TFS Financial CORP (TFSL) stock analysis

P/E below its 5-year median

TFS Financial's P/E of 45.7 is below its own 5-year median of 47.8.

P/E above the industry

TFS Financial's P/E of 45.7 is above the Savings Institutions median of 13.7.

P/S above the industry

TFS Financial's price-to-sales of 13.43 is above the Savings Institutions median of 3.77.

P/B above the industry

TFS Financial's price-to-book of 2.36 is above the Savings Institutions median of 1.04.

Trading above fair value

The share price of $16.46 is above our fair value estimate of $10.96.

Margin of safety under 20%

The price is 50.2% 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 7.2% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 22.7% over the last twelve months, against a 5-year average of 1.8% a year.

Growing faster than the industry

Revenue grew 10.5% over the last twelve months; the Savings Institutions median is 9.0%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

Banks and insurers do not report gross profit.

Return on equity under 15%

Return on equity was 5.3% over the last twelve months and averaged 4.4% over five years; we look for 15% on both.

Return on assets under 1%

Return on assets was 0.6%; for a bank or insurer, 1% or more is considered good.

Return on equity below the industry

TFS Financial's return on equity of 5.3% is below the Savings Institutions median of 6.1%.

Earnings grew over 5 years

Net income grew 1.8% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 29.7% over the last twelve months, against a 5-year average of 26.6%.

Net margin above the industry

TFS Financial's net margin of 29.7% is above the Savings Institutions median of 20.3%.

Well capitalized

Equity is 10.8% of total assets; 8% or more is a comfortable cushion.

Loans funded by deposits

Needs loans and deposits.

Adequate loan-loss reserve

The allowance for credit losses is not reported.

High cost base

Non-interest expense takes 63.4% 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

TFS Financial paid dividends worth 7.1% of the share price over the last twelve months.

Yield above Treasuries

The 7.1% yield is above 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; TFS Financial yields 7.1%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 58.6% of net income.

Covered by free cash flow

Dividends take 69.3% of free cash flow.