NasdaqCM:SFBC

Stock Analysis Report

Sound Financial Bancorp

Executive Summary

Sound Financial Bancorp, Inc. operates as the bank holding company for Sound Community Bank that provides commercial banking and other financial services for consumers and businesses.

Snowflake

Fundamentals

Flawless balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.7%

SFBC

0.3%

US Banks

-0.2%

US Market


1 Year Return

1.4%

SFBC

10.7%

US Banks

16.1%

US Market

Return vs Industry: SFBC underperformed the US Banks industry which returned 10.7% over the past year.

Return vs Market: SFBC underperformed the US Market which returned 16.1% over the past year.


Shareholder returns

SFBCIndustryMarket
7 Day-0.7%0.3%-0.2%
30 Day2.4%3.7%3.7%
90 Day2.0%18.8%8.5%
1 Year3.1%1.4%14.0%10.7%18.7%16.1%
3 Year44.2%37.2%37.2%27.6%46.9%37.4%
5 Year103.9%89.4%71.0%52.1%61.8%44.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Sound Financial Bancorp undervalued compared to its fair value and its price relative to the market?

13.96x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SFBC ($35.75) is trading above our estimate of fair value ($32.35)

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


Price To Earnings Ratio

PE vs Industry: SFBC is poor value based on its PE Ratio (14x) compared to the Banks industry average (12.6x).

PE vs Market: SFBC is good value based on its PE Ratio (14x) compared to the US market (18x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SFBC is good value based on its PB Ratio (1.2x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

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

0.3%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Sound Financial Bancorp has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Sound Financial Bancorp performed over the past 5 years?

9.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SFBC has high quality earnings.

Growing Profit Margin: SFBC's current net profit margins (20.6%) are lower than last year (21.5%).


Past Earnings Growth Analysis

Earnings Trend: SFBC's earnings have grown by 9.9% per year over the past 5 years.

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

Earnings vs Industry: SFBC had negative earnings growth (-2%) over the past year, making it difficult to compare to the Banks industry average (27.3%).


Return on Equity

High ROE: SFBC's Return on Equity (8.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sound Financial Bancorp'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: SFBC has a low level of unsold assets or inventory.

Debt Coverage by Assets: SFBC's debt is covered by short term assets (assets are 5.1x debt).


Financial Institutions Analysis

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

Allowance for Bad Loans: SFBC has a sufficient allowance for bad loans.

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

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

Low Risk Deposits: SFBC's loans are broadly funded by customer deposits.

Level of Bad Loans: SFBC has an appropriate level of bad loans (0.56%)


Next Steps

Dividend

What is Sound Financial Bancorp's current dividend yield, its reliability and sustainability?

1.57%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: SFBC's dividend (1.57%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: SFBC's dividend (1.57%) is low compared to the top 25% of dividend payers in the US market (3.69%).


Stability and Growth of Payments

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

Growing Dividend: SFBC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.9%), SFBC's dividend payments are well 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 Sound Financial Bancorp's salary, the management and board of directors tenure and is there insider trading?

14.8yrs

Average board tenure


CEO

Laurie Stewart (70yo)

11.8yrs

Tenure

US$666,314

Compensation

Ms. Laura Lee Stewart, also known as Laurie, has been President and Chief Executive Officer of Sound Financial Bancorp Inc. since January 2008. Ms. Stewart serves as Chief Executive Officer of Sound Commun ...


CEO Compensation Analysis

Compensation vs Market: Laurie's total compensation ($USD666.31K) is above average for companies of similar size in the US market ($USD504.52K).

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


Board Age and Tenure

14.8yrs

Average Tenure

69.5yo

Average Age

Experienced Board: SFBC's board of directors are seasoned and experienced ( 14.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$76,45016 Aug 19
Debra Jones
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,200
Max PriceUS$34.75
SellUS$10,44906 Aug 19
David Haddad
EntityIndividual
Role
Vice Chairman
Vice Chairman of the Board
Shares300
Max PriceUS$34.83
SellUS$29,84717 May 19
Robert Carney
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares874
Max PriceUS$34.15
SellUS$65,06312 Feb 19
Robert Carney
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,948
Max PriceUS$33.40
BuyUS$1,68805 Feb 19
Kathleen Cook
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares50
Max PriceUS$33.76

Ownership Breakdown

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


Management Team

  • Laurie Stewart (70yo)

    President

    • Tenure: 11.8yrs
    • Compensation: US$666.31k
  • Pat Floyd (74yo)

    Senior Vice President of Human Resources

    • Tenure: 0yrs
  • David Sharon

    VP & Business Banking Team Lead

    • Tenure: 0yrs
  • Dave Raney

    Vice President and Residential Lending Manager

    • Tenure: 0yrs
  • Elliott Pierce (62yo)

    Executive VP & Chief Credit Officer of Sound Community Bank

    • Tenure: 0yrs
    • Compensation: US$401.75k
  • Daphne Kelley (47yo)

    Executive VP & CFO

    • Tenure: 1.3yrs
  • Brady Robb

    VP & Marketing Director

    • Tenure: 0yrs
  • Heidi Sexton (43yo)

    Executive VP & COO of Sound Community Bank

    • Tenure: 0yrs

Board Members

  • Debra Jones (62yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$39.00k
  • Rogelio Riojas (68yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$39.00k
  • Laurie Stewart (70yo)

    President

    • Tenure: 11.8yrs
    • Compensation: US$666.31k
  • David Haddad (71yo)

    Vice Chairman of the Board

    • Tenure: 11.8yrs
    • Compensation: US$39.00k
  • Bob Carney (72yo)

    Independent Director

    • Tenure: 35.8yrs
    • Compensation: US$39.00k
  • Jim Sweeney (70yo)

    Independent Director

    • Tenure: 33.8yrs
    • Compensation: US$39.00k
  • Kathe Cook (69yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: US$37.54k
  • Tyler Myers (56yo)

    Chairman of the Board

    • Tenure: 11.8yrs

Company Information

Sound Financial Bancorp, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sound Financial Bancorp, Inc.
  • Ticker: SFBC
  • Exchange: NasdaqCM
  • Founded: 2008
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$90.520m
  • Shares outstanding: 2.53m
  • Website: https://www.soundcb.com

Number of Employees


Location

  • Sound Financial Bancorp, Inc.
  • 2400 3rd Avenue
  • Suite 150
  • Seattle
  • Washington
  • 98121
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SFBCNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDJan 2008

Biography

Sound Financial Bancorp, Inc. operates as the bank holding company for Sound Community Bank that provides commercial banking and other financial services for consumers and businesses. It accepts various de ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/22 00:15
End of Day Share Price2019/11/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.