Comparing ROIC and WACC Among Financial Institutions

Core Insights - Sound Financial Bancorp, Inc. (NASDAQ:SFBC) operates in a competitive banking landscape and is evaluated based on its Return on Invested Capital (ROIC) compared to its Weighted Average Cost of Capital (WACC) [1] Financial Performance - SFBC has a ROIC of 4.54% and a WACC of 17.25%, resulting in a ROIC to WACC ratio of 0.26, indicating it is not generating returns above its cost of capital [2][5] - SB Financial Group, Inc. (SBFG) leads with a ROIC of 5.93% and a WACC of 4.25%, achieving a ROIC to WACC ratio of 1.39, showcasing high capital efficiency [2][5] - FS Bancorp, Inc. (FSBW) has a ROIC of 8.09% and a WACC of 16.64%, resulting in a ROIC to WACC ratio of 0.48, indicating better capital utilization compared to SFBC [3][5] - Home Federal Bancorp, Inc. of Louisiana (HFBL) has a ROIC to WACC ratio of 0.04, reflecting significant challenges in generating returns above its cost of capital [3] - Southern Missouri Bancorp, Inc. (SMBC) and IF Bancorp, Inc. (IROQ) have ROIC to WACC ratios of 0.07 and 0.19, respectively, indicating struggles similar to SFBC in achieving returns that surpass their cost of capital [4]