The earnings yield is an indication of how much return shareholders' investment in the company earned over the past 12 months. The higher the earnings yield is, the better.
The earnings yield does not consider the growth of the business. A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Red River Bancshares's Forward Rate of Return (Yacktman) % for the quarter that ended in Mar. 2026 was 15.02%. The Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
Red River Bancshares (FRA:7RR) Earnings Yield % Explanation
If the P/E ratio is an indication of how many years it takes for the company to earn back the stock price shareholders pay to buy the shares, the earnings yield is an indication of how much return shareholders' investment in the company earned over the past 12 months. The higher the earnings yield is, the better.
If a company loses money, the earnings yield is negative. This gives a more straightforward indication that the company is losing money. This is an advantage of using earnings yield instead of the P/E ratio in valuation. For valuation purposes, the P/B Ratio and the P/S Ratio should be used for companies that are losing money.
Like the P/E ratio, the earnings yield can be used to compare investments in different industries. It can even be used to compare the attractiveness of different asset classes such as bonds and cash. Of course, the earnings yield should not be the only factor in deciding which asset classes to invest.
Also similar to the P/E ratio, the earnings yield does not consider the growth of the business. A growing company with the same earnings yield should be more attractive than a company that has the same earnings yield but does not grow.
Just like the P/E Ratio, non-recurring items such as selling part of the business, selling a previous investment, etc., can affect earnings yield dramatically. The earning yield is also a poor indication for cyclical companies. When a cyclical stock has a high earnings yield it is usually at the peak of its cycle.
Red River Bancshares Earnings Yield % Related Terms
Red River Bancshares's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €5.741 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
It can also be calculated from the numbers for the whole company:
Red River Bancshares (FRA:7RR) has a Earnings Yield % of 6.96% as of Jul. 03, 2026. Earnings Yield equals per-share earnings divided by share price. It is the inverse of the price-earnings ratio. View historical data on Red River Bancshares and its competitors.
Is Red River Bancshares' Earnings Yield % too high?
Red River Bancshares' current Earnings Yield % is 6.96%. Overall, Red River Bancshares has a GF Score™ of 68/100, reflecting its overall financial health beyond just this single metric.
How does Red River Bancshares' Earnings Yield % compare to UNTY and CIVB?
Red River Bancshares' Earnings Yield % of 6.96% can be compared against companies in the Banks industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Earnings Yield % for a Banks company?
A good Earnings Yield % depends on the Banks industry context. However, Earnings Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Earnings Yield % mean?
A high Earnings Yield % can signal that a stock is expensive relative to its fundamentals. Earnings Yield equals per-share earnings divided by share price. It is the inverse of the price-earnings ratio. View historical data on Red River Bancshares and its competitors. Red River Bancshares's current Earnings Yield % is 6.96%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Red River Bancshares stock overvalued right now?
Red River Bancshares (FRA:7RR) has a current Earnings Yield % of 6.96%. The stock's GF Value™ is €59.86, compared to a current price of €82.50 — trading 37.8% above its estimated fair value. The current Earnings Yield % is 6.96%. Red River Bancshares' overall GF Score™ is 68/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Earnings Yield % calculated?
Earnings Yield % is calculated from a company's financial statements. For Red River Bancshares (FRA:7RR), the current Earnings Yield % is 6.96% as of Jul. 03, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Red River Bancshares (FRA:7RR) Overvalued in 2026?
Based on GuruFocus' analysis, Red River Bancshares stock appears to be overvalued.
The current stock price of €82.50 is trading 37.8% above its estimated GF Value™ of €59.86.
Key valuation signals for FRA:7RR:
Earnings Yield %: 6.96%
GF Value™: €59.86 vs. price of €82.50 (37.8% above fair value)
No single metric tells the full story. See the FRA:7RR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Red River Bancshares Inc is the bank holding company for the red river bank. The principal business of the Bank is lending and accepting deposits from businesses, professionals, individuals, and public entities. The bank's primary deposit products are demand deposits, savings deposits, and time deposits. The bank maintains a diversified loan portfolio with a focus on commercial real estate (Owner Occupied and Non-Owner Occupied), one-to-four-family residential, commercial, and industrial loans, construction and development Loans, and others. also, provides Treasury Management Services, Private Banking Services, Brokerage Services, and Other Banking Services.
68GF Score
Get the complete analysis for FRA:7RR
Earnings Yield % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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