NasdaqGS:TFSL

Stock Analysis Report

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Executive Summary

TFS Financial Corporation, through its subsidiaries, provides retail consumer banking services in the United States.


Snowflake Analysis

Adequate balance sheet with acceptable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.6%

TFSL

2.4%

US Mortgage

2.3%

US Market


1 Year Return

-24.7%

TFSL

-26.6%

US Mortgage

6.7%

US Market

Return vs Industry: TFSL exceeded the US Mortgage industry which returned -26.6% over the past year.

Return vs Market: TFSL underperformed the US Market which returned 6.7% over the past year.


Shareholder returns

TFSLIndustryMarket
7 Day-1.6%2.4%2.3%
30 Day-8.6%10.5%6.0%
90 Day-0.6%42.3%18.9%
1 Year-20.2%-24.7%-24.7%-26.6%9.0%6.7%
3 Year2.4%-13.1%29.8%20.6%36.6%27.7%
5 Year1.5%-18.2%-3.7%-14.0%64.2%46.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

46.43x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TFSL ($13.63) is trading above our estimate of fair value ($2.4)

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


Price To Earnings Ratio

PE vs Industry: TFSL is poor value based on its PE Ratio (46.4x) compared to the US Mortgage industry average (10.8x).

PE vs Market: TFSL is poor value based on its PE Ratio (46.4x) compared to the US market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: TFSL's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: TFSL is overvalued based on its PB Ratio (2.3x) compared to the US Mortgage industry average (0.8x).


Next Steps

Future Growth

How is TFS Financial forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-5.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TFSL's earnings are forecast to decline over the next 3 years (-5.8% per year).

Earnings vs Market: TFSL's earnings are forecast to decline over the next 3 years (-5.8% per year).

High Growth Earnings: TFSL's earnings are forecast to decline over the next 3 years.

Revenue vs Market: TFSL's revenue is expected to decline over the next 3 years (-3% per year).

High Growth Revenue: TFSL's revenue is forecast to decline over the next 3 years (-3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TFSL's Return on Equity is forecast to be low in 3 years time (4%).


Next Steps

Past Performance

How has TFS Financial performed over the past 5 years?

3.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TFSL has high quality earnings.

Growing Profit Margin: TFSL's current net profit margins (27.7%) are higher than last year (26.7%).


Past Earnings Growth Analysis

Earnings Trend: TFSL's earnings have grown by 3.3% per year over the past 5 years.

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

Earnings vs Industry: TFSL had negative earnings growth (-1%) over the past year, making it difficult to compare to the Mortgage industry average (4.9%).


Return on Equity

High ROE: TFSL's Return on Equity (5%) is considered low.


Next Steps

Financial Health

How is TFS 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: TFSL's Assets to Equity ratio (9.1x) is low.

Allowance for Bad Loans: TFSL has a low allowance for bad loans (77%).

Low Risk Liabilities: 68% of TFSL's liabilities are made up of primarily low risk sources of funding.

Loan Level: TFSL has an appropriate level of Loans to Assets ratio (90%).

Low Risk Deposits: TFSL's Loans to Deposits ratio (149%) is high.

Level of Bad Loans: TFSL has an appropriate level of bad loans (0.4%).


Next Steps

Dividend

What is TFS Financial current dividend yield, its reliability and sustainability?

8.22%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TFSL's dividend (8.22%) is higher than the bottom 25% of dividend payers in the US market (1.68%).

High Dividend: TFSL's dividend (8.22%) is in the top 25% of dividend payers in the US market (4.6%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (364.5%), TFSL's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TFSL's dividends in 3 years are not forecast to be well covered by earnings (539.5% payout ratio).


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Marc Stefanski (66yo)

23.5yrs

Tenure

US$4,749,066

Compensation

Mr. Marc A. Stefanski has been the Chairman and Chief Executive Officer of TFS Financial Corporation (MHC) since 1998 and has been its President since January 2000. Mr. Stefanski has been the Chairman and  ...


CEO Compensation Analysis

Compensation vs Market: Marc's total compensation ($USD4.75M) is about average for companies of similar size in the US market ($USD5.85M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Marc Stefanski
Chairman23.5yrsUS$4.75m0.17% $6.6m
Paul Huml
CFO & Treasurer1.83yrsUS$1.25m0.041% $1.5m
Meredith Weil
COO & Director6.17yrsUS$1.71m0.031% $1.2m
Cathy Zbanek
Vice Presidentno dataUS$1.46m0.025% $921.4k
Anna Maria Motta
Vice Presidentno dataUS$998.02k0.034% $1.3m
Ben Stefanski
Secretary & Director10.42yrsUS$58.79k0.042% $1.6m
Kitty Danckers
Chief Risk Officerno datano datano data

2.2yrs

Average Tenure

57yo

Average Age

Experienced Management: TFSL's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Marc Stefanski
Chairman23.5yrsUS$4.75m0.17% $6.6m
Meredith Weil
COO & Director6.17yrsUS$1.71m0.031% $1.2m
Ben Stefanski
Secretary & Director10.42yrsUS$58.79k0.042% $1.6m
William Mulligan
Independent Director13.5yrsUS$139.29k0.025% $925.5k
Terrence Ozan
Independent Director9.33yrsUS$135.29k0.025% $927.0k
Paul Stefanik
Director Emeritus4yrsUS$82.58kno data
John Ringenbach
Independent Director4.83yrsUS$122.79k0.012% $446.4k
Robert Fiala
Independent Director15.5yrsUS$135.29k0.025% $925.5k
Martin Cohen
Independent Director14.5yrsUS$126.79k0.036% $1.3m
Anthony Asher
Independent Director12.25yrsUS$122.79k0.018% $663.8k
Ashley Williams
Director1.75yrsUS$55.00k0.020% $766.1k

10.4yrs

Average Tenure

67yo

Average Age

Experienced Board: TFSL's board of directors are seasoned and experienced ( 10.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: TFSL 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

TFS Financial Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TFS Financial Corporation
  • Ticker: TFSL
  • Exchange: NasdaqGS
  • Founded: 1938
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$3.761b
  • Shares outstanding: 275.92m
  • Website: https://www.thirdfederal.com

Location

  • TFS Financial Corporation
  • 7007 Broadway Avenue
  • Cleveland
  • Ohio
  • 44105
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TFSLNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDApr 2007
PWTDB (Deutsche Boerse AG)YesCommon StockDEEURApr 2007

Biography

TFS Financial Corporation, through its subsidiaries, provides retail consumer banking services in the United States. The company’s deposit products include savings, money market, checking, certificate of deposit, individual retirement, and other qualified plan accounts. It also provides residential real estate mortgage loans, residential construction loans, and home equity loans and lines of credit, as well as purchase mortgages and first mortgage refinance loans. In addition, the company engages in the net lease transactions of commercial buildings; and provision of escrow and settlement services. It provides its products and services through its main office in Cleveland, Ohio; and 37 full-service branches and 8 loan production offices located throughout the states of Ohio and Florida. The company was founded in 1938 and is headquartered in Cleveland, Ohio. TFS Financial Corporation is a subsidiary of Third Federal Savings and Loan Association of Cleveland, MHC. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/13 06:46
End of Day Share Price2020/07/10 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.