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TFS Financial
(NASDAQ:TFSL)
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Rating:66Neutral
Price Target:
$19.50
▲(9.61% Upside)
Action:Reiterated
Date:08/28/26
TFSL scores a 66 primarily due to solid financial momentum (strong revenue growth and improved cash generation) tempered by rising leverage and margin compression. Technicals are supportive but not strong, with a positive trend offset by slightly negative MACD. Valuation remains a notable headwind given the high P/E, while recent dividend-waiver corporate actions are a clear supportive factor for income-focused investors.
Positive Factors
Strong Revenue and Earnings Growth
Strong recent revenue growth, improving profitability, and higher year-to-date net income indicate better operating momentum. Sustained origination and fee activity could support earnings over the next several quarters, although the trend remains sensitive to mortgage demand and funding costs.
Negative Factors
Rising Balance-Sheet Leverage
Higher leverage increases sensitivity to deposit pricing, wholesale funding costs, and credit deterioration. Although leverage is common in banking, its upward trend reduces financial flexibility and could constrain growth or shareholder returns if conditions weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue and Earnings Growth
Strong recent revenue growth, improving profitability, and higher year-to-date net income indicate better operating momentum. Sustained origination and fee activity could support earnings over the next several quarters, although the trend remains sensitive to mortgage demand and funding costs.
Read all positive factors
TFS Financial (TFSL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.03B
Dividend Yield6.31%
Average Volume (3M)814.57K
Price to Earnings (P/E)49.0
Beta (1Y)0.39
Revenue Growth6.03%
EPS Growth23.42%
CountryUS
Employees958
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.37
Shares Outstanding280,442,750
10 Day Avg. Volume721,954
30 Day Avg. Volume814,574
Financial Highlights & Ratios
PEG Ratio2.88
Price to Book (P/B)1.94
Price to Sales (P/S)4.64
P/FCF Ratio51.76
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$19.00Price Target Upside6.80% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)0.34
Revenue Forecast (FY)$345.14M
TFS Financial Business Overview & Revenue Model
Company Description
TFS Financial Corporation delivers a comprehensive array of retail banking solutions to individual consumers across the United States. The company's deposit offerings encompass savings, money market, and checking accounts, in addition to individua...
How the Company Makes Money
TFS Financial primarily makes money through net interest income and, to a lesser extent, noninterest income. (1) Net interest income: The core earnings driver is the spread between interest earned on assets and interest paid on liabilities. On the...
TFS Financial Financial Statement Overview
Summary
Income Statement
73
Positive
Balance Sheet
58
Neutral
Cash Flow
77
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 818.05M | 791.96M | 758.78M | 633.35M | 433.14M | 444.65M |
| Gross Profit | 335.83M | 318.97M | 304.66M | 306.50M | 290.20M | 295.93M |
| EBITDA | 150.55M | 137.76M | 119.35M | 111.48M | 119.09M | 132.66M |
| Net Income | 102.06M | 90.96M | 79.59M | 75.25M | 74.56M | 81.01M |
Balance Sheet | ||||||
| Total Assets | 18.07B | 17.46B | 17.09B | 16.92B | 15.79B | 14.06B |
| Cash, Cash Equivalents and Short-Term Investments | 28.62M | 483.48M | 989.97M | 975.07M | 827.47M | 910.11M |
| Total Debt | 5.81B | 4.90B | 4.82B | 5.30B | 4.82B | 3.13B |
| Total Liabilities | 16.12B | 15.56B | 15.23B | 14.99B | 13.95B | 12.33B |
| Stockholders Equity | 1.96B | 1.89B | 1.86B | 1.93B | 1.84B | 1.73B |
Cash Flow | ||||||
| Free Cash Flow | 86.27M | 70.97M | 85.54M | 85.62M | 36.23M | 81.82M |
| Operating Cash Flow | 97.80M | 82.42M | 88.60M | 90.72M | 38.93M | 83.16M |
| Investing Cash Flow | -571.46M | -383.98M | -124.71M | -1.01B | -1.88B | 547.36M |
| Financing Cash Flow | 590.01M | 267.28M | 33.08M | 1.02B | 1.72B | -640.22M |
TFS Financial Technical Analysis
Positive
17.79
Price Trends
17.70
Positive
16.42
Positive
14.98
Positive
Market Momentum
-0.02
Negative
55.24
Neutral
83.29
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TFSL, the sentiment is Positive. The current price of 17.79 is above the 20-day moving average (MA) of 17.76, above the 50-day MA of 17.70, and above the 200-day MA of 14.98, indicating a bullish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 55.24 is Neutral, neither overbought nor oversold. The STOCH value of 83.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TFSL.
TFS Financial Risk Analysis
TFS Financial disclosed 42 risk factors in its most recent earnings report. TFS Financial 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
TFS Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $5.61B | 8.16 | 11.21% | 3.70% | -0.40% | -1.91% | |
80 Outperform | $4.83B | 17.59 | 14.00% | 2.28% | 9.67% | 9.32% | |
80 Outperform | $5.12B | 12.73 | 9.00% | 2.36% | 56.05% | ― | |
74 Outperform | $5.56B | 11.24 | 16.41% | ― | 12.54% | 13.67% | |
73 Outperform | $4.73B | 14.69 | 17.06% | 1.68% | 3.05% | 28.29% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $5.03B | 49.03 | 5.32% | 6.21% | 6.03% | 23.42% |
* Financial Sector Average
TFSL
TFS Financial
17.91
4.76
36.17%
OZK
Bank OZK
49.44
-1.23
-2.42%
AX
Axos Financial
97.36
6.01
6.58%
FFIN
First Financial Bankshares
33.07
-3.40
-9.32%
SFBS
ServisFirst Bancshares
43.19
-0.15
-0.34%
EBC
Eastern Bankshares
22.41
5.90
35.74%
TFS Financial Corporate Events
Business Operations and StrategyDividends
TFS Financial Declares Quarterly Dividend; MHC Waives Payout
Positive
Aug 27, 2026
On August 27, 2026, TFS Financial Corporation’s board declared a quarterly cash dividend of $0.3175 per share, payable on September 23, 2026, to shareholders of record as of September 9, 2026. Third Federal Savings and Loan Association of Cl...
Business Operations and StrategyDividendsFinancial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
TFS Financial Reports Record Earnings and Dividend Waiver
Positive
Jul 30, 2026
On July 30, 2026, Third Federal’s mutual holding company received Federal Reserve non‑objection and member approval to waive dividends of up to $1.27 per share on its 81% stake in TFS Financial over the 12 months ending July 7, 2027, f...
Business Operations and StrategyDividendsRegulatory Filings and ComplianceShareholder Meetings
TFS Financial MHC Approves Dividend Waiver Plan
Neutral
Jul 7, 2026
At a special meeting held on July 7, 2026, members of Third Federal Savings and Loan Association of Cleveland, MHC, approved a plan for the mutual holding company to waive dividends of up to $1.27 per share on TFS Financial Corporation’s com...
Business Operations and StrategyExecutive/Board ChangesDividends
TFS Financial Announces Director Retirement and Board Reduction
Positive
May 28, 2026
On May 28, 2026, TFS Financial announced that long-serving director Meredith S. Weil would retire from the Board of Directors effective that day and that her seat would not be filled. The board simultaneously amended the company’s bylaws to ...
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.