Capitol Federal Financial

CFFN

Market cap $786M

Capitol Federal Financial remains a soft "Buy" due to its significant discount to book value and improving revenue and profit trends. Despite underperforming the S&P 500 and disappointing asset quality metrics, management's digital initiatives are driving deposit and loan growth. The bank's price-to-earnings ratio is slightly above my ideal threshold, but it's still cheaper than most peers on book value metrics.

TOPEKA, Kan.--(BUSINESS WIRE)--Capitol Federal Financial, Inc.® Reports Third Quarter Fiscal Year 2025 Results.

TOPEKA, Kan.--(BUSINESS WIRE)--Capitol Federal Financial, Inc.® Announces Quarterly Dividend.

Capitol Federal Financial, Inc.'s stock remains a soft Buy due to its low price to book and tangible book multiples, despite high P/E ratio and low asset quality. Recent financial performance has been positive, with net interest income and non-interest income showing significant improvements, boosting overall profitability. The company's balance sheet is strengthening, with growing deposits, increased securities and cash, and a reduction in debt.

Capitol Federal (CFFN) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.

Capitol Federal Financial (CFFN) came out with quarterly earnings of $0.12 per share, beating the Zacks Consensus Estimate of $0.11 per share. This compares to earnings of $0.11 per share a year ago.

TOPEKA, Kan.--(BUSINESS WIRE)--Capitol Federal Financial, Inc.® Reports Second Quarter Fiscal Year 2025 Results.

TOPEKA, Kan.--(BUSINESS WIRE)--Capitol Federal Financial, Inc.® Announces Quarterly Dividend.

The margin will likely continue to grow because more liabilities than assets are scheduled to re-price downward over the next twelve months. I'm not as optimistic anymore about residential mortgage demand as I was previously. The Mortgage Bankers Association has also reduced its estimates for 2025. Nevertheless, the housing market is good enough to keep loan growth near the historical norm.

Capitol Federal (CFFN) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.