Guaranty Bancshares, Inc. (GNTY) Stock Analysis

Guaranty Bancshares, Inc. (GNTY) Financial Services Profile

Guaranty Bancshares, Inc., operating as Guaranty Bank & Trust, N.A., delivers commercial and consumer banking services across Texas. With a focus on small- and medium-sized businesses, the company distinguishes itself through its regional presence and tailored financial solutions, navigating a competitive landscape of both national and community banks.

What Is the Investment Thesis for GNTY?

With a current market capitalization of $553M and a P/E ratio of 29.73, the company demonstrates solid financial performance. A dividend yield of 5.23% offers an attractive income stream for investors. Growth catalysts include strategic expansion within Texas and enhanced digital banking offerings. However, potential risks include sensitivity to interest rate fluctuations and competition from larger national banks. Maintaining asset quality and managing credit risk are crucial for sustained profitability. The company's ability to leverage its regional expertise and adapt to evolving customer preferences will be key to long-term value creation.

Based on FMP financials and quantitative analysis

GNTY Key Highlights

Market capitalization of $553M indicates a substantial regional presence.

• P/E ratio of 29.73 reflects investor confidence in earnings potential.
• Profit margin of 20.9% demonstrates efficient operations and profitability.
• Gross margin of 69.8% highlights the value derived from banking services.
• Dividend yield of 5.23% provides an attractive income stream for investors.

Who Are GNTY's Competitors?

GNTY is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are GNTY's Key Strengths?

Strong regional presence in Texas

• Diversified loan portfolio
• Experienced management team
• High dividend yield

What Are GNTY's Weaknesses?

Limited geographic diversification

• Reliance on traditional banking services
• Smaller scale compared to national banks
• Sensitivity to interest rate fluctuations

What Could Drive GNTY Stock Higher?

Potential interest rate hikes by the Federal Reserve could increase net interest margin.

• Continued economic growth in Texas driving loan demand.
• Expansion of digital banking services attracting new customers.
• Strategic acquisitions of smaller banks expanding market share.

What Are the Key Risks for GNTY?

Financial-distress signal — its Altman Z-Score of -0.58 sits in the distress zone (elevated bankruptcy risk).

• Rich valuation — a P/E of 29.73 runs well above the Financial Services sector’s ~17.50x, leaving little room for a miss.
• Insider selling — insiders were net sellers of roughly $24.9M recently.
• Economic slowdown in Texas impacting loan performance.
• Increased competition from larger national banks and fintech companies.
• Regulatory changes impacting capital requirements and compliance costs.
• Cybersecurity threats compromising customer data and financial assets.

What Are the Growth Opportunities for GNTY?

• Expansion within Texas: Guaranty Bancshares can capitalize on the robust economic growth in Texas by expanding its branch network and service offerings in high-growth areas. The Texas economy is projected to grow at an average annual rate of 3% over the next five years, creating significant opportunities for loan growth and deposit mobilization. By focusing on specific sectors such as technology, healthcare, and energy, Guaranty Bancshares can tailor its services to meet the unique needs of these industries.
• Enhanced Digital Banking: Investing in digital banking platforms and mobile applications can attract and retain tech-savvy customers. The digital banking market is expected to reach $1.2 trillion by 2030, driven by increasing adoption of smartphones and online banking services. By offering a seamless and user-friendly digital experience, Guaranty Bancshares can enhance customer satisfaction, reduce operational costs, and expand its geographic reach beyond its physical branch network.
• Strategic Acquisitions: Pursuing strategic acquisitions of smaller community banks can accelerate growth and expand market share. The community banking sector is highly fragmented, with numerous small banks operating in niche markets. By acquiring these banks, Guaranty Bancshares can gain access to new customers, markets, and product lines, while also achieving economies of scale and cost synergies. Careful due diligence and integration are essential for successful acquisitions.
• Wealth Management Services: Expanding wealth management services can generate fee income and diversify revenue streams. The wealth management market is growing rapidly, driven by increasing affluence and demand for financial planning services. By offering a comprehensive suite of wealth management products, including investment management, retirement planning, and estate planning, Guaranty Bancshares can attract high-net-worth individuals and families, generating recurring fee income and enhancing customer loyalty.
• Commercial Lending Growth: Focusing on commercial lending to small- and medium-sized businesses (SMBs) can drive loan growth and increase profitability. SMBs are a vital part of the Texas economy, and they often require financing to support their growth and expansion. By offering tailored commercial loan products and services, Guaranty Bancshares can build strong relationships with SMBs, generate attractive loan yields, and contribute to the economic development of the communities it serves.

What Are GNTY's Competitive Advantages?

• Strong regional presence in Texas.
• Long-standing relationships with local businesses and communities.
• Experienced management team with deep industry knowledge.
• Commitment to providing personalized customer service.

What Does GNTY Do?

Founded in 1913 and headquartered in Addison, Texas, Guaranty Bancshares, Inc. has evolved into a prominent regional bank holding company. Through its subsidiary, Guaranty Bank & Trust, N.A., the company provides a comprehensive suite of banking products and services tailored to small- and medium-sized businesses, professionals, and individuals. These offerings include a variety of deposit accounts such as checking, savings, money market, and certificates of deposit, alongside a diverse lending portfolio encompassing commercial and industrial, construction and development, residential, commercial real estate, farmland and agricultural, and consumer loans. Guaranty Bank & Trust, N.A. also delivers an array of services including trustee, custodial and escrow, investment management, and retirement plan administration. The company enhances customer convenience through ATM access, night depository, direct deposit, cashier's checks, and robust online, mobile, and telephone banking platforms. Additional services include debit cards, letters of credit, and treasury management solutions such as wire transfer, positive pay, remote deposit capture, and automated clearinghouse services. As of December 31, 2021, Guaranty Bancshares operated 32 full-service banking locations strategically positioned across East Texas, Central Texas, the Dallas/Fort Worth metropolitan statistical area (MSA), and the Houston MSA, reflecting its commitment to serving the financial needs of these communities.

What Products and Services Does GNTY Offer?

• Offers checking and savings accounts to individuals and businesses.
• Provides commercial and industrial loans to small- and medium-sized businesses.
• Offers construction and development loans for real estate projects.
• Provides 1-4 family residential mortgage loans.
• Offers commercial real estate loans for various property types.
• Provides farmland and agricultural loans to farmers and ranchers.
• Offers multi-family residential loans for apartment complexes.
• Provides consumer loans for personal expenses.

How Does GNTY Make Money?

• Generates revenue from interest income on loans.
• Earns fees from deposit accounts and other banking services.
• Manages risk through careful underwriting and loan monitoring.
• Expands its customer base through marketing and community outreach.

What Industry Does GNTY Operate In?

Guaranty Bancshares operates within the regional banking sector, which is characterized by intense competition and evolving customer expectations. The industry is influenced by macroeconomic factors such as interest rates, economic growth, and regulatory changes. Regional banks like Guaranty Bancshares differentiate themselves through local market knowledge, personalized service, and community involvement. The rise of fintech companies and digital banking platforms is reshaping the competitive landscape, requiring banks to invest in technology and innovation to remain competitive.

Who Are GNTY's Key Customers?

• Small- and medium-sized businesses in Texas.
• Professionals such as doctors, lawyers, and accountants.
• Individuals seeking personal banking services.
• Farmers and ranchers in rural communities.

The most recent 12 insider filings for Guaranty Bancshares, Inc. break down as 12 sales and 0 purchases. On net that is roughly 517K shares disposed (about $24.9M), a signal worth weighing alongside the fundamentals.

Wall Street analysts project Guaranty Bancshares, Inc. revenue of about $138.0M for fiscal 2026, with EPS near $3.32.

Guaranty Bancshares, Inc.'s Piotroski F-Score is 9/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of -0.58 places it in the distress zone, a signal of elevated financial risk.

Return on equity for Guaranty Bancshares, Inc. stands at 8.8%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 0.9%, showing how much profit it generates from its asset base. GNTY trades at a trailing price-to-earnings ratio of 29.73, above the Financial Services sector average of ~17.50x. Its free cash flow yield is 5.4%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.15 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 5.2%, the inverse of the P/E and a quick read on earnings relative to price.

Guaranty Bancshares, Inc. (GNTY) Valuation Context

Valued at $553M, GNTY is classified as a small-cap stock.

Company Profile

Guaranty Bancshares, Inc. operates in the Banks - Regional industry within the Financial Services sector. It is headquartered in Addison, US. The company is led by CEO Tyson Todd Abston. GNTY has traded publicly since 2017.

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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