TFS Financial (TFSL) AI Stock Analysis

• Market Cap: $3.63B
• Dividend Yield: 8.74%
• Average Volume (3M): 409.93K
• Price to Earnings (P/E): 45.2
• Beta (1Y): 0.70
• Revenue Growth: 14.25%
• EPS Growth: 10.46%
• Country: US
• Employees: 919
• Sector: Financial
• Sector Strength: 83
• Industry: Banks - Regional
• EPS (TTM): 0.29
• Shares Outstanding: 280,799,400
• 10 Day Avg. Volume: 382,743
• 30 Day Avg. Volume: 409,926
• PEG Ratio: 4.32
• Price to Book (P/B): N/A
• Price to Sales (P/S): 11.28
• Price to Cash Flow (P/CF): 18.70
• P/FCF Ratio: 6.10
• 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: $14.75
• Price Target Upside: 13.99% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

TFS Financial's stock score is bolstered by its solid financial performance, characterized by stable revenue growth and effective cost management. However, technical indicators suggest a neutral to slightly bearish trend, and the high P/E ratio raises valuation concerns despite an attractive dividend yield. The absence of recent earnings call data or significant corporate events means these factors did not influence the score.

TFS Financial Business Overview & Revenue Model

Company Description

TFS Financial Corporation (TFSL) is a bank holding company based in the United States. It primarily operates through its wholly-owned subsidiary, Third Federal Savings and Loan Association of Cleveland, which offers retail banking services. The company focuses on providing residential real estate mortgage loans, home equity loans, and lines of credit, with a commitment to customer-centric service and long-term value creation.

How the Company Makes Money

TFS Financial Corporation generates revenue primarily through interest income from its portfolio of residential mortgage loans and home equity products. The company's revenue model is centered on earning a spread between the interest income it receives from borrowers and the interest it pays to depositors. Additionally, the company earns fees from various banking services, such as account maintenance and transaction processing. TFS Financial's earnings are also supported by its strategic focus on maintaining a strong asset quality and managing its interest rate risk effectively. The company does not rely heavily on partnerships for its revenue but emphasizes building long-term relationships with its customers to drive business growth.

TFS Financial Financial Statement Overview

Summary

TFS Financial demonstrates solid financial health with stable revenue growth and effective cost management reflected in strong margins. The balance sheet is strengthened by a significant reduction in debt, enhancing financial security. Robust cash flows further assert the company's ability to sustain operations and meet obligations. While there is room for improved profitability, the company's financial position is generally stable and well-managed.

Income Statement

TFS Financial shows a stable revenue base with a slight increase in revenue from the previous year. The gross profit margin is healthy, indicating efficient cost management. However, the net profit margin is modest, suggesting room for improvement in overall profitability. EBIT and EBITDA margins are solid, reflecting strong operational efficiency.

Balance Sheet

The balance sheet exhibits a robust equity position with a favorable debt-to-equity ratio post debt reduction, enhancing financial stability. Return on Equity (ROE) is moderate, indicating decent returns for shareholders. The equity ratio shows a strong capital structure with adequate shareholder funds supporting the asset base.

Cash Flow

The cash flow statement highlights a significant increase in free cash flow, suggesting strong liquidity and the ability to fund operations without external financing. The operating cash flow to net income ratio indicates efficient cash generation from operations. However, the free cash flow to net income ratio shows potential fluctuations in cash reserves.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
761.92M	303.16M	305.00M	291.20M	286.93M	295.52M
	Gross Profit
650.96M	758.78M	305.00M	291.20M	286.93M	295.52M
	EBIT
264.57M	100.31M	93.37M	233.99M	100.09M	100.25M
	EBITDA
83.68M	100.31M	111.48M	119.09M	132.66M	133.06M
	Net Income Common Stockholders
81.31M	79.59M	75.25M	74.56M	81.01M	83.32M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
401.99M	5.40M	975.07M	827.47M	910.11M	951.47M
	Total Assets
10.74B	17.09B	16.92B	15.79B	14.06B	14.64B
	Total Debt
113.47M	4.79B	5.27B	4.79B	3.09B	3.52B
	Net Debt
-288.52M	4.79B	4.81B	4.42B	2.60B	3.02B
	Total Liabilities
8.98B	15.23B	5.27B	13.95B	12.33B	12.97B
	Stockholders Equity
1.75B	1.86B	1.93B	1.84B	1.73B	1.67B
Cash Flow		Free Cash Flow
103.17M	8.84M	85.62M	36.23M	81.82M	118.59M
	Operating Cash Flow
105.53M	8.84M	90.72M	38.93M	83.16M	121.80M
	Investing Cash Flow
-93.31M	47.62M	-1.01B	-1.88B	547.36M	147.58M
	Financing Cash Flow
-98.06M	-56.33M	1.02B	1.72B	-640.22M	-46.48M

TFS Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TFSL, the sentiment is Positive. The current price of 12.94 is above the 20-day moving average (MA) of 12.22, above the 50-day MA of 12.46, and above the 200-day MA of 12.61, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 64.48 is Neutral, neither overbought nor oversold. The STOCH value of 93.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TFSL.

TFS Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UCB	79 Outperform	$3.26B	12.94	7.64%	3.48%	6.75%	37.84%
BANF	69 Neutral	$3.96B	18.05	14.14%	1.52%	2.59%	7.66%
BKU	68 Neutral	$2.22B	9.62	9.90%	3.45%	3.42%	30.07%
TCBI	64 Neutral	$2.93B	49.86	2.98%	―	7.15%	-47.40%
Sector *	63 Neutral	$12.32B	9.52	7.97%	79.23%	12.77%	-4.57%
TFSL	61 Neutral	$3.63B	45.18	4.23%	8.74%	14.25%	10.46%
EBC	60 Neutral	$3.15B	24.06	-4.18%	2.91%	-7.21%	-122.95%

TFS Financial Corporate Events

TFS Financial Welcomes New Director to Board

TFS Financial Corporation has expanded its board to welcome Terrence L. Bauer, a seasoned executive with over 30 years of leadership experience, as a new director. Bauer, currently CEO of Specialdocs Consultants, will bring his strategic expertise to the table, navigating growth in the competitive healthcare landscape. He joins without any special arrangements or transactions, receiving standard compensation and potential equity awards, reflecting the company’s commitment to strategic board enhancement.