TFS Financial Corporation Common Stock (TFSL)

FairStock Score: 21/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I view a bank as a leveraged portfolio of loans funded by deposits, so the key tests are earnings consistency, returns on equity, credit risk, and price versus book. At $16.18 on 2026-10-13, TFS Financial has a $4.5B market cap, a FairStock P/E of 44.94, a P/B of 2.30, and EPS of $0.36. Paying 2.3 times book for a bank with a FairStock ROE calculation of 5.31% is a demanding price; I prefer bank bargains near or below book with better returns. The filed record shows decent consistency: FY2023 net income was $75.3M and diluted EPS $0.26; FY2024 net income was $79.6M and EPS $0.28; FY2025 net income was $91.0M and EPS $0.32. In fiscal Q3 2026, the quarter ended 2026-06-30, net income was $30.5M and diluted EPS $0.11, up from $21.5M and $0.08 in fiscal Q3 2025. Still, fiscal Q2 2026 and Q1 2026 were only $23.2M/$0.08 and $22.3M/$0.08, and the Lynch classification is SLOW GROWER because profit grew 1.8% a year over five years. The 7.85% dividend yield is attractive, but against $0.36 of EPS it looks stretched. A PEG of 4.24, Piotroski 6/9, and FairStock score 21/100 suggest the market is paying up for modest performance. CET1, NIM, and credit/underwriting data are absent, as is a combined ratio, which is not a bank metric. I see no margin of safety at this price without better ROE.

In plain English: TFS Financial is a regional bank that takes deposits and makes home loans. Its profits have been steady but slow-growing, and it earns modest returns on its shareholder capital. At the recent price, the shares look expensive compared with reported earnings and accounting value, so the large dividend is the main attraction and needs watching.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-06-30) · fiscal Q2 2026 10-Q (period ended 2026-03-31) · fiscal Q1 2026 10-Q (period ended 2025-12-31) · fiscal Q3 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-09-30) · FY2024 10-K (period ended 2024-09-30) · FY2023 10-K (period ended 2023-09-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer