Guaranty Story

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It looks like Enterprise Bancorp will continue to recover much faster as its share price surged up 0.04% today to Guaranty Bancshares's 0.2189%. While some millenniums may be indifferent towards financial services space, we will examine how strong are Guaranty Bancshares fundamentals compared to Enterprise Bancorp. We are going to inspect some of the competitive aspects of both Guaranty and Enterprise.
Published over a month ago
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Will Guaranty Bancshares (NASDAQ:GNTY) shadow Enterprise Bancorp price jump?
By analyzing existing basic indicators between Guaranty Bancshares and Enterprise, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Enterprise with a short position in Guaranty Bancshares. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. 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 6.31 percent. This suggests that the company is making $0.0631 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.

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.

How Guaranty utilizes its cash?

To perform a cash flow analysis of Guaranty Bancshares, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Guaranty Bancshares is receiving and how much cash it distributes out in a given period. The Guaranty Bancshares cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Guaranty Bancshares Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. Guaranty Bancshares reported Net Cash Flow from Operations of 36.85 Million in 2020

Exercise or conversion by Bell Martin C of 5500 shares of Guaranty Bancshares subject to Rule 16b-3

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 exercise of stock option (right to buy) by Bell Martin C, EVP - Guaranty Bank & Trust, on 2nd of March 2021. This event was filed by Guaranty Bancshares Inc with SEC on 2021-03-02. Statement of changes in beneficial ownership - SEC Form 4 [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.

Detailed Perspective On Guaranty Bancshares

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now analyze Guaranty Bancshares revenue. Based on the latest financial disclosure, Guaranty Bancshares reported 94.61 M of revenue. This is 99.16% lower than that of the Financial Services sector and significantly higher than that of the Banks?Regional industry. The revenue for all United States stocks is 99.0% higher than that of Guaranty Bancshares. As for Enterprise Bancorp we see revenue of 132.36 M, which is much higher than that of the Banks?Regional

Guaranty94.61 Million
Sector0.0
Enterprise132.36 Million
94.6 M
Guaranty
Sector
132.4 M
Enterprise

Guaranty showing appearance of lower volatility

Current downside variance is at 6.74. Guaranty Bancshares currently demonstrates below-verage downside deviation. It has Information Ratio of 0.06 and Jensen Alpha of 0.32. 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.

The Current Takeaway on Guaranty Bancshares Investment

While some other companies under the banks?regional industry are still a bit expensive, Guaranty Bancshares may offer a potential longer-term growth to investors. With a less-than optimistic outlook for your 30 days horizon, it may be a good time to exit some or all of your Guaranty Bancshares holdings as it seems the potential growth was already fully factored into the current price. 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 Achuva Shats 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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