Kentucky First Federal Bancorp (KFFB) AI Stock Analysis

Kentucky First Federal Bancorp

(NASDAQ:KFFB)

Select Model

Rating:54Neutral

Price Target:$6.00▲(8.40% Upside)

Action:reiterated

Date:10/02/26

KFFB scores in the below-average range, driven primarily by weak profitability: despite a rebound to $1.9 million in net income, return on equity remains just 3.8%, margins are compressed by funding costs, and the asset base is shrinking amid a multi-year record of erratic earnings and cash flow. Strong capitalization, with equity at about 14% of assets and reduced leverage, is the main offset. Technicals are the brightest spot, as the stock trades comfortably above its 100- and 200-day averages, though near-term momentum has flattened. Valuation is a drag at roughly 24x earnings with a sub-1% yield, while the MHC dividend waiver provides a modest shareholder-friendly positive.

Positive Factors

Revenue and Profit RecoveryThe rebound in revenue and profitability indicates improving operating performance and renewed earnings capacity. If maintained, stronger sales and a recovered margin can support internal reinvestment, resilience, and more dependable results over the coming quarters.

Negative Factors

Volatile Earnings HistoryThe movement from solid profits to a loss and then a recovery shows that earnings power has not yet demonstrated consistent durability. Such volatility can complicate capital planning and makes future profitability more sensitive to changes in banking conditions.

Kentucky First Federal Bancorp (KFFB) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $43.18M
Dividend Yield: 0.94%
Average Volume (3M): 8,854
Price to Earnings (P/E): 22.6
Beta (1Y): 0.28
Revenue Growth: 8.69%
EPS Growth: 958.30%
Country: US
Employees: 57
Sector: Financial
Sector Strength: 68
Industry: Banks - Regional

Kentucky First Federal Bancorp Business Overview & Revenue Model

Company Description

Kentucky First Federal Bancorp (KFFB) serves as the holding company for two financial institutions: First Federal Savings and Loan Association of Hazard, and Frankfort First Bancorp, Inc. Together, these subsidiaries deliver a variety of banking prod...

How the Company Makes Money

KFFB primarily makes money through its banking subsidiary by earning net interest income: it pays interest (and incurs funding costs) on customer deposits and other borrowings, and earns interest on loans and interest-bearing securities; the spread b...

Kentucky First Federal Bancorp Financial Statement Overview

Summary

Fiscal 2026 marked a meaningful recovery: revenue rose about 9% to $21.4 million and net income rebounded to $1.9 million after a $1.7 million loss two years prior, while operating cash flow turned positive at $1.2 million. The balance sheet is the clear strength, with equity near 14% of total assets and borrowings reduced to roughly 1x equity. However, return on equity remains thin at 3.8%, margins are well below historical levels due to elevated funding costs, the asset base has contracted for three straight years, and earnings and cash flow have been highly volatile, leaving the turnaround unproven.

Income Statement

46Neutral

Balance Sheet

60Neutral

Cash Flow

45Neutral

Financial statement breakdown
Breakdown	TTM	Jun 2026	Jun 2025	Jun 2024	Jun 2023	Jun 2022
Income Statement
Total Revenue	21.42M	21.42M	19.65M	16.53M	13.05M	11.43M
Gross Profit	11.50M	11.50M	8.71M	7.22M	9.04M	9.73M
EBITDA	2.71M	2.65M	439.00K	-1.73M	1.48M	2.35M
Net Income	1.91M	1.91M	181.00K	-1.72M	933.00K	1.59M
Balance Sheet
Total Assets	362.40M	362.40M	372.16M	374.97M	349.02M	328.08M
Cash, Cash Equivalents and Short-Term Investments	16.48M	16.48M	10.92M	27.23M	19.58M	21.48M
Total Debt	48.59M	48.59M	42.76M	68.99M	70.09M	34.07M
Total Liabilities	312.10M	312.10M	323.79M	326.97M	298.31M	276.06M
Stockholders Equity	50.29M	50.29M	48.37M	48.00M	50.71M	52.02M
Cash Flow
Free Cash Flow	1.11M	1.11M	-235.00K	-1.52M	1.02M	2.49M
Operating Cash Flow	1.25M	1.25M	-86.00K	-1.45M	1.15M	2.64M
Investing Cash Flow	6.55M	6.55M	6.12M	-16.60M	-39.48M	13.33M
Financing Cash Flow	-10.79M	-10.79M	-4.84M	28.18M	20.68M	-11.80M

Kentucky First Federal Bancorp Technical Analysis

Technical Analysis SentimentNegative

Last Price5.54

Price Trends

50DMA5.66Negative

100DMA5.39Negative

200DMA4.96Positive

Market Momentum

MACD-0.09Positive

RSI44.51Neutral

STOCH47.41Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KFFB, the sentiment is Negative. The current price of 5.54 is above the 20-day moving average (MA) of 5.50, below the 50-day MA of 5.66, and above the 200-day MA of 4.96, indicating a neutral trend. The MACD of -0.09 indicates Positive momentum. The RSI at 44.51 is Neutral, neither overbought nor oversold. The STOCH value of 47.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KFFB.

Kentucky First Federal Bancorp Risk Analysis

Kentucky First Federal Bancorp disclosed 27 risk factors in its most recent earnings report. Kentucky First Federal Bancorp reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

Kentucky First Federal Bancorp Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

KFFB against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPHC	83Outperform	$115.50M	5.29	16.39%	―	24.01%	20.16%
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
HFBL	64Neutral	$69.25M	10.68	11.12%	2.49%	7.94%	43.98%
KFFB	54Neutral	$43.18M	22.64	3.86%	0.94%	8.69%	958.30%
BAFN	52Neutral	$156.38M	-0.55	-42.84%	―	-40.59%	-260.03%
GLBZ	52Neutral	$12.19M	-154.13	-0.39%	―	17.13%	-395.56%

* Financial Sector Average

Performance Comparison

KFFB and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
KFFB	Kentucky First Federal	5.34	1.39	35.12%
GLBZ	Glen Burnie	4.17	-0.52	-10.98%
HFBL	Home Federal Bancorp Inc. Of Louisiana	22.85	7.29	46.89%
OPHC	Optimumbank	9.15	5.13	127.61%
BAFN	BayFirst Financial Corp	5.80	-2.85	-32.95%
MBBC	Marathon Bancorp, Inc.	14.44	3.54	32.43%

Kentucky First Federal Bancorp Corporate Events

Business Operations and StrategyDividendsShareholder Meetings

Kentucky First Federal Bancorp Announces Dividend Waiver Decision

Positive

Jul 29, 2026

On July 28, 2026, Kentucky First Federal Bancorp said members of First Federal MHC voted to waive the mutual holding company’s right to receive up to $0.40 per share in quarterly dividends declared by Kentucky First over the next 12 months. Fir...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 01, 2026

Kentucky First Federal Bancorp AI Stock Analysis