TFS Financial Corporation
TFS Financial Corporation Fundamental Analysis
TFS Financial Corporation (TFSL) shows weak financial fundamentals with a PE ratio of 45.22, profit margin of 11.42%, and ROE of 4.89%. The company generates $0.8B in annual revenue with moderate year-over-year growth of 4.37%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 18.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TFSL's fundamental strength across five key dimensions:
Efficiency Score
WeakTFSL struggles to generate sufficient returns from assets.
Valuation Score
WeakTFSL trades at a premium to fair value.
Growth Score
ModerateTFSL shows steady but slowing expansion.
Financial Health Score
WeakTFSL carries high financial risk with limited liquidity.
Profitability Score
WeakTFSL struggles to sustain strong margins.
Key Financial Metrics
Is TFSL Expensive or Cheap?
P/E Ratio
TFSL trades at 45.22 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TFSL's PEG of 3.28 indicates potential overvaluation.
Price to Book
The market values TFS Financial Corporation at 2.19 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -6.79 times EBITDA. This is generally considered low.
How Well Does TFSL Make Money?
Net Profit Margin
For every $100 in sales, TFS Financial Corporation keeps $11.42 as profit after all expenses.
Operating Margin
Core operations generate 14.51 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.89 in profit for every $100 of shareholder equity.
ROA
TFS Financial Corporation generates $0.53 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
TFS Financial Corporation produces operating cash flow of $96.21M, showing steady but balanced cash generation.
Free Cash Flow
TFS Financial Corporation generates strong free cash flow of $83.65M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.30 in free cash annually.
FCF Yield
TFSL converts 1.96% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
45.22
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.28
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.19
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.20
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.67
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.005
vs 25 benchmark
ROCE
Return on capital employed
0.007
vs 25 benchmark
How TFSL Stacks Against Its Sector Peers
| Metric | TFSL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 45.22 | 18.94 | Worse (Expensive) |
| ROE | 4.89% | 808.00% | Weak |
| Net Margin | 11.42% | 823.00% | Weak |
| Debt/Equity | 2.67 | 0.90 | Weak (High Leverage) |
| Current Ratio | 0.00 | 624.45 | Weak Liquidity |
| ROA | 0.53% | -20476.00% (disorted) | Weak |
TFSL outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews TFS Financial Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
54.13%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
8.05%
Industry Style: Value, Dividend, Cyclical
GrowingFCF CAGR
-33.02%
Industry Style: Value, Dividend, Cyclical
Declining