📊 SFDL Key Takeaways
Is Security Federal Corp. (SFDL) a Good Investment?
Security Federal Corp demonstrates excellent profitability with 17.4% net margins and strong positive free cash flow generation, supported by a conservative zero-debt capital structure. However, the 66.6% revenue growth significantly outpacing 13.8% net income growth signals operational inefficiencies or elevated costs that warrant closer monitoring, and the 6.8% ROE indicates suboptimal capital deployment for a financial institution.
Why Buy Security Federal Corp. Stock? SFDL Key Strengths
- Exceptional net profit margin of 17.4% and operating margin of 22.0%, well above sector averages
- Zero leverage (Debt/Equity 0.00x) provides financial stability and downside protection
- Solid free cash flow generation of $8.8M with 11.2% FCF margin demonstrates cash generation capability
- Strong EPS growth of 79.5% YoY exceeds net income growth, suggesting disciplined capital allocation
SFDL Stock Risks: Security Federal Corp. Investment Risks
- Revenue growth of 66.6% far exceeds net income growth of 13.8%, indicating deteriorating operating leverage and cost control challenges
- ROE of 6.8% and ROA of 0.8% are materially below banking sector standards, suggesting inefficient capital and asset utilization
- Interest coverage ratio of 2.0x is relatively tight with minimal margin for operational deterioration
- Zero insider stock purchases in past 90 days provides no management confidence signal regarding valuation
Key Metrics to Watch
- Net income growth relative to revenue growth in next quarter to assess if cost inflation was temporary
- Return on Equity trend to determine if capital deployment efficiency is improving
- Operating expense ratio relative to revenue to identify cost control trajectory
- Insider trading activity as indicator of management conviction in company direction
Security Federal Corp. (SFDL) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
SFDL Profit Margin, ROE & Profitability Analysis
SFDL vs Finance Sector: How Security Federal Corp. Compares
How Security Federal Corp. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Security Federal Corp. Stock Overvalued? SFDL Valuation Analysis 2026
Based on fundamental analysis, Security Federal Corp. has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Security Federal Corp. Balance Sheet: SFDL Debt, Cash & Liquidity
SFDL Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Security Federal Corp.'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $2.50 reflects profitable operations.
SFDL Revenue Growth, EPS Growth & YoY Performance
Security Federal Corp. Dividends, Buybacks & Capital Allocation
SFDL SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Security Federal Corp. (CIK: 0000818677)
📋 Recent SEC Filings
❓ Frequently Asked Questions about SFDL
What is the AI rating for SFDL?
Security Federal Corp. (SFDL) has an AI rating of BUY with 68% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SFDL's key strengths?
Claude: Exceptional net profit margin of 17.4% and operating margin of 22.0%, well above sector averages. Zero leverage (Debt/Equity 0.00x) provides financial stability and downside protection.
What are the risks of investing in SFDL?
Claude: Revenue growth of 66.6% far exceeds net income growth of 13.8%, indicating deteriorating operating leverage and cost control challenges. ROE of 6.8% and ROA of 0.8% are materially below banking sector standards, suggesting inefficient capital and asset utilization.
What is SFDL's revenue and growth?
Security Federal Corp. reported revenue of $78.7M.
Does SFDL pay dividends?
Security Federal Corp. pays dividends, with $2.2M distributed to shareholders in the trailing twelve months.
Where can I find SFDL SEC filings?
Official SEC filings for Security Federal Corp. (CIK: 0000818677) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SFDL's EPS?
Security Federal Corp. has a diluted EPS of $3.93.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is SFDL a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Security Federal Corp. has a BUY rating with 68% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is SFDL stock overvalued or undervalued?
Valuation metrics for SFDL: ROE of 6.8% (sector avg: 12%), net margin of 17.4% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
Should I buy SFDL stock in 2026?
Our dual AI analysis gives Security Federal Corp. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is SFDL's free cash flow?
Security Federal Corp.'s operating cash flow is $14.4M, with capital expenditures of $5.6M. FCF margin is 11.2%.
How does SFDL compare to other Finance stocks?
Vs Finance sector averages: Net margin 17.4% (avg: 25%), ROE 6.8% (avg: 12%), current ratio N/A (avg: 1.2).