Capitol Federal Financial (CFFN) AI Stock Analysis

• Market Cap: $871.29M
• Dividend Yield: 5.14%
• Average Volume (3M): 712.55K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.83
• Revenue Growth: 6.27%
• EPS Growth: 79.25%
• Country: US
• Employees: 583
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.14
• Shares Outstanding: 131,813,310
• 10 Day Avg. Volume: 729,504
• 30 Day Avg. Volume: 712,554
• PEG Ratio: 0.15
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 1.98
• P/FCF Ratio: 16.57
• Enterprise Value/Market Cap: 3.17
• Enterprise Value/Revenue: 6.61
• Enterprise Value/Gross Profit: 13.98
• Enterprise Value/Ebitda: 30.43
• 1Y Price Target: $7.00
• Price Target Upside: 5.42% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: $7.50 ▲(12.95% Upside)

Capitol Federal Financial's overall stock score is driven by strong technical indicators and a solid financial performance. The company's valuation is reasonable, with an attractive dividend yield. However, the high debt-to-equity ratio is a potential risk factor that needs careful management. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Revenue Growth

Stable revenue growth indicates consistent market demand and the company's ability to maintain its customer base, supporting long-term business sustainability.

Profit Margin Improvement

Improved profit margins reflect enhanced operational efficiency and cost management, contributing to stronger financial health and competitiveness.

Cash Flow Generation

Robust cash flow growth enhances financial flexibility, allowing for reinvestment in growth opportunities and debt reduction, bolstering long-term stability.

Negative Factors

High Leverage

Significant leverage could strain financial resources and increase risk, especially in adverse economic conditions, potentially impacting long-term viability.

Liquidity Concerns

Liquidity issues may hinder the company's ability to meet short-term obligations, affecting operational stability and limiting growth investments.

Modest Revenue Growth

Modest revenue growth may indicate challenges in expanding market share or product offerings, potentially limiting future earnings potential.

Capitol Federal Financial Business Overview & Revenue Model

Company Description

Capitol Federal Financial (CFFN) is a savings and loan holding company based in the United States, primarily engaged in the business of providing a range of banking services through its subsidiary, Capitol Federal Savings Bank. The company operates in the financial services sector, focusing on residential and commercial real estate lending, as well as deposit products such as savings accounts, checking accounts, and certificates of deposit. CFFN serves individuals, families, and businesses, emphasizing a commitment to customer service and community involvement.

How the Company Makes Money

Capitol Federal Financial generates revenue primarily through interest income from its loan portfolio, which consists mainly of mortgage loans, commercial loans, and consumer loans. The interest earned on these loans is a significant source of revenue for the company. Additionally, CFFN earns income from fees associated with its banking services, such as account maintenance fees, transaction fees, and service charges. The company also benefits from net interest margin, which is the difference between the interest it earns on loans and the interest it pays on deposits. Furthermore, CFFN may engage in investment activities, contributing to its overall earnings. Partnerships with local businesses and community organizations can enhance its market presence and customer base, further driving its revenue streams.

Capitol Federal Financial Financial Statement Overview

Summary

Capitol Federal Financial demonstrates solid profitability and revenue growth, with improved margins and cash flow generation. However, high leverage and liquidity concerns pose potential risks. The company needs to manage its debt levels carefully to maintain financial stability while capitalizing on its profitability improvements.

Income Statement

Capitol Federal Financial shows a stable revenue growth rate of 1.98% in the latest year, with improving profit margins. The gross profit margin increased to 47.3%, and the net profit margin rose to 16.3%, indicating enhanced profitability. EBIT and EBITDA margins also improved, reflecting better operational efficiency. However, the growth rate is modest, and the company faced challenges in previous years with negative margins.

Balance Sheet

The company has a high debt-to-equity ratio of 1.86, indicating significant leverage, which could pose risks if not managed properly. Return on equity improved to 6.49%, showing better utilization of equity. The equity ratio is stable, suggesting a balanced asset structure. However, the high leverage remains a concern for financial stability.

Cash Flow

Free cash flow growth is strong at 98.56%, indicating improved cash generation. The operating cash flow to net income ratio is low, suggesting potential issues in converting income to cash. The free cash flow to net income ratio is healthy at 90.5%, showing good cash profitability. Despite strong growth, the low operating cash flow coverage ratio indicates potential liquidity concerns.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	417.40M	379.37M	185.64M	299.57M	278.75M
Gross Profit	197.45M	163.33M	-27.71M	217.26M	204.08M
EBITDA	90.74M	62.81M	-128.85M	117.94M	106.98M
Net Income	68.03M	38.01M	-101.66M	84.45M	76.08M
Balance Sheet
Total Assets	9.78B	9.53B	10.18B	9.62B	9.63B
Cash, Cash Equivalents and Short-Term Investments	248.70M	1.07B	1.63B	1.61B	2.06B
Total Debt	1.95B	2.18B	2.38B	2.13B	1.58B
Total Liabilities	8.73B	8.50B	9.13B	8.53B	8.39B
Stockholders Equity	1.05B	1.03B	1.04B	1.10B	1.24B
Cash Flow
Free Cash Flow	49.84M	24.00M	41.25M	91.74M	65.06M
Operating Cash Flow	55.04M	31.18M	47.53M	97.30M	74.47M
Investing Cash Flow	-206.59M	629.11M	-329.10M	-167.58M	-326.67M
Financing Cash Flow	186.68M	-688.59M	477.98M	49.18M	82.78M

Capitol Federal Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.64
• 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 CFFN, the sentiment is Positive. The current price of 6.64 is above the 20-day moving average (MA) of 6.28, above the 50-day MA of 6.24, and above the 200-day MA of 5.86, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 63.62 is Neutral, neither overbought nor oversold. The STOCH value of 89.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CFFN.

Capitol Federal Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AMAL	78 Outperform	$898.09M	9.02	13.88%	1.87%	4.33%	-2.20%
CFFN	76 Outperform	$871.29M	12.65	6.53%	5.14%	6.27%	79.25%
HFWA	73 Outperform	$816.66M	14.49	6.43%	4.01%	8.27%	54.96%
AMTB	69 Neutral	$707.71M	10.82	7.21%	1.91%	15.37%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CPF	67 Neutral	$817.70M	12.54	11.65%	3.67%	1.22%	15.97%
HBNC	61 Neutral	$878.89M	―	-26.60%	3.73%	-78.64%	-913.67%

Capitol Federal Financial Corporate Events

Capitol Federal Financial Reports Strong Fiscal Year Results

Capitol Federal Financial, Inc. reported strong financial results for the fiscal year ending September 30, 2025, with net income rising to $68.0 million, driven by strategic operational changes and acquisitions. The company continues to enhance its commercial banking operations through technology investments, product expansion, and a focus on treasury management services, aiming to deliver long-term value to stockholders.

The most recent analyst rating on (CFFN) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on Capitol Federal Financial stock, see the CFFN Stock Forecast page.

Capitol Federal Financial Schedules Annual Meeting

Capitol Federal Financial announced that its annual meeting of stockholders is scheduled for January 27, 2026, with a voting record date set for December 5, 2025. This announcement sets the stage for shareholder engagement and decision-making, impacting the company’s governance and future strategies.

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

Capitol Federal Financial Updates Performance Plan Strategy

On September 23, 2025, Capitol Federal Financial, Inc. announced a modification to its Short-Term Performance Plan, effective for the fiscal year 2026. The company will replace the efficiency ratio performance target with the operating expense ratio performance target, aiming to better assess management’s ability to control operating costs by eliminating the impact of interest rates.

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