Company Overview
Capitol Federal Financial, Inc. functions as the holding company for Capitol Federal Savings Bank, a regional institution that delivers various retail banking products and services throughout the United States. The company operates within the Financial Services sector, specifically the Banks - Regional industry, positioning it as a localized provider focused on deposit products such as savings accounts, money market accounts, and interest-bearing accounts. Its operational scale is defined by a market capitalization of $909.55M, annual revenue of $209.74M, and an employee count of 604. These valuation and revenue figures indicate that the company holds a modest position within the broader banking landscape, reflecting its status as a mid-sized regional entity rather than a national powerhouse. The relatively small workforce of 604 employees suggests a lean operational structure typical of regional banks that prioritize cost efficiency while serving specific geographic markets.
Financial Health
The company reported a trailing twelve-month revenue of $209.74M and net income of $72.81M, while EBITDA data is not disclosed in the available records. The significant gap between total revenue of $209.74M and net income of $72.81M reveals a cost structure heavily influenced by the nature of banking operations, where the cost of funds and operating expenses absorb a substantial portion of top-line growth before reaching the bottom line. Regarding liquidity generation, free cash flow figures are not provided in the current dataset, which limits the ability to assess immediate cash generation flexibility from operational activities alone. The company's profitability is highlighted by an operating margin of 47.3%, indicating efficient core banking operations, a gross margin of 0.0% which is standard for financial institutions due to the direct pass-through of deposit costs, and a profit margin of 34.8% reflecting strong bottom-line retention relative to sales. On the liability side, the company holds $233.40M in cash against $1.83B in debt, while the debt-to-equity ratio is not disclosed, suggesting a leveraged balance sheet typical for banks that utilize debt to fund lending activities. Although the current ratio is not available, the cash position relative to debt provides a snapshot of short-term liquid assets available to meet obligations. Return on Equity stands at 7.0% and Return on Assets is 0.8%, metrics that reveal management's effectiveness in generating returns on shareholder capital and utilizing total assets, respectively, within the context of a highly regulated and capital-intensive industry.
Valuation Assessment
The stock carries a trailing P/E ratio of 12.36 and a forward P/E of 9.54, implying that the market expects earnings to grow faster than current levels, as the forward multiple is significantly lower than the trailing one. The price-to-book ratio is 0.85, indicating that the company's market value trades below its book value, which often suggests the market is pricing in potential challenges or viewing the bank's asset quality conservatively. Alternative valuation metrics include a price-to-sales ratio of 4.34 and an EV/EBITDA of N/A, suggesting that investors are valuing the entity primarily on its sales generation capability rather than earnings multiples or enterprise value multiples. The 52-week trading range spans from a low of $4.90 to a high of $7.84, providing a context for current pricing volatility within the last year. Without the specific current stock price in the provided facts, the exact percentage deviation from the 52-week high or low cannot be calculated, but the range itself defines the historical price bounds for the asset. The beta is 0.67, which indicates that the stock exhibits lower price volatility relative to the broader market, moving roughly two-thirds as much as the overall market index during periods of fluctuation.
Growth & Income
Revenue growth stands at 20.4% year-over-year while earnings growth reaches 32.6% year-over-year, demonstrating that earnings are expanding at a significantly faster pace than revenue, which typically implies improving operational leverage or efficiency gains in the cost structure. As a dividend payer, the company offers a dividend yield of 4.9% with a payout ratio of 60.7%, a level that suggests the dividend is likely sustainable given that the payout consumes less than two-thirds of the generated earnings. The ability to maintain a payout ratio below 100% while delivering nearly 5% in yield indicates a balance between returning capital to shareholders and retaining sufficient earnings for reinvestment. The overall profile combines double-digit revenue expansion with accelerating earnings growth and a robust dividend yield, presenting a compound growth and income characteristic common in maturing regional banks.