NasdaqGS:CFFN

Stock Analysis Report

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Capitol Federal Financial

Executive Summary

Capitol Federal Financial, Inc. operates as the holding company for Capitol Federal Savings Bank that provides various retail banking products and services in the United States.


Snowflake Analysis

Excellent balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

How has Capitol Federal Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CFFN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.5%

CFFN

-4.3%

US Mortgage

1.7%

US Market


1 Year Return

-16.1%

CFFN

-21.0%

US Mortgage

8.5%

US Market

Return vs Industry: CFFN exceeded the US Mortgage industry which returned -20.3% over the past year.

Return vs Market: CFFN underperformed the US Market which returned 9.3% over the past year.


Shareholder returns

CFFNIndustryMarket
7 Day-6.5%-4.3%1.7%
30 Day-1.2%6.3%9.5%
90 Day-9.0%-26.2%0.1%
1 Year-10.2%-16.1%-18.8%-21.0%11.0%8.5%
3 Year2.0%-17.2%2.6%-4.9%32.2%23.5%
5 Year31.0%-4.4%3.9%-7.5%58.6%40.8%

Price Volatility Vs. Market

How volatile is Capitol Federal Financial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Capitol Federal Financial undervalued compared to its fair value and its price relative to the market?

21.99x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CFFN ($11.49) is trading above our estimate of fair value ($6.76)

Significantly Below Fair Value: CFFN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CFFN is poor value based on its PE Ratio (22x) compared to the Mortgage industry average (11.1x).

PE vs Market: CFFN is poor value based on its PE Ratio (22x) compared to the US market (15.7x).


Price to Earnings Growth Ratio

PEG Ratio: CFFN is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: CFFN is overvalued based on its PB Ratio (1.2x) compared to the US Mortgage industry average (0.8x).


Next Steps

Future Growth

How is Capitol Federal Financial forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

8.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CFFN's forecast earnings growth (8.3% per year) is above the savings rate (2.2%).

Earnings vs Market: CFFN's earnings (8.3% per year) are forecast to grow slower than the US market (22% per year).

High Growth Earnings: CFFN's earnings are forecast to grow, but not significantly.

Revenue vs Market: CFFN's revenue (2.9% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: CFFN's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CFFN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Capitol Federal Financial performed over the past 5 years?

3.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CFFN has high quality earnings.

Growing Profit Margin: CFFN's current net profit margins (36.5%) are lower than last year (41%).


Past Earnings Growth Analysis

Earnings Trend: CFFN's earnings have grown by 3.2% per year over the past 5 years.

Accelerating Growth: CFFN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CFFN had negative earnings growth (-22.3%) over the past year, making it difficult to compare to the Mortgage industry average (4.5%).


Return on Equity

High ROE: CFFN's Return on Equity (5.6%) is considered low.


Next Steps

Financial Health

How is Capitol Federal Financial's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: CFFN's Assets to Equity ratio (7.3x) is low.

Allowance for Bad Loans: CFFN has a sufficient allowance for bad loans (353%).

Low Risk Liabilities: 71% of CFFN's liabilities are made up of primarily low risk sources of funding.

Loan Level: CFFN has an appropriate level of Loans to Assets ratio (80%).

Low Risk Deposits: CFFN's Loans to Deposits ratio (129%) is high.

Level of Bad Loans: CFFN has an appropriate level of bad loans (0.1%).


Next Steps

Dividend

What is Capitol Federal Financial's current dividend yield, its reliability and sustainability?

8.09%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CFFN's dividend (8.09%) is higher than the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: CFFN's dividend (8.09%) is in the top 25% of dividend payers in the US market (4.55%)


Stability and Growth of Payments

Stable Dividend: CFFN's dividend payments have been volatile in the past 10 years.

Growing Dividend: CFFN's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (65.1%), CFFN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

14.8yrs

Average management tenure


CEO

John Dicus (58yo)

17.42yrs

Tenure

US$1,090,821

Compensation

Mr. John B. Dicus has been the Chief Executive Officer of Capitol Federal Financial, Inc. and its subsidiary Capitol Federal Savings Bank since January 1, 2003. Mr. Dicus has been the President of Capitol  ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD1.09M) is below average for companies of similar size in the US market ($USD4.76M).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
John Dicus
Chairman17.42yrsUS$1.09m1.01% $16.0m
Kent Townsend
Executive VP14.75yrsUS$507.20k0.15% $2.4m
Natalie Haag
Executive VPno dataUS$348.95k0.056% $895.0k
Rick Jackson
Chief Lending Officerno dataUS$370.56k0.10% $1.6m
Robert Kobbeman
Executive VP & Chief Commercial Lending Officerno dataUS$901.60k0.028% $446.9k
Tara Van Houweling
First VPno datano data0.037% $589.4k
Daniel Lehman
Executive VP & Chief Retail Operations Officer3.67yrsno data0.048% $757.2k
Anthony Barry
Executive VP & Chief Corporate Services Officerno datano data0.018% $282.6k

14.8yrs

Average Tenure

56.5yo

Average Age

Experienced Management: CFFN's management team is seasoned and experienced (14.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Dicus
Chairman17.42yrsUS$1.09m1.01% $16.0m
John Dicus
Chairman Emeritus11.42yrsUS$404.18kno data
Morris Huey
Independent Director11.42yrsUS$68.00k0.19% $2.9m
Jeffrey Thompson
Independent Director16.42yrsUS$72.00k0.033% $521.1k
Michael McCoy
Independent Director15.42yrsUS$66.00k0.021% $334.4k
Jeffrey Johnson
Independent Director15.42yrsUS$66.00k0.036% $573.4k
Reginald Robinson
Independent Director8.42yrsUS$66.00k0.0036% $57.4k
Michel' Cole
Independent Director3.42yrsUS$73.29k0.0090% $142.1k
James Morris
Independent Director7.42yrsUS$66.00k0.027% $425.1k

11.4yrs

Average Tenure

62yo

Average Age

Experienced Board: CFFN's board of directors are seasoned and experienced ( 11.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CFFN insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Capitol Federal Financial, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Capitol Federal Financial, Inc.
  • Ticker: CFFN
  • Exchange: NasdaqGS
  • Founded: 1893
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$1.586b
  • Shares outstanding: 138.01m
  • Website: https://capfed.com

Number of Employees


Location

  • Capitol Federal Financial, Inc.
  • 700 South Kansas Avenue
  • Topeka
  • Kansas
  • 66603
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CFFNNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDApr 1999
CFWDB (Deutsche Boerse AG)YesCommon StockDEEURApr 1999

Biography

Capitol Federal Financial, Inc. operates as the holding company for Capitol Federal Savings Bank that provides various retail banking products and services in the United States. The company accepts a range of deposit products, including savings accounts, money market deposit accounts, interest-bearing and non-interest-bearing checking accounts, and certificates of deposits. It also provides various loan products, such as one- to four-family residential real estate loans; construction-to-permanent loans; consumer loans comprising home equity loans and lines of credit, home improvement loans, vehicle loans, and loans secured by savings deposits; and commercial real estate loans that include various property types, which comprise hotels, office and retail buildings, senior housing facilities, and multi-family dwellings. In addition, the company offers mobile, telephone, and online banking services, as well as bill payment services; operates a call center; invests in various securities; and engages in the reinsurance and real estate businesses. It operates a network of 54 branches, including 44 traditional branches and 10 in-store branches located in 9 counties throughout Kansas and 3 counties in Missouri. The company serves the metropolitan areas of Topeka, Wichita, Lawrence, Manhattan, Emporia, and Salina, Kansas, as well as the metropolitan area of Kansas City. Capitol Federal Financial, Inc. was founded in 1893 and is headquartered in Topeka, Kansas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/03 02:10
End of Day Share Price2020/06/02 00:00
Earnings2020/03/31
Annual Earnings2019/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.