Broadway Financial (BYFC) AI Stock Analysis

• Market Cap: $75.01M
• Dividend Yield: N/A
• Average Volume (3M): 2.62K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.93
• Revenue Growth: 2.54%
• EPS Growth: -174.74%
• Country: US
• Employees: 106
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): N/A
• Shares Outstanding: 6,082,794
• 10 Day Avg. Volume: 4,234
• 30 Day Avg. Volume: 2,624
• PEG Ratio: -0.35
• Price to Book (P/B): 0.22
• Price to Sales (P/S): 0.96
• P/FCF Ratio: 48.99
• Enterprise Value/Market Cap: 2.21
• Enterprise Value/Revenue: 2.97
• Enterprise Value/Gross Profit: 4.97
• Enterprise Value/Ebitda: 134.96
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: $8.50 ▲(4.42% Upside)

The score is driven primarily by moderate financial performance with weakening profitability and limited cash-flow visibility, alongside negative corporate events (late 10-Q/Nasdaq compliance risk and goodwill impairment). Technicals show an uptrend but appear overbought, while valuation is weakened by a negative P/E and no dividend yield data.

Positive Factors

Improved leverage

A materially lower debt-to-equity ratio improves financial flexibility and reduces interest burden, supporting credit capacity and regulatory capital metrics. This stronger leverage position provides durable resilience for lending and balance-sheet management over the medium term.

Community-focused niche

A clear focus on underserved communities and partnerships with community organizations creates a sticky deposit base and repeat loan demand. This niche positioning supports long-term relationship-driven origination, stable deposit gathering, and differentiated competitive advantage in regional banking.

Prior strong cash conversion

Historical operating cash conversion above parity indicates the franchise can generate cash from core earning assets, supporting loan funding and operations without immediate refinancing. That prior cash strength is a durable positive for capital allocation and shock absorption ability.

Negative Factors

Goodwill impairment

A large goodwill impairment signals that previously recognized franchise value has deteriorated, reducing tangible equity and eroding booked capital cushions. It suggests either weaker future earnings prospects or overpaid past acquisitions, both negative for long-term capital stability.

Nasdaq compliance risk

Late filings and a Nasdaq non-compliance notice create structural risk: potential regulatory sanctions, increased governance scrutiny, and restricted access to equity capital. Persistent reporting issues can damage investor trust and limit strategic financing over the medium term.

Declining profitability & cash visibility

Falling revenue and a sharp drop in net margin materially weaken earnings power and internal capital generation. Coupled with missing current-year operating/free cash flow data, this creates uncertain cash-flow visibility, limiting confidence in sustainable dividend or reinvestment capacity.

Broadway Financial Business Overview & Revenue Model

Company Description

Broadway Financial Corporation operates as the holding company for City First Bank, National Association that provides various banking products and services in the United States. It accepts various deposit accounts, including savings accounts, checking accounts, NOW accounts, money market accounts, and fixed-term certificates of deposit. The company also offers mortgage loans, which are secured by multi-family residential properties; single family residential properties; and commercial real estate, including charter schools, community facilities, and churches, as well as commercial business, construction, and consumer loans. In addition, it invests in securities issued by federal government agencies, residential mortgage-backed securities, and other investments. The company operates through three branch offices. Broadway Financial Corporation was founded in 1946 and is headquartered in Los Angeles, California.

How the Company Makes Money

Broadway Financial generates revenue primarily through the interest income earned from its loan portfolio, which includes residential mortgages, commercial real estate loans, and consumer loans. Additionally, the bank earns non-interest income from fees associated with banking services, such as account maintenance fees, transaction fees, and service charges. The company also benefits from investment income derived from its securities portfolio. Key partnerships with community organizations and government programs aimed at fostering affordable housing and community development further enhance its ability to attract customers and generate revenue, while regulatory support for community banks can provide additional opportunities for growth.

Broadway Financial Financial Statement Overview

Summary

Broadway Financial's financial performance presents a mixed picture. While there are signs of improvement in leverage management, 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	55.94M	63.76M	52.59M	37.46M	27.97M	18.67M
Gross Profit	33.41M	32.66M	33.89M	33.06M	24.04M	13.16M
EBITDA	1.23M	3.52M	7.30M	8.93M	-4.21M	-928.00K
Net Income	566.00K	1.93M	4.51M	5.64M	-4.05M	-642.00K
Balance Sheet
Total Assets	1.23B	1.30B	1.38B	1.18B	1.09B	483.38M
Cash, Cash Equivalents and Short-Term Investments	0.00	146.32M	422.14M	344.85M	387.92M	106.81M
Total Debt	133.00M	262.14M	396.79M	205.81M	151.91M	113.81M
Total Liabilities	941.64M	1.02B	1.09B	904.64M	952.40M	434.49M
Stockholders Equity	285.55M	285.16M	281.90M	279.48M	141.00M	48.88M
Cash Flow
Free Cash Flow	-1.13M	1.25M	7.39M	6.00M	-514.00K	-13.97M
Operating Cash Flow	-1.07M	1.39M	7.59M	6.32M	624.00K	-13.55M
Investing Cash Flow	53.84M	28.22M	-100.04M	-323.96M	25.02M	50.71M
Financing Cash Flow	-126.78M	-73.45M	181.54M	102.22M	109.82M	43.39M

Broadway Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 8.14 is above the 20-day moving average (MA) of 7.23, above the 50-day MA of 6.61, and above the 200-day MA of 6.93, indicating a bullish trend. The MACD of 0.59 indicates Negative momentum. The RSI at 67.38 is Neutral, neither overbought nor oversold. The STOCH value of 64.61 is Neutral, 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	76 Outperform	$83.37M	10.53	10.86%	2.18%	6.17%	-6.13%
FUSB	71 Outperform	$80.74M	15.10	5.50%	2.08%	1.03%	-35.72%
UBCP	69 Neutral	$79.33M	10.58	10.91%	6.51%	6.31%	-5.00%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BYFC	54 Neutral	$75.01M	-30.69	0.22%	―	2.54%	-174.74%
FNWB	50 Neutral	$97.27M	-12.44	-4.68%	2.88%	8.02%	21.36%
SSBI	45 Neutral	$86.66M	-61.40	-1.41%	―	-0.81%	-129.22%

Broadway Financial Corporate Events

Broadway Financial Faces Nasdaq Compliance Deadline

On November 24, 2025, Broadway Financial Corporation announced that it received a notification from Nasdaq regarding its non-compliance with Nasdaq Listing Rule 5250(c)(1) due to the late filing of its Q3 Form 10-Q for the quarter ended September 30, 2025. This delay was attributed to the evaluation of its sold loan participation accounting and its impact on the consolidated financial statements. Although the notice does not immediately affect the company’s listing or trading on Nasdaq, further delays could potentially impact its stock. The company has until December 8, 2025, to submit an updated compliance plan to Nasdaq, and if accepted, it may have until February 16, 2026, to regain compliance.

The most recent analyst rating on (BYFC) stock is a Hold with a $6.50 price target. To see the full list of analyst forecasts on Broadway Financial stock, see the BYFC Stock Forecast page.

Broadway Financial Announces $25.9M Goodwill Impairment

On October 15, 2025, Broadway Financial Corporation announced that its Audit Committee determined the company’s goodwill is impaired, leading to a non-cash $25.9 million goodwill impairment charge for the quarter ended September 30, 2025. This charge is not expected to result in future cash expenditures, indicating limited immediate financial impact on the company’s operations.

The most recent analyst rating on (BYFC) stock is a Hold with a $7.50 price target. To see the full list of analyst forecasts on Broadway Financial stock, see the BYFC Stock Forecast page.