Capitol Federal Financial (CFFN) AI Stock Analysis

• Market Cap: $743.68M
• Dividend Yield: 6.07%
• Average Volume (3M): 1.03M
• Price to Earnings (P/E): 13.9
• Beta (1Y): 0.85
• Revenue Growth: 6.02%
• EPS Growth: N/A
• Country: US
• Employees: 583
• Sector: Financial
• Sector Strength: 83
• Industry: Banks - Regional
• EPS (TTM): 0.12
• Shares Outstanding: 132,800,860
• 10 Day Avg. Volume: 1,239,579
• 30 Day Avg. Volume: 1,027,201
• PEG Ratio: 1.53
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.33
• Enterprise Value/Market Cap: 3.89
• Enterprise Value/Revenue: 4.17
• Enterprise Value/Gross Profit: 11.70
• Enterprise Value/Ebitda: 15.92
• 1Y Price Target: $6.25
• Price Target Upside: 11.61% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 63 Neutral
• Price Target: ―

Capitol Federal Financial's overall stock score reflects a strong financial foundation and attractive dividend yield, balanced by technical indicators that suggest caution. While recent corporate events indicate positive momentum, the inconsistency in revenue growth and cash flow variability remain areas of concern. The stock is fairly valued, offering potential for income-focused 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

Capitol Federal Financial demonstrates strong profitability with a solid balance sheet characterized by minimal debt and stable equity. However, inconsistent revenue growth and cash flow fluctuations pose challenges. The overall financial performance is solid but requires stability in revenue and cash flow for long-term 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
74.21M	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
35.05M	24.00M	41.25M	91.74M	65.06M	78.19M
	Operating Cash Flow
42.13M	31.18M	47.53M	97.30M	74.47M	92.93M
	Investing Cash Flow
-115.16M	629.11M	-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: 5.60
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 5.6 is below the 20-day moving average (MA) of 5.72, above the 50-day MA of 5.58, and below the 200-day MA of 5.87, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 47.07 is Neutral, neither overbought nor oversold. The STOCH value of 15.26 is Positive, 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
OSBC	80 Outperform	$739.37M	8.95	12.98%	1.40%	2.27%	-6.70%
HBT	78 Outperform	$745.50M	9.92	14.24%	3.29%	6.98%	5.97%
FCBC	75 Outperform	$689.31M	13.72	10.08%	3.23%	2.49%	4.48%
NBN	73 Outperform	$653.37M	9.11	17.91%	0.05%	26.40%	24.62%
Sector *	64 Neutral	$12.64B	9.78	7.67%	17015.08%	12.23%	-6.02%
CFFN	63 Neutral	$743.68M	13.86	5.09%	6.07%	6.02%	―
AMTB	49 Neutral	$713.60M	―	-1.83%	2.11%	-5.38%	-186.90%

Capitol Federal Financial Corporate Events

Capitol Federal Financial Reports Stable Q2 2025 Earnings

Capitol Federal Financial, Inc. announced its second quarter fiscal year 2025 results, with a net income of $15.4 million and earnings per share of $0.12, unchanged from the previous quarter. The company reported a slight increase in net interest margin to 1.92% due to a decrease in deposit costs, and declared a quarterly cash dividend of $0.085 per share, payable on May 16, 2025. The shift in the loan portfolio from residential to commercial loans did not offset the decrease in residential loans, impacting interest income. The company maintained a higher level of operating cash to support upcoming commercial loan activities and repay borrowings.

Spark’s Take on CFFN Stock

According to Spark, TipRanks’ AI Analyst, CFFN is a Neutral.

Capitol Federal Financial’s stock score reflects a strong financial base with robust profitability margins and a healthy balance sheet. Despite this, technical indicators suggest bearish trends, and fluctuating cash flow raises concerns about financial stability. The company’s reasonable valuation and attractive dividend yield are positives, alongside recent corporate events indicating increased income and dividends, which contribute to the overall score.

To see Spark’s full report on CFFN stock, click here.