Sound Financial Bancorp (SFBC) AI Stock Analysis

• Market Cap: $120.61M
• Dividend Yield: 1.62%
• Average Volume (3M): 4.48K
• Price to Earnings (P/E): 19.1
• Beta (1Y): 0.24
• Revenue Growth: 7.86%
• EPS Growth: 59.25%
• Country: US
• Employees: 108
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.79
• Shares Outstanding: 2,566,069
• 10 Day Avg. Volume: 4,343
• 30 Day Avg. Volume: 4,478
• PEG Ratio: -0.69
• Price to Book (P/B): 1.29
• Price to Sales (P/S): 2.16
• P/FCF Ratio: 46.88
• Enterprise Value/Market Cap: 0.47
• Enterprise Value/Revenue: 0.92
• Enterprise Value/Gross Profit: 1.56
• Enterprise Value/Ebitda: 7.38
• 1Y Price Target: $51.00
• Price Target Upside: 8.51% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: $51.00 ▲(8.51% Upside)

Sound Financial Bancorp's overall stock score is driven by its strong financial performance, despite some concerns about rising debt levels. The technical analysis suggests a neutral trend, and the valuation indicates the stock is fairly valued but not particularly attractive for dividend investors.

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 strong revenue growth and stable profitability, with a robust balance sheet. However, rising debt levels and inconsistent cash flow growth require careful monitoring.

Income Statement

Sound Financial Bancorp has demonstrated strong revenue growth with a significant increase from 2022 to 2023. Gross profit margins and net profit margins have been stable, indicating effective cost management. The EBIT and EBITDA margins show consistent profitability, although there has been a slight decline in EBIT margin over the years.

Balance Sheet

The company's balance sheet is robust with a healthy equity ratio, indicating sound financial stability. However, a noticeable increase in debt levels in recent periods could pose a risk if not managed carefully. The debt-to-equity ratio remains reasonable, and the return on equity is commendable, reflecting efficient use of equity capital.

Cash Flow

Cash flow generation is solid with positive free cash flow, albeit with some fluctuations over the years. The operating cash flow to net income ratio suggests that earnings are backed by cash flows. The free cash flow growth has been inconsistent, indicating potential volatility in future cash availability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	62.01M	62.06M	55.60M	44.38M	41.22M	42.38M
Gross Profit	36.58M	35.69M	39.12M	38.72M	36.84M	34.00M
EBITDA	7.72M	7.22M	10.65M	12.47M	13.02M	13.15M
Net Income	5.04M	4.64M	7.44M	8.80M	9.16M	8.94M
Balance Sheet
Total Assets	1.07B	993.63M	995.22M	976.35M	919.69M	861.40M
Cash, Cash Equivalents and Short-Term Investments	139.18M	51.43M	57.98M	68.04M	192.01M	204.05M
Total Debt	40.60M	40.77M	56.54M	60.12M	17.88M	18.73M
Total Liabilities	964.75M	889.97M	894.57M	878.65M	826.33M	775.92M
Stockholders Equity	104.43M	103.67M	100.65M	97.70M	93.36M	85.48M
Cash Flow
Free Cash Flow	2.77M	2.86M	6.44M	9.66M	18.85M	-891.00K
Operating Cash Flow	1.26M	2.93M	6.89M	10.05M	19.07M	-484.00K
Investing Cash Flow	15.08M	-3.94M	-26.32M	-183.79M	-78.11M	4.50M
Financing Cash Flow	-22.83M	-5.04M	11.29M	47.98M	48.63M	134.05M

Sound Financial Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 47.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SFBC, the sentiment is Positive. The current price of 47 is above the 20-day moving average (MA) of 46.97, above the 50-day MA of 46.52, and below the 200-day MA of 49.52, indicating a neutral trend. The MACD of -0.23 indicates Positive momentum. The RSI at 52.71 is Neutral, neither overbought nor oversold. The STOCH value of 43.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SFBC.

Sound Financial Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UBFO	75 Outperform	171.97M	14.96	8.32%	4.88%	-1.42%	-37.11%
EBMT	75 Outperform	139.88M	10.99	6.99%	3.25%	6.74%	49.28%
UNB	74 Outperform	119.56M	12.86	13.18%	5.48%	11.90%	-8.37%
CZWI	73 Outperform	164.14M	13.48	7.68%	2.16%	-0.96%	-7.38%
CFBK	67 Neutral	157.32M	8.78	10.13%	1.19%	3.76%	38.14%
SFBC	67 Neutral	$120.61M	19.12	6.07%	1.62%	7.86%	59.25%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Sound Financial Bancorp Corporate Events

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.