TFS Financial Corporation (TFSL) AI Stock Analysis

TFS Financial Corporation provides retail consumer banking services across the United States, operating primarily through its subsidiary, Third Federal Savings and Loan Association of Cleveland, MHC. Established in 1938 and headquartered in Cleveland, Ohio, the company offers deposit products including savings, money market, checking, and individual retirement accounts, along with certificates of deposit. Its core business model centers on mortgage loans for home purchases and refinancing, alongside home equity loans and lines of credit. TFS Financial operates a network of 37 full-service branches and five loan production offices throughout Ohio and Florida.

TFS Financial expanded revenue from $444.6M in FY2021 to $792.0M in FY2025, recording a 5-year revenue CAGR of 9.3%. Revenue declined 12.6% in FY2021, fell 2.6% in FY2022, and dropped 29.6% in FY2023, before surging 148.8% to $758.8M in FY2024 and rising 4.4% in FY2025. Annual net income climbed to $91.0M in FY2025, with an operating margin of 14.5% and a net margin of 11.5%. For the trailing twelve months, revenue was $347.2M with a profit margin of 29.4%. In the latest quarter ended June 30, 2026, quarterly revenue increased 15.2% year-over-year, while quarterly earnings grew 42.5%.

As of June 30, 2026, TFS Financial held $28.6M in cash and short-term investments against total debt of $5.81B, resulting in net debt of $5.78B. Shareholders' equity totaled $1.96B across $18.07B in total assets, with a debt-to-equity ratio of 2.97 and a current ratio of 0.01. During FY2025, the company generated $82.4M in operating cash flow and $71.0M in free cash flow. Capital allocation in FY2025 included $11.5M in capital expenditures, $4.0M spent on share buybacks, and $59.5M distributed in dividends paid.

At a closing price of $16.33 on October 16, 2026, TFS Financial carried a market capitalization of $4.58B. The stock traded at a trailing P/E of 45.4x and a forward P/E of 76.9x, both higher than the median of its US-listed Financial Services peers at 12.1x and 10.8x, respectively. Its price-to-sales multiple was 13.2x compared to the peer median of 3.2x, alongside a price-to-book ratio of 2.4x. Over the past year, the stock returned 39.1%, outperforming the S&P 500 return of 16.8%, though its 5-year return of 21.9% trailed the index return of 83.0%.

TFS Financial pays a quarterly dividend with an annualized forward payout of $1.27 per share, yielding 7.78%. The company reported a payout ratio of 3.2% and has paid dividends for 13 consecutive years. Its 5-year annualized dividend growth rate was 0.2%, and its most recent ex-dividend date was September 9, 2026.

Analyst sentiment consists of 2 Hold ratings, with 0 Buy and 0 Sell recommendations. The mean price target of $18.25 represents an 11.8% upside relative to the last close of $16.33. For the fiscal year ending September 30, 2026, consensus estimates project EPS of $0.36 on revenue of $347.7M. Looking ahead, 2 analysts project next fiscal year EPS of $0.39 and revenue of $374.2M. TFS Financial has beaten EPS estimates in 2 of the past 4 quarters, with next earnings scheduled for October 29, 2026.

This page is an AI-written research summary of TFS Financial Corporation (TFSL). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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