TFS Financial (TFSL) AI Stock Analysis

• Market Cap: $3.90B
• Dividend Yield: 8.22%
• Average Volume (3M): 570.43K
• Price to Earnings (P/E): 43.5
• Beta (1Y): 0.48
• Revenue Growth: 4.45%
• EPS Growth: 14.27%
• Country: US
• Employees: 919
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.09
• Shares Outstanding: 280,513,060
• 10 Day Avg. Volume: 755,138
• 30 Day Avg. Volume: 570,431
• PEG Ratio: 2.26
• Price to Book (P/B): 1.94
• Price to Sales (P/S): 4.64
• P/FCF Ratio: 51.76
• Enterprise Value/Market Cap: 2.19
• Enterprise Value/Revenue: 10.78
• Enterprise Value/Gross Profit: 26.75
• Enterprise Value/Ebitda: 61.95
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.34
• Revenue Forecast (FY): $347.85M

• Rating: 71 Outperform
• Price Target: $16.00 ▲(11.03% Upside)

TFS Financial's overall stock score is driven by strong technical momentum and solid financial performance, despite high leverage and a high P/E ratio. The attractive dividend yield provides a significant income component, balancing the valuation concerns.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Cash Generation

Strong free cash flow growth enhances financial flexibility, allowing the company to invest in growth opportunities and manage debt efficiently.

Net Interest Margin Improvement

Improved net interest margins enhance profitability, providing a buffer against economic fluctuations and supporting sustainable earnings growth.

Negative Factors

High Leverage

High leverage can increase financial risk, potentially impacting the company's ability to weather economic downturns and increasing interest expense.

Operational Efficiency

Inefficiencies in operations can limit profitability and cash flow conversion, potentially affecting long-term growth and investment capabilities.

Pressure on Margins

Decreasing margins suggest rising costs or competitive pressures, which could impact profitability and require strategic adjustments to maintain growth.

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 solid financial performance with consistent revenue growth and stable profitability. However, high leverage poses potential risks, and there is room for improvement in operational efficiency and converting net income into operating cash flow.

Income Statement

TFS Financial has shown consistent revenue growth over the years, with a slight increase in gross profit margin and net profit margin. However, the EBIT and EBITDA margins have slightly decreased, indicating some pressure on operational efficiency. Overall, the company demonstrates stable profitability with room for improvement in operational margins.

Balance Sheet

The company has a high debt-to-equity ratio, which indicates significant leverage and potential risk if not managed properly. However, the return on equity is stable, suggesting that the company is effectively using its equity to generate profits. The equity ratio is relatively low, highlighting a reliance on debt financing.

Cash Flow

TFS Financial has shown strong free cash flow growth, indicating improved cash generation capabilities. The operating cash flow to net income ratio is low, suggesting that not all net income is being converted into cash flow. However, the free cash flow to net income ratio is strong, indicating efficient cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	791.96M	791.96M	758.78M	633.35M	433.14M	444.65M
Gross Profit	318.97M	318.97M	304.66M	306.50M	290.20M	295.93M
EBITDA	137.76M	137.76M	119.35M	111.48M	119.09M	132.66M
Net Income	90.96M	90.96M	79.59M	75.25M	74.56M	81.01M
Balance Sheet
Total Assets	17.46B	17.46B	17.09B	16.92B	15.79B	14.06B
Cash, Cash Equivalents and Short-Term Investments	483.48M	483.48M	989.97M	975.07M	827.47M	910.11M
Total Debt	4.90B	4.90B	4.82B	5.30B	4.82B	3.13B
Total Liabilities	15.56B	15.56B	15.23B	14.99B	13.95B	12.33B
Stockholders Equity	1.89B	1.89B	1.86B	1.93B	1.84B	1.73B
Cash Flow
Free Cash Flow	70.97M	70.97M	85.54M	85.62M	36.23M	81.82M
Operating Cash Flow	82.42M	82.42M	88.60M	90.72M	38.93M	83.16M
Investing Cash Flow	-383.98M	-383.98M	-124.71M	-1.01B	-1.88B	547.36M
Financing Cash Flow	267.28M	267.28M	33.08M	1.02B	1.72B	-640.22M

TFS Financial Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 14.41
• 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 Neutral. The current price of 14.41 is above the 20-day moving average (MA) of 13.79, above the 50-day MA of 13.43, and above the 200-day MA of 12.62, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 50.64 is Neutral, neither overbought nor oversold. The STOCH value of 24.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TFSL.

TFS Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TCBI	79 Outperform	$4.43B	15.63	8.60%	―	5.19%	3454.95%
UCB	77 Outperform	$3.94B	12.82	9.01%	2.99%	5.63%	65.11%
FULT	77 Outperform	$3.60B	10.45	10.92%	3.62%	9.60%	20.38%
FBP	76 Outperform	$3.34B	10.27	18.43%	3.40%	2.35%	13.72%
RNST	72 Outperform	$3.22B	17.02	4.54%	2.37%	20.26%	-35.00%
TFSL	71 Outperform	$3.90B	43.48	4.76%	8.22%	4.45%	14.27%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

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.