Broadway Financial (BYFC) AI Stock Analysis

• Market Cap: $73.63M
• Dividend Yield: N/A
• Average Volume (3M): 4.77K
• Price to Earnings (P/E): 158.7
• Beta (1Y): 0.92
• Revenue Growth: 2.54%
• EPS Growth: -174.74%
• Country: US
• Employees: 106
• Sector: Financial
• Sector Strength: 78
• Industry: Banks - Regional
• EPS (TTM): -0.02
• Shares Outstanding: 6,097,773
• 10 Day Avg. Volume: 2,196
• 30 Day Avg. Volume: 4,767
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 4.67
• Enterprise Value/Revenue: 5.45
• Enterprise Value/Gross Profit: 8.71
• Enterprise Value/Ebitda: 119.28
• 1Y Price Target: $7.00
• Price Target Upside: -12.61% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 48 Neutral
• Price Target: $7.00 ▼(-12.61% Downside)

Broadway Financial's overall stock score is primarily impacted by its financial performance and technical analysis. The company's declining profitability and negative earnings are significant concerns. Additionally, bearish technical indicators and regulatory risks from Nasdaq non-compliance notices further weigh down the score.

Broadway Financial Business Overview & Revenue Model

Company Description

Broadway Financial Corporation (BYFC) is a bank holding company based in Los Angeles, California, primarily engaged in providing a range of financial services through its wholly-owned subsidiary, Broadway Federal Bank. The company focuses on serving the banking needs of its communities, particularly in the areas of residential and commercial real estate lending. Broadway Financial is committed to fostering economic growth and empowerment in underserved markets, offering products such as mortgage loans, commercial loans, and deposit accounts, while emphasizing community development and financial inclusion.

How the Company Makes Money

Broadway Financial generates revenue primarily through interest income from loans, which includes residential mortgages, commercial real estate loans, and other types of lending. The bank earns interest on the loans it originates, which is a significant source of its overall revenue. Additionally, the company generates non-interest income from fees associated with deposit accounts, service charges, and other banking services. Partnerships with community organizations and participation in government programs aimed at promoting affordable housing and economic development also enhance its earnings potential. Furthermore, effective asset management and maintaining a diversified loan portfolio help mitigate risks and contribute positively to the company's financial performance.

Broadway Financial Financial Statement Overview

Summary

Broadway Financial's financial performance presents a mixed picture. There are signs of improvement in leverage management, but declining profitability and missing cash flow data present challenges. The company displays moderate stability with some areas requiring attention, particularly in profitability and cash flow visibility.

Income Statement

Broadway Financial has shown a decline in total revenue over the past year, with a reduction from $33.89M to $32.66M. The gross profit margin remains stable at 100% due to the nature of the banking industry. However, the net profit margin decreased from 13.32% to 5.90%, indicating a decline in profitability. The EBIT margin also decreased from 19.25% to 18.39%. Overall, income stability is moderate with declining profitability.

Balance Sheet

The company has a relatively high debt-to-equity ratio of 0.69 in 2024, down from 1.15 in 2023, indicating improved leverage management. The return on equity (ROE) decreased from 1.60% to 0.67%, reflecting lower returns for shareholders. The equity ratio increased slightly to 21.87%, suggesting a modest improvement in financial stability. Overall, the balance sheet shows moderate stability with improved leverage but declining returns.

Cash Flow

Operating cash flow and free cash flow are not available for 2024, making it challenging to assess cash flow health. In the previous year, the operating cash flow to net income ratio was 1.68, indicating strong cash generation relative to net income. However, the lack of current data limits assessment. Overall, cash flow stability is uncertain due to missing data.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	63.76M	52.59M	37.46M	27.97M	18.67M
Gross Profit	32.66M	33.89M	33.06M	24.04M	13.16M
EBITDA	3.52M	7.30M	8.93M	-4.21M	-928.00K
Net Income	1.93M	4.51M	5.64M	-4.05M	-642.00K
Balance Sheet
Total Assets	1.30B	1.38B	1.18B	1.09B	483.38M
Cash, Cash Equivalents and Short-Term Investments	146.32M	422.14M	344.85M	387.92M	106.81M
Total Debt	262.14M	396.79M	205.81M	151.91M	113.81M
Total Liabilities	1.02B	1.09B	904.64M	952.40M	434.49M
Stockholders Equity	285.16M	281.90M	279.48M	141.00M	48.88M
Cash Flow
Free Cash Flow	1.25M	7.39M	6.00M	-514.00K	-13.97M
Operating Cash Flow	1.39M	7.59M	6.32M	624.00K	-13.55M
Investing Cash Flow	28.22M	-100.04M	-323.96M	25.02M	50.71M
Financing Cash Flow	-73.45M	181.54M	102.22M	109.82M	43.39M

Broadway Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BYFC, the sentiment is Positive. The current price of 8.01 is above the 20-day moving average (MA) of 7.70, above the 50-day MA of 7.65, and above the 200-day MA of 7.17, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 60.50 is Neutral, neither overbought nor oversold. The STOCH value of 95.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BYFC.

Broadway Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BOTJ	75 Outperform	$70.60M	9.87	10.73%	2.57%	9.06%	-16.04%
Sector *	68 Neutral	$17.88B	11.68	10.28%	3.72%	9.78%	1.27%
SSBI	58 Neutral	$79.32M	10.38	-1.64%	3.37%	-0.03%	-126.57%
BYFC	48 Neutral	$73.63M	158.72	0.22%	―	2.54%	-174.74%
FSEA	―	$54.08M	―	-0.80%	―	―	―
BAFN	57 Neutral	$37.29M	5.23	8.93%	3.55%	7.07%	96.65%
NSTS	―	$62.34M	―	-1.04%	―	―	―

Broadway Financial Corporate Events

Broadway Financial Faces Nasdaq Non-Compliance Notice

On August 21, 2025, Broadway Financial Corporation received a notification from Nasdaq regarding non-compliance with Listing Rule 5250(c)(1) due to the late filing of its Form 10-Q for the quarter ended June 30, 2025. The delay was attributed to the need for additional time to evaluate participation agreements for compliance with accounting standards. Nasdaq has given the company 60 days to submit a compliance plan, with the potential for an extension until February 16, 2026, if the plan is accepted. The company aims to file the Form 10-Q promptly to meet the deadline.

Broadway Financial Holds Annual Meeting of Stockholders

On June 30, 2025, Broadway Financial Corporation held its Annual Meeting of Stockholders where several key decisions were made. The stockholders elected the nominees for the Board of Directors to serve until 2028, ratified the appointment of Crowe LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, approved the executive compensation on an advisory basis, and agreed to amend the Certificate of Incorporation to remove a provision regarding the removal of directors.

Broadway Financial Announces Board Member Resignation

On June 2, 2025, Broadway Financial Corporation announced that William A. Longbrake, a member of its Board of Directors, will resign at the company’s Annual Meeting of Stockholders on June 30, 2025. The resignation is not due to any disagreements with the company’s operations, policies, or practices.

Broadway Financial Faces Nasdaq Non-Compliance Notice

On May 28, 2025, Broadway Financial Corporation received a notification from Nasdaq regarding its non-compliance with the Nasdaq Listing Rule 5250(c)(1) due to the late filing of its Quarterly Report on Form 10-Q for the quarter ended March 31, 2025. The delay is attributed to the need for additional time to determine the value of a Securities Purchase Option Agreement and to complete fair value measurements disclosure. Nasdaq has given the company 60 days from the notice date to submit a compliance plan, with a potential extension until November 17, 2025, if accepted. The notice does not immediately affect the trading of the company’s shares, but further delays could impact its listing status.