Timberland Bancorp (TSBK) AI Stock Analysis

• Market Cap: $308.30M
• Dividend Yield: 2.91%
• Average Volume (3M): 15.23K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.65
• Revenue Growth: 8.17%
• EPS Growth: 21.95%
• Country: US
• Employees: 274
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.04
• Shares Outstanding: 7,880,773
• 10 Day Avg. Volume: 22,084
• 30 Day Avg. Volume: 15,231
• PEG Ratio: 0.41
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 2.38
• P/FCF Ratio: 9.27
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 2.85
• Enterprise Value/Gross Profit: 4.07
• Enterprise Value/Ebitda: 8.14
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: $42.00 ▲(21.46% Upside)

The score is driven primarily by strong financial fundamentals—especially a very conservative balance sheet with minimal leverage—paired with an appealing valuation (low P/E and a ~2.86% dividend). Technicals are supportive but more neutral than strongly bullish, while declining free cash flow growth and gross margin trend are the main risks tempering the score.

Positive Factors

Conservative balance sheet

Extremely low leverage materially reduces solvency and liquidity risk, enabling the bank to withstand regional credit shocks and fund growth organically. A strong equity base supports dividend policy, branch expansion and conservative lending over the medium term.

Strong profitability and steady revenue

High operating and net margins, coupled with consistent revenue growth, generate durable internal capital and cushion against cyclical earnings swings. Sustained profitability supports reinvestment, dividend payouts and credit loss absorption over the next several quarters.

Experienced credit leadership

Bringing a seasoned credit executive strengthens underwriting and portfolio oversight, reducing future credit risk. Improved credit governance and risk management practices can materially improve asset quality and long-term loan performance in a regional-bank footprint.

Negative Factors

Sharp free cash flow decline

A large drop in free cash flow growth constrains internal funding for loans, branch investments and dividends. Reduced FCF can force reliance on slower equity builds or higher-cost funding, limiting strategic flexibility and capital deployment over the medium term.

Declining gross profit margin trend

Ongoing gross margin compression suggests rising funding or operating costs and heightened local competition. Persistent pressure at the gross margin level risks eroding the bank's high operating margins and compressing earnings power absent efficiency gains or pricing improvements.

Low return on equity

A very low ROE indicates limited efficiency in converting equity into shareholder returns despite a strong capital base. Over time this can weigh on shareholder value and limit ability to attract equity investment or justify retained-earnings accumulation without operational improvement.

Timberland Bancorp Business Overview & Revenue Model

Company Description

Timberland Bancorp, Inc. operates as the bank holding company for Timberland Bank that provides various community banking services in Washington. It offers various deposit products, including money market deposit, checking, and regular savings accounts, as well as certificates of deposit. The company also provides one-to four-family residential, multi-family, commercial real estate, construction, custom and owner/builder construction, speculative one- to four-family construction, commercial construction, multi-family construction, land development construction, and land development loans. In addition, it offers consumer loans comprising home equity lines of credit and second mortgage loans; and automobile loans, boat loans, motorcycle loans, recreational vehicle loans, savings account loans, and unsecured loans, as well as commercial business loans. As of September 30, 2021, the company operated 24 branches located in Grays Harbor, Pierce, Thurston, Kitsap, King, and Lewis counties in Washington; and operated 25 proprietary automated teller machines. Timberland Bancorp, Inc. was founded in 1915 and is headquartered in Hoquiam, Washington.

How the Company Makes Money

Timberland Bancorp generates revenue primarily through interest income from loans and investments. The company earns interest from a variety of loans, including residential mortgages, commercial real estate loans, and consumer loans. Additionally, Timberland receives fee income from various banking services, such as account maintenance fees, transaction fees, and mortgage origination fees. The bank's investment portfolio, which includes securities, also contributes to its interest income. Significant partnerships with local businesses and real estate developers enhance its lending capabilities and customer reach, further bolstering its revenue streams. Overall, the company's financial health is supported by its emphasis on community banking and personalized customer service.

Timberland Bancorp Financial Statement Overview

Summary

Strong overall financial health with consistent revenue growth and strong profitability (net margin 25.44%, EBIT margin 31.61%). Balance sheet strength is a key positive due to extremely low leverage (debt-to-equity 0.0035). Offsetting factors include declining gross profit margin and a sharp drop in free cash flow growth (-51.23%), which raises sustainability/watch-item concerns.

Income Statement

Timberland Bancorp has shown consistent revenue growth over the years, with a recent growth rate of 2.61%. The company maintains strong profitability metrics, with a net profit margin of 25.44% and an EBIT margin of 31.61% in the latest year. However, there is a noticeable decline in gross profit margin over the years, which could indicate rising costs or pricing pressures.

Balance Sheet

The balance sheet is robust, with a very low debt-to-equity ratio of 0.0035, indicating minimal leverage and financial risk. The return on equity stands at 1.50%, which is relatively low, suggesting room for improvement in generating returns for shareholders. The equity ratio is strong, reflecting a solid capital structure.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth, with a significant drop of 51.23% in the latest year. However, the operating cash flow to net income ratio is healthy at 1.82, indicating good cash generation relative to net income. The free cash flow to net income ratio remains stable at 1.0, suggesting efficient cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	110.50M	110.49M	101.55M	87.23M	67.33M	68.62M
Gross Profit	77.46M	77.46M	69.71M	73.51M	64.50M	65.63M
EBITDA	38.73M	38.73M	32.98M	36.66M	32.40M	37.46M
Net Income	29.16M	29.16M	24.28M	27.12M	23.60M	27.58M
Balance Sheet
Total Assets	2.01B	2.01B	1.92B	1.84B	1.86B	1.79B
Cash, Cash Equivalents and Short-Term Investments	281.89M	281.89M	247.19M	185.68M	381.06M	671.85M
Total Debt	23.08M	23.08M	21.57M	36.87M	2.07M	7.36M
Total Liabilities	1.75B	1.75B	1.68B	1.61B	1.64B	1.59B
Stockholders Equity	262.61M	262.61M	245.41M	233.07M	218.57M	206.90M
Cash Flow
Free Cash Flow	28.42M	28.42M	21.71M	29.89M	25.59M	28.74M
Operating Cash Flow	30.16M	30.16M	23.02M	31.00M	26.50M	29.64M
Investing Cash Flow	-8.25M	-8.25M	-45.80M	-170.22M	-335.16M	37.45M
Financing Cash Flow	56.79M	56.79M	58.78M	-48.81M	45.22M	198.66M

Timberland Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 34.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSBK, the sentiment is Positive. The current price of 34.58 is below the 20-day moving average (MA) of 37.06, below the 50-day MA of 36.25, and above the 200-day MA of 32.89, indicating a bullish trend. The MACD of 0.82 indicates Negative momentum. The RSI at 66.48 is Neutral, neither overbought nor oversold. The STOCH value of 77.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSBK.

Timberland Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSBK	79 Outperform	$308.30M	10.15	11.48%	2.91%	8.17%	21.95%
LNKB	77 Outperform	$344.99M	10.07	13.09%	3.61%	15.66%	―
PKBK	76 Outperform	$331.86M	9.03	11.15%	2.84%	12.91%	21.72%
ISBA	68 Neutral	$367.12M	20.45	8.27%	2.13%	7.29%	33.75%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
COSO	63 Neutral	$341.64M	11.69	12.63%	―	―	―
FRST	58 Neutral	$352.66M	5.68	2.25%	3.06%	9.90%	―

Timberland Bancorp Corporate Events

Timberland Bancorp Shareholders Endorse Board and Governance Structure

At its virtual Annual Meeting of Shareholders held on January 27, 2026, Timberland Bancorp shareholders elected three directors — Dean J. Brydon, Michael J. Stoney and Kelly A. Suter — to three-year terms ending in 2029, with existing directors Parul Bhandari, Andrea M. Clinton, Robert A. Drugge, Kathy D. Leodler and David A. Smith continuing on the board. Investors also backed the company’s executive pay practices in a non-binding advisory vote and overwhelmingly ratified Aprio, LLP as the independent registered public accounting firm for the fiscal year ending September 30, 2026, signaling broad shareholder support for the bank’s governance, leadership continuity and oversight framework.

The most recent analyst rating on (TSBK) stock is a Buy with a $42.00 price target. To see the full list of analyst forecasts on Timberland Bancorp stock, see the TSBK Stock Forecast page.

Timberland Bancorp Appoints New Chief Credit Officer

Timberland Bancorp, Inc. and its subsidiary, Timberland Bank, announced the mutual agreement to cancel the employment contract of Todd Van Cise, the Chief Credit Officer, effective December 11, 2025, to allow him to pursue other career opportunities. Following his departure, Kevin Sakamoto, with over 30 years of commercial banking experience, has been appointed as the new Chief Credit Officer, effective the same date.

The most recent analyst rating on (TSBK) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on Timberland Bancorp stock, see the TSBK Stock Forecast page.

Timberland Bancorp Reports 20% Net Income Increase

On October 30, 2025, Timberland Bancorp reported a 20% increase in net income to $29.16 million for the fiscal year ending September 30, 2025, compared to the previous year. The company also announced an 8% increase in its quarterly cash dividend and plans to open a new branch in University Place, reflecting its strong financial performance and growth strategy. The company’s quarterly net interest margin rose to 3.82%, and total assets surpassed $2 billion for the first time, highlighting its robust balance sheet and effective asset-liability management.

The most recent analyst rating on (TSBK) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on Timberland Bancorp stock, see the TSBK Stock Forecast page.