OTCPK:SFDL

Stock Analysis Report

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Executive Summary

Security Federal Corporation operates as the holding company for Security Federal Bank that provides various banking products and services.


Snowflake Analysis

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.1%

SFDL

1.3%

US Banks

0.5%

US Market


1 Year Return

-30.1%

SFDL

-16.6%

US Banks

18.0%

US Market

Return vs Industry: SFDL underperformed the US Banks industry which returned -15.2% over the past year.

Return vs Market: SFDL underperformed the US Market which returned 18.7% over the past year.


Shareholder returns

SFDLIndustryMarket
7 Day-1.1%1.3%0.5%
30 Day-3.1%3.9%4.5%
90 Day-12.3%20.1%19.7%
1 Year-29.2%-30.1%-13.7%-16.6%20.5%18.0%
3 Year-19.2%-21.8%-7.2%-14.7%46.3%36.8%
5 Year30.1%22.4%23.2%8.0%87.2%66.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

10.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SFDL ($23.25) is trading below our estimate of fair value ($26.04)

Significantly Below Fair Value: SFDL is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SFDL is poor value based on its PE Ratio (10.3x) compared to the US Banks industry average (10x).

PE vs Market: SFDL is good value based on its PE Ratio (10.3x) compared to the US market (19.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SFDL is good value based on its PB Ratio (0.7x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

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

27.2%

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 Security Federal 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

  • Examine whether Security Federal is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on theOTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Security Federal's filings and announcementshere.
  • Explore growth companies in the Banks industry.

Past Performance

How has Security Federal performed over the past 5 years?

6.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SFDL has high quality earnings.

Growing Profit Margin: SFDL's current net profit margins (18.8%) are lower than last year (21.1%).


Past Earnings Growth Analysis

Earnings Trend: SFDL's earnings have grown by 6.1% per year over the past 5 years.

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

Earnings vs Industry: SFDL had negative earnings growth (-9.6%) over the past year, making it difficult to compare to the Banks industry average (-2.9%).


Return on Equity

High ROE: SFDL's Return on Equity (6.4%) is considered low.


Next Steps

Financial Health

How is Security Federal'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: SFDL's Assets to Equity ratio (10.3x) is moderate.

Allowance for Bad Loans: SFDL has a sufficient allowance for bad loans (260%).

Low Risk Liabilities: 88% of SFDL's liabilities are made up of primarily low risk sources of funding.

Loan Level: SFDL has an appropriate level of Loans to Assets ratio (49%).

Low Risk Deposits: SFDL's Loans to Deposits ratio (61%) is appropriate.

Level of Bad Loans: SFDL has an appropriate level of bad loans (0.8%).


Next Steps

Dividend

What is Security Federal current dividend yield, its reliability and sustainability?

1.72%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: SFDL's dividend (1.72%) is higher than the bottom 25% of dividend payers in the US market (1.59%).

High Dividend: SFDL's dividend (1.72%) is low compared to the top 25% of dividend payers in the US market (4.31%).


Stability and Growth of Payments

Stable Dividend: SFDL's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (17.7%), SFDL'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

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

6.2yrs

Average management tenure


CEO

J. Verenes (64 yo)

8.58yrs

Tenure

US$477,623

Compensation

Mr. J. Chris Verenes has been the Chief Executive Officer of Security Federal Bank, subsidiary of Security Federal Corp. since January 1, 2011. Mr. Verenes has been the Chief Executive Officer of Security ...


CEO Compensation Analysis

Compensation vs Market: J.'s total compensation ($USD477.62K) is about average for companies of similar size in the US market ($USD589.02K).

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


Leadership Team

NamePositionTenureCompensationOwnership
J. Verenes
CEO & Director8.58yrsUS$477.62k1.05%
$ 791.8k
Roy Lindburg
President & Director15.58yrsUS$344.46k1.82%
$ 1.4m
Robert Alexander
Secretary & Independent Director32.58yrsUS$77.10k0.60%
$ 456.9k
Darrell Rains
Chief Financial Officer0.17yrno data0.0015%
$ 1.2k
Anthony Ateca
Chief Administrative Officer & Executive VPno datano datano data
Beverly Nettles
VP & Assistant Secretary of Corporationno datano datano data
Lesley Lampert
Senior VP & Chief Compliance Officerno datano datano data
Alicia Heath
Senior VP of Human Resourcesno datano datano data
Kathi Snipes
Senior VPno datano datano data
Gabriele Dukes
Executive Vice President of Financial Counselingno datano datano data
Andrea Haltiwanger
President of Insurance Departmentno datano datano data
Michael Strange
Executive Vice President of Community Development & Public Affairsno datano datano data

6.2yrs

Average Tenure

63.5yo

Average Age

Experienced Management: SFDL's management team is seasoned and experienced (6.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
J. Verenes
CEO & Director8.58yrsUS$477.62k1.05%
$ 791.8k
Roy Lindburg
President & Director15.58yrsUS$344.46k1.82%
$ 1.4m
Robert Alexander
Secretary & Independent Director32.58yrsUS$77.10k0.60%
$ 456.9k
William Clyburn
Independent Director27.58yrsUS$64.05k0.45%
$ 337.5k
Thomas Moore
Independent Director30.58yrsUS$79.48k0.73%
$ 548.8k
Timothy Simmons
Independent Chairman of the Board8.83yrsUS$160.18k22.05%
$ 16.7m
Francis Thomas
Independent Director12.25yrsUS$111.10k0.53%
$ 402.3k
Gasper Toole
Director Emeritusno dataUS$42.50k5.11%
$ 3.9m
Harry Weeks
Independent Director9.58yrsUS$53.00k10.07%
$ 7.6m
Richard Harmon
Director7.58yrsUS$42.50k0.17%
$ 125.4k
Jessica Cummins
Director1.83yrsUS$214.29k0.015%
$ 11.6k
Frampton Toole
Independent Director1.33yrsUS$51.25k4.72%
$ 3.6m

12.3yrs

Average Tenure

73yo

Average Age

Experienced Board: SFDL's board of directors are seasoned and experienced ( 12.3 years average tenure).


Ownership

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


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.1%.


Top Shareholders

Company Information

Security Federal Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Security Federal Corporation
  • Ticker: SFDL
  • Exchange: OTCPK
  • Founded: 1922
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$75.630m
  • Shares outstanding: 3.25m
  • Website: https://www.securityfederalbank.com

Number of Employees


Location

  • Security Federal Corporation
  • 238 Richland Avenue Northwest
  • Aiken
  • South Carolina
  • 29801
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SFDLOTCPK (Pink Sheets LLC)YesCommon StockUSUSDOct 2003

Biography

Security Federal Corporation operates as the holding company for Security Federal Bank that provides various banking products and services. It accepts various deposit products, such as savings accounts, ch ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/14 13:02
End of Day Share Price2020/08/12 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.