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Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 54.6GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
8.8%
Sector: 8.5%
Dividend Analysis audit
INCOME
3.08%
Trailing Yield
$3.08
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
35%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, SB FINANCIAL GROUP, INC. (SBFG) receives a "Hold" rating with a composite score of 48.1/100, ranked #1193 out of 4446 stocks. Key factor scores: Quality 55/100, Value 76/100, Momentum 39/100. This is quantitative analysis only — not investment advice.
SB FINANCIAL GROUP, INC. (SBFG) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does SB FINANCIAL GROUP, INC. Do?
SB Financial Group, Inc. provides a range of commercial banking and wealth management services to individual and corporate customers primarily in Ohio, Indiana, and Michigan. It offers checking, savings, money market accounts, as well as time certificates of deposit; and commercial, consumer, agricultural, and residential mortgage loans. The company also provides automatic teller machine, personal and corporate trust, commercial leasing, bank credit card, safe deposit box rental, internet banking, private client group, and other personalized banking products and services; and various trust and financial services comprising asset management services for individuals and corporate employee benefit plans, as well as brokerage services. In addition, it sells insurance products to retail and commercial customers. As of December 31, 2021, the company operated a network of 22 banking centers in the Ohio counties of Allen, Defiance, Franklin, Fulton, Hancock, Lucas, Paulding, Wood, and Williams; and one banking center in Allen County, Indiana. It also operated five loan production offices in Franklin and Lucas Counties, Ohio; Hamilton and Steuben Counties, Indiana; and Monroe County, Michigan. The company was formerly known as Rurban Financial Corp. and changed its name to SB Financial Group, Inc. in April 2013. SB Financial Group, Inc. was incorporated in 1983 and is headquartered in Defiance, Ohio. SB FINANCIAL GROUP, INC. (SBFG) is classified as a micro-cap stock in the Financials sector, specifically within the Banking industry. The company is led by CEO Mark A. Klein and employs approximately 270 people, headquartered in Defiance, Ohio. With a market capitalization of $131M, SBFG is one of the notable companies in the Financials sector.
SB FINANCIAL GROUP, INC. (SBFG) Stock Rating — Hold (April 2026)
As of April 2026, SB FINANCIAL GROUP, INC. receives a Hold rating with a composite score of 48.1/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.SBFG ranks #1,193 out of 4,446 stocks in our coverage universe. Within the Financials sector, SB FINANCIAL GROUP, INC. ranks #366 of 891 stocks, placing it in the upper half of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
SBFG Stock Price and 52-Week Range
SB FINANCIAL GROUP, INC. (SBFG) currently trades at $22.30. The stock gained $0.08 (0.4%) in the most recent trading session. The 52-week high for SBFG is $23.93, which means the stock is currently trading -6.8% from its annual peak. The 52-week low is $17.10, putting the stock 30.4% above its annual trough. Recent trading volume was 4K shares, suggesting relatively thin trading activity.
Is SBFG Overvalued or Undervalued? — Valuation Analysis
SB FINANCIAL GROUP, INC. (SBFG) carries a value factor score of 76/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 11.36x, compared to the Financials sector average of 14.88x — a discount of 24%. The price-to-book ratio stands at 1.00x, versus the sector average of 1.22x. The price-to-sales ratio is 3.07x, compared to 0.90x for the average Financials stock. On an enterprise value basis, SBFG trades at 9.17x EV/EBITDA, versus 3.26x for the sector.
Based on these multiples, SB FINANCIAL GROUP, INC. appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
SB FINANCIAL GROUP, INC. Profitability — ROE, Margins, and Quality Score
SB FINANCIAL GROUP, INC. (SBFG) earns a quality factor score of 55/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 8.8%, compared to the Financials sector average of 8.5%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 0.8% versus the sector average of 1.2%.
On a margin basis, SB FINANCIAL GROUP, INC. reports gross margins of 0.0%. The operating margin is 33.1% (sector: 21.8%). Net profit margin stands at 26.7%, versus 17.7% for the average Financials stock. Revenue growth is running at 27.7% on a trailing basis, compared to 9.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
SBFG Debt, Balance Sheet, and Financial Health
SB FINANCIAL GROUP, INC. has a debt-to-equity ratio of 994.0%, compared to the Financials sector average of 121.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.10x, suggesting adequate working capital coverage. Total debt on the balance sheet is $65M. Cash and equivalents stand at $85M.
SBFG has a beta of 0.49, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for SB FINANCIAL GROUP, INC. is 78/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
SB FINANCIAL GROUP, INC. Revenue and Earnings History — Quarterly Trend
In TTM 2026, SB FINANCIAL GROUP, INC. reported revenue of $46M and earnings per share (EPS) of $2.19. Net income for the quarter was $12M. Gross margin was 0.0%. Operating income came in at $15M.
In FY 2025, SB FINANCIAL GROUP, INC. reported revenue of $48M and earnings per share (EPS) of $2.19. Net income for the quarter was $14M. Revenue grew 21.4% year-over-year compared to FY 2024. Operating income came in at $17M.
In Q3 2025, SB FINANCIAL GROUP, INC. reported revenue of $12M and earnings per share (EPS) of $0.64. Net income for the quarter was $4M. Revenue grew 21.1% year-over-year compared to Q3 2024. Operating income came in at $5M.
In Q2 2025, SB FINANCIAL GROUP, INC. reported revenue of $12M and earnings per share (EPS) of $0.60. Net income for the quarter was $4M. Revenue grew 25.6% year-over-year compared to Q2 2024. Operating income came in at $5M.
Over the past 8 quarters, SB FINANCIAL GROUP, INC. has demonstrated a growth trajectory, with revenue expanding from $10M to $46M. Investors analyzing SBFG stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
SBFG Dividend Yield and Income Analysis
SB FINANCIAL GROUP, INC. (SBFG) currently pays a dividend yield of 3.1%. At this yield, a $10,000 investment in SBFG stock would generate approximately $$308.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning SBFG offers above-average income for its sector. With a net margin of 26.7%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
SBFG Momentum and Technical Analysis Profile
SB FINANCIAL GROUP, INC. (SBFG) has a momentum factor score of 39/100, signaling weak relative price performance. Stocks with low momentum scores have historically tended to continue underperforming in the near term. The investment factor score is 24/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 3/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
SBFG vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing SBFG against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full SBFG vs S&P 500 (SPY) comparison to assess how SB FINANCIAL GROUP, INC. stacks up against the broader market across all factor dimensions.
SBFG Next Earnings Date
No upcoming earnings date has been announced for SB FINANCIAL GROUP, INC. (SBFG) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy SBFG? — Investment Thesis Summary
SB FINANCIAL GROUP, INC. presents a balanced picture with arguments on both sides. The value score of 76/100 suggests attractive pricing relative to fundamentals. Momentum is weak at 39/100, a headwind for near-term performance. Low volatility (stability score 78/100) reduces downside risk.
In summary, SB FINANCIAL GROUP, INC. (SBFG) earns a Hold rating with a composite score of 48.1/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on SBFG stock.
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Institutional Research Dossier
SB FINANCIAL GROUP, INC. (SBFG) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
SB Financial Group (SBFG) currently holds a Hold rating, justified by a mixed financial profile. While the company exhibits strong profitability metrics and trades at a discount to its sector on valuation multiples, concerns regarding its high debt-to-equity ratio and inconsistent free cash flow generation temper enthusiasm. The company's future performance hinges on its ability to sustain its revenue growth while managing its debt burden and navigating the competitive landscape of regional banking.
The core takeaway is that SBFG presents a value proposition based on its attractive valuation and profitability relative to peers. However, investors should closely monitor its debt levels and free cash flow generation to ensure the company's long-term financial stability and growth potential. The Hold rating reflects the balance between these positive and negative factors, suggesting a neutral stance until further clarity emerges regarding the company's financial trajectory.
Business Strategy & Overview
SB Financial Group operates as a community bank, providing a range of financial services to individuals and businesses primarily in Ohio, Indiana, and Michigan. Its core business revolves around traditional banking activities, including deposit-taking (checking, savings, money market accounts, CDs) and lending (commercial, consumer, agricultural, and residential mortgages). The company also offers wealth management services, such as trust and financial services, asset management, and brokerage services, diversifying its revenue streams beyond traditional banking.
SBFG's strategic positioning focuses on serving the needs of its local communities, emphasizing personalized service and relationship banking. This approach aims to differentiate itself from larger national banks and fintech companies. The company's network of banking centers and loan production offices strategically located in its target markets allows it to maintain a physical presence and build relationships with local customers. The expansion into wealth management and insurance products further enhances its ability to cross-sell services and increase customer lifetime value.
The company's revenue generation is primarily driven by net interest income, which is the difference between the interest earned on loans and the interest paid on deposits. Fee income from wealth management, insurance, and other services also contributes to its top line. SBFG's ability to manage its net interest margin and generate fee income is crucial to its overall profitability. The company's strategic focus on commercial lending and wealth management reflects its efforts to increase its yield on assets and diversify its revenue base.
In the context of the broader banking industry, SBFG operates in a competitive environment characterized by increasing consolidation and the rise of digital banking. The company faces competition from larger regional and national banks, as well as fintech companies that offer alternative financial services. To remain competitive, SBFG must invest in technology to enhance its digital banking capabilities and improve customer experience. It also needs to maintain a strong focus on risk management and regulatory compliance to ensure its long-term sustainability.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
27.7%
Sector: 9.4%
+195% VS SCTR
Economic Moat Analysis
SB Financial Group's economic moat is likely Narrow. While the company possesses some characteristics that contribute to a competitive advantage, they are not strong enough to create a wide and sustainable moat. The primary source of its moat stems from its community banking model and established relationships within its local markets.
The company benefits from a degree of customer stickiness due to the personal relationships built by its bankers and the convenience of its branch network. This local presence and personalized service can create switching costs for customers who value these aspects of banking. However, these switching costs are not insurmountable, as customers can easily switch to other banks or fintech companies that offer more competitive rates or innovative services.
SBFG's brand recognition within its local markets also contributes to its narrow moat. The company has built a reputation for providing reliable banking services and supporting its communities. This brand equity can attract and retain customers, but it is not a unique or proprietary asset that cannot be replicated by competitors.
The company's size and scale limit its ability to achieve significant cost advantages. Larger banks benefit from economies of scale in areas such as technology, marketing, and regulatory compliance. SBFG's smaller size puts it at a disadvantage in these areas, making it more difficult to compete on price.
Furthermore, the banking industry is subject to intense regulatory scrutiny, which can create barriers to entry for new players. However, these regulations also apply to existing banks, limiting their ability to differentiate themselves and build a wider moat. Overall, SBFG's narrow moat is based on its local presence, customer relationships, and brand recognition, but it is vulnerable to competition from larger banks and fintech companies.
Financial Health & Profitability
SB Financial Group's financial health presents a mixed picture. The company has demonstrated strong revenue growth, with TTM revenue of $48.45 million, representing a significant increase from $39.92 million in FY2024 and $39.27 million in FY2023. This growth is further evidenced by the impressive 27.7% revenue growth compared to the sector average of 9.3%. The quarterly financial history shows consistent revenue generation, with Q3 FY2025 reporting $12.33 million, Q2 FY2025 reporting $12.13 million, and Q1 FY2025 reporting $11.28 million.
Profitability metrics are also robust. The company's net income for the TTM period is $13.97 million, resulting in a net margin of 26.7%, significantly higher than the sector average of 17.8%. The operating margin of 33.2% also surpasses the sector average of 22.0%. The company's ROE of 8.8% is slightly above the sector average of 8.5%, indicating efficient use of equity to generate profits. These figures suggest strong operational efficiency and profitability.
However, the balance sheet reveals a concerning level of leverage. The company's total debt is $65.04 million, while its total cash is $85.03 million. While the cash position appears healthy, the debt-to-equity ratio is a staggering 994.00, significantly higher than the sector average of 115.00. This high level of debt raises concerns about the company's ability to meet its financial obligations and its vulnerability to interest rate fluctuations.
Free cash flow is another area of concern. The company's TTM free cash flow is negative $100,000.00, indicating that it is not generating enough cash from its operations to cover its capital expenditures. This negative free cash flow could put pressure on the company's liquidity and its ability to invest in future growth opportunities. The absence of free cash flow data in the quarterly reports makes it difficult to assess the trend and potential improvement in this area.
The current ratio of 1.10 indicates that the company has sufficient current assets to cover its current liabilities. However, the high debt-to-equity ratio and negative free cash flow warrant close monitoring. While the company's revenue growth and profitability are impressive, its financial health is weakened by its high leverage and inconsistent cash flow generation.
Valuation Assessment
SB Financial Group's valuation presents an interesting case, appearing attractive on several key metrics relative to its sector. The company's P/E ratio of 9.1x is significantly lower than the sector average of 15.5x, suggesting that the stock is undervalued based on its earnings. Similarly, the EV/EBITDA multiple of 1.8x is substantially below the sector average of 3.5x, further indicating a potential undervaluation based on its enterprise value and operating performance.
However, it's crucial to consider the context of this valuation. The company's high debt-to-equity ratio of 994.00 compared to the sector average of 115.00 introduces a significant risk factor that may justify a lower valuation. Investors may be discounting the stock due to concerns about the company's financial leverage and its potential impact on future earnings and cash flow.
The company's strong revenue growth of 27.7% compared to the sector average of 9.3% should warrant a higher valuation. However, the negative free cash flow of $-100,000.00 raises concerns about the sustainability of this growth and the company's ability to generate cash to fund its operations and repay its debt. This negative free cash flow may be offsetting the positive impact of the revenue growth on the valuation.
The company's operating margin of 33.2% and net margin of 26.7% are significantly higher than the sector averages of 22.0% and 17.8%, respectively. These high margins suggest that the company is efficiently managing its operations and generating strong profits. However, the market may be skeptical about the sustainability of these high margins, especially in light of the company's high debt and negative free cash flow.
Overall, SB Financial Group's valuation appears cheap based on its P/E and EV/EBITDA multiples. However, the high debt-to-equity ratio and negative free cash flow introduce significant risks that may justify a lower valuation. The market may be waiting for the company to demonstrate its ability to manage its debt and generate consistent positive free cash flow before assigning a higher valuation. Therefore, the current valuation can be considered fair, reflecting the balance between the company's attractive profitability and growth prospects and its concerning financial leverage and cash flow generation.
Risk & Uncertainty
SB Financial Group faces several specific risks that could negatively impact its performance and valuation. One of the most significant risks is its high debt-to-equity ratio. This high level of leverage increases the company's vulnerability to interest rate fluctuations and economic downturns. If interest rates rise, the company's interest expense will increase, reducing its profitability. In an economic downturn, the company's loan portfolio could deteriorate, leading to higher loan losses and reduced earnings.
Another risk is the company's negative free cash flow. This indicates that the company is not generating enough cash from its operations to cover its capital expenditures and debt obligations. If the company continues to generate negative free cash flow, it may need to raise additional capital through debt or equity offerings, which could dilute existing shareholders or increase its financial leverage.
Competition from larger regional and national banks, as well as fintech companies, also poses a risk to SB Financial Group. These competitors may offer more competitive rates, innovative products, or superior customer service, which could attract customers away from SB Financial Group. The company needs to invest in technology and customer service to remain competitive in the evolving banking landscape.
Regulatory compliance is another significant risk for SB Financial Group. The banking industry is subject to extensive regulations, and the company must comply with these regulations to avoid fines, penalties, and reputational damage. Changes in regulations could also increase the company's compliance costs and reduce its profitability.
Finally, the company's concentration in the Ohio, Indiana, and Michigan markets exposes it to regional economic risks. If these markets experience an economic downturn, the company's loan portfolio and earnings could be negatively impacted. Diversification into other markets could mitigate this risk.
Bulls Say / Bears Say
The Bull Case
BULL VIEWSBFG's low P/E and EV/EBITDA multiples indicate significant undervaluation, offering substantial upside potential as the market recognizes its profitability.
BULL VIEWThe company's strong revenue growth and high operating margins demonstrate its ability to outperform peers and generate superior returns for shareholders.
BULL VIEWSBFG's focus on community banking and personalized service creates customer loyalty and a sustainable competitive advantage in its local markets.
The Bear Case
BEAR VIEWSBFG's extremely high debt-to-equity ratio poses a significant risk to its financial stability and could lead to financial distress in an economic downturn.
BEAR VIEWThe company's negative free cash flow indicates a lack of financial discipline and raises concerns about its ability to fund future growth and repay its debt.
BEAR VIEWSBFG's small size and limited geographic diversification make it vulnerable to competition from larger banks and regional economic downturns.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score SBFG and 4,400+ other equities.
SB FINANCIAL GROUP, INC. exhibits a 95% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
0.8%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
33.1%
Sector: 21.8%
Net Margin
Bottom-line profitability
26.7%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.48%
Yield Delta+24%
Income Projection audit
A $10,000 investment would generate approximately $308 annually in dividends at the current trailing rate.
