Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Sound Financial Bancorp's 3-Year RORE % for the quarter that ended in Mar. 2026 was 12.22%.
The industry rank for Sound Financial Bancorp's 3-Year RORE % or its related term are showing as below:
SFBC's 3-Year RORE % is ranked better than 54.59% of 1471
companies
in the Banks industry
Industry Median: 9.93
vs SFBC: 12.22
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Sound Financial Bancorp 3-Year RORE % Related Terms
Sound Financial Bancorp 3-Year RORE % Historical Data
* 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: 3-Year RORE % Comparison
For the Banks - Regional subindustry, Sound Financial Bancorp's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 3-Year RORE % vs Banks Industry
For the Banks industry and Financial Services sector, Sound Financial Bancorp's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Sound Financial Bancorp's 3-Year RORE % 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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
Sound Financial Bancorp (SFBC) has a 3-Year RORE % of 12.22 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Sound Financial Bancorp and its competitors. According to the industry distribution chart, Sound Financial Bancorp ranks #668 out of 1471 companies in the Banks industry, placing it in the top 45.4%.
Is Sound Financial Bancorp's 3-Year RORE % too high?
Sound Financial Bancorp's current 3-Year RORE % is 12.22. The Banks industry median 3-Year RORE % is 9.93. Sound Financial Bancorp's value of 12.22 is 23.1% above this industry median. Based on the distribution chart, Sound Financial Bancorp ranks #668 out of 1471 companies in the Banks industry, which is above 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 3-Year RORE % compare to CZBS and HARL?
According to the Banks industry distribution chart, Sound Financial Bancorp ranks #668 out of 1471 companies for 3-Year RORE %. This puts Sound Financial Bancorp in the upper half of its industry. The industry median 3-Year RORE % is 9.93. Sound Financial Bancorp's value of 12.22 is 23.1% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for a Banks company?
The median 3-Year RORE % among Banks companies is 9.93, based on 1,471 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sound Financial Bancorp's current 3-Year RORE % of 12.22 is 23.1% above 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Sound Financial Bancorp and its competitors. For the Banks industry, the median 3-Year RORE % is 9.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sound Financial Bancorp's current 3-Year RORE % is 12.22. 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 $44.65 — trading 1.5% below its estimated fair value. The current 3-Year RORE % is 12.22 and 23.1% above the Banks industry median of 9.93. 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 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Sound Financial Bancorp (SFBC), the current 3-Year RORE % is 12.22 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 $44.65 is trading 1.5% below its estimated GF Value™ of $45.31.
GuruFocus considers Sound Financial Bancorp to be Fairly Valued.
Key valuation signals for SFBC:
3-Year RORE %: 12.22
GF Value™: $45.31 vs. price of $44.65 (1.5% below fair value)
Industry Position: 23.1% above the Banks median (#668 of 1471)
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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