Chances of Guaranty (NASDAQ:GNTY) to slide in August

Guaranty Bancshares is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 19th of July 2021. Guaranty Bancshares Enterprise Value over EBITDA is fairly stable at the moment as compared to the past year. Guaranty Bancshares reported Enterprise Value over EBITDA of 7.28 in 2020. Profit Margin is likely to rise to 0.28 in 2021, whereas Net Income Per Employee is likely to drop slightly above 49.8 K in 2021. As many baby boomers are still indifferent towards financial services space, it makes sense to break down Guaranty Bancshares as a unique choice for millenniums. I will address a few possible reasons investors do not currently respect this stock.
Published over a year ago
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Reviewed by Gabriel Shpitalnik

This firm currently holds 123.1 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 company retains a Market Volatility (i.e., Beta) of 1.2427, which attests to a somewhat significant risk relative to the market. Let's try to break down what Guaranty's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Guaranty Bancshares will likely underperform. Even though it is essential to pay attention to Guaranty Bancshares current price history, it is always good to be careful when utilizing equity current price movements. Our philosophy in determining any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Guaranty Bancshares exposes twenty-eight different technical indicators, which can help you to evaluate its performance. Guaranty Bancshares has an expected return of -0.14%. Please be advised to check out Guaranty Bancshares value at risk, and the relationship between the information ratio and kurtosis to decide if Guaranty Bancshares performance from the past will be repeated at some point in the near future.
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. Financial leverage can amplify the potential profits to Guaranty Bancshares' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Guaranty Bancshares' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Guaranty Bancshares's total debt and its cash.

Detailed Perspective On Guaranty Bancshares

The company reported the previous year's revenue of 106.02 M. Net Income was 32.09 M with profit before overhead, payroll, taxes, and interest of 99.82 M.

Asset Breakdown

Total Assets2.68 Billion
Goodwill35.29 Million
Tax Assets2.74 Million

Can Guaranty Bancshares build up on the current rise?

The kurtosis is down to 0.64 as of today. Guaranty Bancshares exhibits very low volatility with skewness of 0.34 and kurtosis of 0.64. However, we advise investors to further study Guaranty Bancshares technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Guaranty Bancshares' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Guaranty Bancshares' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

The Current Takeaway on Guaranty Bancshares Investment

While some other entities under the banks—regional industry are still a bit expensive, Guaranty Bancshares may offer a potential longer-term growth to investors. While some investors may not share our view we believe that the current risk-reward utility 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.

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Editorial Staff

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