SB Financial Group, Inc. (NASDAQ:SBFG) Financial Performance and Peer Comparison

SB Financial Group, Inc. (NASDAQ:SBFG) is a prominent player in the financial services sector, offering a wide array of banking and financial products across the United States. The company's competitive landscape includes FS Bancorp, Inc., First Savings Financial Group, Inc., and other significant institutions within the financial industry.

One of the critical metrics to assess SBFG's financial health is the Return on Invested Capital (ROIC), which stands at 7.71%. This figure is notably lower than its Weighted Average Cost of Capital (WACC) of 16.28%, signaling that SBFG may not be generating adequate returns to cover its cost of capital. This discrepancy poses a potential concern for investors evaluating the company's financial efficiency and profitability.

In comparison, FS Bancorp, Inc. (FSBW) reports a ROIC of 1.48% and a WACC of 13.59%, leading to a ROIC to WACC ratio of 0.11. This indicates that FSBW, much like SBFG, faces challenges in surpassing its cost of capital. Conversely, First Savings Financial Group, Inc. (FSFG) presents a more optimistic scenario with a ROIC of 17.92% and a WACC of 12.85%, achieving a ROIC to WACC ratio of 1.40, which suggests efficient capital utilization.

Other peers such as Summit Financial Group, Inc. (SMMF) and Hawthorn Bancshares, Inc. (HWBK) show varied capital efficiency levels. SMMF's ROIC of 7.32% against a WACC of 4.84% results in a ratio of 1.51, indicating effective capital use. HWBK, with a ROIC of 11.44% and a WACC of 11.76%, has a ratio of 0.97, suggesting it is nearly breaking even in generating returns over its cost of capital.

Among these peers, Mid Penn Bancorp, Inc. (MPB) stands out with a ROIC of 38.42% and a WACC of 13.03%, showcasing the highest ROIC to WACC ratio of 2.95. This exceptional ratio indicates that MPB is highly efficient in its capital utilization, potentially offering strong growth prospects and value for investors.