CF Bankshares Inc. (NASDAQ:CFBK) Capital Efficiency Analysis

• CFBK's ROIC of -1.19% is below its WACC of 24.98%, indicating capital inefficiencies.

• Citizens Community Bancorp, Inc. (NASDAQ:CZWI) and Colony Bankcorp, Inc. (NASDAQ:CBAN) show moderate to similar capital inefficiencies with low or negative ROIC to WACC ratios.

• C&F Financial Corporation (NASDAQ:CFFI) demonstrates the highest capital efficiency among peers with a ROIC of 6.28% and a WACC of 13.55%, resulting in a ROIC to WACC ratio of 0.463.

CF Bankshares Inc. (NASDAQ:CFBK) is a financial institution that provides a range of banking services. The company operates in a competitive landscape with peers like Citizens Community Bancorp, Inc. (CZWI), Colony Bankcorp, Inc. (CBAN), Community West Bancshares (CWBC), Citizens Holding Company (CIZN), and C&F Financial Corporation (CFFI). These companies are evaluated based on their Return on Invested Capital (ROIC) and Weighted Average Cost of Capital (WACC) to assess capital efficiency.

CFBK's ROIC is -1.19%, which is below its WACC of 24.98%. This negative ROIC indicates that CFBK is not generating sufficient returns to cover its cost of capital, suggesting inefficiencies in capital utilization. The ROIC to WACC ratio of -0.048 further highlights this concern, as it shows the company is not effectively using its capital to generate returns.

In comparison, Citizens Community Bancorp, Inc. (NASDAQ:CZWI) has a ROIC of 0.80% and a WACC of 18.82%, resulting in a ROIC to WACC ratio of 0.042. While CZWI's ratio is positive, it is still relatively low, indicating low efficiency in capital utilization. Colony Bankcorp, Inc. (NASDAQ:CBAN) has a negative ROIC of -0.63% and a WACC of 12.69%, with a ROIC to WACC ratio of -0.050, similar to CFBK's inefficiencies.

Community West Bancshares (CWBC) and C&F Financial Corporation (NASDAQ:CFFI) demonstrate better capital efficiency. CWBC has a ROIC of 4.54% and a WACC of 11.57%, resulting in a ROIC to WACC ratio of 0.392. CFFI stands out with a ROIC of 6.28% and a WACC of 13.55%, achieving the highest ROIC to WACC ratio of 0.463 among the peers. This indicates that CFFI is the most efficient in generating returns relative to its cost of capital.