Capitol Federal Financial (CFFN) AI Stock Analysis

• Market Cap: $843.29M
• Dividend Yield: 5.55%
• Average Volume (3M): 862.67K
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.86
• Revenue Growth: 6.02%
• EPS Growth: N/A
• Country: US
• Employees: 583
• Sector: Financial
• Sector Strength: 73
• Industry: Banks - Regional
• EPS (TTM): 0.12
• Shares Outstanding: 132,800,860
• 10 Day Avg. Volume: 531,252
• 30 Day Avg. Volume: 862,671
• PEG Ratio: 5.58
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 24.95
• Enterprise Value/Market Cap: 3.05
• Enterprise Value/Revenue: 1.89
• Enterprise Value/Gross Profit: 14.12
• Enterprise Value/Ebitda: 31.48
• 1Y Price Target: $6.25
• Price Target Upside: 0.97% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 73 Outperform
• Price Target: $7.00 ▲(13.09%Upside)

Capitol Federal Financial's overall score reflects strong technical momentum and attractive dividend yield, tempered by mixed financial performance with high leverage. The absence of earnings call data and corporate events does not affect the score significantly.

Capitol Federal Financial Business Overview & Revenue Model

Company Description

Capitol Federal Financial (CFFN) is a publicly traded financial institution headquartered in Topeka, Kansas. It operates primarily in the banking sector, offering a range of financial products and services. The company specializes in residential mortgage lending, retail deposits, and consumer banking services. Capitol Federal Financial is widely recognized for its focus on providing home loans and savings products to customers across its branch network.

How the Company Makes Money

Capitol Federal Financial primarily makes money through its interest income, which is generated from mortgage loans, commercial loans, and other types of lending. The company earns interest on the loans it provides to customers, which constitutes the majority of its revenue. Additionally, Capitol Federal Financial generates income from interest earned on investment securities. The company also collects fees and service charges related to deposit accounts, mortgage servicing, and other banking services. While interest income is the main revenue driver, non-interest income from service charges and fees also contributes to the company's financial performance. Partnerships with other financial institutions or businesses may not be a significant factor in its earnings structure.

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	404.02M	379.37M	185.64M	299.57M	278.75M	321.69M
Gross Profit	182.07M	163.33M	-27.71M	217.26M	204.08M	183.74M
EBITDA	81.35M	62.81M	-128.85M	117.94M	106.98M	91.73M
Net Income	52.53M	38.01M	-101.66M	84.45M	76.08M	64.54M
Balance Sheet
Total Assets	9.72B	9.53B	10.17B	9.62B	9.63B	9.49B
Cash, Cash Equivalents and Short-Term Investments	1.30B	1.07B	1.63B	1.61B	2.06B	1.75B
Total Debt	2.14B	2.18B	2.38B	2.13B	1.58B	1.79B
Total Liabilities	8.68B	8.50B	9.13B	8.53B	8.39B	8.20B
Stockholders Equity	1.04B	1.03B	1.03B	1.10B	1.24B	1.28B
Cash Flow
Free Cash Flow	30.77M	24.00M	41.25M	91.74M	65.06M	78.19M
Operating Cash Flow	37.13M	31.18M	47.53M	97.30M	74.47M	92.93M
Investing Cash Flow	-119.33M	629.11M	-329.10M	-167.58M	-326.67M	-151.29M
Financing Cash Flow	-20.92M	-688.59M	477.98M	49.18M	82.78M	44.37M

Capitol Federal Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.19
• 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 Positive. The current price of 6.19 is above the 20-day moving average (MA) of 6.13, above the 50-day MA of 5.91, and above the 200-day MA of 5.93, indicating a bullish trend. The MACD of 0.11 indicates Positive momentum. The RSI at 54.48 is Neutral, neither overbought nor oversold. The STOCH value of 35.22 is Neutral, 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
OSBC	78 Outperform	$829.03M	10.03	12.98%	1.30%	2.27%	-6.70%
HBT	78 Outperform	$799.35M	10.64	14.24%	3.31%	6.98%	5.97%
NBN	75 Outperform	$759.72M	10.60	17.91%	0.04%	26.40%	24.62%
FCBC	73 Outperform	$729.34M	14.51	10.08%	3.11%	2.49%	4.48%
CFFN	73 Outperform	$843.29M	15.72	5.09%	5.55%	6.02%	―
Sector *	67 Neutral	$16.64B	11.61	9.79%	3.78%	11.89%	-8.13%
AMTB	63 Neutral	$809.39M	―	-1.83%	1.86%	-5.43%	-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.