Capitol Federal Financial (CFFN) AI Stock Analysis

• Market Cap: $725.01M
• Dividend Yield: 6.54%
• Average Volume (3M): 763.22K
• Price to Earnings (P/E): 14.0
• Beta (1Y): 0.96
• Revenue Growth: 5.57%
• EPS Growth: N/A
• Country: US
• Employees: 583
• Sector: Financial
• Sector Strength: 79
• Industry: Banks - Regional
• EPS (TTM): 0.39
• Shares Outstanding: 132,786,360
• 10 Day Avg. Volume: 901,855
• 30 Day Avg. Volume: 763,222
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.19
• Price to Cash Flow (P/CF): 34.00
• P/FCF Ratio: 3.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $6.75
• Price Target Upside: 23.63% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

Capitol Federal Financial's stock exhibits a balanced profile with solid financial performance and a fair valuation. The company's strong profitability margins and stable balance sheet are positive, though revenue growth inconsistency and cash flow fluctuations present challenges. Technical analysis indicates potential bearish momentum, which could impact short-term performance. The attractive dividend yield enhances its appeal for income investors.

Capitol Federal Financial Business Overview & Revenue Model

Company Description

Capitol Federal Financial (CFFN) is a holding company that operates through its wholly-owned subsidiary, Capitol Federal Savings Bank. Headquartered in Topeka, Kansas, the company primarily engages in traditional banking activities, offering a wide range of financial products and services. These include residential mortgage lending, retail banking, and investment services, serving both individual and business clients predominantly in Kansas and Missouri.

How the Company Makes Money

Capitol Federal Financial generates revenue primarily through interest income from its loan portfolio, which consists mainly of residential real estate loans. The company earns interest on these loans, which constitutes a significant portion of its revenue. Additionally, Capitol Federal Savings Bank collects interest and fees from various other financial products, including consumer loans, commercial loans, and investment securities. The difference between the interest earned on loans and the interest paid on deposits and borrowings, known as the net interest margin, is a critical factor in the company's profitability. Non-interest income, such as service charges and fees from deposit accounts and investment advisory services, also contribute to its revenue streams. While partnerships and external factors like economic conditions and interest rate environments can influence earnings, the company's core revenue model remains focused on traditional banking operations.

Capitol Federal Financial Financial Statement Overview

Summary

Overall, Capitol Federal Financial exhibits a solid financial position with strong profitability margins and a robust balance sheet, characterized by minimal debt and stable equity. However, the inconsistency in revenue growth and cash flow fluctuations pose challenges. Maintaining revenue growth and stabilizing cash flows will be crucial for sustaining long-term financial health.

Income Statement

Capitol Federal Financial demonstrates a moderate income statement performance. The gross profit margin for TTM is approximately 72.6%, and the net profit margin is 14.95%, indicating good profitability within the banking industry. However, revenue growth has been inconsistent, with a significant drop in the previous year, impacting overall stability. EBIT and EBITDA margins are solid at around 44.6% and 14.6%, respectively, but the absence of consistent EBITDA data limits comprehensive analysis.

Balance Sheet

The balance sheet shows a healthy equity ratio of 10.76%, demonstrating stability in asset management. The debt-to-equity ratio is zero for the TTM period, indicating strong financial health due to reduced leverage. Return on equity is approximately 4.96%, which is modest but stable. The company's equity base provides a cushion, although further growth in equity would enhance financial robustness.

Cash Flow

Cash flow analysis presents a mixed view. The operating cash flow to net income ratio is 0.83, indicating efficient cash generation. Free cash flow growth is positive, but fluctuating financing activities suggest potential volatility. The free cash flow to net income ratio is approximately 0.71, reflecting moderate cash profitability. Consistent, positive operating cash flows are a positive indicator, but the variability in other cash activities suggests caution.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
340.28M	164.59M	-25.02M	220.05M	210.66M	186.63M
	Gross Profit
247.00M	164.59M	-25.02M	220.05M	210.66M	186.63M
	EBIT
151.91M	54.10M	-134.50M	110.22M	98.57M	81.54M
	EBITDA
49.80M	0.00	-128.85M	117.94M	106.98M	91.73M
	Net Income Common Stockholders
50.90M	38.01M	-101.61M	84.45M	76.08M	64.54M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
170.32M	217.31M	245.60M	49.19M	42.26M	185.15M
	Total Assets
9.54B	9.53B	10.17B	9.62B	9.63B	9.49B
	Total Debt
2.16B	2.18B	2.88B	2.13B	1.58B	1.79B
	Net Debt
1.99B	1.96B	2.63B	2.08B	1.54B	1.60B
	Total Liabilities
8.51B	8.50B	1.89B	1.80B	1.58B	1.79B
	Stockholders Equity
1.03B	1.03B	1.03B	1.10B	1.24B	1.28B
Cash Flow		Free Cash Flow
36.20M	28.72M	41.25M	91.74M	65.06M	78.19M
	Operating Cash Flow
42.13M	28.72M	47.53M	97.30M	74.47M	92.93M
	Investing Cash Flow
-115.16M	1.54M	-329.10M	-167.58M	-326.67M	-151.29M
	Financing Cash Flow
-77.00M	-688.59M	477.98M	49.18M	82.78M	44.37M

Capitol Federal Financial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CFFN, the sentiment is Negative. The current price of 5.46 is below the 20-day moving average (MA) of 5.60, below the 50-day MA of 5.79, and below the 200-day MA of 5.88, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 42.34 is Neutral, neither overbought nor oversold. The STOCH value of 24.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CFFN.

Capitol Federal Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NBN	77 Outperform	$697.01M	10.18	17.77%	0.05%	23.69%	21.19%
HBT	76 Outperform	$707.88M	9.91	13.88%	3.48%	8.55%	9.52%
OSBC	73 Outperform	$694.63M	8.25	13.66%	1.50%	4.19%	-7.40%
FCBC	73 Outperform	$707.23M	13.78	10.02%	3.30%	6.25%	5.16%
Sector *	64 Neutral	$13.46B	9.44	9.34%	4.72%	16.14%	-8.80%
CFFN	62 Neutral	$725.01M	13.96	4.93%	6.54%	5.57%	―
AMTB	53 Neutral	$719.68M	―	-1.94%	1.95%	-1.44%	-158.03%

Capitol Federal Financial Corporate Events

Capitol Federal Financial Holds Annual Stockholders Meeting

Capitol Federal Financial, Inc. held its Annual Meeting of Stockholders on January 28, 2025. At this meeting, stockholders elected John B. Dicus, James G. Morris, and Jeffrey R. Thompson as directors for a three-year term and approved the executive compensation on an advisory basis. They also ratified KPMG LLP as the independent auditors for the fiscal year ending September 30, 2025. However, the proposal to amend the Company’s charter to declassify the Board of Directors was not approved.

Capitol Federal Financial Reports Increased Income and Dividend

Capitol Federal Financial, Inc. reported an increase in net income to $15.4 million for the quarter ended December 31, 2024, driven primarily by lower income tax expenses and a growth in commercial loans. The company also announced a quarterly cash dividend of $0.085 per share, reflecting continued shareholder returns and stable financial performance amidst a favorable shift in their loan portfolio towards higher yielding commercial loans.

Capitol Federal Financial Announces Annual Meeting Details

On January 24, 2025, Capitol Federal Financial, Inc. announced that the presentation for their Annual Meeting of Stockholders would be available on their website at 10:00 a.m. central time on January 28, 2025. This announcement allows stakeholders to access important company information and updates, potentially affecting investor decisions and company transparency.