Recent News
On September 30, 2025 South Plains Financial redeemed $50.0 million of its 4.50% fixed-to-floating subordinated notes, following regulatory approval in August; the redemption removed a fixed-rate funding tranche and reduced outstanding subordinated debt. The company filed an 8-K disclosing the event.
Technical Analysis
Directional indicators show mixed bullish pressure: DI+ sits at 15.67 and shows an increasing trend while DI- reads 18.72 and shows a decreasing trend; both point toward buyer advantage but the ADX at 16.39 signals no established trend strength, implying any advance could lack follow-through.
MACD registers -0.26 with a rising trend and sits above the signal line (-0.42), a bullish crossover that signals improving momentum and supports short-term upside toward the stock’s valuation anchor.
MRO stands at 11.17 and climbs, indicating the current price stands above the oscillator’s target and therefore carries downward pressure toward fair value; this contrasts with the MACD bullish signal and moderates the net near-term price bias.
RSI equals 48.2 with a dip & reversal pattern; that recovery aligns with the 12-day EMA showing a dip & reversal and suggests a short-lived rebound rather than a sustained breakout given the weak ADX.
Price structure sits slightly above longer-term averages: the close at $37.94 exceeds the 200-day average ($36.09) and the 20-day average ($36.93) but remains below the 50-day average ($38.27), placing the market within a consolidation band bounded by short-term resistance near the 50-day average and support near the 20–200 day zone.
Bollinger bands remain narrow (1x upper $37.75 / lower $36.10), indicating low volatility; daily volume (29,374) trails 10/50/200-day averages, reducing conviction behind directional moves and increasing the chance of range-bound trading.
Fundamental Analysis
Earnings and cash generation support the valuation narrative: reported EPS equaled $0.96 versus an estimate of $0.86, an EPS surprise of +11.63%, and forward EPS of $0.6825. Quarterly results showed revenue around $54 million for the quarter ended September 30, 2025 as reported in public filings.
Profitability and returns improved year-over-year: earnings growth equals 11.63% YoY, return on assets equals 0.369% (ROA YoY +40.84%), and return on equity equals 3.42% (ROE YoY +34.98%). Free cash flow equals $22,463,000 with a free cash flow yield of 3.59% and free cash growth of 72.54%, supporting distributions and balance-sheet actions.
Capital and liquidity position show clear strength: cash holdings total $635,046,000 versus a market capitalization of $625,140,642, while debt-to-assets equals 1.35% and debt-to-equity equals 12.66%, reflecting materially lower leverage than the industry peer mean and leaving capacity for opportunistic balance-sheet moves.
Valuation multiples reflect mixed signals: P/E sits at 40.08, slightly below the industry peer mean P/E of 42.82 and near the industry peer median of 41.42; price-to-book equals 1.31, marginally above the industry peer mean P/B of 1.24697. Forward P/E at 56.80 implies elevated forward expectations versus current earnings, while free cash flow yield sits above the industry peer mean, supporting the current valuation.
Revenue trends include YoY revenue contraction of -26.28% and a QoQ revenue change of -109.03%; those declines contrast with improving margins and net interest income trends and require monitoring for sustainability. Tangible book value per share showed sequential gains during 2025, supporting capital adequacy metrics reported by management.
WMDST values the stock as fair-valued based on the combination of strong liquidity, low leverage, positive free cash flow generation, and earnings beat against near-term multiple expansion risk reflected in forward P/E.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-10-23 |
| NEXT REPORT DATE: | 2026-01-22 |
| CASH FLOW | Begin Period Cash Flow | $ 470.5 M |
| Operating Cash Flow | $ 24.2 M | |
| Capital Expenditures | $ -1.75 M | |
| Change In Working Capital | $ 820.0 K | |
| Dividends Paid | $ -2.60 M | |
| Cash Flow Delta | $ 164.6 M | |
| End Period Cash Flow | $ 635.0 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 52.5 M | |
| Forward Revenue | $ 8.9 M | |
| COSTS | ||
| Cost Of Revenue | — | |
| Depreciation | $ 1.4 M | |
| Depreciation and Amortization | $ 1.4 M | |
| Research and Development | — | |
| Total Operating Expenses | — | |
| PROFITABILITY | ||
| Gross Profit | — | |
| EBITDA | — | |
| EBIT | — | |
| Operating Income | — | |
| Interest Income | $ 64.5 M | |
| Interest Expense | $ 21.5 M | |
| Net Interest Income | $ 43.0 M | |
| Income Before Tax | $ 20.7 M | |
| Tax Provision | $ 4.3 M | |
| Tax Rate | 21.017 % | |
| Net Income | $ 16.3 M | |
| Net Income From Continuing Operations | $ 16.3 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.86 | |
| EPS Actual | $ 0.96 | |
| EPS Difference | $ 0.10 | |
| EPS Surprise | 11.628 % | |
| Forward EPS | $ 0.68 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 4.5 B | |
| Intangible Assets | $ 45.0 M | |
| Net Tangible Assets | $ 432.8 M | |
| Total Current Assets | — | |
| Cash and Short-Term Investments | — | |
| Cash | $ 635.0 M | |
| Net Receivables | $ 18.0 M | |
| Inventory | — | |
| Long-Term Investments | — | |
| LIABILITIES | ||
| Accounts Payable | — | |
| Short-Term Debt | — | |
| Total Current Liabilities | — | |
| Net Debt | — | |
| Total Debt | $ 60.5 M | |
| Total Liabilities | $ 4.0 B | |
| EQUITY | ||
| Total Equity | $ 477.8 M | |
| Retained Earnings | $ 421.5 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 29.41 | |
| Shares Outstanding | 16.248 M | |
| Revenue Per-Share | $ 3.23 | |
| VALUATION | Market Capitalization | $ 625.1 M |
| Enterprise Value | $ 685.6 M | |
| Enterprise Multiple | — | |
| Enterprise Multiple QoQ | — | |
| Enterprise Multiple YoY | — | |
| Enterprise Multiple IPRWA | — | |
| EV/R | 13.048 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 9.375 | |
| Asset To Liability | 1.119 | |
| Debt To Capital | 0.112 | |
| Debt To Assets | 0.013 | |
| Debt To Assets QoQ | -47.307 % | |
| Debt To Assets YoY | -46.913 % | |
| Debt To Assets IPRWA | high: 0.165 mean: 0.056 median: 0.053 SPFI: 0.013 low: 0.001 |
|
| Debt To Equity | 0.127 | |
| Debt To Equity QoQ | -48.576 % | |
| Debt To Equity YoY | -49.138 % | |
| Debt To Equity IPRWA | high: 1.525 mean: 0.513 median: 0.455 SPFI: 0.127 low: 0.005 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.308 | |
| Price To Book QoQ | -3.589 % | |
| Price To Book YoY | 11.67 % | |
| Price To Book IPRWA | high: 2.042 SPFI: 1.308 mean: 1.247 median: 1.161 low: 0.284 |
|
| Price To Earnings (P/E) | 40.078 | |
| Price To Earnings QoQ | -3.109 % | |
| Price To Earnings YoY | -16.511 % | |
| Price To Earnings IPRWA | high: 75.793 mean: 42.816 median: 41.421 SPFI: 40.078 low: 9.669 |
|
| PE/G Ratio | 3.447 | |
| Price To Sales (P/S) | 11.897 | |
| Price To Sales QoQ | 2.496 % | |
| Price To Sales YoY | 6.39 % | |
| Price To Sales IPRWA | high: 24.051 mean: 12.824 median: 12.491 SPFI: 11.897 low: 0.117 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 56.797 | |
| Forward PE/G | 4.884 | |
| Forward P/S | 70.026 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | — | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.012 | |
| Asset Turnover Ratio QoQ | -1.899 % | |
| Asset Turnover Ratio YoY | 9.493 % | |
| Asset Turnover Ratio IPRWA | high: 0.016 SPFI: 0.012 mean: 0.01 median: 0.01 low: 0.005 |
|
| Receivables Turnover | 2.919 | |
| Receivables Turnover Ratio QoQ | -1.76 % | |
| Receivables Turnover Ratio YoY | 21.437 % | |
| Receivables Turnover Ratio IPRWA | high: 4.407 SPFI: 2.919 median: 2.631 mean: 2.612 low: 0.56 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 31.265 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 31.265 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 56.945 mean: 35.78 median: 34.679 SPFI: 31.265 low: 20.707 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | — | |
| CapEx To Revenue | -0.033 | |
| CapEx To Depreciation | -1.235 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 538.3 M | |
| Net Invested Capital | $ 538.3 M | |
| Invested Capital | $ 538.3 M | |
| Net Tangible Assets | $ 432.8 M | |
| Net Working Capital | — | |
| LIQUIDITY | ||
| Cash Ratio | — | |
| Current Ratio | — | |
| Current Ratio QoQ | — | |
| Current Ratio YoY | — | |
| Current Ratio IPRWA | — | |
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | — | |
| Cost Of Debt | 19.713 % | |
| Interest Coverage Ratio | — | |
| Interest Coverage Ratio QoQ | — | |
| Interest Coverage Ratio YoY | — | |
| Interest Coverage Ratio IPRWA | — | |
| Operating Cash Flow Ratio | — | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | — | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 6.281 | |
| Dividend Payout Ratio | 0.159 | |
| Dividend Rate | $ 0.16 | |
| Dividend Yield | 0.004 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 2.653 % | |
| Revenue Growth | -1.021 % | |
| Revenue Growth QoQ | -109.034 % | |
| Revenue Growth YoY | -26.282 % | |
| Revenue Growth IPRWA | high: 23.369 % mean: 4.889 % median: 3.911 % SPFI: -1.021 % low: -9.66 % |
|
| Earnings Growth | 11.628 % | |
| Earnings Growth QoQ | -40.197 % | |
| Earnings Growth YoY | — | |
| Earnings Growth IPRWA | high: 63.889 % SPFI: 11.628 % median: 7.947 % mean: 7.846 % low: -37.5 % |
|
| MARGINS | ||
| Gross Margin | — | |
| Gross Margin QoQ | — | |
| Gross Margin YoY | — | |
| Gross Margin IPRWA | — | |
| EBIT Margin | — | |
| EBIT Margin QoQ | — | |
| EBIT Margin YoY | — | |
| EBIT Margin IPRWA | — | |
| Return On Sales (ROS) | — | |
| Return On Sales QoQ | — | |
| Return On Sales YoY | — | |
| Return On Sales IPRWA | — | |
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 22.5 M | |
| Free Cash Flow Yield | 3.593 % | |
| Free Cash Flow Yield QoQ | 70.043 % | |
| Free Cash Flow Yield YoY | 9.11 % | |
| Free Cash Flow Yield IPRWA | high: 9.076 % SPFI: 3.593 % mean: 2.786 % median: 2.738 % low: -1.876 % |
|
| Free Cash Growth | 72.54 % | |
| Free Cash Growth QoQ | -251.627 % | |
| Free Cash Growth YoY | — | |
| Free Cash Growth IPRWA | high: 435.53 % SPFI: 72.54 % mean: 18.084 % median: 4.44 % low: -394.679 % |
|
| Free Cash To Net Income | 1.377 | |
| Cash Flow Margin | 33.726 % | |
| Cash Flow To Earnings | 1.086 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.05 | |
| Return On Assets (ROA) | 0.369 % | |
| Return On Assets QoQ | 10.811 % | |
| Return On Assets YoY | 40.84 % | |
| Return On Assets IPRWA | high: 0.657 % SPFI: 0.369 % mean: 0.306 % median: 0.301 % low: 0.027 % |
|
| Return On Capital Employed (ROCE) | — | |
| Return On Equity (ROE) | 0.034 | |
| Return On Equity QoQ | 6.188 % | |
| Return On Equity YoY | 34.98 % | |
| Return On Equity IPRWA | high: 0.052 SPFI: 0.034 median: 0.03 mean: 0.029 low: 0.002 |
|
| DuPont ROE | 3.501 % | |
| Return On Invested Capital (ROIC) | — | |
| Return On Invested Capital QoQ | — | |
| Return On Invested Capital YoY | — | |
| Return On Invested Capital IPRWA | — | |