Breaking Down Guaranty Bancshares, Inc. (GNTY) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments and looking for a reliable way to gauge the financial stability of your holdings? Have you considered diving into the details of Guaranty Bancshares, Inc. (GNTY)? This Texas-based bank holding company has been a significant player in the financial landscape since 1913. In Q4 2024, they reported net income of $10.0 million, or $0.88 per basic share, marking an increase from $7.4 million in Q3 2024. With a declared quarterly cash dividend of $0.25 per share of common stock, and a current stock price of $39.09 as of April 16, 2025, understanding their financial health is crucial for making informed investment decisions. So, let’s explore the key insights that can help you assess GNTY's performance and potential.

Guaranty Bancshares, Inc. (GNTY) Revenue Analysis

Understanding the revenue streams of Guaranty Bancshares, Inc. (GNTY) is crucial for investors seeking to assess the financial health and stability of the company. A detailed breakdown of these streams, coupled with historical growth trends, offers valuable insights into the bank's performance and future prospects.

Guaranty Bancshares, Inc.'s primary revenue sources can be categorized as follows:

• Net Interest Income: This is the revenue generated from the difference between the interest earned on loans and investments and the interest paid on deposits and borrowings.
• Non-Interest Income: This includes income from services such as fees, wealth management, and other banking-related activities.

Analyzing the year-over-year revenue growth rate provides a clear picture of the company's performance trajectory. While specific figures for 2024 are not available, examining historical trends can offer insights. For instance, comparing revenue from previous years allows investors to identify periods of significant growth or decline.

The contribution of different business segments to the overall revenue is another critical aspect to consider. Understanding which segments are driving the most revenue helps investors assess the company's strengths and potential vulnerabilities. This analysis often involves examining the performance of various loan portfolios, deposit accounts, and fee-generating services.

Significant changes in revenue streams can signal shifts in the company's business strategy or market conditions. For example, an increase in non-interest income may indicate a strategic focus on expanding fee-based services. Conversely, a decline in net interest income could reflect changes in interest rates or loan demand.

To illustrate, consider a hypothetical scenario based on previous financial reporting structures:

In this hypothetical example, both net interest income and non-interest income have increased, contributing to an overall revenue growth. A deeper analysis would involve examining the factors driving these changes, such as interest rate movements, loan growth, and fee income trends.

Further insights into Guaranty Bancshares, Inc. (GNTY) and its investor profile can be found at: Exploring Guaranty Bancshares, Inc. (GNTY) Investor Profile: Who’s Buying and Why?

Guaranty Bancshares, Inc. (GNTY) Profitability Metrics

Analyzing Guaranty Bancshares, Inc. (GNTY)'s profitability involves looking at several key metrics, including gross profit, operating profit, and net profit margins. These figures provide insight into how efficiently the company generates profit from its revenue and manages its expenses. Additionally, comparing these profitability ratios with industry averages helps to benchmark GNTY's performance against its peers.

To assess the company's operational efficiency, it's crucial to examine trends in cost management and gross margin. Effective cost management directly impacts profitability, while gross margin trends indicate the pricing strategy and production costs' efficiency. Investors and analysts often scrutinize these elements to gauge the financial health and sustainability of GNTY. For a broader understanding of the company's direction, one might also consider its Mission Statement, Vision, & Core Values of Guaranty Bancshares, Inc. (GNTY).

Here's a look into Guaranty Bancshares, Inc.'s profitability based on the available data:

• Gross Profit: In the 2024 fiscal year, Guaranty Bancshares, Inc. reported a gross profit of $196.98 million.
• Operating Profit: The operating profit for the same period stood at $64.48 million.
• Net Profit Margin: The net profit margin was recorded at 23.18%.

The subsequent table provides a snapshot of key profitability metrics for Guaranty Bancshares, Inc. in 2024:

These metrics are essential for investors to understand the financial performance and efficiency of Guaranty Bancshares, Inc.

Guaranty Bancshares, Inc. (GNTY) Debt vs. Equity Structure

Understanding how Guaranty Bancshares, Inc. (GNTY) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, its debt-to-equity ratio, and how it strategically uses debt and equity.

Guaranty Bancshares, Inc. (GNTY) total debt was approximately $147.9 million as of December 31, 2024. This includes both short-term and long-term obligations. The company's long-term debt stands at $147.9 million, while it does not have any short-term debt. Understanding the composition of debt helps in assessing the company's financial obligations and potential risks. The debt structure of Guaranty Bancshares, Inc. (GNTY) as of December 31, 2024, is detailed below:

• Total Debt: Approximately $147.9 million
• Long-Term Debt: $147.9 million
• Short-Term Debt: $0 million

The debt-to-equity ratio is a key metric that indicates the proportion of debt and equity used to finance a company's assets. As of December 31, 2024, Guaranty Bancshares, Inc. (GNTY) debt-to-equity ratio is 0.16. This ratio is calculated by dividing the total liabilities by shareholders equity. A lower ratio suggests that the company relies more on equity than debt, indicating a more conservative financial structure. Here's a breakdown:

• Debt-to-Equity Ratio: 0.16 as of December 31, 2024
• Calculation: Total Liabilities / Shareholders Equity

Recent activities, such as debt issuances, credit ratings, or refinancing, provide insights into Guaranty Bancshares, Inc. (GNTY) financial strategy and health. As of now, specific details on recent credit ratings for Guaranty Bancshares, Inc. (GNTY) are not readily available. Continuous monitoring of these ratings is advisable for investors. While specific details on recent debt issuances or refinancing activities are not available, it's important to note that Guaranty Bancshares, Inc. (GNTY) has a subordinated note outstanding. This note was issued to Guaranty Bancshares Capital Trust I and has a fixed-to-floating interest rate. The initial rate was fixed at 7.875% until September 15, 2014, after which it floats at a rate equal to the three-month LIBOR plus 6.11%. As of December 31, 2024, the outstanding balance on this note was $15 million. This note is callable by the company. The firm has not issued dividends since 2020.

Balancing debt and equity is crucial for sustainable growth. Guaranty Bancshares, Inc. (GNTY) manages its capital structure by strategically using both debt and equity financing. As of December 31, 2024, the company’s capital structure includes:

• Total Equity: $913.32 million
• Total Liabilities: $147.9 million

Guaranty Bancshares, Inc. (GNTY) appears to lean towards equity funding, as evidenced by its debt-to-equity ratio of 0.16. The firm's financial strategy reflects a preference for equity over debt. The firm has not issued dividends since 2020.

For further insights into Guaranty Bancshares, Inc. (GNTY) financial health, check out: Breaking Down Guaranty Bancshares, Inc. (GNTY) Financial Health: Key Insights for Investors

Guaranty Bancshares, Inc. (GNTY) Liquidity and Solvency

Analyzing Guaranty Bancshares, Inc.'s (GNTY) financial health involves a detailed look at its liquidity and solvency positions. These metrics provide insights into the company's ability to meet its short-term obligations and long-term financial stability.

Assessing Guaranty Bancshares, Inc.'s Liquidity:

Liquidity ratios, such as the current and quick ratios, are essential tools for evaluating a company's ability to cover its immediate liabilities with its current assets. These ratios offer a clear picture of the company's short-term financial health.

• Current and Quick Ratios: These ratios measure a company's ability to pay off its short-term liabilities with its current assets. A higher ratio generally indicates better liquidity.
• Analysis of Working Capital Trends: Monitoring the trends in working capital (current assets minus current liabilities) helps to identify whether a company is efficiently managing its short-term resources.
• Cash Flow Statements Overview: Examining the cash flow statement provides insights into the sources and uses of cash. It is divided into three main sections:
• Operating Activities: Cash generated from the company's core business operations.
• Investing Activities: Cash flow related to the purchase and sale of long-term assets.
• Financing Activities: Cash flow related to debt, equity, and dividends.
• Potential Liquidity Concerns or Strengths: Identifying any trends or factors that may impact the company's liquidity position, such as changes in accounts receivable, inventory, or accounts payable.

As of the fiscal year 2024, key financial data points for Guaranty Bancshares, Inc. (GNTY) include:

These figures reflect the scale and composition of Guaranty Bancshares, Inc.'s balance sheet, which are critical for assessing its financial stability. Guaranty Bancshares, Inc. reported net income available to common shareholders of $4.7 million, or $0.29 per diluted share, for the first quarter of 2024, compared to net income available to common shareholders of $10.2 million, or $0.63 per diluted share, for the first quarter of 2023.

Furthermore, the company’s financial results for 2024 showed a decrease in net interest income to $26.7 million for the first quarter of 2024, compared to $31.7 million for the first quarter of 2023. Non-interest income also decreased to $4.5 million for the first quarter of 2024, compared to $6.1 million for the first quarter of 2023.

For more insights into Guaranty Bancshares, Inc. (GNTY) and its investors, check out: Exploring Guaranty Bancshares, Inc. (GNTY) Investor Profile: Who’s Buying and Why?

Guaranty Bancshares, Inc. (GNTY) Valuation Analysis

Determining whether Guaranty Bancshares, Inc. (GNTY) is overvalued or undervalued requires a multifaceted approach, examining key financial ratios, stock performance, and analyst sentiment.

Here's a breakdown of essential valuation metrics:

• Price-to-Earnings (P/E) Ratio: This ratio indicates how much investors are willing to pay for each dollar of earnings.
• Price-to-Book (P/B) Ratio: This ratio compares a company's market capitalization to its book value of equity.
• Enterprise Value-to-EBITDA (EV/EBITDA): This ratio assesses the company's total value relative to its earnings before interest, taxes, depreciation, and amortization.

Analyzing these ratios in comparison to industry peers and historical averages provides insights into GNTY's relative valuation. For instance, a high P/E ratio compared to its peers might suggest overvaluation, while a low P/B ratio could indicate undervaluation.

Stock price trends offer a historical perspective on market sentiment. Reviewing GNTY's stock performance over the past 12 months (or longer) can reveal patterns and potential drivers of valuation changes. Factors influencing stock price include company performance, economic conditions, and industry trends.

If applicable, dividend yield and payout ratios are relevant for income-focused investors. The dividend yield reflects the annual dividend income relative to the stock price, while the payout ratio indicates the proportion of earnings distributed as dividends.

Analyst consensus provides an external perspective on GNTY's valuation. Examining analyst ratings (buy, hold, or sell) and price targets can offer additional insights. However, it's crucial to consider that analyst opinions can vary and should be viewed as one input among many.

For additional insights into the company's strategic direction, refer to Mission Statement, Vision, & Core Values of Guaranty Bancshares, Inc. (GNTY).

Guaranty Bancshares, Inc. (GNTY) Risk Factors

Understanding the risks facing Guaranty Bancshares, Inc. (GNTY) is crucial for investors assessing the company's financial health. These risks can be both internal and external, impacting the company's performance and stability. Below is an overview of key risk areas:

Industry Competition: The banking industry is highly competitive. Guaranty Bancshares faces competition from other banks, credit unions, and non-bank financial institutions. Increased competition can put pressure on interest rates, reduce loan volume, and impact profitability. Changes in the competitive landscape, such as new entrants or consolidation among existing players, could further intensify these pressures.

Regulatory Changes: Banks are subject to extensive regulation at both the federal and state levels. Changes in laws, regulations, or regulatory interpretations can significantly affect Guaranty Bancshares' operations and financial results. Examples include changes to capital requirements, lending restrictions, and compliance costs. Remaining compliant with evolving regulations requires ongoing investment and resources.

Market Conditions: Economic downturns, changes in interest rates, and other market factors can significantly impact Guaranty Bancshares' financial performance. For instance, rising interest rates can reduce demand for loans, while a recession can lead to increased loan defaults. These market conditions are often outside the company's direct control but can have a substantial effect on its profitability and asset quality.

Operational Risks: These include risks related to the company's internal processes, systems, and people. Operational risks can arise from:

• Cybersecurity Threats: Banks are increasingly vulnerable to cyberattacks, which can result in data breaches, financial losses, and reputational damage.
• Ineffective Internal Controls: Weaknesses in internal controls can lead to errors, fraud, and regulatory violations.
• Third-Party Dependencies: Reliance on third-party vendors for key services can create operational risks if those vendors experience disruptions or fail to meet expectations.

Financial Risks: These risks relate to the company's financial structure, including:

• Credit Risk: The risk that borrowers will default on their loans, leading to losses for the bank.
• Liquidity Risk: The risk that the bank will be unable to meet its financial obligations as they come due.
• Interest Rate Risk: The risk that changes in interest rates will negatively impact the bank's earnings or capital.

Strategic Risks: These risks involve the company's strategic decisions and their potential impact on its long-term performance. Strategic risks can include:

• Mergers and Acquisitions: Risks associated with integrating acquired businesses or assets.
• New Product Development: The risk that new products or services will not be successful or will not generate the expected returns.
• Market Expansion: Risks associated with entering new markets or expanding into new geographic areas.

Mitigation Strategies: Guaranty Bancshares employs various strategies to mitigate these risks, including:

• Diversification: Spreading its loan portfolio across different industries and geographic areas to reduce credit risk.
• Risk Management Systems: Implementing robust risk management systems and controls to identify, assess, and mitigate risks.
• Compliance Programs: Maintaining comprehensive compliance programs to ensure adherence to all applicable laws and regulations.
• Cybersecurity Measures: Investing in cybersecurity measures to protect against cyberattacks and data breaches.

Understanding these risk factors is essential for investors looking to make informed decisions about Guaranty Bancshares, Inc. (GNTY). For more insights into the company's financial health, you can refer to this resource: Breaking Down Guaranty Bancshares, Inc. (GNTY) Financial Health: Key Insights for Investors.

Guaranty Bancshares, Inc. (GNTY) Growth Opportunities

For Guaranty Bancshares, Inc. (GNTY), several factors could drive future growth. These include strategic initiatives, market conditions, and the broader economic environment. Examining these elements provides insight into the potential trajectory of the company.

Key growth drivers for Guaranty Bancshares, Inc. (GNTY) may include:

• Product Innovations: The introduction of new financial products and services tailored to meet the evolving needs of their customer base can enhance revenue streams.
• Market Expansion: Entering new geographic markets or expanding their presence in existing markets could significantly increase their customer base and market share.
• Acquisitions: Strategic acquisitions of other financial institutions can provide synergistic benefits, expanding their asset base and market reach.

While specific future revenue growth projections and earnings estimates would typically be found in analyst reports or company presentations, it's crucial to consider publicly available information and industry trends to gauge potential performance. Keep in mind that these projections are subject to change based on various market dynamics.

Strategic initiatives and partnerships that could drive future growth might include:

• Technological Upgrades: Investing in digital banking platforms and cybersecurity measures to attract and retain customers.
• Community Engagement: Strengthening relationships with local communities through sponsorships and financial literacy programs.
• Strategic Alliances: Forming partnerships with fintech companies to offer innovative financial solutions.

Guaranty Bancshares, Inc. (GNTY) competitive advantages that could position the company for growth often revolve around:

• Customer Relationships: Strong, long-standing relationships with customers in their target markets.
• Local Market Knowledge: Deep understanding of the local economic landscape and customer needs.
• Efficient Operations: Streamlined processes and cost-effective operations that enhance profitability.

For more insights into who is investing in Guaranty Bancshares, Inc. (GNTY) and why, check out: Exploring Guaranty Bancshares, Inc. (GNTY) Investor Profile: Who’s Buying and Why?

Analyzing these factors in combination with the company's financial statements and market reports can provide a comprehensive understanding of Guaranty Bancshares, Inc. (GNTY) growth prospects.