Capitol Federal Financial (CFFN) AI Stock Analysis

• Market Cap: $760.87M
• Dividend Yield: 6%
• Average Volume (3M): 918.84K
• Price to Earnings (P/E): 14.2
• Beta (1Y): 0.88
• Revenue Growth: 6.02%
• EPS Growth: N/A
• Country: US
• Employees: 583
• Sector: Financial
• Sector Strength: 88
• Industry: Banks - Regional
• EPS (TTM): 0.40
• Shares Outstanding: 132,786,360
• 10 Day Avg. Volume: 902,643
• 30 Day Avg. Volume: 918,835
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 3.75
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 17.34
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $6.25
• Price Target Upside: 9.08% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

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

Capitol Federal Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.73
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 5.73 is above the 20-day moving average (MA) of 5.39, above the 50-day MA of 5.61, and below the 200-day MA of 5.89, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 59.10 is Neutral, neither overbought nor oversold. The STOCH value of 91.52 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
HBT	78 Outperform	$730.69M	9.69	14.24%	3.36%	6.98%	5.97%
FCBC	77 Outperform	$695.13M	13.80	10.08%	3.24%	2.49%	4.48%
OSBC	74 Outperform	$719.40M	8.73	12.98%	1.39%	1.64%	-6.70%
NBN	71 Outperform	$654.41M	9.12	17.91%	0.05%	26.40%	24.62%
CFFN	63 Neutral	$760.87M	14.18	5.09%	6.00%	6.02%	―
Sector *	63 Neutral	$12.46B	9.56	8.14%	17044.64%	12.63%	-4.25%
AMTB	49 Neutral	$656.53M	―	-1.39%	2.14%	-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.