TFS Financial Corporation (TFSL) Bundle
Understanding TFS Financial Corporation (TFSL) Revenue Streams
Revenue Analysis
TFS Financial Corporation reported total revenue of $222.1 million for the fiscal year 2023, with a detailed breakdown of revenue streams as follows:
Revenue Source | Amount ($) | Percentage |
---|---|---|
Interest Income | $198.5 million | 89.4% |
Non-Interest Income | $23.6 million | 10.6% |
Key revenue performance metrics include:
- Year-over-year revenue growth: 5.3%
- Net interest margin: 2.45%
- Loan interest income: $175.2 million
- Investment securities income: $23.3 million
Segment revenue contribution breakdown:
Business Segment | Revenue Contribution |
---|---|
Residential Lending | 67.8% |
Commercial Lending | 22.5% |
Other Financial Services | 9.7% |
Revenue geographic distribution showed 98.7% concentration in the Midwestern United States market.
A Deep Dive into TFS Financial Corporation (TFSL) Profitability
Profitability Metrics Analysis
The financial performance of the company reveals critical insights into its profitability and operational efficiency.
Profit Margin Breakdown
Profitability Metric | 2023 Value | Year-over-Year Change |
---|---|---|
Gross Profit Margin | 84.6% | +2.3% |
Operating Profit Margin | 32.5% | +1.7% |
Net Profit Margin | 25.4% | +1.2% |
Key Profitability Indicators
- Return on Equity (ROE): 9.7%
- Return on Assets (ROA): 1.3%
- Operating Income: $157.3 million
- Net Income: $124.6 million
Operational Efficiency Metrics
Efficiency Indicator | 2023 Performance |
---|---|
Operating Expense Ratio | 52.1% |
Cost-to-Income Ratio | 47.8% |
Comparative Performance
Industry benchmark comparisons demonstrate competitive positioning across key profitability metrics.
- Gross Margin vs Industry Average: 84.6% vs 79.3%
- Net Profit Margin vs Peer Group: 25.4% vs 22.1%
- Operating Efficiency Ranking: Top Quartile
Debt vs. Equity: How TFS Financial Corporation (TFSL) Finances Its Growth
Debt vs. Equity Structure Analysis
TFS Financial Corporation's financial structure reveals a strategic approach to capital management as of 2024.
Debt Overview
Debt Category | Amount ($) |
---|---|
Total Long-Term Debt | $1,456,789,000 |
Short-Term Debt | $287,456,000 |
Total Debt | $1,744,245,000 |
Debt-to-Equity Metrics
- Debt-to-Equity Ratio: 0.65
- Industry Average Debt-to-Equity Ratio: 0.72
Financing Breakdown
Funding Source | Percentage |
---|---|
Debt Financing | 42% |
Equity Financing | 58% |
Credit Profile
- Credit Rating: BBB+
- Interest Coverage Ratio: 3.45
Recent Debt Activity
Most recent bond issuance: $500,000,000 at 4.75% interest rate in Q4 2023.
Assessing TFS Financial Corporation (TFSL) Liquidity
Liquidity and Solvency Analysis
Liquidity assessment reveals critical financial health indicators for the financial institution.
Current Liquidity Metrics
Liquidity Ratio | Value | Industry Benchmark |
---|---|---|
Current Ratio | 1.75 | 1.50 |
Quick Ratio | 1.42 | 1.35 |
Working Capital Analysis
Working capital trends demonstrate financial flexibility:
- Total Working Capital: $124.6 million
- Year-over-Year Working Capital Growth: 8.3%
- Net Working Capital Ratio: 2.1x
Cash Flow Statement Overview
Cash Flow Category | Amount | Percentage Change |
---|---|---|
Operating Cash Flow | $215.4 million | +6.7% |
Investing Cash Flow | -$87.2 million | -3.2% |
Financing Cash Flow | $42.6 million | +2.9% |
Liquidity Strengths
- Cash and Cash Equivalents: $356.8 million
- Liquid Asset Coverage: 235%
- Short-Term Investment Portfolio: $189.5 million
Potential Liquidity Considerations
- Short-Term Debt Obligations: $76.3 million
- Debt-to-Equity Ratio: 0.65x
- Liquidity Risk Index: Low
Is TFS Financial Corporation (TFSL) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
The valuation analysis for the financial corporation reveals critical insights into its current market positioning and investment potential.
Key Valuation Metrics
Metric | Current Value |
---|---|
Price-to-Earnings (P/E) Ratio | 12.5x |
Price-to-Book (P/B) Ratio | 1.3x |
Enterprise Value/EBITDA | 8.7x |
Dividend Yield | 4.2% |
Stock Price Performance
- 52-week low: $15.43
- 52-week high: $22.76
- Current stock price: $18.95
- Year-to-date performance: +6.7%
Analyst Recommendations
Recommendation | Percentage |
---|---|
Buy | 45% |
Hold | 40% |
Sell | 15% |
Dividend Analysis
Dividend-related metrics indicate a stable income generation strategy:
- Annual dividend per share: $0.80
- Dividend payout ratio: 42%
- Dividend growth rate (3-year average): 3.5%
Key Risks Facing TFS Financial Corporation (TFSL)
Risk Factors
The financial institution faces several critical risk dimensions that could impact its operational and financial performance.
Market and Economic Risks
Risk Category | Potential Impact | Probability |
---|---|---|
Interest Rate Fluctuation | Net Interest Margin Compression | High |
Credit Quality Deterioration | Increased Loan Loss Provisions | Medium |
Regulatory Compliance | Potential Fines/Restrictions | Medium |
Key Operational Risks
- Cybersecurity threats targeting financial infrastructure
- Potential technology system failures
- Competitive pressures in banking sector
- Potential reduction in mortgage origination volumes
Financial Risk Metrics
Critical financial risk indicators include:
- Non-Performing Loan Ratio: 1.2%
- Tier 1 Capital Ratio: 15.6%
- Net Interest Margin: 2.85%
- Loan Loss Reserve: $24.3 million
Regulatory Compliance Risks
Potential regulatory challenges include:
- Basel III capital requirements
- Consumer financial protection regulations
- Anti-money laundering compliance
Future Growth Prospects for TFS Financial Corporation (TFSL)
Growth Opportunities
TFS Financial Corporation's growth strategy focuses on several key areas of potential expansion and strategic development.
Market Expansion Strategy
Growth Metric | Current Status | Projected Growth |
---|---|---|
Total Assets | $18.4 billion | +3.2% projected annual growth |
Loan Portfolio | $14.6 billion | +2.8% expected expansion |
Geographic Presence | Ohio-focused | Potential regional market expansion |
Strategic Growth Initiatives
- Digital banking platform enhancement
- Mortgage lending technology investments
- Community banking service improvements
Financial Performance Drivers
Key growth drivers include:
- Residential mortgage originations: $1.2 billion annual volume
- Net interest margin: 2.75%
- Cost-to-income ratio: 52.3%
Competitive Positioning
Competitive Advantage | Current Strength |
---|---|
Capital Efficiency | 15.6% Tier 1 Capital Ratio |
Deposit Base | $16.3 billion total deposits |
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