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Tfs Financial (TFSL)
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TFS Financial (TFSL) AI Stock Analysis

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TFSL

TFS Financial

(NASDAQ:TFSL)

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Neutral 66 (OpenAI - 4o)
Rating:66Neutral
Price Target:
$15.00
▲(13.81% Upside)
TFS Financial's overall stock score is driven by strong financial performance and positive corporate events. The stock's technical indicators suggest a neutral to slightly bullish trend. However, the high P/E ratio indicates potential overvaluation, which is a concern despite the attractive dividend yield.

TFS Financial (TFSL) vs. SPDR S&P 500 ETF (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 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
75
Positive
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
65
Positive
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
60
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue779.68M758.78M633.35M433.14M444.65M508.55M
Gross Profit308.63M304.66M306.50M290.20M295.93M292.52M
EBITDA127.10M119.35M111.48M119.09M132.66M133.06M
Net Income83.17M79.59M75.25M74.56M81.01M83.32M
Balance Sheet
Total Assets17.38B17.09B16.92B15.79B14.06B14.64B
Cash, Cash Equivalents and Short-Term Investments554.00M989.97M975.07M827.47M910.11M951.47M
Total Debt4.88B4.79B5.30B4.82B3.13B3.57B
Total Liabilities15.49B15.23B14.99B13.95B12.33B12.97B
Stockholders Equity1.89B1.86B1.93B1.84B1.73B1.67B
Cash Flow
Free Cash Flow24.82M85.54M85.62M36.23M81.82M118.59M
Operating Cash Flow34.84M88.60M90.72M38.93M83.16M121.80M
Investing Cash Flow-422.24M-124.71M-1.01B-1.88B547.36M147.58M
Financing Cash Flow279.54M33.08M1.02B1.72B-640.22M-46.48M

TFS Financial Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price13.18
Price Trends
50DMA
13.04
Positive
100DMA
12.89
Positive
200DMA
12.47
Positive
Market Momentum
MACD
0.02
Positive
RSI
48.34
Neutral
STOCH
29.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TFSL, the sentiment is Neutral. The current price of 13.18 is below the 20-day moving average (MA) of 13.29, above the 50-day MA of 13.04, and above the 200-day MA of 12.47, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 48.34 is Neutral, neither overbought nor oversold. The STOCH value of 29.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$3.58B11.8917.90%3.13%3.10%3.14%
76
Outperform
$3.55B14.764.23%2.35%21.87%-3.27%
73
Outperform
$3.82B14.277.56%3.09%3.00%42.78%
73
Outperform
$3.96B34.403.82%6.86%-8.81%
71
Outperform
$3.44B11.079.73%3.76%17.61%1.89%
66
Neutral
$3.70B45.084.30%8.55%5.76%2.70%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TFSL
TFS Financial
13.18
1.63
14.11%
FBP
First Bancorp Puerto Rico
22.07
2.63
13.53%
FULT
Fulton Financial
18.73
1.89
11.22%
RNST
Renasant
36.88
6.16
20.05%
TCBI
Texas Capital Bancshares
85.46
15.04
21.36%
UCB
United Community Banks
31.44
4.25
15.63%

TFS Financial Corporate Events

Executive/Board ChangesDividendsBusiness Operations and Strategy
TFS Financial Announces Leadership Changes Effective September
Positive
Aug 28, 2025

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.

Shareholder MeetingsDividends
TFS Financial Dividend Waiver Approved by Shareholders
Neutral
Jul 8, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Sep 09, 2025