Capitol Federal Financial, Inc. (CFFN) stock analysis

P/E below its 5-year median

Capitol Federal Financial's P/E of 13.2 is below its own 5-year median of 13.8.

P/E below the industry

Capitol Federal Financial's P/E of 13.2 is below the Savings Institutions median of 13.7.

P/S above the industry

Capitol Federal Financial's price-to-sales of 4.69 is above the Savings Institutions median of 3.77.

P/B above the industry

Capitol Federal Financial's price-to-book of 1.05 is above the Savings Institutions median of 1.04.

Trading above fair value

The share price of $8.56 is above our fair value estimate of $8.29.

Margin of safety under 20%

The price is 3.2% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -3.4% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -5.7% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 35.2% over the last twelve months, against a 5-year average of 1.1% a year.

Growing faster than the industry

Revenue grew 19.4% over the last twelve months; the Savings Institutions median is 9.0%.

Guidance lowered

Capitol Federal Financial lowered its fiscal year 2027 non-interest expense outlook on Oct 28, 2026.

Gross margin trend

Banks and insurers do not report gross profit.

Return on equity under 15%

Return on equity was 8.0% over the last twelve months and averaged 2.8% over five years; we look for 15% on both.

Return on assets under 1%

Return on assets was 0.9%; for a bank or insurer, 1% or more is considered good.

Return on equity above the industry

Capitol Federal Financial's return on equity of 8.0% is above the Savings Institutions median of 6.1%.

Earnings grew over 5 years

Net income grew 1.1% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 36.1% over the last twelve months, against a 5-year average of 203%.

Net margin above the industry

Capitol Federal Financial's net margin of 36.1% is above the Savings Institutions median of 20.3%.

Well capitalized

Equity is 10.6% of total assets; 8% or more is a comfortable cushion.

Loans funded by deposits

Needs loans and deposits.

Thin loan-loss reserve

The allowance for credit losses is 0.3% of loans; we look for at least 1%.

Efficient operations

Non-interest expense takes 53.7% of revenue; under 60% is efficient for a bank.

Deposits growing

Needs deposits a year ago.

Borrowings

Needs debt and equity figures.

Pays a dividend

Capitol Federal Financial paid dividends worth 4.0% of the share price over the last twelve months.

Yield below Treasuries

The 4.0% yield is below the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Capitol Federal Financial yields 4.0%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 58.6% of net income.

Covered by free cash flow

Dividends take 67.9% of free cash flow.