Capitol Federal Financial, Inc. (CFFN) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Capitol Federal Financial, Inc. (CFFN) Financial Services Profile

Capitol Federal Financial, Inc. (CFFN) is a regional bank holding company operating through Capitol Federal Savings Bank, offering traditional retail banking services such as deposit accounts and loans across Kansas and Missouri. With a focus on residential real estate lending and a strong community presence, CFFN maintains a conservative financial profile.

What Is the Investment Thesis for CFFN?

Capitol Federal Financial, Inc. presents a stable investment profile with a focus on traditional banking operations. The company's strong presence in the Kansas and Missouri markets, coupled with a dividend yield of 4.84%, offers income potential. With a P/E ratio of 13.54, the company's valuation reflects its consistent profitability, supported by a profit margin of 17.9%. Growth catalysts include potential expansion of digital banking services and strategic branch placement. However, investors may want to evaluate risks related to interest rate sensitivity and competition from larger national banks. The company's beta of 0.65 indicates lower volatility compared to the broader market.

Based on FMP financials and quantitative analysis

CFFN Key Highlights

Market capitalization of $1.09B, reflecting a substantial regional presence.

• P/E ratio of 13.54, indicating a potentially undervalued stock compared to industry peers.
• Profit margin of 17.9%, showcasing efficient operations and profitability.
• Gross margin of 49.3%, demonstrating strong revenue management.
• Dividend yield of 4.84%, providing a significant income stream for investors.

Who Are CFFN's Competitors?

CFFN is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are CFFN's Key Strengths?

Strong deposit base in Kansas and Missouri.

• Conservative lending practices.
• High dividend yield.
• Experienced management team.

What Are CFFN's Weaknesses?

Limited geographic diversification.

• Reliance on traditional banking services.
• Sensitivity to interest rate fluctuations.
• Smaller scale compared to national banks.

What Could Drive CFFN Stock Higher?

Potential interest rate hikes by the Federal Reserve could increase net interest margin.

• Continued expansion of digital banking services to attract younger customers.
• Strategic branch placement in growing markets to drive deposit growth.

What Are the Key Risks for CFFN?

Financial-distress signal — its Altman Z-Score of 1.16 sits in the distress zone (elevated bankruptcy risk).

• Economic downturn in Kansas and Missouri affecting loan demand.
• Increased competition from larger national banks and fintech companies.
• Sensitivity to interest rate fluctuations impacting profitability.
• Regulatory changes increasing compliance costs.

What Are the Growth Opportunities for CFFN?

• Expansion of Digital Banking Services: Capitol Federal can enhance its digital banking platform to attract and retain customers, especially younger demographics. Investing in user-friendly mobile apps and online services can increase customer engagement and reduce operational costs. The market for digital banking is projected to grow as consumers increasingly prefer online and mobile banking solutions. This expansion could increase deposit accounts by 10% over the next three years.
• Strategic Branch Expansion: While many banks are closing branches, strategic placement of new branches in underserved or growing markets within Kansas and Missouri can drive deposit growth and expand the customer base. Focus on areas with strong population growth and limited banking options. Each new branch could generate an average of $20 million in deposits within two years.
• Increase Commercial Lending: Diversifying the loan portfolio by increasing commercial lending can improve revenue streams and reduce reliance on residential real estate. Targeting small and medium-sized businesses in its existing markets can leverage Capitol Federal's local expertise and relationships. Commercial lending could increase by 15% over the next five years.
• Cross-Selling Financial Products: Capitol Federal can increase revenue by cross-selling additional financial products such as insurance, wealth management, and investment services to its existing customer base. Offering bundled services can enhance customer loyalty and increase revenue per customer. This initiative could increase revenue per customer by 5% annually.
• Leverage Community Involvement: Strengthening its community involvement through sponsorships, charitable donations, and financial literacy programs can enhance Capitol Federal's reputation and attract new customers. Highlighting its commitment to local communities can differentiate it from larger national banks. Increased community engagement could lead to a 3% increase in new customer acquisition annually.

What Are CFFN's Competitive Advantages?

• Strong local presence in Kansas and Missouri.
• Long-standing history and reputation in the community.
• Conservative lending practices and risk management.
• Established branch network providing personal service.

What Does CFFN Do?

Capitol Federal Financial, Inc., founded in 1893 and headquartered in Topeka, Kansas, operates as the holding company for Capitol Federal Savings Bank. The bank provides a range of retail banking products and services, including savings accounts, money market deposit accounts, checking accounts, and certificates of deposit. Its loan portfolio consists primarily of one- to four-family residential real estate loans, alongside commercial real estate, commercial and industrial, construction, and consumer loans. Capitol Federal operates 54 branches, including 45 traditional and nine in-store branches, located across nine counties in Kansas and two in Missouri, serving metropolitan areas such as Topeka, Wichita, Lawrence, and Kansas City. The company also offers mobile, telephone, and online banking services, as well as bill payment and call center services. Capitol Federal has evolved from a local savings bank into a regional financial institution with a focus on customer service and community involvement.

What Products and Services Does CFFN Offer?

• Accepts deposits from customers through savings accounts, money market accounts, and certificates of deposit.
• Provides residential real estate loans for one- to four-family homes.
• Offers commercial real estate and commercial & industrial loans to businesses.
• Extends consumer loans, including home equity loans, vehicle loans, and personal lines of credit.
• Provides online and mobile banking services for convenient access to accounts.
• Operates a network of branches throughout Kansas and Missouri.
• Invests in securities to generate additional income.

How Does CFFN Make Money?

• Generates revenue primarily from interest income on loans.
• Earns fees from services such as online banking and bill payment.
• Invests in securities to supplement income.
• Manages risk through careful loan underwriting and diversification.

What Industry Does CFFN Operate In?

Capitol Federal Financial, Inc. operates within the regional banking sector, characterized by increasing competition from larger national banks and fintech companies. The industry is influenced by interest rate fluctuations, regulatory changes, and economic conditions. Regional banks like Capitol Federal focus on building strong customer relationships and providing personalized services. The market is seeing a shift towards digital banking, requiring institutions to invest in technology to remain competitive. Capitol Federal's focus on residential real estate lending positions it within a specific niche of the broader banking industry.

Who Are CFFN's Key Customers?

• Individuals seeking deposit accounts and loans.
• Small and medium-sized businesses needing commercial loans.
• Homebuyers looking for residential mortgages.
• Consumers requiring personal loans and lines of credit.

Capitol Federal Financial, Inc. Financial Trajectory

Capitol Federal Financial, Inc. (CFFN) reported $105.1M in revenue for Jun 2026, a decline of 4.5% compared to the prior quarter. The company recorded net income of $23.6M, with diluted EPS of $0.19. Revenue has contracted over three consecutive quarters, which investors in this small-cap Financial Services stock should monitor closely. Across the four most recent quarters, CFFN averaged $0.16 in diluted EPS.

Company Profile

Capitol Federal Financial, Inc. operates in the Banks - Regional industry within the Financial Services sector. It is headquartered in Topeka, US. The company is led by CEO John Dicus. CFFN has traded publicly since 1999.

How Capitol Federal Financial, Inc. Is Valued

Capitol Federal Financial, Inc. carries a market capitalization of $1.09B, placing it in the small-cap category. Analyst price targets span from $9.50 to $10.00, with a consensus of $9.75. At the current price of $8.80, that implies approximately 11% upside potential. Relative to its peer group, CFFN's quantitative score of 91/100 is roughly in line with the peer average of 89/100.

Return on equity for Capitol Federal Financial, Inc. stands at 7.5%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 0.8%, showing how much profit it generates from its asset base. CFFN trades at a trailing price-to-earnings ratio of 13.54, below the Financial Services sector average of ~17.50x. Its free cash flow yield is 6.5%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.09 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 7.6%, the inverse of the P/E and a quick read on earnings relative to price.

Capitol Federal Financial, Inc.'s Piotroski F-Score is 8/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 1.16 places it in the distress zone, a signal of elevated financial risk.

Capitol Federal Financial, Inc. has beaten Wall Street's EPS estimate in 5 of its last 8 reported quarters — more hits than misses. Reported results have landed about 5.4% above estimates on average.

Wall Street analysts project Capitol Federal Financial, Inc. revenue of about $235.3M for fiscal 2026, with EPS near $0.69.

The most recent 12 insider filings for Capitol Federal Financial, Inc. break down as 6 sales and 6 purchases. On net that is roughly 6K shares acquired (about $42K) — insiders putting money in tends to read as conviction.

CFFN Financials

CFFN Latest News

CFFN Analyst Consensus

CFFN MoonshotScore

Capitol Federal Financial, Inc. Financial Services Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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