OTCPK:SFDL

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet second-rate dividend payer.

Risks

  • Security Federal is not covered by any analysts.

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


Market Performance


7 Day Return

0.8%

OTCPK:SFDL

0.3%

US Banks

0.9%

US Market


1 Year Return

4.4%

OTCPK:SFDL

-13.6%

US Banks

0.3%

US Market

SFDL outperformed the Banks industry which returned -14.2% over the past year.

SFDL outperformed the Market in United States of America which returned -0.5% over the past year.


Share holder returns

SFDLIndustryMarket
7 Day0.8%0.3%0.9%
30 Day2.9%-5.1%-1.9%
90 Day3.9%-3.5%1.6%
1 Year5.6%4.4%-11.2%-13.6%2.6%0.3%
3 Year57.9%52.9%43.6%33.7%41.0%31.8%
5 Year133.3%118.0%53.7%37.0%55.2%38.0%

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 based on future cash flows and its price relative to the stock market?

12.87x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Security Federal's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Security Federal's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Security Federal is overvalued based on earnings compared to the US Banks industry average.

Security Federal is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Security Federal, we can't assess if its growth is good value.


Price Based on Value of Assets

Security Federal is good value based on assets compared to the US Banks industry average.


Next Steps

Future Growth

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

8.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Security Federal is high growth as no revenue estimate data is available.

Security Federal's earnings are expected to grow by 8.4% yearly, however this is not considered high growth (20% yearly).

Unable to compare Security Federal's revenue growth to the United States of America market average as no estimate data is available.

Security Federal's earnings growth is positive but not above the United States of America market average.

Security Federal's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Security Federal will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Security Federal performed over the past 5 years?

7.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Security Federal's year on year earnings growth rate has been positive over the past 5 years.

Security Federal's 1-year earnings growth exceeds its 5-year average (19.9% vs 7%)

Security Federal's earnings growth has not exceeded the US Banks industry average in the past year (19.9% vs 33.2%).


Return on Equity

Security Federal has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Security Federal used its assets less efficiently than the US Banks industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Security Federal improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


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

Information is not available.

Information is not available.


Financial Institutions Analysis

Security Federal has an acceptable proportion of non-loan assets held.

Security Federal has a sufficient allowance for bad loans.

Security Federal's liabilities are made up of primarily low risk sources of funding.

Security Federal's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).

Loans at Security Federal are broadly funded by customer deposits.

Security Federal has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

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

1.08%

Current Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield and Payments Analysis

Security Federal's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Security Federal's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are thoroughly covered by earnings (7.2x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

5.2yrs

Average management tenure


CEO

J. Verenes (63yo)

7.6yrs

Tenure

US$1,216,751

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

J.'s remuneration is higher than average for companies of similar size in United States of America.

J.'s compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

5.2yrs

Average Tenure

63yo

Average Age

The average tenure for the Security Federal management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

12.9yrs

Average Tenure

72yo

Average Age

The average tenure for the Security Federal board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Robert Alexander (79yo)

    Secretary & Director

    • Tenure: 31.6yrs
    • Compensation: US$74.30k
  • Roy Lindburg (58yo)

    President & Director

    • Tenure: 14.6yrs
    • Compensation: US$886.41k
  • J. Verenes (63yo)

    CEO & Director

    • Tenure: 7.6yrs
    • Compensation: US$1.22m
  • Kathi Snipes

    Senior VP

    • Tenure: 0.0yrs
  • Richard Harmon (63yo)

    Director

    • Tenure: 6.6yrs
    • Compensation: US$359.82k
  • Anthony Ateca

    Chief Administrative Officer & Executive VP

    • Tenure: 0.0yrs
  • Jessica Cummins (38yo)

    CFO & Director

    • Tenure: 0.8yrs
    • Compensation: US$6.50k
  • Beverly Nettles

    VP & Assistant Secretary of Corporation

    • Tenure: 0.0yrs
  • Lesley Lampert

    Senior VP & Chief Compliance Officer

    • Tenure: 0.0yrs
  • Alicia Heath

    Senior VP of Human Resources

    • Tenure: 0.0yrs

Board Members

  • Robert Alexander (79yo)

    Secretary & Director

    • Tenure: 31.6yrs
    • Compensation: US$74.30k
  • William Clyburn (78yo)

    Director

    • Tenure: 26.6yrs
    • Compensation: US$40.20k
  • Roy Lindburg (58yo)

    President & Director

    • Tenure: 14.6yrs
    • Compensation: US$886.41k
  • Tom Moore (72yo)

    Director

    • Tenure: 29.6yrs
    • Compensation: US$44.69k
  • Tim Simmons (73yo)

    Chairman of the Board

    • Tenure: 7.8yrs
    • Compensation: US$156.48k
  • Frank Thomas (72yo)

    Director

    • Tenure: 11.3yrs
    • Compensation: US$108.40k
  • J. Verenes (63yo)

    CEO & Director

    • Tenure: 7.6yrs
    • Compensation: US$1.22m
  • Harry Weeks (79yo)

    Director

    • Tenure: 8.6yrs
    • Compensation: US$51.30k
  • Richard Harmon (63yo)

    Director

    • Tenure: 6.6yrs
    • Compensation: US$359.82k
  • Jessica Cummins (38yo)

    CFO & Director

    • Tenure: 0.8yrs
    • Compensation: US$6.50k

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$98.285m
  • Shares outstanding: 2.96m
  • 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 Analysis2019/08/19 23:52
End of Day Share Price2019/08/13 00:00
Earnings2019/06/30
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.