Comparative Analysis of Banking Sector's Capital Efficiency

• John Marshall Bancorp, Inc. (NASDAQ:JMSB) showcases a high capital efficiency with a ROIC of 39.20% and a WACC of 17.06%, resulting in a ROIC to WACC ratio of 2.30.
• FVCBankcorp, Inc. (FVCB) and other peers exhibit lower capital efficiency, with FVCB having a ROIC of 7.24% and a WACC of 15.34%.
• Esquire Financial Holdings, Inc. (ESQ) leads in capital utilization efficiency among the peers, with a ROIC of 21.70% and a WACC of 8.61%, achieving the highest ROIC to WACC ratio of 2.52.

John Marshall Bancorp, Inc. (NASDAQ:JMSB) is a financial institution that provides a range of banking services. It operates in a competitive landscape alongside peers like FVCBankcorp, Inc. (FVCB), Virginia National Bankshares Corporation (VABK), MainStreet Bancshares, Inc. (MNSB), Freedom Financial Holdings, Inc. (FDVA), and Esquire Financial Holdings, Inc. (ESQ). These companies are evaluated based on their Return on Invested Capital (ROIC) and Weighted Average Cost of Capital (WACC).

JMSB exhibits a robust ROIC of 39.20%, significantly surpassing its WACC of 17.06%. This results in a ROIC to WACC ratio of 2.30, indicating efficient capital utilization. This metric shows that JMSB generates returns well above its cost of capital, highlighting its strong performance in capital management.

In comparison, FVCBankcorp, Inc. (FVCB) has a ROIC of 7.24% and a WACC of 15.34%, resulting in a ROIC to WACC ratio of 0.47. This suggests that FVCB's returns are not as efficient relative to its cost of capital. Similarly, Virginia National Bankshares Corporation (VABK) has a ROIC of 7.62% and a WACC of 11.15%, with a ROIC to WACC ratio of 0.68, indicating moderate capital efficiency.

MainStreet Bancshares, Inc. (MNSB) and Freedom Financial Holdings, Inc. (FDVA) also show lower ROIC to WACC ratios of 0.52 and 0.70, respectively. MNSB's ROIC is 12.28% against a WACC of 23.49%, while FDVA's ROIC is 14.06% with a WACC of 20.20%. These figures suggest that both companies face challenges in generating returns above their capital costs.

Esquire Financial Holdings, Inc. (ESQ) stands out with a ROIC of 21.70% and a WACC of 8.61%, resulting in the highest ROIC to WACC ratio of 2.52 among the peers. This indicates that ESQ is the most efficient in using its capital relative to its cost, slightly outperforming JMSB in this aspect.