TBK - Almost a 10-Bagger Since Going Public There Is More to Come for This Growth Stock
Since going public in 2014, shares of the roughly $6 billion asset Triumph Bancorp (NASDAQ: TBK) are up 935% and trade at an astounding 6.7 times tangible book value, which is what a bank would be worth if it were immediately liquidated. Most strong bank stocks trade at two or maybe three times tangible book. But Triumph is not your average bank. It is disrupting the trucking industry with its innovative payments platform TriumphPay that has revolutionized the way freight brokers, shippers, factors, and carriers all connect and complete transactions. Although the stock has run up quite a bit, this may just be the beginning for Triumph. Here's why.
The trucking industry involves four key players. There is the shipper, which is the company that has goods it wants to send to another business that purchased them. Then there are the carriers, or trucking companies, that have the capabilities to make this transportation happen. The third player is the freight brokers that essentially serve as the middlemen to connect the two, and the fourth player is the factoring company.
Factoring companies play an essential role. In the trucking industry, after delivery, it is not uncommon for carriers to not receive payment on invoices for another month, despite incurring a good amount of expenses upfront to do the transportation. The factoring company will purchase the carrier's invoices immediately after delivery but at a discount, providing the carrier quick access to cash flow. Then the factoring company collects the payment for the invoice later down the line and makes a nice profit on the discount it purchased the invoice for.
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Almost a 10-Bagger Since Going Public, There Is More to Come for This Growth Stock