Red River Bancshares, Inc.
Red River Bancshares, Inc. Fundamental Analysis
Red River Bancshares, Inc. (RRBI) shows strong financial fundamentals with a PE ratio of 13.17, profit margin of 25.85%, and ROE of 12.46%. The company generates $0.2B in annual revenue with moderate year-over-year growth of 8.34%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 75.4/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze RRBI's fundamental strength across five key dimensions:
Efficiency Score
WeakRRBI struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRRBI trades at attractive valuation levels.
Growth Score
ExcellentRRBI delivers strong and consistent growth momentum.
Financial Health Score
ExcellentRRBI maintains a strong and stable balance sheet.
Profitability Score
ModerateRRBI maintains healthy but balanced margins.
Key Financial Metrics
Is RRBI Expensive or Cheap?
P/E Ratio
RRBI trades at 13.17 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, RRBI's PEG of 0.52 indicates potential undervaluation.
Price to Book
The market values Red River Bancshares, Inc. at 1.57 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.87 times EBITDA. This signals the market has high growth expectations.
How Well Does RRBI Make Money?
Net Profit Margin
For every $100 in sales, Red River Bancshares, Inc. keeps $25.85 as profit after all expenses.
Operating Margin
Core operations generate 32.16 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.46 in profit for every $100 of shareholder equity.
ROA
Red River Bancshares, Inc. generates $1.33 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Red River Bancshares, Inc. generates strong operating cash flow of $44.79M, reflecting robust business health.
Free Cash Flow
Red River Bancshares, Inc. generates strong free cash flow of $42.21M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.42 in free cash annually.
FCF Yield
RRBI converts 7.25% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.17
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.52
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.57
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.40
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.004
vs 25 benchmark
Current Ratio
Current assets to current liabilities
468.78
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How RRBI Stacks Against Its Sector Peers
| Metric | RRBI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.17 | 18.89 | Better (Cheaper) |
| ROE | 12.46% | 814.00% | Weak |
| Net Margin | 25.85% | 889.00% | Weak |
| Debt/Equity | 0.00 | 0.98 | Strong (Low Leverage) |
| Current Ratio | 468.78 | 618.44 | Strong Liquidity |
| ROA | 1.33% | -20907.00% (disorted) | Weak |
RRBI outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Red River Bancshares, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
87.21%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
66.62%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
288.93%
Industry Style: Value, Dividend, Cyclical
High Growth