Security Federal (SFDL) AI Stock Analysis

28 Followers

Security Federal

(Other OTC:SFDL)

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Rating:72Outperform

Price Target:$52.00▲(8.79% Upside)

Action:reiterated

Date:11/07/26

The company's fortress-like balance sheet with minimal debt is the most significant strength, providing a high degree of financial stability. This is complemented by an attractive valuation with a low P/E ratio and a healthy dividend yield. The stock's technical trend is positive, trading above all major moving averages. The primary factor limiting a higher score is the historical volatility in profitability margins, which introduces some uncertainty into future earnings consistency.

Positive Factors

Revenue and Profit GrowthStrong revenue expansion through 2025, combined with materially improved net and EBIT margins, indicates healthier operating performance and growing earnings capacity. If sustained, this provides greater internal funding for lending growth, technology, and customer acquisition over the next several quarters.

Negative Factors

Low Capital EfficiencyRecent mid-single-digit returns on equity show that the company is generating less profit from its capital base than during its 2021 peak. Unless returns improve, lower capital efficiency may constrain earnings compounding and weaken the bank’s ability to create value from balance-sheet growth.

Security Federal (SFDL) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $145.38M
Dividend Yield: 2.13%
Average Volume (3M): 3,495
Price to Earnings (P/E): 10.2
Beta (1Y): 0.21
Revenue Growth: 0.39%
EPS Growth: 30.97%
Country: US
Employees: 258
Sector: Financial
Sector Strength: 68
Industry: Banks - Regional

Security Federal Business Overview & Revenue Model

Company Description

Security Federal Corporation acts as the holding company for Security Federal Bank, offering a comprehensive array of financial products and services. The institution provides a variety of deposit options, including savings, checking, and money marke...

How the Company Makes Money

Security Federal primarily makes money through (1) net interest income and (2) noninterest income. Net interest income is earned from the spread between interest and fees collected on loans and interest paid on funding sources such as customer deposi...

Security Federal Financial Statement Overview

Summary

The balance sheet is exceptionally strong with near-zero debt and growing equity, providing a solid foundation. Income and cash flow show growth and healthy earnings quality, though some volatility in profit margins prevents a higher score.

Income Statement

65Positive

Balance Sheet

85Very Positive

Cash Flow

68Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	90.88M	90.14M	85.99M	72.93M	50.92M	48.55M
Gross Profit	63.76M	58.93M	49.15M	46.96M	45.90M	47.13M
EBITDA	20.41M	22.64M	15.11M	15.08M	15.29M	18.62M
Net Income	15.91M	13.67M	9.81M	10.19M	10.23M	12.77M
Balance Sheet
Total Assets	1.62B	1.62B	1.61B	1.55B	1.38B	1.30B
Cash, Cash Equivalents and Short-Term Investments	0	66.42M	259.05M	177.77M	579.75M	711.57M
Total Debt	26.68M	36.31M	43.92M	52.28M	61.15M	64.23M
Total Liabilities	1.42B	1.42B	1.43B	1.38B	1.22B	1.19B
Stockholders Equity	200.03M	200.46M	182.39M	172.36M	160.23M	115.52M
Cash Flow
Free Cash Flow	-7.17M	8.80M	25.67M	6.00M	17.18M	17.13M
Operating Cash Flow	2.76M	14.38M	28.43M	8.86M	21.87M	19.28M
Investing Cash Flow	19.44M	-101.26M	-26.68M	-58.48M	-136.97M	-136.09M
Financing Cash Flow	1.33M	-16.06M	48.24M	149.41M	115.98M	126.40M

Security Federal Technical Analysis

Technical Analysis SentimentPositive

Last Price47.80

Price Trends

50DMA45.63Positive

100DMA43.48Positive

200DMA39.38Positive

Market Momentum

MACD0.59Positive

RSI63.23Neutral

STOCH50.07Neutral

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 47.80 is above the 20-day moving average (MA) of 46.94, above the 50-day MA of 45.63, and above the 200-day MA of 39.38, indicating a bullish trend. The MACD of 0.59 indicates Positive momentum. The RSI at 63.23 is Neutral, neither overbought nor oversold. The STOCH value of 50.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SFDL.

Security Federal Risk Analysis

Security Federal disclosed 23 risk factors in its most recent earnings report. Security Federal 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

3 New Risks

1.Deregistration may reduce liquidity, marketability, and investor access to information about the Company.Q4, 2025

2.Risk FactorsQ2, 2025

3.Risk FactorsQ3, 2024

Security Federal Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

SFDL against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LSBK	79Outperform	$146.57M	16.93	5.85%	1.90%	4.31%	24.65%
AUBN	73Outperform	$90.22M	10.20	9.42%	4.25%	4.68%	21.56%
SFDL	72Outperform	$148.23M	10.24	7.88%	2.13%	0.39%	30.97%
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PBHC	58Neutral	$104.85M	-42.33	0.08%	2.38%	-6.61%	-78.36%

* Financial Sector Average

Performance Comparison

SFDL and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
SFDL	Security Federal Corporation	47.80	17.45	57.48%
AUBN	Auburn National Bancorporation	25.41	1.26	5.23%
LSBK	Lake Shore Bancorp	18.96	5.01	35.88%
PBHC	Pathfinder	17.05	2.64	18.29%

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: Nov 07, 2026

Security Federal AI Stock Analysis