📊 SPFI Key Takeaways
Is South Plains Financial, Inc.. (SPFI) a Good Investment?
South Plains Financial demonstrates exceptional revenue growth of 50.9% YoY with strong positive free cash flow, but this growth masks critical profitability and leverage concerns. The company's interest coverage ratio of 0.8x (below 1.0x) indicates operating income insufficient to cover interest expenses, while ROE of 2.9% and ROA of 0.3% suggest severely depressed returns on equity despite rapid top-line expansion.
South Plains Financial, Inc.. Key Strengths (SPFI)
- Exceptional revenue growth of 50.9% YoY demonstrates strong business expansion
- Positive free cash flow of 14.8M with 23.7% FCF margin provides financial flexibility
- Strong net margin of 23.2% and operating margin of 29.3% on the revenue base
- Solid cash position of 722.0M provides liquidity buffer
SPFI Stock Risks: South Plains Financial, Inc.. Investment Risks
- Interest coverage ratio of 0.8x is critically low, indicating operating income cannot cover interest obligations
- ROE of 2.9% is far below banking industry standards (10%+ expected), signaling poor shareholder value generation
- EPS growth of 17.8% significantly lags revenue growth of 50.9%, suggesting margin compression or operational inefficiency
- ROA of 0.3% indicates minimal asset utilization efficiency despite 4.6B in total assets
Key Metrics to Watch
- Interest coverage ratio trend - must move above 1.0x to indicate sustainable earnings
- Return on equity progression - monitor if improving toward 8-10% range
- Net income growth rate - validate whether growth can accelerate beyond 17.8% EPS growth
- Asset quality metrics and loan loss reserves - assess underlying credit risk
South Plains Financial, Inc.. (SPFI) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 23.7% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
SPFI Profit Margin, ROE & Profitability Analysis
SPFI vs Finance Sector: How South Plains Financial, Inc.. Compares
How South Plains Financial, Inc.. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is South Plains Financial, Inc.. Stock Overvalued? SPFI Valuation Analysis 2026
Based on fundamental analysis, South Plains Financial, Inc.. has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
South Plains Financial, Inc.. Balance Sheet: SPFI Debt, Cash & Liquidity
SPFI Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: South Plains Financial, Inc..'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $3.62 reflects profitable operations.
SPFI Revenue Growth, EPS Growth & YoY Performance
South Plains Financial, Inc.. Dividends, Buybacks & Capital Allocation
SPFI SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for South Plains Financial, Inc.. (CIK: 0001163668)
📋 Recent SEC Filings
❓ Frequently Asked Questions about SPFI
What is the AI rating for SPFI?
South Plains Financial, Inc.. (SPFI) has an AI grade of B with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SPFI's key strengths?
Claude: Exceptional revenue growth of 50.9% YoY demonstrates strong business expansion. Positive free cash flow of 14.8M with 23.7% FCF margin provides financial flexibility.
What are the risks of investing in SPFI?
Claude: Interest coverage ratio of 0.8x is critically low, indicating operating income cannot cover interest obligations. ROE of 2.9% is far below banking industry standards (10%+ expected), signaling poor shareholder value generation.
What is SPFI's revenue and growth?
South Plains Financial, Inc.. reported revenue of $62.6M.
Does SPFI pay dividends?
South Plains Financial, Inc.. pays dividends, with $2.8M distributed to shareholders in the trailing twelve months.
Where can I find SPFI SEC filings?
Official SEC filings for South Plains Financial, Inc.. (CIK: 0001163668) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SPFI's EPS?
South Plains Financial, Inc.. has a diluted EPS of $0.85.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is SPFI's fundamental grade?
Based on our AI fundamental analysis in May 2026, South Plains Financial, Inc.. has a B grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is SPFI stock overvalued or undervalued?
Valuation metrics for SPFI: ROE of 2.9% (sector avg: 12%), net margin of 23.2% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
What is SPFI's AI grade for 2026?
Our dual AI analysis gives South Plains Financial, Inc.. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is SPFI's free cash flow?
South Plains Financial, Inc..'s operating cash flow is $16.2M, with capital expenditures of $1.4M. FCF margin is 23.7%.
How does SPFI compare to other Finance stocks?
Vs Finance sector averages: Net margin 23.2% (avg: 25%), ROE 2.9% (avg: 12%), current ratio N/A (avg: 1.2).