TFS Financial (TFSL) AI Stock Analysis

• Market Cap: $3.72B
• Dividend Yield: 8.53%
• Average Volume (3M): 438.65K
• Price to Earnings (P/E): 44.2
• Beta (1Y): 0.59
• Revenue Growth: 5.76%
• EPS Growth: 2.70%
• Country: US
• Employees: 919
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.08
• Shares Outstanding: 280,688,020
• 10 Day Avg. Volume: 422,279
• 30 Day Avg. Volume: 438,648
• PEG Ratio: 5.84
• Price to Book (P/B): 1.92
• Price to Sales (P/S): 4.71
• P/FCF Ratio: 41.82
• Enterprise Value/Market Cap: 2.28
• Enterprise Value/Revenue: 10.85
• Enterprise Value/Gross Profit: 27.41
• Enterprise Value/Ebitda: 66.57
• 1Y Price Target: $13.00
• Price Target Upside: -1.81% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 58 Neutral
• Price Target: $14.00 ▲(5.74% Upside)

The overall stock score for TFS Financial is driven by its strong revenue growth and stable profitability, which are offset by high leverage and declining cash flow. Technical indicators suggest a neutral market sentiment, and while the stock appears overvalued, the high dividend yield offers an attractive income component. Investors should be cautious of the financial risks associated with leverage and cash flow.

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 generates revenue primarily through the interest earned on its loan portfolio, which includes residential mortgages and home equity loans. The company charges interest on these loans, which is a key revenue stream. Additionally, TFS Financial earns income from fees associated with loan origination and servicing, as well as from deposit accounts through interest spread between the rates they pay on deposits and the rates they charge on loans. The company may also generate revenue from investment securities. Strategic partnerships with real estate agents and mortgage brokers can further enhance their loan origination capabilities and market reach, contributing to overall earnings.

TFS Financial Financial Statement Overview

Summary

TFS Financial demonstrates strong revenue growth and stable profitability margins, which are promising for future expansion. However, the high leverage and declining free cash flow pose potential risks that need careful management.

Income Statement

TFS Financial shows a strong revenue growth trajectory with a TTM revenue growth rate of 94.6%, indicating robust expansion. However, the gross profit margin has slightly decreased from 40.15% to 39.58% in the TTM period. The net profit margin remains stable at around 10.67%, reflecting consistent profitability. EBIT and EBITDA margins have improved slightly, suggesting effective cost management and operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is relatively high at 2.59, indicating significant leverage, which could pose risks if interest rates rise. However, the return on equity has improved slightly to 4.40%, showing better utilization of equity. The equity ratio is stable, reflecting a balanced asset structure.

Cash Flow

Free cash flow has declined significantly by 74.07% in the TTM period, which is a concern for liquidity. The operating cash flow to net income ratio is low at 0.34%, suggesting potential cash flow challenges. However, the free cash flow to net income ratio remains healthy at 71.23%, indicating that the company is still generating cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	779.68M	758.78M	633.35M	433.14M	444.65M	508.55M
Gross Profit	308.63M	304.66M	306.50M	290.20M	295.93M	292.52M
EBITDA	127.10M	119.35M	111.48M	119.09M	132.66M	133.06M
Net Income	83.17M	79.59M	75.25M	74.56M	81.01M	83.32M
Balance Sheet
Total Assets	17.38B	17.09B	16.92B	15.79B	14.06B	14.64B
Cash, Cash Equivalents and Short-Term Investments	554.00M	989.97M	975.07M	827.47M	910.11M	951.47M
Total Debt	4.88B	4.79B	5.30B	4.82B	3.13B	3.57B
Total Liabilities	15.49B	15.23B	14.99B	13.95B	12.33B	12.97B
Stockholders Equity	1.89B	1.86B	1.93B	1.84B	1.73B	1.67B
Cash Flow
Free Cash Flow	24.82M	85.54M	85.62M	36.23M	81.82M	118.59M
Operating Cash Flow	34.84M	88.60M	90.72M	38.93M	83.16M	121.80M
Investing Cash Flow	-422.24M	-124.71M	-1.01B	-1.88B	547.36M	147.58M
Financing Cash Flow	279.54M	33.08M	1.02B	1.72B	-640.22M	-46.48M

TFS Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.24
• 50DMA: Negative
• 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 13.24 is below the 20-day moving average (MA) of 13.24, below the 50-day MA of 13.25, and above the 200-day MA of 12.56, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 50.51 is Neutral, neither overbought nor oversold. The STOCH value of 35.55 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
FBP	74 Outperform	$3.39B	10.95	18.38%	3.31%	3.10%	3.14%
RNST	71 Outperform	$3.31B	13.46	5.21%	2.52%	21.87%	-3.27%
UCB	70 Outperform	$3.70B	13.60	7.81%	3.18%	3.00%	42.78%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FULT	67 Neutral	$3.21B	10.01	10.08%	4.08%	17.61%	1.89%
TCBI	63 Neutral	$3.61B	31.37	4.01%	―	6.86%	-8.81%
TFSL	58 Neutral	$3.72B	44.19	4.30%	8.53%	5.76%	2.70%

TFS Financial Corporate Events

TFS Financial Announces Leadership Changes Effective September

On August 28, 2025, TFS Financial Corporation announced leadership changes effective September 1, 2025, with Andrew J. Rubino appointed as Chief Operating Officer and Michael J. Carfagna as Chief Information Officer of its subsidiary, Third Federal Savings and Loan Association. Additionally, the company declared a cash dividend of $0.2825 per share, payable on September 24, 2025, with the mutual holding company waiving its right to receive the dividend on its shares. These changes are expected to enhance the company’s operational efficiency and shareholder value.

TFS Financial Dividend Waiver Approved by Shareholders

On July 8, 2025, members of the Third Federal Savings and Loan Association of Cleveland approved a waiver of dividends, up to $1.13 per share, on TFS Financial Corporation’s common stock for the following year. The waiver received 97% approval from the votes cast, representing 59% of total eligible votes. The mutual holding company, holding 81% of the company’s shares, will seek non-objection from the Federal Reserve Bank of Cleveland, although the outcome and timing remain uncertain.