BankFinancial Corporation (NASDAQ:BFIN) has a ROIC of 1.96% and a WACC of 4.75%, indicating inefficiencies in capital utilization with a ROIC to WACC ratio of 0.41.
ESSA Bancorp (ESSA) demonstrates better capital efficiency with a ROIC of 16.19% and a WACC of 9.92%, resulting in a ROIC to WACC ratio of 1.63.
Ames National Corporation (ATLO) showcases highly efficient capital utilization with a ROIC of 56.88% and a WACC of 19.33%, leading to a ROIC to WACC ratio of 2.94.
BankFinancial Corporation (NASDAQ:BFIN) is a financial institution that provides a range of banking services. It operates primarily in the United States, offering personal and business banking products. The company competes with other regional banks like ESSA Bancorp, Sierra Bancorp, BCB Bancorp, and Bank of Marin Bancorp. These competitors also provide similar financial services, making the comparison of financial metrics crucial.
BankFinancial Corporation’s Return on Invested Capital (ROIC) is 1.96%, while its Weighted Average Cost of Capital (WACC) is 4.75%. This results in a ROIC to WACC ratio of 0.41. A ratio below 1 indicates that the company is not generating sufficient returns to cover its cost of capital, suggesting inefficiencies in capital utilization.
In contrast, ESSA Bancorp (ESSA) has a ROIC of 16.19% and a WACC of 9.92%, resulting in a ROIC to WACC ratio of 1.63. This indicates that ESSA is effectively using its capital to generate returns that exceed its cost of capital, highlighting better capital efficiency compared to BFIN.
Sierra Bancorp (BSRR) shows a ROIC of 3.79% against a WACC of 12.36%, leading to a ROIC to WACC ratio of 0.31. Like BFIN, Sierra Bancorp is also not generating returns above its cost of capital, indicating room for improvement in capital utilization.
Ames National Corporation (ATLO) stands out with a ROIC of 56.88% and a WACC of 19.33%, resulting in a ROIC to WACC ratio of 2.94. This high ratio signifies that ATLO is generating returns significantly above its cost of capital, showcasing efficient capital utilization and strong financial performance among its peers.
