NasdaqGS:TFSL

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Adequate balance sheet second-rate dividend payer.


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


Market Performance


7 Day Return

2.3%

TFSL

2.8%

US Mortgage

3.4%

US Market


1 Year Return

24.5%

TFSL

12.3%

US Mortgage

5.4%

US Market

Return vs Industry: TFSL exceeded the US Mortgage industry which returned 12.3% over the past year.

Return vs Market: TFSL exceeded the US Market which returned 5.4% over the past year.


Shareholder returns

TFSLIndustryMarket
7 Day2.3%2.8%3.4%
30 Day1.3%0.1%-1.0%
90 Day0.7%3.4%-0.4%
1 Year32.2%24.5%14.7%12.3%7.7%5.4%
3 Year18.1%2.4%40.3%30.9%46.2%36.8%
5 Year53.0%26.9%70.5%52.5%65.6%47.5%

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?

64.22x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: TFSL ($18.38) is trading above our estimate of fair value ($2.31)

Significantly Undervalued: 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 (64.2x) compared to the Mortgage industry average (14.6x).

PE vs Market: TFSL is poor value based on its PE Ratio (64.2x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TFSL is overvalued based on its PB Ratio (3x) compared to the US Mortgage industry average (1.1x).


Next Steps

Future Growth

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

10.3%

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 TFSL's forecast earnings growth is above the savings rate (2.7%).

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

High Growth Revenue: Insufficient data to determine if TFSL'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 TFSL's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has TFS Financial performed over the past 5 years?

5.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TFSL's earnings have grown by 5.8% 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 (-8.1%) over the past year, making it difficult to compare to the Mortgage industry average (31.7%).


Return on Equity

High ROE: TFSL's Return on Equity (4.7%) is considered low.


Return on Assets

ROA vs Industry: TFSL's Return on Assets is below or equal to the Mortgage industry average last year.


Return on Capital Employed

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


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

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

Debt Coverage by Assets: TFSL's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

5.88%

Current Dividend Yield


Dividend Yield vs Market

company5.9%marketbottom25%1.5%markettop25%3.8%industryaverage2.8%forecastin3Years6.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: TFSL's dividend (5.88%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: TFSL's dividend (5.88%) is in the top 25% of dividend payers in the US market (3.77%)

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 (349.4%), TFSL's dividend payments are not 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 TFS Financial's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Marc Stefanski (65yo)

22.8yrs

Tenure

US$4,448,818

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 ($USD4.45M) is about average for companies of similar size in the US market ($USD6.81M).

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


Management Age and Tenure

1.8yrs

Average Tenure

60yo

Average Age

Experienced Management: TFSL's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

10.6yrs

Average Tenure

66yo

Average Age

Experienced Board: TFSL's board of directors are seasoned and experienced ( 10.6 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.


Ownership Breakdown


Management Team

  • Marc Stefanski (65yo)

    Chairman

    • Tenure: 22.8yrs
    • Compensation: US$4.45m
  • Paul Huml (60yo)

    CFO & Treasurer

    • Tenure: 1.1yrs
    • Compensation: US$1.07m
  • Judy Adam (64yo)

    Chief Risk Officer

    • Tenure: 4.8yrs
  • Ben Stefanski (46yo)

    Secretary & Director

    • Tenure: 9.7yrs
    • Compensation: US$105.88k
  • Meredith Weil (52yo)

    COO & Director

    • Tenure: 5.4yrs
    • Compensation: US$1.55m
  • Cathy Zbanek (46yo)

    Vice President

    • Tenure: 0yrs
    • Compensation: US$1.35m
  • Anna Maria Motta (60yo)

    Vice President

    • Tenure: 0yrs

Board Members

  • Bill Mulligan (66yo)

    Director

    • Tenure: 12.8yrs
    • Compensation: US$136.75k
  • Marc Stefanski (65yo)

    Chairman

    • Tenure: 22.8yrs
    • Compensation: US$4.45m
  • Terrence Ozan (73yo)

    Director

    • Tenure: 8.6yrs
    • Compensation: US$128.75k
  • John Ringenbach (70yo)

    Director

    • Tenure: 4.1yrs
    • Compensation: US$120.88k
  • Robert Fiala (66yo)

    Director

    • Tenure: 14.8yrs
    • Compensation: US$132.75k
  • Martin Cohen (66yo)

    Director

    • Tenure: 13.8yrs
    • Compensation: US$119.88k
  • Anthony Asher (80yo)

    Director

    • Tenure: 11.5yrs
    • Compensation: US$116.88k
  • Ben Stefanski (46yo)

    Secretary & Director

    • Tenure: 9.7yrs
    • Compensation: US$105.88k
  • Meredith Weil (52yo)

    COO & Director

    • Tenure: 5.4yrs
    • Compensation: US$1.55m
  • Ashley Williams (36yo)

    Director

    • Tenure: 1yrs

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$5.062b
  • Shares outstanding: 275.43m
  • 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 d ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 23:57
End of Day Share Price2019/10/15 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.