TFS Financial (TFSL) AI Stock Analysis

• Market Cap: $3.73B
• Dividend Yield: 8.5%
• Average Volume (3M): 273.14K
• Price to Earnings (P/E): 46.3
• Beta (1Y): 0.67
• Revenue Growth: 8.99%
• EPS Growth: 3.89%
• Country: US
• Employees: 919
• Sector: Financial
• Sector Strength: 79
• Industry: Banks - Regional
• EPS (TTM): 0.07
• Shares Outstanding: 280,836,940
• 10 Day Avg. Volume: 286,367
• 30 Day Avg. Volume: 273,136
• PEG Ratio: 11.33
• Price to Book (P/B): 1.70
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 38.30
• Enterprise Value/Market Cap: 2.17
• Enterprise Value/Revenue: 2.99
• Enterprise Value/Gross Profit: 19.53
• Enterprise Value/Ebitda: 17.48
• 1Y Price Target: $14.50
• Price Target Upside: 9.77% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 67 Neutral
• Price Target: $14.50 ▲(9.77%Upside)

TFS Financial's strong financial performance, characterized by consistent profitability and robust cash flow, is the primary contributor to the stock's score. Technical analysis indicates neutral to slightly bullish trends, while the valuation reflects a high P/E ratio balanced by an attractive dividend yield. The absence of earnings call and corporate event data did not impact the score.

TFS Financial Business Overview & Revenue Model

Company Description

TFS 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 Money

TFS Financial Corporation makes money primarily through its retail banking operations. The company's revenue model is centered around earning interest income from the loans it provides, particularly residential mortgages and home equity loans. By lending money to consumers for home purchases or equity extraction, the company generates interest payments over the life of the loans. Additionally, TFS Financial earns income from its investment portfolio, which includes securities and other financial instruments. The company also generates revenue from service fees associated with its banking products. Key factors contributing to its earnings include the prevailing interest rate environment, the demand for mortgage loans, and the company's ability to effectively manage its interest rate risk and operational costs.

TFS Financial Financial Statement Overview

Summary

TFS Financial demonstrates strong profitability and operational efficiency with robust cash flow generation, though the high debt-to-equity ratio presents leverage risks.

Income Statement

TFS Financial shows strong profitability with a consistent gross profit margin of over 50% in the TTM (Trailing-Twelve-Months). The net profit margin is healthy at approximately 10.8%, indicating effective cost management. Revenue growth has been modest, reflecting the challenges of a stable yet slow-growing market. The EBIT and EBITDA margins remain robust, highlighting operational efficiency.

Balance Sheet

The balance sheet of TFS Financial is solid, with a relatively high debt-to-equity ratio of about 2.43, typical for the banking industry, but it does pose a leverage risk. The equity ratio is around 11.1%, showing a stable capital structure. Return on Equity (ROE) is healthy at 4.3% in the TTM, indicating decent profitability from shareholder's equity.

Cash Flow

Cash flow analysis reveals a positive trend with a significant operating cash flow exceeding net income, suggesting good cash generation ability. Free cash flow has grown substantially, indicating effective capital expenditure management. The free cash flow to net income ratio is strong, ensuring liquidity and operational sustainability.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
758.65M	303.16M	305.00M	291.20M	286.93M	295.52M
	Gross Profit
414.13M	303.16M	305.00M	290.20M	286.93M	295.52M
	EBIT
106.46M	100.31M	93.37M	92.05M	100.09M	100.25M
	EBITDA
124.00M	119.35M	111.48M	92.05M	132.66M	133.06M
	Net Income Common Stockholders
81.61M	79.59M	75.25M	74.56M	81.01M	83.32M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
835.22M	989.97M	975.07M	827.47M	910.11M	951.47M
	Total Assets
14.81B	17.09B	16.92B	15.79B	14.06B	14.64B
	Total Debt
3.89B	4.79B	5.27B	4.79B	3.09B	3.52B
	Net Debt
3.61B	4.36B	4.81B	4.42B	2.60B	3.02B
	Total Liabilities
13.08B	15.23B	14.99B	13.95B	12.33B	12.97B
	Stockholders Equity
1.73B	1.86B	1.93B	1.84B	1.73B	1.67B
Cash Flow		Free Cash Flow
95.70M	85.54M	85.62M	36.23M	81.82M	118.59M
	Operating Cash Flow
101.39M	105.86M	90.72M	38.93M	83.16M	121.80M
	Investing Cash Flow
-197.73M	-124.71M	-1.01B	-1.88B	547.36M	147.58M
	Financing Cash Flow
-34.42M	33.08M	1.02B	1.72B	-640.22M	-46.48M

TFS Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 13.21 is above the 20-day moving average (MA) of 13.00, above the 50-day MA of 12.61, and above the 200-day MA of 12.46, indicating a bullish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 62.56 is Neutral, neither overbought nor oversold. The STOCH value of 23.44 is Neutral, 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	78 Outperform	$3.62B	14.13	7.64%	3.22%	6.73%	37.84%
BKU	75 Outperform	$2.67B	11.03	8.63%	3.39%	-0.61%	39.49%
BANF	69 Neutral	$4.09B	18.66	14.14%	1.47%	2.59%	7.66%
TFSL	67 Neutral	$3.73B	46.31	4.22%	8.50%	8.99%	3.89%
Sector *	64 Neutral	$12.83B	9.78	7.78%	16985.64%	12.26%	-7.81%
TCBI	64 Neutral	$3.58B	45.01	2.98%	―	7.15%	-47.40%
EBC	56 Neutral	$3.25B	24.06	-4.18%	3.04%	-7.20%	-122.94%

TFS Financial Corporate Events

TFS Financial Announces Quarterly Dividend for June 2025

On May 29, 2025, TFS Financial Corporation announced a quarterly cash dividend of $0.2825 per share, payable on June 24, 2025. The mutual holding company, Third Federal Savings and Loan Association of Cleveland, MHC, which owns 80.9% of the company’s common stock, has waived its right to receive this dividend. This follows the MHC’s previous waiver of dividends for the quarters ending September 30, 2024, December 31, 2024, and March 31, 2025, with approval from its members and non-objection from the Federal Reserve Bank of Cleveland.

The most recent analyst rating on (TFSL) stock is a Hold with a $14.00 price target. To see the full list of analyst forecasts on TFS Financial stock, see the TFSL Stock Forecast page.

TFS Financial Plans Special Meeting on Dividend Waiver

On May 29, 2025, TFS Financial Corporation announced that its mutual holding company, Third Federal Savings and Loan Association of Cleveland, MHC, will hold a special meeting on July 8, 2025, to vote on waiving its right to receive quarterly dividends up to $1.13 per share for the following year. This move, requiring annual member approval as per Federal Reserve regulations, aims to benefit customers, shareholders, and the company, although failure to obtain the waiver could reduce dividends for public stockholders.

The most recent analyst rating on (TFSL) stock is a Hold with a $14.00 price target. To see the full list of analyst forecasts on TFS Financial stock, see the TFSL Stock Forecast page.