Kentucky First Federal Bancorp (KFFB) AI Stock Analysis

• Market Cap: $40.24M
• Dividend Yield: N/A
• Average Volume (3M): 28.24K
• Price to Earnings (P/E): 47.7
• Beta (1Y): 0.06
• Revenue Growth: 15.56%
• EPS Growth: N/A
• Country: US
• Employees: 56
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.04
• Shares Outstanding: 8,086,715
• 10 Day Avg. Volume: 79,943
• 30 Day Avg. Volume: 28,242
• PEG Ratio: -1.18
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 1.20
• P/FCF Ratio: -100.29
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 1.78
• Enterprise Value/Gross Profit: 3.64
• Enterprise Value/Ebitda: 31.12
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: $5.00 ▲(12.36% Upside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 02/21/26

The score is held back mainly by weak cash flow quality and only modest, volatile profitability despite improved leverage. Technicals are supportive with a clear uptrend and positive momentum, and the exit from a regulatory enforcement agreement is a meaningful positive. Valuation remains a headwind due to a very high P/E.

Positive Factors

Regulatory Clearance

Termination of the OCC written agreement removes formal supervisory constraints and related individual minimum capital requirements. This materially improves the bank’s operational flexibility, reduces regulatory overhang and allows management to redeploy capital and pursue strategic lending and deposit initiatives over the next 2–6 months and beyond.

Improved Leverage

Leverage falling to sub‑0.9 lowers financial risk and eases pressure on capital ratios. A stronger capital structure supports continued lending capacity and buffers losses, giving the bank more runway to grow assets, absorb credit volatility and respond to regulatory expectations without immediate capital-raising needs.

Return to Profitability & Revenue Growth

A return to net profitability alongside meaningful revenue growth indicates core demand for loans and services is recovering. If management sustains revenue expansion while controlling expenses, the bank can progressively rebuild retained earnings and improve capital generation, strengthening long‑term earnings power.

Negative Factors

Weak Cash Generation

Operating cash flow near zero and negative free cash flow indicate reported earnings are not translating into durable cash generation. This constrains capacity to self‑fund loan growth, technology investment or future dividends, and increases reliance on deposits or external funding to support strategic initiatives.

Thin, Volatile Profitability

Modest margins and historical earnings volatility limit the bank’s ability to consistently build capital and deliver steady ROE. Profitability is sensitive to net interest margin swings and credit losses; sustaining positive trends will require persistent margin improvement and tight credit and expense controls.

Limited Scale & Geographic Concentration

A small branch footprint and limited headcount constrain diversification of revenue, higher unit operating costs, and bargaining power. Geographic and customer concentration raise vulnerability to local economic downturns and limit the bank’s ability to spread fixed costs across a larger franchise, slowing sustainable growth.

Kentucky First Federal Bancorp Business Overview & Revenue Model

Company Description

Kentucky First Federal Bancorp operates as the holding company for First Federal Savings and Loan Association of Hazard, and Frankfort First Bancorp, Inc. that provide various banking products and services in Kentucky. The company accepts deposit products include passbook savings and certificate accounts, checking accounts, and individual retirement accounts. Its loan portfolio comprises one-to four-family residential mortgage loans; construction loans; mortgage loans secured by multi-family property; nonresidential loans that are secured by commercial office buildings, churches, and properties used for other purposes; commercial non-mortgage loans; and consumer loans, such as home equity lines of credit, loans secured by savings deposits, automobile loans, and unsecured or personal loans. The company also invests in mortgage-backed securities. It operates through seven banking offices. The company was incorporated in 2005 and is based in Hazard, Kentucky. Kentucky First Federal Bancorp is a subsidiary of First Federal MHC.

How the Company Makes Money

Kentucky First Federal Bancorp generates revenue primarily through interest income from loans and mortgages, as well as fees from banking services. The company's main revenue streams include interest earned on various types of loans, such as residential mortgages and commercial loans, alongside service fees from account maintenance, overdrafts, and transaction services. Additionally, KFFB may earn income from investment securities and other financial products. The bank's profitability is influenced by the interest rate environment, loan demand, and operational efficiency. Partnerships with local businesses and community organizations also play a crucial role in enhancing customer acquisition and retention, thereby contributing to the bank's overall earnings.

Kentucky First Federal Bancorp Financial Statement Overview

Summary

Income statement shows a return to profitability with strong recent revenue growth, but margins remain thin and earnings have been volatile. Balance sheet leverage has improved, yet ROE is very low. Cash flow is the key weakness: operating cash flow is near breakeven and free cash flow is negative, indicating weak cash generation versus reported earnings.

Income Statement

TTM (Trailing-Twelve-Months) results show a return to profitability (net income of ~$0.8M) with modest net margins (~4%). Revenue growth is strong in the latest period, but profitability remains thin versus earlier years, and results have been volatile (notably a loss in 2024 after solid profits in 2021–2023). Overall, the top line is improving, but earnings power looks uneven and still rebuilding.

Balance Sheet

Leverage looks moderate overall: debt-to-equity improved from elevated levels in 2023–2024 to under ~0.9 in 2025, which reduces financial risk. However, returns on equity are currently low (about ~1% in TTM), indicating limited efficiency in generating profits from the capital base. Asset levels are relatively stable, but the mix of low profitability and historical leverage swings tempers the balance-sheet strength.

Cash Flow

Cash generation is the main weak spot. TTM (Trailing-Twelve-Months) operating cash flow is near breakeven (~$0.02M) and free cash flow is negative (~-$0.11M), following another year of negative operating and free cash flow in 2024. While cash flow volatility can occur in banking, the recent pattern suggests weaker underlying cash generation relative to reported earnings and less flexibility for reinvestment or shareholder returns.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	20.56M	19.65M	16.53M	13.05M	11.43M	12.75M
Gross Profit	10.06M	8.71M	7.22M	9.04M	9.73M	10.42M
EBITDA	1.18M	439.00K	-1.73M	1.48M	2.35M	2.46M
Net Income	831.00K	181.00K	-1.72M	933.00K	1.59M	1.82M
Balance Sheet
Total Assets	375.28M	372.16M	374.97M	349.02M	328.08M	338.06M
Cash, Cash Equivalents and Short-Term Investments	13.51M	0.00	27.23M	19.58M	21.48M	16.93M
Total Debt	0.00	42.76M	68.99M	70.09M	34.07M	56.87M
Total Liabilities	326.18M	323.79M	326.97M	298.31M	276.06M	285.77M
Stockholders Equity	49.10M	48.37M	48.00M	50.71M	52.02M	52.30M
Cash Flow
Free Cash Flow	-114.00K	-235.00K	-1.52M	1.02M	2.49M	1.48M
Operating Cash Flow	21.00K	-86.00K	-1.45M	1.15M	2.64M	1.58M
Investing Cash Flow	-1.17M	6.12M	-16.60M	-39.48M	13.33M	-8.85M
Financing Cash Flow	-156.00K	-4.84M	28.18M	20.68M	-11.80M	15.21M

Kentucky First Federal Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KFFB, the sentiment is Positive. The current price of 4.45 is below the 20-day moving average (MA) of 4.69, below the 50-day MA of 4.55, and above the 200-day MA of 3.64, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 56.16 is Neutral, neither overbought nor oversold. The STOCH value of 69.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KFFB.

Kentucky First Federal Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HFBL	78 Outperform	$58.19M	11.15	8.21%	3.21%	0.32%	37.93%
OPHC	75 Outperform	$60.55M	5.18	15.03%	―	14.91%	0.81%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
KFFB	54 Neutral	$40.24M	47.71	1.11%	―	15.56%	―
BAFN	48 Neutral	$28.98M	-1.17	-11.14%	4.10%	1.63%	-508.72%
GLBZ	44 Neutral	$13.14M	-451.49	0.09%	―	5.76%	-72.73%

Kentucky First Federal Bancorp Corporate Events

Kentucky First Federal Bancorp Exits Regulatory Enforcement Agreement

Kentucky First Federal Bancorp, parent of community-focused savings institutions in Hazard, Frankfort, Danville and Lancaster, Kentucky, provides retail banking services through seven branches and is majority‑owned by mutual holding company First Federal MHC. Its stock is listed on the Nasdaq as KFFB, giving public investors exposure to its regional banking operations.

On February 19, 2026, the Office of the Comptroller of the Currency terminated its August 13, 2024 formal written agreement with First Federal Savings Bank of Kentucky. With the end of this enforcement action, the bank is no longer classified as in troubled condition, individual minimum capital requirements tied to the agreement were lifted, and management highlighted that capital levels had remained above those thresholds, potentially easing regulatory constraints and improving the bank’s operating flexibility.

The most recent analyst rating on (KFFB) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on Kentucky First Federal Bancorp stock, see the KFFB Stock Forecast page.

Kentucky First Federal Bancorp’s Annual Stockholders Meeting Outcomes

Kentucky First Federal Bancorp held its annual stockholders meeting on November 18, 2025, where key decisions were made regarding the company’s leadership and operational strategies. The election of directors, appointment of an accounting firm, and advisory votes on executive compensation were decided, with the board opting for annual advisory votes on executive compensation moving forward.

The most recent analyst rating on (KFFB) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Kentucky First Federal Bancorp stock, see the KFFB Stock Forecast page.