Sound Financial Bancorp (SFBC) AI Stock Analysis

• Market Cap: $114.55M
• Dividend Yield: 1.73%
• Average Volume (3M): 5.30K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.22
• Revenue Growth: 2.85%
• EPS Growth: 73.57%
• Country: US
• Employees: 108
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.98
• Shares Outstanding: 2,566,069
• 10 Day Avg. Volume: 5,563
• 30 Day Avg. Volume: 5,296
• PEG Ratio: -0.77
• Price to Book (P/B): 1.29
• Price to Sales (P/S): 2.16
• P/FCF Ratio: 46.88
• Enterprise Value/Market Cap: 0.50
• Enterprise Value/Revenue: 0.91
• Enterprise Value/Gross Profit: 1.50
• Enterprise Value/Ebitda: 6.16
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 63 Neutral
• Price Target: $49.00 ▲(10.86% Upside)

Sound Financial Bancorp's overall stock score is driven by its solid financial performance, characterized by consistent revenue growth and a stable balance sheet. However, technical analysis indicates a bearish trend, which weighs down the score. The valuation is moderate, providing some support to the stock's attractiveness. The absence of earnings call data and corporate events means these factors do not influence the score.

Sound Financial Bancorp Business Overview & Revenue Model

Company Description

Sound Financial Bancorp, Inc. operates as the bank holding company for Sound Community Bank that provides banking and other financial services for consumers and businesses. It accepts various deposits products comprising savings, money market deposit, NOW, and demand accounts, as well as certificates of deposit. The company also offers loans secured by first and second mortgages on one-to four-family residences; home equity loans, including fixed-rate loans and variable-rate lines of credit; commercial and multifamily real estate loans; construction loans secured by single-family residences, and commercial and multifamily real estate; land loans; commercial business loans to finance commercial vehicles and equipment, as well as loans secured by accounts receivable and/or inventory; and secured and unsecured consumer loans, such as new and used manufactured homes, floating homes, automobiles, boats, and recreational vehicle loans, and loans secured by deposit accounts. It operates eight branch offices, including four branches in Seattle Metropolitan Statistical Area, three branches in Clallam County, and one branch in Jefferson County; and a loan production office in the Madison Park neighborhood of Seattle. The company was founded in 1953 and is headquartered in Seattle, Washington.

How the Company Makes Money

Sound Financial Bancorp generates revenue primarily through interest income from its loan portfolio, which includes residential mortgages, commercial loans, and consumer loans. The company also earns revenue from fees associated with deposit accounts and various banking services. Additionally, SFBC may generate income from investment securities and other financial products. Key revenue streams include net interest income, which is the difference between interest earned on loans and interest paid on deposits, as well as non-interest income from service fees and commissions. Partnerships with local businesses and community organizations enhance customer acquisition and retention, contributing to its overall earnings.

Sound Financial Bancorp Financial Statement Overview

Summary

Sound Financial Bancorp demonstrates a solid financial position with consistent revenue growth and improving operational efficiency. The balance sheet reflects a stable leverage position and strong equity base, while cash flow generation has shown significant improvement. However, attention should be given to maintaining profitability margins and ensuring that net income effectively translates into free cash flow.

Income Statement

Sound Financial Bancorp has shown consistent revenue growth with a TTM revenue growth rate of 1.3%. The gross profit margin has remained strong at 60.6% in the TTM period, indicating efficient cost management. However, the net profit margin has decreased over time, currently at 10.0% in the TTM, which suggests rising costs or other financial pressures. The EBIT and EBITDA margins have improved in the TTM, reflecting better operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.39 in the TTM, indicating a stable leverage position. Return on equity has increased to 6.0% in the TTM, showing improved profitability relative to shareholder equity. The equity ratio remains strong, suggesting a solid capital structure. However, the company should continue to monitor its debt levels to maintain financial stability.

Cash Flow

Free cash flow growth has been substantial at 67.9% in the TTM, indicating improved cash generation. The operating cash flow to net income ratio is healthy at 1.14, suggesting good cash conversion. However, the free cash flow to net income ratio is slightly below 1, indicating that not all net income is translating into free cash flow. Continued focus on cash flow management is essential.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	62.82M	62.06M	55.60M	44.38M	41.22M	42.38M
Gross Profit	38.05M	35.69M	39.12M	38.72M	36.84M	34.00M
EBITDA	9.26M	7.22M	10.65M	12.47M	13.02M	13.15M
Net Income	6.29M	4.64M	7.44M	8.80M	9.16M	8.94M
Balance Sheet
Total Assets	1.06B	993.63M	995.22M	976.35M	919.69M	861.40M
Cash, Cash Equivalents and Short-Term Investments	110.06M	51.43M	57.98M	68.04M	192.01M	204.05M
Total Debt	40.99M	40.77M	56.54M	60.12M	17.88M	18.73M
Total Liabilities	952.24M	889.97M	894.57M	878.65M	826.33M	775.92M
Stockholders Equity	106.00M	103.67M	100.65M	97.70M	93.36M	85.48M
Cash Flow
Free Cash Flow	4.66M	2.86M	6.44M	9.66M	18.85M	-891.00K
Operating Cash Flow	4.79M	2.93M	6.89M	10.05M	19.07M	-484.00K
Investing Cash Flow	-13.80M	-3.94M	-26.32M	-183.79M	-78.11M	4.50M
Financing Cash Flow	-23.55M	-5.04M	11.29M	47.98M	48.63M	134.05M

Sound Financial Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 44.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SFBC, the sentiment is Negative. The current price of 44.2 is below the 20-day moving average (MA) of 45.38, below the 50-day MA of 46.23, and below the 200-day MA of 48.45, indicating a bearish trend. The MACD of -0.50 indicates Positive momentum. The RSI at 35.93 is Neutral, neither overbought nor oversold. The STOCH value of 6.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SFBC.

Sound Financial Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SBFG	―	$123.83M	10.71	9.23%	3.02%	9.87%	2.62%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SFBC	―	$114.55M	11.26	6.52%	1.73%	2.85%	73.57%
AFBI	―	$117.98M	16.22	5.95%	―	5.18%	36.12%
UNB	―	$103.86M	10.91	―	6.36%	14.58%	7.73%
SRBK	―	$116.02M	23.73	1.91%	1.02%	26.46%	―
BSBK	―	$112.65M	―	-0.25%	―	-12.23%	83.58%

Sound Financial Bancorp Corporate Events

Sound Financial Bancorp Announces Leadership Transition

On September 18, 2025, Sound Financial Bancorp announced a leadership transition effective October 1, 2025, with Laura Lee Stewart stepping down as President but continuing as CEO, and Wesley Ochs being appointed as President while retaining his role as CFO. This transition, part of the Board’s succession planning, aims to ensure continuity in the bank’s strategic objectives, leveraging Ochs’ extensive banking experience and Stewart’s long-term leadership.

The most recent analyst rating on (SFBC) stock is a Hold with a $51.00 price target. To see the full list of analyst forecasts on Sound Financial Bancorp stock, see the SFBC Stock Forecast page.

Sound Financial Bancorp Reports Strong Q2 2025 Earnings

Sound Financial Bancorp, Inc., headquartered in Seattle, Washington, operates as the holding company for Sound Community Bank, offering a range of banking services through its branches across the state. The bank is a Fannie Mae Approved Lender and Seller/Servicer, with a focus on community banking and personalized financial solutions.

Sound Financial Bancorp Announces Cash Dividend

On July 29, 2025, Sound Financial Bancorp announced a cash dividend of $0.19 per share, payable on August 25, 2025, reflecting its strong financial performance. The company reported a significant increase in net income to $2.1 million for Q2 2025, up from $1.2 million in Q1 2025, driven by improved credit quality and net interest income. Despite economic uncertainties, the company achieved a 2% growth in its loan portfolio and reduced nonperforming loans by 65.1%, enhancing its financial stability and market position.