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TFS Financial Corp (TFSL)
NASDAQ:TFSL

TFS Financial (TFSL) AI Stock Analysis

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TFS Financial

(NASDAQ:TFSL)

63Neutral
TFS Financial presents a stable financial foundation with strong cash flow and a healthy balance sheet, contributing positively to the stock score. However, mixed technical signals and a high P/E ratio, despite an attractive dividend yield, suggest caution. The stock's performance might be under pressure due to technical indicators but is supported by financial stability and shareholder returns.

TFS Financial (TFSL) vs. S&P 500 (SPY)

TFS Financial Business Overview & Revenue Model

Company DescriptionTFS Financial Corporation, through its subsidiaries, provides retail consumer banking services in the United States. Its deposit products include savings, money market, checking, individual retirement, and other qualified plan accounts, as well as certificates of deposit. The company also provides residential real estate mortgage loans, residential construction loans, and home equity loans and lines of credit, as well as purchase mortgages and first mortgage refinance loans. In addition, it offers escrow and settlement services. The company provides its products and services through its main office in Cleveland, Ohio; and 37 full-service branches and 7 loan production offices located throughout the states of Ohio and Florida. The company was founded in 1938 and is headquartered in Cleveland, Ohio. TFS Financial Corporation operates as a subsidiary of Third Federal Savings and Loan Association of Cleveland, MHC.
How the Company Makes MoneyTFS 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
72
Positive
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
68
Positive
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
75
Positive
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
TTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
761.92M303.16M305.00M291.20M286.93M295.52M
Gross Profit
650.96M758.78M305.00M291.20M286.93M295.52M
EBIT
264.57M100.31M93.37M233.99M100.09M100.25M
EBITDA
83.68M100.31M111.48M119.09M132.66M133.06M
Net Income Common Stockholders
81.31M79.59M75.25M74.56M81.01M83.32M
Balance SheetCash, Cash Equivalents and Short-Term Investments
401.99M5.40M975.07M827.47M910.11M951.47M
Total Assets
10.74B17.09B16.92B15.79B14.06B14.64B
Total Debt
113.47M4.79B5.27B4.79B3.09B3.52B
Net Debt
-288.52M4.79B4.81B4.42B2.60B3.02B
Total Liabilities
8.98B15.23B5.27B13.95B12.33B12.97B
Stockholders Equity
1.75B1.86B1.93B1.84B1.73B1.67B
Cash FlowFree Cash Flow
103.17M8.84M85.62M36.23M81.82M118.59M
Operating Cash Flow
105.53M8.84M90.72M38.93M83.16M121.80M
Investing Cash Flow
-93.31M47.62M-1.01B-1.88B547.36M147.58M
Financing Cash Flow
-98.06M-56.33M1.02B1.72B-640.22M-46.48M

TFS Financial Technical Analysis

Technical Analysis Sentiment
Positive
Last Price12.52
Price Trends
50DMA
12.71
Negative
100DMA
12.83
Negative
200DMA
12.57
Negative
Market Momentum
MACD
-0.09
Negative
RSI
49.65
Neutral
STOCH
62.70
Neutral
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 12.52 is above the 20-day moving average (MA) of 12.32, below the 50-day MA of 12.71, and below the 200-day MA of 12.57, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 49.65 is Neutral, neither overbought nor oversold. The STOCH value of 62.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TFSL.

TFS Financial Risk Analysis

TFS Financial disclosed 36 risk factors in its most recent earnings report. TFS Financial 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

TFS Financial Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
UCUCB
72
Outperform
$3.31B13.587.50%3.43%12.52%31.97%
70
Outperform
$3.64B17.0414.16%1.65%12.93%1.40%
67
Neutral
$3.45B58.442.36%8.15%-64.06%
BKBKU
66
Neutral
$2.54B11.049.90%3.41%3.42%30.07%
63
Neutral
$14.39B9.818.95%4.37%16.38%-11.64%
63
Neutral
$3.50B43.504.23%9.08%14.25%10.46%
EBEBC
58
Neutral
$3.51B25.023.63%2.80%73.24%-53.04%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TFSL
TFS Financial
12.52
1.31
11.69%
BANF
BancFirst
109.99
26.81
32.23%
BKU
BankUnited
34.50
8.40
32.18%
TCBI
Texas Capital Bancshares
74.71
16.48
28.30%
UCB
United Community Banks
27.91
3.49
14.29%
EBC
Eastern Bankshares
16.50
3.74
29.31%

TFS Financial Corporate Events

Executive/Board Changes
TFS Financial Welcomes New Director to Board
Neutral
Oct 24, 2024

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.

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.