Sound Financial Bancorp (SFBC) AI Stock Analysis

• Market Cap: $125.79M
• Dividend Yield: 1.55%
• Average Volume (3M): 1.43K
• Price to Earnings (P/E): 27.3
• Beta (1Y): -0.12
• Revenue Growth: 11.61%
• EPS Growth: -36.95%
• Country: US
• Employees: 128
• Sector: Financial
• Sector Strength: 81
• Industry: Banking
• EPS (TTM): 1.79
• Shares Outstanding: 2,564,095
• 10 Day Avg. Volume: 1,608
• 30 Day Avg. Volume: 1,432
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.60
• Price to Cash Flow (P/CF): 9.60
• P/FCF Ratio: 3.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Sound Financial Bancorp shows financial stability with strong profit margins and a reasonable debt-to-equity ratio. However, the decline in revenue and cash flow generation, alongside a high P/E ratio, raise concerns about growth prospects and valuation. Technical analysis indicates potential bearish trends, suggesting caution for short-term investors.

Sound Financial Bancorp Business Overview & Revenue Model

Company Description

Sound Financial Bancorp (SFBC) is a bank holding company based in Seattle, Washington. It primarily operates through its wholly-owned subsidiary, Sound Community Bank, which offers a range of financial services. The bank serves both retail and commercial customers, providing products such as savings accounts, checking accounts, personal and commercial loans, and mortgage services. Sound Financial Bancorp focuses on delivering personalized banking services to its clients, emphasizing community involvement and customer relationships.

How the Company Makes Money

Sound Financial Bancorp generates revenue primarily through the interest income earned from loans and advances it provides to its customers. This includes personal loans, commercial loans, and mortgage loans. The company also earns non-interest income from fees and service charges associated with account maintenance, transaction processing, and other banking services. Additionally, Sound Financial Bancorp may engage in investment activities, earning income from securities and other financial instruments. Key factors contributing to its earnings include the interest rate environment, the volume of loans and deposits, and the bank's ability to manage its asset quality and operational costs effectively.

Sound Financial Bancorp Financial Statement Overview

Summary

Sound Financial Bancorp demonstrates overall financial stability with strong gross profit margins and a reasonable debt-to-equity ratio. However, challenges include a decline in revenue and cash flow generation, as well as a low return on equity. Focus on improving revenue growth and enhancing cash flow efficiency would be beneficial for future performance.

Income Statement

Sound Financial Bancorp has seen a decrease in total revenue from $50.61M in 2023 to $45.71M in TTM, indicating a negative revenue growth rate. The gross profit margin remains strong at approximately 85.77% in TTM, and the company maintains a positive net profit margin of 8.60% in TTM. However, the EBIT margin is 33.02%, reflecting a decline from the previous year, which is a concern. The absence of reported EBITDA in TTM is notable.

Balance Sheet

The balance sheet of Sound Financial Bancorp remains robust with a debt-to-equity ratio of 0.55 in TTM, indicating moderate financial leverage. The return on equity is 3.84%, which is relatively low for the industry. The equity ratio stands at 9.29%, suggesting that the company is well-capitalized, although there is room for improvement. The company’s liquidity position is strong with considerable cash and short-term investments.

Cash Flow

The cash flow statements reveal a decrease in operating cash flow from $6.89M in 2023 to $4.32M in TTM, indicating a negative trend. Free cash flow has also decreased from $6.44M in 2023 to $4.10M in TTM. The operating cash flow to net income ratio is 1.10 in TTM, showing that the company's operations are generating cash sufficient to cover net income. The free cash flow to net income ratio is 1.04, indicating a slight decrease in cash flow generation efficiency.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
45.71M	50.61M	39.88M	37.25M	34.93M	30.99M
	Gross Profit
39.21M	50.61M	39.88M	37.25M	34.93M	30.99M
	EBIT
15.09M	10.65M	14.74M	11.43M	11.33M	8.33M
	EBITDA
0.00	10.65M	12.47M	13.02M	13.15M	9.85M
	Net Income Common Stockholders
3.93M	7.44M	8.80M	9.16M	8.94M	6.68M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
66.77M	49.69M	68.04M	192.01M	204.05M	65.08M
	Total Assets
716.74M	995.22M	976.35M	919.69M	861.40M	719.85M
	Total Debt
84.00M	56.54M	60.12M	17.88M	18.73M	15.51M
	Net Debt
22.19M	6.85M	2.29M	-165.71M	-175.10M	-40.26M
	Total Liabilities
645.11M	894.57M	878.65M	826.33M	775.92M	642.13M
	Stockholders Equity
71.63M	100.65M	97.70M	93.36M	85.48M	77.73M
Cash Flow		Free Cash Flow
4.10M	6.44M	9.66M	18.85M	-891.00K	10.41M
	Operating Cash Flow
4.32M	6.89M	10.05M	19.07M	-484.00K	11.06M
	Investing Cash Flow
-24.27M	-26.32M	-185.57M	-77.94M	4.50M	-5.79M
	Financing Cash Flow
66.98M	11.29M	49.77M	48.63M	134.05M	-11.32M

Sound Financial Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 51.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SFBC, the sentiment is Positive. The current price of 51.55 is above the 20-day moving average (MA) of 50.27, below the 50-day MA of 51.68, and above the 200-day MA of 49.54, indicating a neutral trend. The MACD of -0.45 indicates Negative momentum. The RSI at 54.58 is Neutral, neither overbought nor oversold. The STOCH value of 39.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SFBC.

Sound Financial Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRST	74 Outperform	$568.79M	11.66	7.39%	4.81%	6.97%	-16.70%
WAFD	68 Neutral	$2.26B	12.80	6.90%	3.79%	29.57%	-36.51%
GBCI	67 Neutral	$5.02B	26.34	6.09%	2.98%	11.66%	-16.50%
SFBC	65 Neutral	$125.79M	27.26	4.54%	1.55%	11.61%	-36.95%
Sector *	63 Neutral	$13.85B	10.47	9.22%	4.23%	17.31%	-7.79%
COLB	63 Neutral	$5.04B	9.43	10.55%	5.99%	7.84%	54.79%
HMST	44 Neutral	$164.61M	―	-30.86%	0.98%	-18.33%	-422.59%

Sound Financial Bancorp Corporate Events

Sound Financial Updates Executive Control Agreements

Sound Financial Bancorp, Inc. and its subsidiary Sound Community Bank have updated their change in control agreements for key executives, adjusting terms like ‘Involuntary Termination’ to reflect workplace location changes beyond a 35-mile radius from current workplaces, and standardizing ‘Change in Control’ definitions across agreements. These changes, impacting executives such as Heidi Sexton and Wes Ochs, aim to align with recent agreements made in 2023.