Guaranty Story

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GNTY -- USA Stock  

USD 30.10  0.05  0.17%

Guaranty Bancshares is scheduled to announce its earnings today. The next earnings report is expected on the 19th of January 2021. Guaranty Bancshares EBITDA Margin is fairly stable at the moment as compared to the past year. Guaranty Bancshares reported EBITDA Margin of 0.40 in 2019. Free Cash Flow per Share is likely to rise to 2.65 in 2020, whereas Net Income Per Employee is likely to drop slightly above 47.3 K in 2020. While some of us are becoming more enthusiastic about financial services space, let's break down Guaranty Bancshares in greater detail to make a better estimate of its debt utilization. We will inspect if it could be a much better year for Guaranty Bancshares shareholders.
Published over a month ago
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How much will Guaranty Bancshares owe in November?
This firm currently holds 153.24 M in liabilities with Debt to Equity (D/E) ratio of 0.16, which may suggest Guaranty Bancshares is not taking enough advantage from borrowing. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Guaranty Bancshares has an asset utilization ratio of 6.0 percent. This suggests that the company is making $0.06 for each dollar of assets. An increasing asset utilization means that Guaranty Bancshares is more efficient with each dollar of assets it utilizes for everyday operations.
Guaranty Bancshares financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Guaranty Bancshares, including all of Guaranty Bancshares's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Guaranty Bancshares assets, the company is considered highly leveraged. Understanding the composition and structure of overall Guaranty Bancshares debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Guaranty Total Debt

Guaranty Bancshares liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Guaranty Bancshares has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Guaranty Bancshares balance sheet include debt obligations and money owed to different Guaranty Bancshares vendors, workers, and loan providers. Below is the chart of Guaranty main long-term debt accounts currently reported on its balance sheet.
You can use Guaranty Bancshares financial leverage analysis tool to get a better grip on understanding its financial position

How important is Guaranty Bancshares's Liquidity

Guaranty Bancshares financial leverage refers to using borrowed capital as a funding source to finance Guaranty Bancshares ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Guaranty Bancshares financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Guaranty Bancshares's total debt and its cash.

Guaranty Bancshares exotic insider transaction detected

Legal trades by Guaranty Bancshares insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Guaranty insider trading alert for general transaction of common stock by Randall Kucera, VP and General Counsel, on 18th of November 2020. This event was filed by Guaranty Bancshares Inc with SEC on 2020-11-18. Statement of changes in beneficial ownership - SEC Form 4. Randall Kucera currently serves as executive vice president general counsel of Guaranty Bancshares [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down Guaranty Bancshares Indicators

The company reported the previous year's revenue of 89.97 M. Net Income was 22.25 M with profit before overhead, payroll, taxes, and interest of 94.58 M.

Asset Breakdown

Total Assets2.38 Billion
Goodwill35.03 Million
Tax Assets2.74 Million

Will Guaranty Bancshares current rise continue?

The value at risk is down to -3.03 as of today. Guaranty Bancshares currently demonstrates below-verage downside deviation. It has Information Ratio of 0.05 and Jensen Alpha of 0.15. However, we do advice investors to further question Guaranty Bancshares expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Final Take On Guaranty Bancshares

While many other companies within the banks?regional industry are still a little expensive, even after the recent corrections, Guaranty Bancshares may offer a potential longer-term growth to investors. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither take in nor short any shares of Guaranty Bancshares at this time. The Guaranty Bancshares risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Guaranty Bancshares.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Guaranty Bancshares. Please refer to our Terms of Use for any information regarding our disclosure principles.

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