Capitol Federal Financial (CFFN) AI Stock Analysis

• Market Cap: $876.69M
• Dividend Yield: 4.73%
• Average Volume (3M): 912.57K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.75
• 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: 131,438,310
• 10 Day Avg. Volume: 1,314,560
• 30 Day Avg. Volume: 912,571
• 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: 2.96
• Enterprise Value/Revenue: 6.22
• Enterprise Value/Gross Profit: 13.14
• Enterprise Value/Ebitda: 28.60
• 1Y Price Target: $7.00
• Price Target Upside: 6.38% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $8.00 ▲(21.58% Upside)

Capitol Federal Financial's overall stock score is driven by solid financial performance and positive corporate events. The company's strong cash flow and profitability metrics are complemented by strategic initiatives and shareholder-friendly actions. However, technical indicators suggest caution due to overbought conditions, and the high debt-to-equity ratio remains a risk factor.

Positive Factors

Cash Flow Management

Efficient cash generation relative to profits indicates strong operational efficiency and the ability to fund growth and shareholder returns.

Shareholder Returns

The special dividend and share buyback program highlight the company's commitment to returning value to shareholders, enhancing investor confidence.

Profitability Metrics

A strong net profit margin reflects efficient operations and the ability to maintain profitability, supporting long-term financial health.

Negative Factors

High Debt Levels

Significant leverage can pose risks to financial stability, potentially limiting flexibility and increasing vulnerability to interest rate changes.

Modest Revenue Growth

Modest revenue growth suggests limited expansion potential, which could impact long-term competitiveness and market position.

Operating Cash Flow

A low operating cash flow to net income ratio indicates potential challenges in converting earnings into cash, affecting liquidity and operational flexibility.

Capitol Federal Financial Business Overview & Revenue Model

Company Description

Capitol Federal Financial, Inc. operates as the holding company for Capitol Federal Savings Bank that provides various retail banking products and services in the United States. The company accepts a range of deposit products, including savings accounts, money market deposit accounts, interest-bearing and non-interest-bearing checking accounts, and certificates of deposit. It also provides various loan products, such as one- to four-family residential real estate loans, commercial real estate, commercial and industrial, and construction loans, as well as consumer loans, which include home equity, loans and lines of credit, home improvement loans, vehicle loans, and loans secured by saving deposits. In addition, the company offers mobile, telephone, and online banking services, as well as bill payment services; operates a call center; and invests in various securities. It operates a network of 54 branches, including 45 traditional branches and nine in-store branches located in nine counties throughout Kansas and two counties in Missouri. The company serves the metropolitan areas of Topeka, Wichita, Lawrence, Manhattan, Emporia, and Salina, Kansas, and a portion of the metropolitan area of greater Kansas City. Capitol Federal Financial, Inc. was founded in 1893 and is headquartered in Topeka, Kansas.

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 presents a solid financial position with strong profitability and cash flow metrics. While revenue growth is steady, the high debt-to-equity ratio indicates a reliance on leverage, which could be a risk factor. The company should focus on enhancing revenue growth and managing debt levels to ensure long-term stability.

Income Statement

Capitol Federal Financial shows a stable revenue growth rate of 1.98% TTM, indicating consistent performance. The gross profit margin is healthy at 34.94%, and the net profit margin is solid at 16.50%. EBIT and EBITDA margins are also strong, reflecting efficient operations. However, the growth rate is modest, and there is room for improvement in revenue expansion.

Balance Sheet

The company has a high debt-to-equity ratio of 1.86, which suggests significant leverage. Return on equity is moderate at 6.54%, indicating decent profitability relative to shareholder equity. The equity ratio is not explicitly provided, but the balance sheet shows a stable asset base. The high leverage poses a potential risk if not managed carefully.

Cash Flow

Capitol Federal Financial demonstrates strong cash flow management with a significant free cash flow growth rate of 98.56% TTM. The operating cash flow to net income ratio is low at 1.76%, but the free cash flow to net income ratio is robust at 90.55%, indicating efficient cash generation relative to profits. Overall, cash flow metrics are a strong point for the company.

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: Neutral
• Last Price: 6.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 6.58 is below the 20-day moving average (MA) of 6.89, below the 50-day MA of 6.59, and above the 200-day MA of 6.01, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 45.43 is Neutral, neither overbought nor oversold. The STOCH value of 24.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CFFN.

Capitol Federal Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPF	78 Outperform	$837.82M	12.76	11.65%	3.39%	1.22%	15.97%
AMAL	78 Outperform	$1.02B	10.00	13.88%	1.70%	4.33%	-2.20%
HFWA	74 Outperform	$817.34M	14.37	6.43%	3.91%	8.27%	54.96%
CFFN	71 Outperform	$876.69M	12.59	6.53%	4.73%	6.27%	79.25%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AMTB	67 Neutral	$820.36M	12.61	7.21%	1.79%	15.37%	―
HBNC	58 Neutral	$874.28M	-4.34	-26.60%	3.50%	-78.64%	-913.67%

Capitol Federal Financial Corporate Events

Capitol Federal Financial Announces Special Cash Dividend

Capitol Federal Financial, a financial institution specializing in banking and related services, announced a special cash dividend and an update on its stock buyback program. The special dividend of $0.04 per share will be distributed on January 23, 2026, to stockholders of record as of January 9, 2026, highlighting returns to shareholders and strengthening investor relations in the banking sector.

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

Capitol Federal Financial 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.