Capitol Federal Financial, Inc.

Capitol Federal Financial maintains a capital structure characterized by total assets of $9.83 billion and total equity of $1.03 billion as of Q2 2026. The company reports a debt-to-equity ratio of 0.0, which is an anomalous figure for a financial institution with $8.80 billion in total liabilities, suggesting a potential data reporting error or specific accounting treatment for deposit liabilities. Liquidity is assessed as low, with cash and equivalents standing at $330.9 million. The current ratio is not explicitly provided, but the company manages liquidity through weekly reviews of deposit flows, loan demand, and cash levels.

Profitability metrics show a return on equity (ROE) of 6.63% and a return on assets (ROA) of 0.69%. The price-to-earnings ratio is 16.61, and the price-to-book ratio is 1.11. These returns are modest, reflecting the net income of $40.5 million against the substantial asset base. The company's operating cash flow is $38.9 million, with free cash flow at $36.0 million, indicating limited but positive cash generation after capital expenditures of $2.9 million.

The company's revenue mix is not explicitly detailed in segment data, but disclosures highlight a focus on commercial banking, trust asset management, and treasury management services. These services help businesses streamline operations and grow the bank's non-interest-bearing deposit base. Geographic exposure is implied to be within the U.S., given the reference to U.S. economic strength and federal banking regulators.

Growth trajectory data is limited in the provided snapshot, but the company emphasizes maintaining overhead costs and generating sufficient loan volume to sustain portfolio balances. The ability to invest funds in wholesale or secondary markets at favorable yields is cited as a key factor for future results. The company also notes the impact of potential pre-1988 bad debt recapture on future earnings and capital levels.

Risk factors include the ability to access cost-effective funding and maintain sufficient liquidity, as well as fluctuations in deposit flows. The company faces regulatory risks related to the non-objection by federal banking regulators to distribute capital from the Bank to the Company, which affects dividend payments and share repurchases. Substandard loans are defined as those inadequately protected by the obligor's net worth or collateral.

Recent events include an 8-K filing with material items under code 2.02, indicating a medium-severity event, though specific details are not provided in the observation. Analyst estimates show a mean price target of $9.50, with a mean recommendation of 2.67, suggesting a neutral to slightly positive outlook. The company also notes that recent accounting guidance updates will impact income tax footnote disclosures but not financial condition or results of operations.

Net income surged to $68 million in FY2025, marking a significant recovery from the $101 million loss recorded in FY2023.

Free cash flow reached $49.8 million in FY2025, demonstrating strong liquidity generation despite revenue fluctuations.

The stock trades at $8.84, offering 7.5% upside to the consensus price target of $9.50.

Net margin of 4.17% ranks as best-in-class compared to the Integrated Oil & Gas cohort median.

Dilution and liquidity risks are assessed as low, providing a stable financial foundation for operations.

The company carries a high leverage band with a debt-to-equity ratio of 8.33 as of September 2025.

Return on equity of 6.63% falls below the cohort median of 7.84%, suggesting inferior capital efficiency.

Cash conversion of 0.81 is below the cohort median of 1.7, highlighting weaker operational cash flow quality.

Revenue $16.3M; Net margin 417.3%.

• ▍Revenue $16.3M
• ▍Net margin 417.3%

Revenue $15.3M; Net margin 248.4%.

• ▍Revenue $15.3M
• ▍Net margin 248.4%

Revenue $15.3M; Net margin 248.4%.

• ▍Revenue $15.3M
• ▍Net margin 248.4%

Revenue $17.6M; Net margin -577.6%.

• ▍Revenue $17.6M
• ▍Net margin -577.6%

Revenue $17.6M; Net margin -577.6%.

• ▍Revenue $17.6M
• ▍Net margin -577.6%