Five Star Bancorp's Financial Efficiency Compared to Peers

• Five Star Bancorp (NASDAQ:FSBC) has a ROIC of 10.71% and a WACC of 16.57%, resulting in a ROIC to WACC ratio of 0.65, indicating inefficiencies in capital utilization.
• Guaranty Bancshares, Inc. (GNTY) showcases strong financial health with a ROIC of 49.26% and a WACC of 16.09%, leading to a ROIC to WACC ratio of 3.06.

Five Star Bancorp (NASDAQ:FSBC) is a financial institution that provides a range of banking services. It operates primarily in the United States, offering products such as loans, deposits, and other financial services. In the competitive banking sector, FSBC's performance is often compared with its peers to gauge its financial health and efficiency.

In evaluating FSBC's financial efficiency, the Return on Invested Capital (ROIC) and Weighted Average Cost of Capital (WACC) are crucial metrics. FSBC's ROIC is 10.71%, while its WACC is 16.57%. This results in a ROIC to WACC ratio of 0.65, indicating that FSBC is not generating returns that exceed its cost of capital. This suggests potential inefficiencies in how the company utilizes its capital.

In contrast, Guaranty Bancshares, Inc. (GNTY) stands out with a ROIC of 49.26% and a WACC of 16.09%, resulting in a ROIC to WACC ratio of 3.06. This suggests that GNTY is effectively utilizing its capital to generate returns well above its cost of capital, highlighting its strong financial health compared to FSBC and other peers.

First Savings Financial Group, Inc. (FSFG) and Glen Burnie Bancorp (GLBZ) also show less favorable ROIC to WACC ratios. FSFG has a negative ROIC of -2.14% against a WACC of 12.32%, resulting in a ratio of -0.17. GLBZ has a ROIC of 0.05% and a WACC of 3.84%, with a ratio of 0.01. These figures indicate that these companies, like FSBC, have room for improvement in capital efficiency.