BancFirst Corporation (NASDAQ:BANF) has a ROIC of 1.26% and a WACC of 14.70%, indicating it is not generating returns above its cost of capital.
Comparatively, Arrow Financial Corporation (AROW) showcases exceptional efficiency with a ROIC of 72.29% and a WACC of 15.09%, significantly outperforming its peers.
Other competitors like Community Trust Bancorp, City Holding Company, and Westamerica Bancorporation show varying degrees of financial efficiency, with Westamerica Bancorporation presenting a more favorable ROIC to WACC ratio.
BancFirst Corporation (NASDAQ:BANF) is a financial institution that provides a range of banking services. It operates primarily in Oklahoma and offers services such as commercial banking, retail banking, and wealth management. In the competitive landscape, BancFirst is compared with peers like Community Trust Bancorp, City Holding Company, Westamerica Bancorporation, BOK Financial Corporation, and Arrow Financial Corporation.
In evaluating BancFirst’s financial efficiency, the Return on Invested Capital (ROIC) is a key metric. BancFirst has a ROIC of 1.26%, which is a measure of how well the company generates returns on its investments. However, when compared to its Weighted Average Cost of Capital (WACC) of 14.70%, the ROIC to WACC ratio is 0.086. This indicates that BancFirst is not generating returns that exceed its cost of capital.
Comparatively, Community Trust Bancorp (CTBI) has a ROIC of 1.05% and a WACC of 17.13%, resulting in a ROIC to WACC ratio of 0.061. This suggests that CTBI, like BancFirst, is also generating returns below its cost of capital. City Holding Company (CHCO), with a ROIC of 0.97% and a WACC of 9.58%, has a slightly better ROIC to WACC ratio of 0.101, indicating a closer alignment between returns and cost of capital.
Westamerica Bancorporation (WABC) shows a more favorable scenario with a ROIC of 1.79% and a WACC of 7.52%, leading to a ROIC to WACC ratio of 0.238. This suggests that WABC is more efficient in generating returns relative to its cost of capital. However, Arrow Financial Corporation (AROW) stands out with a remarkable ROIC of 72.29% and a WACC of 15.09%, resulting in a ROIC to WACC ratio of 4.789. This highlights AROW’s exceptional efficiency in capital utilization compared to its peers.
