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Sound Financial Bancorp, Inc. (SFBC)
:SFBC
US Market

Sound Financial Bancorp (SFBC) AI Stock Analysis

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Sound Financial Bancorp

(NASDAQ:SFBC)

65Neutral
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 (SFBC) vs. S&P 500 (SPY)

Sound Financial Bancorp Business Overview & Revenue Model

Company DescriptionSound 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 MoneySound 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
75
Positive
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
78
Positive
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
70
Positive
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
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
45.71M50.61M39.88M37.25M34.93M30.99M
Gross Profit
39.21M50.61M39.88M37.25M34.93M30.99M
EBIT
15.09M10.65M14.74M11.43M11.33M8.33M
EBITDA
0.0010.65M12.47M13.02M13.15M9.85M
Net Income Common Stockholders
3.93M7.44M8.80M9.16M8.94M6.68M
Balance SheetCash, Cash Equivalents and Short-Term Investments
66.77M49.69M68.04M192.01M204.05M65.08M
Total Assets
716.74M995.22M976.35M919.69M861.40M719.85M
Total Debt
84.00M56.54M60.12M17.88M18.73M15.51M
Net Debt
22.19M6.85M2.29M-165.71M-175.10M-40.26M
Total Liabilities
645.11M894.57M878.65M826.33M775.92M642.13M
Stockholders Equity
71.63M100.65M97.70M93.36M85.48M77.73M
Cash FlowFree Cash Flow
4.10M6.44M9.66M18.85M-891.00K10.41M
Operating Cash Flow
4.32M6.89M10.05M19.07M-484.00K11.06M
Investing Cash Flow
-24.27M-26.32M-185.57M-77.94M4.50M-5.79M
Financing Cash Flow
66.98M11.29M49.77M48.63M134.05M-11.32M

Sound Financial Bancorp Technical Analysis

Technical Analysis Sentiment
Positive
Last Price51.55
Price Trends
50DMA
51.68
Negative
100DMA
52.61
Negative
200DMA
49.54
Positive
Market Momentum
MACD
-0.45
Negative
RSI
54.58
Neutral
STOCH
39.67
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 Risk Analysis

Sound Financial Bancorp disclosed 26 risk factors in its most recent earnings report. Sound Financial Bancorp reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Sound Financial Bancorp Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$568.79M11.667.39%4.81%6.97%-16.70%
68
Neutral
$2.26B12.806.90%3.79%29.57%-36.51%
67
Neutral
$5.02B26.346.09%2.98%11.66%-16.50%
65
Neutral
$125.79M27.264.54%1.55%11.61%-36.95%
63
Neutral
$13.85B10.479.22%4.23%17.31%-7.79%
63
Neutral
$5.04B9.4310.55%5.99%7.84%54.79%
44
Neutral
$164.61M-30.86%0.98%-18.33%-422.59%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SFBC
Sound Financial Bancorp
51.55
11.29
28.04%
COLB
Columbia Banking System
24.77
7.59
44.18%
GBCI
Glacier Bancorp
44.95
8.21
22.35%
HMST
HomeStreet
8.71
-6.05
-40.99%
TRST
TrustCo Bank
29.65
3.87
15.01%
WAFD
Washington Federal
27.78
1.88
7.26%

Sound Financial Bancorp Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Sound Financial Updates Executive Control Agreements
Neutral
Nov 5, 2024

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.