Capitol Federal Financial, Inc. Fundamental Analysis (NASDAQ: CFFN)
Capitol Federal Financial, Inc. Fundamental Analysis (NASDAQ: CFFN)
Capitol Federal Financial, Inc. (NASDAQ: CFFN) shows moderate financial fundamentals with a PE ratio of 13.18, profit margin of 19.04%, and ROE of 8.01%. The company generates $0.4B in annual revenue with strong year-over-year growth of 10.03%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CFFN's fundamental strength across five key dimensions:
Efficiency Score
WeakCFFN struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCFFN trades at attractive valuation levels.
Growth Score
ExcellentCFFN delivers strong and consistent growth momentum.
Financial Health Score
ModerateCFFN shows balanced financial health with some risks.
Profitability Score
ModerateCFFN maintains healthy but balanced margins.
Key Financial Metrics
Is CFFN Expensive or Cheap?
P/E Ratio
CFFN trades at 13.18 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CFFN's PEG of 0.34 indicates potential undervaluation.
Price to Book
The market values Capitol Federal Financial, Inc. at 1.04 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -4.03 times EBITDA. This is generally considered low.
How Well Does CFFN Make Money?
Net Profit Margin
For every $100 in sales, Capitol Federal Financial, Inc. keeps $19.04 as profit after all expenses.
Operating Margin
Core operations generate 22.04 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.01 in profit for every $100 of shareholder equity.
ROA
Capitol Federal Financial, Inc. generates $0.86 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Capitol Federal Financial, Inc. produces operating cash flow of $77.45M, showing steady but balanced cash generation.
Free Cash Flow
Capitol Federal Financial, Inc. generates strong free cash flow of $75.81M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.61 in free cash annually.
FCF Yield
CFFN converts 7.23% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.18
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.34
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.04
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.43
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.60
vs 25 benchmark
Current Ratio
Current assets to current liabilities
66.42
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.009
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How CFFN Stacks Against Its Sector Peers
| Metric | CFFN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.18 | 21.07 | Better (Cheaper) |
| ROE | 8.01% | 647.00% | Weak |
| Net Margin | 19.04% | -1594.00% (disorted) | Strong |
| Debt/Equity | 1.60 | 0.90 | Weak (High Leverage) |
| Current Ratio | 66.42 | 912.43 | Strong Liquidity |
| ROA | 0.86% | -579.00% (disorted) | Weak |
CFFN outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Capitol Federal Financial, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
37.61%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
11.78%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-37.18%
Industry Style: Value, Dividend, Cyclical
Declining