Sound Financial BancorpSFBC -0.70%51 Return-on-Tangible-Equity is 5.96% as of Mar. 2026, which is 37% below its 10-year median of 9.52. GuruFocus rates SFBC with a GF Score™ of 51/100 and a GF Value™ of $45.31 (Fairly Valued). The stock has 1 warning sign investors should review. Among 1,523 Banks companies, Sound Financial Bancorp ranks worse than 72.16% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Sound Financial Bancorp's annualized net income for the quarter that ended in Mar. 2026 was $6.30 Mil. Sound Financial Bancorp's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $105.77 Mil. Therefore, Sound Financial Bancorp's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 5.96%.
The historical rank and industry rank for Sound Financial Bancorp's Return-on-Tangible-Equity or its related term are showing as below:
SFBC'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 4.76 Med: 9.52 Max: 11.44
Current: 7.34
During the past 13 years, Sound Financial Bancorp's highest Return-on-Tangible-Equity was 11.44%. The lowest was 4.76%. And the median was 9.52%.
SFBC's Return-on-Tangible-Equity is ranked worse than 72.16% of 1523
companies
in the Banks industry
Industry Median: 11.2
vs SFBC: 7.34
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Sound Financial Bancorp Return-on-Tangible-Equity Related Terms
Sound Financial Bancorp Return-on-Tangible-Equity Historical Data
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The historical data trend for Sound Financial Bancorp's Return-on-Tangible-Equity can be seen below:
* 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.
SFBC vs CZBS, HARL, CMHF: Return-on-Tangible-Equity Comparison
For the Banks - Regional subindustry, Sound Financial Bancorp's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Sound Financial Bancorp Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, Sound Financial Bancorp's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Sound Financial Bancorp's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 5.96% mean?
Sound Financial Bancorp (SFBC) has a Return-on-Tangible-Equity of 5.96% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Sound Financial Bancorp and its competitors. This is 37% below median its historical median of 9.52. Over the past decade, Sound Financial Bancorp's Return-on-Tangible-Equity has ranged from 4.76 to 11.44. According to the industry distribution chart, Sound Financial Bancorp ranks #1099 out of 1523 companies in the Banks industry, placing it in the top 72.2%.
Is Sound Financial Bancorp's Return-on-Tangible-Equity too high?
Sound Financial Bancorp's current Return-on-Tangible-Equity of 5.96% is 37% below median its 10-year median of 9.52. Over the past 10 years, this metric has ranged from a low of 4.76 to a high of 11.44. The Banks industry median Return-on-Tangible-Equity is 11.20. Sound Financial Bancorp's value of 5.96% is 46.8% below this industry median. Based on the distribution chart, Sound Financial Bancorp ranks #1099 out of 1523 companies in the Banks industry, which is below the industry midpoint. Overall, Sound Financial Bancorp has a GF Score™ of 51/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Sound Financial Bancorp's Return-on-Tangible-Equity compare to CZBS and HARL?
According to the Banks industry distribution chart, Sound Financial Bancorp ranks #1099 out of 1523 companies for Return-on-Tangible-Equity. This places Sound Financial Bancorp in the lower half of its industry. The industry median Return-on-Tangible-Equity is 11.20. Sound Financial Bancorp's value of 5.96% is 46.8% below this benchmark. Historically, Sound Financial Bancorp's own Return-on-Tangible-Equity has ranged from 4.76 to 11.44 over the past decade. While the company's 10-year median is 9.52 vs. the industry median of 11.20, Sound Financial Bancorp has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Banks company?
The median Return-on-Tangible-Equity among Banks companies is 11.20, based on 1,523 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sound Financial Bancorp's current Return-on-Tangible-Equity of 5.96% is 46.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Sound Financial Bancorp and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sound Financial Bancorp's current Return-on-Tangible-Equity is 5.96%, which is 37% below median its own 10-year median of 9.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sound Financial Bancorp stock overvalued right now?
Based on GuruFocus' analysis, Sound Financial Bancorp (SFBC) is currently considered Fairly Valued. The stock's GF Value™ is $45.31, compared to a current price of $43.02 — trading 5.1% below its estimated fair value. The current Return-on-Tangible-Equity is 5.96%, which is 37% below median its 10-year median of 9.52 and 46.8% below the Banks industry median of 11.20. Sound Financial Bancorp's overall GF Score™ is 51/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Sound Financial Bancorp (SFBC), the current Return-on-Tangible-Equity is 5.96% as of Mar. 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 Sound Financial Bancorp (SFBC) Overvalued in 2026?
Based on GuruFocus' analysis, Sound Financial Bancorp stock appears to be undervalued.
The current stock price of $43.02 is trading 5.1% below its estimated GF Value™ of $45.31.
GuruFocus considers Sound Financial Bancorp to be Fairly Valued.
Key valuation signals for SFBC:
Return-on-Tangible-Equity: 5.96% (37% below median its 10-year median of 9.52)
GF Value™: $45.31 vs. price of $43.02 (5.1% below fair value)
Industry Position: 46.8% below the Banks median (#1099 of 1523)
No single metric tells the full story. See the SFBC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sound Financial Bancorp Inc operates as the holding company for Sound Community Bank that provides traditional banking and other financial services for individuals and businesses. It attracts retail and commercial deposits from the public and invests those funds, along with borrowed funds, in loans secured by first and second mortgages on one-to-four-family residences including home equity loans and lines of credit, commercial and multifamily real estate, construction and land, consumer and commercial business loans. The bank also offers secured and unsecured consumer loan products, including manufactured home loans, floating home loans, automobile loans, boat loans, and recreational vehicle loans.
51GF Score
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