NasdaqGS:CFFN

Stock Analysis Report

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

Fundamentals

Adequate 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


Market Performance


7 Day Return

1.8%

CFFN

1.6%

US Mortgage

0.4%

US Market


1 Year Return

15.1%

CFFN

15.2%

US Mortgage

6.9%

US Market

Return vs Industry: CFFN matched the US Mortgage industry which returned 15.2% over the past year.

Return vs Market: CFFN exceeded the US Market which returned 6.9% over the past year.


Shareholder returns

CFFNIndustryMarket
7 Day1.8%1.6%0.4%
30 Day1.6%0.7%-1.1%
90 Day3.1%4.2%-0.5%
1 Year24.0%15.1%17.7%15.2%9.3%6.9%
3 Year22.8%0.5%41.2%31.8%45.8%36.4%
5 Year60.3%15.0%71.5%53.4%62.9%45.1%

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?

20.88x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: CFFN ($14.19) is trading above our estimate of fair value ($6.44)

Significantly Undervalued: 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 (20.9x) compared to the Mortgage industry average (14.4x).

PE vs Market: CFFN is poor value based on its PE Ratio (20.9x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate CFFN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CFFN is overvalued based on its PB Ratio (1.5x) compared to the US Mortgage industry average (1.1x).


Next Steps

Future Growth

How is Capitol Federal Financial forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.2%

Forecasted Banks industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if CFFN's forecast earnings growth is above the savings rate (2.7%).

Earnings vs Market: Insufficient data to determine if CFFN's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if CFFN's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if CFFN's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High 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?

5.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CFFN's earnings have grown by 5.2% 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 (-5%) over the past year, making it difficult to compare to the Mortgage industry average (31.5%).


Return on Equity

High ROE: CFFN's Return on Equity (7%) is considered low.


Return on Assets

ROA vs Industry: CFFN has a higher Return on Assets than the Mortgage industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate CFFN's Return on Capital Employed to determine if it has improved over the past 3 years.


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

Inventory Level: CFFN has a low level of unsold assets or inventory.

Debt Coverage by Assets: CFFN's debt is not covered by short term assets (assets are 0x debt).


Financial Institutions Analysis

Asset Level: CFFN's level of assets compared to its equity is low.

Allowance for Bad Loans: CFFN has a low allowance for bad loans.

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

Loan Level: CFFN has an acceptable proportion of non-loan assets held.

Low Risk Deposits: CFFN has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: CFFN has an appropriate level of bad loans (0.13%)


Next Steps

Dividend

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

4.16%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Capitol Federal Financial before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company4.2%marketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Years7.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CFFN's dividend (4.16%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: CFFN's dividend (4.16%) is in the top 25% of dividend payers in the US market (3.73%)

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 (50%), 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

What is the CEO of Capitol Federal Financial's salary, the management and board of directors tenure and is there insider trading?

14.1yrs

Average management tenure


CEO

John Dicus (58yo)

16.8yrs

Tenure

US$1,124,825

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 ($USD1.12M) is about average for companies of similar size in the US market ($USD4.00M).

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


Management Age and Tenure

14.1yrs

Average Tenure

58yo

Average Age

Experienced Management: CFFN's management team is seasoned and experienced (14.1 years average tenure).


Board Age and Tenure

10.8yrs

Average Tenure

62yo

Average Age

Experienced Board: CFFN's board of directors are seasoned and experienced ( 10.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$26,19507 Aug 19
Natalie Haag
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares2,015
Max PriceUS$13.00
BuyUS$39,14920 May 19
Michel' Cole
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,902
Max PriceUS$13.49
BuyUS$4,85115 Nov 18
Natalie Haag
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares379
Max PriceUS$12.80
BuyUS$59,70701 Nov 18
Natalie Haag
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares4,860
Max PriceUS$12.29

Ownership Breakdown


Management Team

  • John Dicus (58yo)

    Chairman

    • Tenure: 16.8yrs
    • Compensation: US$1.12m
  • Kent Townsend (58yo)

    Executive VP

    • Tenure: 14.1yrs
    • Compensation: US$516.20k
  • Tara Van Houweling (45yo)

    First VP

    • Tenure: 0yrs
  • Rick Jackson (54yo)

    Chief Lending Officer & Executive VP

    • Tenure: 0yrs
    • Compensation: US$373.60k
  • Natalie Haag (60yo)

    Executive VP

    • Tenure: 0yrs
    • Compensation: US$351.26k
  • Daniel Lehman (54yo)

    Executive VP & Chief Retail Operations Officer

    • Tenure: 3yrs
  • Tony Barry

    Executive Vice President of Corporate Services

    • Tenure: 0yrs
  • Robert Kobbeman (64yo)

    Executive VP & Chief Commercial Banking Officer

    • Tenure: 0yrs

Board Members

  • John Dicus (86yo)

    Chairman Emeritus

    • Tenure: 10.8yrs
    • Compensation: US$846.95k
  • John Dicus (58yo)

    Chairman

    • Tenure: 16.8yrs
    • Compensation: US$1.12m
  • Morris Huey (70yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: US$60.00k
  • Jeff Thompson (58yo)

    Independent Director

    • Tenure: 15.8yrs
    • Compensation: US$65.00k
  • Michael McCoy (70yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$60.00k
  • Jeffrey Johnson (53yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$60.00k
  • Reggie Robinson (62yo)

    Director

    • Tenure: 7.8yrs
    • Compensation: US$60.00k
  • Michel' Cole (57yo)

    Director

    • Tenure: 2.8yrs
    • Compensation: US$131.04k
  • Jim Morris (65yo)

    Director

    • Tenure: 6.8yrs
    • Compensation: US$60.00k

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$1.955b
  • Shares outstanding: 137.80m
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 23:32
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.