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Guaranty Bancshares Inc (GNTY)
NYSE:GNTY
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Guaranty Bancshares
(NYSE:GNTY)
72Outperform
Guaranty Bancshares (GNTY) vs. S&P 500 (SPY)
Market Cap
$424.67M
Dividend Yield2.59%
Average Volume (3M)31.14K
Price to Earnings (P/E)13.6
Beta (1Y)0.92
Revenue Growth2.73%
EPS Growth7.41%
CountryUS
Employees485
SectorFinancial
Sector Strength80
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.74
Shares Outstanding11,351,712
10 Day Avg. Volume31,405
30 Day Avg. Volume31,139
Financial Highlights & Ratios
PEG Ratio1.84
Price to Book (P/B)N/A
Price to Sales (P/S)3.86
Price to Cash Flow (P/CF)10.70
P/FCF Ratio5.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$42.00Price Target Upside12.27% Upside
Rating ConsensusHold
Number of Analyst Covering2
Guaranty Bancshares Business Overview & Revenue Model
Company DescriptionGuaranty Bancshares, Inc. operates as the bank holding company for Guaranty Bank & Trust, N.A. that provides a range of commercial and consumer banking products and services for small- and medium-sized businesses, professionals, and individuals. The company offers checking and savings, money market, and business accounts, as well as certificates of deposit; and commercial and industrial, construction and development, 1-4 family residential, commercial real estate, farmland and agricultural, multi-family residential, and consumer loans. It also provides trustee, custodial and escrow, investment management, retirement plan, ATM, night depository, direct deposit, and cashier's check services, as well as online, mobile, and telephone banking services; debit cards; letters of credit; and treasury management services, including wire transfer, positive pay, remote deposit capture, and automated clearinghouse services. As of December 31, 2021, it operated 32 full-service banking locations in East Texas, Central Texas, the Dallas/Fort Worth metropolitan statistical area (MSA) and the Houston MSA. The company was founded in 1913 and is headquartered in Addison, Texas.
How the Company Makes MoneyGuaranty Bancshares generates revenue primarily through interest income from its lending activities, which include personal, commercial, and real estate loans. The company also earns non-interest income from service charges on deposit accounts, fees from wealth management and fiduciary activities, and gains on the sale of loans. Additionally, Guaranty Bancshares benefits from strategic partnerships with financial service providers to enhance its product offerings and expand its market reach, contributing to its diversified revenue streams.
Guaranty Bancshares Financial Statement Overview
Summary
Guaranty Bancshares exhibits strong financial stability with an excellent balance sheet and effective cash flow management. Despite revenue fluctuations, the company maintained profitability and has no debt as of 2024, strengthening its financial position.Income Statement
The income statement shows a mixed performance. The company experienced significant revenue fluctuation, with a notable decrease in total revenue from 2021 to 2022, but rebounded in 2023. Despite the revenue volatility, net income has been relatively stable, and the company maintained a positive net profit margin. However, the lack of current revenue data for 2024 limits the ability to assess the most recent performance.65
Positive
Balance Sheet
The balance sheet reflects strong financial stability with no debt reported in 2024, and a solid equity base. The equity ratio is favorable, indicating a healthy financial structure. The company's stockholders' equity has shown resilience over the years, and the absence of liabilities in 2024 suggests prudent financial management.80
Positive
Cash Flow
Cash flow statements indicate consistent operating cash flow, with a positive free cash flow throughout the years. The company has managed its cash flow effectively, despite fluctuations in financing activities and investment cash flows. The operating cash flow to net income ratio is strong, reflecting efficient cash management.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 115.61M | 116.59M | 2.71M | 120.13M | 113.02M | Gross Profit |
| 115.61M | 116.59M | 2.71M | 120.13M | 113.02M | EBIT |
| -109.26M | 37.14M | 64.66M | 48.56M | 33.30M | EBITDA |
| 0.00 | 41.78M | 54.19M | 54.07M | 38.76M | Net Income Common Stockholders |
| 12.02K | 30.04M | 40.45M | 39.81M | 27.40M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.75M | 2.99M | 248.12M | 409.84M | 513.76M | Total Assets |
| 3.12B | 3.18B | 3.35B | 3.09B | 2.74B | Total Debt |
| 41.92M | 190.28M | 339.15M | 72.31M | 140.91M | Net Debt |
| -1.75M | 137.34M | 279.96M | 4.68M | 7.95M | Total Liabilities |
| 2.80B | 2.88B | 3.06B | 2.78B | 2.47B | Stockholders Equity |
| 363.63M | 303.30M | 294.98M | 302.21M | 272.64M |
| Cash Flow | Free Cash Flow | |||
| 22.28M | 32.43M | 33.16M | 40.65M | 36.62M | Operating Cash Flow |
| 22.28M | 39.21M | 38.85M | 43.54M | 42.52M | Investing Cash Flow |
| 107.71M | 144.03M | -684.96M | -202.68M | -165.77M | Financing Cash Flow |
| -98.69M | -200.18M | 252.98M | 306.95M | 384.32M |
Guaranty Bancshares Technical Analysis
Negative
37.41
Price Trends
40.24
Negative
37.92
Negative
35.12
Positive
Market Momentum
0.16
Negative
52.71
Neutral
67.32
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GNTY, the sentiment is Negative. The current price of 37.41 is below the 20-day moving average (MA) of 39.59, below the 50-day MA of 40.24, and above the 200-day MA of 35.12, indicating a neutral trend. The MACD of 0.16 indicates Negative momentum. The RSI at 52.71 is Neutral, neither overbought nor oversold. The STOCH value of 67.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GNTY.
Guaranty Bancshares Risk Analysis
Guaranty Bancshares disclosed 65 risk factors in its most recent earnings report. Guaranty Bancshares reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Guaranty Bancshares Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $424.67M | 13.64 | 10.14% | 2.59% | 2.73% | 7.41% | |
72 Outperform | $6.14B | 12.77 | 6.60% | 3.54% | 11.96% | 11.66% | |
69 Neutral | $6.87B | 12.06 | 15.13% | 3.53% | 7.81% | -2.49% | |
69 Neutral | $4.60B | 20.62 | 14.39% | 2.24% | 18.54% | 12.22% | |
68 Neutral | $5.78B | 11.05 | 9.70% | 2.49% | 11.17% | 1.47% | |
67 Neutral | $2.98B | 50.69 | 2.36% | ― | 8.15% | -64.06% | |
63 Neutral | $12.86B | 9.19 | 9.16% | 4.78% | 16.31% | -8.97% |
* Financial Sector Average
Performance Comparison
GNTY
Guaranty Bancshares
37.41
8.90
31.22%
BOKF
Bok Financial
89.91
0.72
0.81%
CFR
Cullen/Frost Bankers
106.92
-1.82
-1.67%
FFIN
First Financial Bankshares
32.17
1.20
3.87%
PB
Prosperity Bancshares
64.44
2.27
3.65%
TCBI
Texas Capital Bancshares
64.50
5.11
8.60%
Guaranty Bancshares Earnings Call Summary
Earnings Call Date: Jan 21, 2025 | % Change Since: 6.58% | Next Earnings Date: Apr 21, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook for Guaranty Bancshares. The company reported strong financial performance with increased net income and improved key performance metrics. Effective management of noninterest income and expenses was highlighted, along with low levels of nonperforming assets and charge-offs. Despite a decrease in total assets and an increase in unrealized losses, the company's strong deposit growth, loan origination, and plans for aggressive stock buybacks contribute to a positive sentiment.Highlights
Strong Financial Performance
Net income for the fourth quarter was $10 million, or $0.88 per basic share, up from $0.65 in the previous quarter and $0.51 in the fourth quarter of 2023. Total net income for the year was $31.5 million, or $2.75 per basic share.
Improvement in Key Performance Metrics
Return on average assets was 1.2% for the quarter compared to 0.96% in the prior quarter. Return on average equity was 12.68% for the quarter compared to 9.58% at the end of Q3. Net interest margin increased to 3.54% in Q4 from 3.3% in Q3.
Effective Management of Noninterest Income and Expenses
Noninterest income increased by $572,000 in Q4, largely due to a gain on sale of $467,000. Noninterest expense decreased by $798,000 in Q4.
Low Nonperforming Assets and Charge-offs
Nonperforming assets were 0.16% at year-end, improved from 0.66% at the end of Q3. Net charge-offs were very low at 0.02% for the year.
Loan and Deposit Growth
Total deposits grew by $23.3 million in Q4. For the year, total deposits increased by $59.9 million. Originated $103.1 million in new loans in Q4.
Lowlights
Decrease in Total Assets
Total assets were down about $69 million for the year, primarily due to a smaller loan portfolio. Loans decreased by $191.4 million year-to-date.
Increase in Unrealized Losses
Unrealized losses in the AFS securities portfolio increased by $8.1 million in Q4. Total net unrealized losses on investment securities were $52.2 million at the end of the year.
Company Guidance
During the fourth quarter of 2024 earnings call for Guaranty Bancshares, the company reported robust financial metrics and provided optimistic guidance for 2025. The company ended the year with total assets down by $69 million primarily due to a reduction in the loan portfolio by $191 million, although deposits increased by $59 million. Guaranty Bancshares plans to leverage its strong liquidity and capital positions to support organic growth, particularly in its Texas markets, and possibly engage in aggressive stock repurchases. The net interest margin improved significantly to 3.54%, up from 3.3% in the prior quarter, and is expected to continue expanding. The company also reported a return on average assets of 1.2% and a return on average equity of 12.68% for the fourth quarter. Additionally, the firm plans to maintain its focus on core deposit growth, with noninterest-bearing deposits making up 31.1% of the total. The efficiency ratio improved to 62.23% due to higher income and lower expenses, and the expectation is for only a modest 1-2% increase in expenses for the upcoming year. Overall, Guaranty Bancshares remains well-positioned with low nonperforming assets and plans to capitalize on its market presence and strong financial foundation to drive further shareholder value.Guaranty Bancshares Corporate Events
Business Operations and StrategyFinancial Disclosures
Guaranty Bancshares Reports Strong Q4 and Year-End Results
Positive
Jan 21, 2025
On January 21, 2025, Guaranty Bancshares, Inc. reported its financial results for the fourth quarter and year-end 2024, showing significant improvements in net income and asset quality. The company’s net income for the fourth quarter reached $10.0 million, an increase from both the previous quarter and the same quarter in 2023, driven by higher net interest income and lower noninterest expenses. The strategic reduction of the balance sheet to enhance liquidity and capital, along with maintaining core deposits, has positioned the company well for future growth opportunities. Nonperforming assets decreased, reflecting excellent credit quality and low expected losses on deteriorated credits, while the net interest margin improved due to higher yields on loan and securities portfolios.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.