Security Federal (SFDL) AI Stock Analysis

• Market Cap: $97.07M
• Dividend Yield: 2.26%
• Average Volume (3M): 234.00
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.31
• Revenue Growth: 4.55%
• EPS Growth: 19.36%
• Country: US
• Employees: 258
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.01
• Shares Outstanding: 3,123,691
• 10 Day Avg. Volume: 135
• 30 Day Avg. Volume: 234
• PEG Ratio: -0.75
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 1.72
• P/FCF Ratio: 3.39
• Enterprise Value/Market Cap: 0.80
• Enterprise Value/Revenue: 0.90
• Enterprise Value/Gross Profit: 1.23
• Enterprise Value/Ebitda: 4.43
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: $35.00 ▲(12.25% Upside)

Security Federal's stock score is primarily driven by its strong financial performance and attractive valuation. The company's robust revenue growth and stable balance sheet provide a solid foundation, while the low P/E ratio and reasonable dividend yield enhance its investment appeal. Technical indicators suggest a neutral trend, with potential for upward movement.

Security Federal Business Overview & Revenue Model

Company Description

Security Federal Corporation operates as the bank holding company for Security Federal Bank that provides various banking products and services. It accepts various deposit products, such as savings accounts, checking accounts, various money market accounts, fixed interest rate certificates, negotiated rate jumbo certificates of deposit, and individual retirement accounts. The company also originates commercial real estate loans, commercial business loans, and consumer loans, as well as mortgage loans to buy or refinance one-to-four family residential real estate; and construction loans on single-family residences, multi-family dwellings and projects, and commercial real estate. In addition, it provides loans for the acquisition, development, and construction of residential subdivisions and commercial projects. Further, the company offers trust, financial planning, and financial management services; and operates an insurance agency that offers auto, business, life, health, and home insurance products, as well as provides insurance premium financing services. Additionally, it invests in various types of liquid assets, including U.S. Treasury obligations and securities of various federal agencies, certificates of deposit at insured institutions, mutual funds, bankers' acceptances and federal funds, as well as commercial paper and corporate debt securities. As of February 8, 2021, the company operated 17 full-service branch offices in Aiken, Ballentine, Clearwater, Columbia, Graniteville, Langley, Lexington, North Augusta, Ridge Spring, Wagener, and West Columbia, South Carolina; and Augusta and Evans, Georgia. Security Federal Corporation was founded in 1922 and is headquartered in Aiken, South Carolina.

How the Company Makes Money

Security Federal generates revenue primarily through interest income from loans and fees associated with various banking services. Key revenue streams include interest earned on personal, commercial, and mortgage loans, which typically represent a significant portion of the company's income. Additionally, SFDL collects fees from account maintenance, transaction services, and wealth management offerings. The company may also engage in partnerships with other financial institutions or technology providers to enhance its service offerings and improve operational efficiency, contributing to its overall profitability. Furthermore, SFDL could benefit from cross-selling opportunities among its client base, increasing its earnings through bundled services.

Security Federal Financial Statement Overview

Summary

Security Federal demonstrates strong financial health with robust revenue growth and a stable balance sheet. While profitability margins have faced some pressure, the company's cash flow generation remains solid. The low leverage and strong equity position provide a stable foundation for future growth, though attention to operational efficiency and cost management is advisable.

Income Statement

Security Federal shows a strong revenue growth trajectory, with a notable TTM revenue growth rate of 72.7%. The gross profit margin remains robust, indicating efficient cost management. However, the net profit margin has decreased from previous years, suggesting rising costs or other financial pressures. EBIT and EBITDA margins have also declined, reflecting potential challenges in operational efficiency.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.21 in the TTM period, indicating strong financial stability. Return on equity is moderate, reflecting consistent profitability. The equity ratio suggests a solid capital structure, providing a buffer against potential financial downturns.

Cash Flow

Free cash flow has grown significantly by 45.1% in the TTM period, highlighting improved cash generation capabilities. However, the operating cash flow to net income ratio is relatively low, indicating potential challenges in converting income into cash. The free cash flow to net income ratio remains strong, suggesting efficient cash utilization.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	85.53M	50.52M	48.39M	47.16M	45.93M	48.00M
Gross Profit	62.62M	50.70M	48.39M	47.16M	45.93M	41.94M
EBITDA	17.41M	15.11M	12.04M	15.29M	14.46M	10.88M
Net Income	11.62M	9.81M	10.19M	10.23M	12.77M	7.05M
Balance Sheet
Total Assets	1.63B	1.61B	1.55B	1.38B	1.30B	1.17B
Cash, Cash Equivalents and Short-Term Investments	312.35M	259.05M	177.77M	579.75M	710.47M	607.83M
Total Debt	40.86M	43.92M	52.28M	61.15M	64.23M	85.65M
Total Liabilities	1.43B	1.43B	1.38B	1.22B	1.19B	1.06B
Stockholders Equity	191.28M	182.39M	172.36M	160.23M	115.52M	111.91M
Cash Flow
Free Cash Flow	21.61M	25.67M	6.00M	17.18M	12.01M	11.71M
Operating Cash Flow	24.90M	28.43M	8.86M	21.87M	19.28M	9.36M
Investing Cash Flow	-76.34M	-26.68M	-58.48M	-136.97M	-136.09M	-196.24M
Financing Cash Flow	63.81M	48.24M	149.41M	115.98M	126.40M	192.37M

Security Federal Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 31.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SFDL, the sentiment is Positive. The current price of 31.18 is above the 20-day moving average (MA) of 31.14, above the 50-day MA of 31.09, and above the 200-day MA of 29.79, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 51.87 is Neutral, neither overbought nor oversold. The STOCH value of 67.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SFDL.

Security Federal Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SFDL	―	$97.07M	9.94	6.33%	2.26%	4.55%	19.36%
IROQ	―	$86.54M	18.73	5.53%	1.56%	6.61%	139.05%
AUBN	―	$89.65M	12.90	8.22%	4.09%	16.08%	739.42%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
LSBK	―	$106.82M	15.27	5.94%	2.66%	2.48%	66.28%
CFSB	―	$92.53M	―	-0.35%	―	11.64%	-913.46%
PBHC	―	$92.68M	162.27	2.33%	2.64%	8.19%	―

Security Federal Corporate Events

Security Federal Announces Deregistration of Common Stock

On August 21, 2025, Security Federal Corporation announced its decision to deregister its common stock with the SEC, citing the high costs and regulatory burdens of compliance. The company plans to file a Form 15 by December 31, 2025, which will suspend its obligation to file periodic reports, although it will continue to provide stockholders with annual and quarterly financial information.

The most recent analyst rating on (SFDL) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on Security Federal stock, see the SFDL Stock Forecast page.