Coast Pair Trading

Third Coast Bancshares Pair Trading Analysis

The ability to find closely correlated positions to Third Coast could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Third Coast when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Third Coast - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Third Coast Bancshares to buy it.
The correlation of Third Coast is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Third Coast moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Third Coast Bancshares moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Third Coast can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Third Coast position

In addition to having Third Coast in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Management Thematic Idea Now

Management
Management Theme
Companies providing management services to businesses. The Management theme has 39 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Management Theme or any other thematic opportunities.
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Additional Tools for Third Stock Analysis

When running Third Coast's price analysis, check to measure Third Coast's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Third Coast is operating at the current time. Most of Third Coast's value examination focuses on studying past and present price action to predict the probability of Third Coast's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Third Coast's price. Additionally, you may evaluate how the addition of Third Coast to your portfolios can decrease your overall portfolio volatility.