Company Overview
CF Bankshares Inc. operates as a bank holding company that provides a comprehensive suite of banking products and services through its subsidiary, CFBank National Association. The firm accepts various deposit instruments, including savings accounts, retail and business checking accounts, money market accounts, and certificates of deposit, while also offering single-family mortgage lending. This institution functions within the Financial Services sector, specifically categorized under the Banks - Regional industry, which typically implies a focus on localized customer bases and community-based lending operations rather than national retail dominance. The company's current market capitalization stands at $180.02M, supported by annual revenue of $52.70M and a workforce of 98 employees. These valuation and revenue figures indicate that the entity functions as a small-cap regional player with a relatively compact balance sheet, suggesting it serves a niche market segment with limited geographic dispersion compared to large national banks.
Financial Health
The company reported trailing twelve-month revenue of $52.70M and net income of $17.00M, while EBITDA data is not available in the provided records. The significant gap between the revenue figure and the net income figure reveals a cost structure where operating expenses consume approximately 66.7% of total revenue, leaving a substantial profit margin after overheads. Unlike many industrial or technology firms, the financial services sector typically reports a gross margin of 0.0%, which reflects the nature of banking where interest income is directly offset by the interest paid on deposits, making the gross margin metric less relevant for assessing core profitability. The company does not report free cash flow figures, which limits the ability to calculate precise cash generation from operations independent of non-cash items, though the substantial cash balance suggests strong liquidity reserves. Operating margin stands at 50.2% and profit margin reaches 33.3%, indicating highly efficient management of operating costs relative to revenue and a robust ability to convert those revenues into bottom-line earnings. The balance sheet holds $260.53M in cash against $125.46M in debt, creating a net cash position that significantly outweighs liabilities, though a specific debt-to-equity ratio is not disclosed. The absence of a reported current ratio prevents a direct assessment of short-term liquidity coverage via current assets to current liabilities, but the net cash position inherently mitigates immediate solvency concerns. Return on Equity is 9.9% and Return on Assets is 0.8%, metrics that reveal management's effectiveness in generating profits for shareholders and utilizing the total asset base, respectively, with the low ROA typical for financial intermediaries where assets are largely loan portfolios and cash reserves.
Valuation Assessment
The trailing twelve-month P/E ratio is 10.28, while the forward P/E is projected at 6.40. The substantial difference between these two metrics implies that the market expects earnings growth to accelerate significantly in the coming year, driving the price-to-earnings multiple down from historical levels to reflect anticipated future profitability. The price-to-book ratio is 0.96, which indicates that the company is trading slightly below its book value, suggesting the market values the firm at a discount relative to the net asset value of its equity. The price-to-sales ratio is 3.42, and since EV/EBITDA is not available, these alternative metrics suggest the market is valuing the company based on its revenue generation capabilities rather than earnings multiples or enterprise value multiples. The stock's 52-week high is $34.34 and the 52-week low is $19.22. Without a specific current price provided in the facts to calculate a precise percentage, the price range defines the volatility envelope within which the stock has traded over the past year. The beta value is 0.39, which indicates that the stock's price volatility is substantially lower than the broader market, meaning the stock is less sensitive to general market movements and may offer a defensive characteristic during market downturns.
Growth & Income
Revenue growth year-over-year is 15.7% and earnings growth year-over-year is 29.4%. These figures indicate that earnings are growing significantly faster than revenue, a dynamic often seen in financial institutions where economies of scale or improved net interest margins drive profitability without a proportional increase in top-line sales. As a dividend payer, the company offers a dividend yield of 1.2% with a payout ratio of 11.1%. This low payout ratio suggests a highly sustainable dividend policy, as the company retains the vast majority of its earnings to reinvest in the business or bolster capital reserves rather than distributing cash to shareholders. The combination of double-digit earnings growth and a minimal payout ratio highlights a strategy focused on capital accumulation and potential future dividend increases rather than current income distribution. Overall, the growth and income profile presents a scenario of accelerating profitability supported by a conservative capital distribution policy that prioritizes financial stability over immediate shareholder payouts.