Guaranty Federal Bancshares (GFED) has a ROE of 10.91%, below the Finance sector average of 16.6%.
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Return on Equity measures how efficiently a company uses shareholders' equity to generate profits. A higher ROE indicates better profitability relative to equity.
Guaranty Federal Bancshares posts a ROE of 10.91%. That is below the Finance sector average of 16.6%. Comparing that reading with peers and prior periods is usually more useful than looking at the number in isolation.
For Finance stocks, a ROE near 16.6% is typical. Guaranty Federal Bancshares's 10.91% is lower that level. That is roughly 34.3% below the sector mean. Whether that is a warning or an opportunity depends on growth outlook and other fundamentals shown elsewhere on Stockcircle.
Guaranty Federal Bancshares's ROE moves when the underlying profit, equity, or asset base changes. Cost cuts, pricing power, buybacks, write-downs, and cyclical swings can all shift the percentage. The latest reading is 10.91%; use YoY and peer views to separate noise from signal.
Context for GFED's ROE usually means three checks: (1) trend versus prior periods, (2) level versus peers (average 16.6%), and (3) consistency with growth and profitability. This page covers the first two; Guaranty Federal Bancshares's other metric pages and overview cover the third.
Judging Guaranty Federal Bancshares against Finance peers is usually better than using a market-wide rule of thumb. Business models inside Finance are more comparable, which makes gaps in ROE easier to interpret. Start with 10.91% here, then scan peer and history charts to see if the gap is persistent.