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TFS Financial CORP (TFSL) Fundamental Analysis & AI Grade 2026

TFSL Nasdaq Savings Institution, Federally Chartered DE CIK: 0001381668
Updated This Month • Analysis: May 8, 2026 • SEC Data: 2026-03-31
Combined AI Grade
C
72% Confidence
N/A
C
72% Conf
Pending
Analysis scheduled

📊 TFSL Key Takeaways

Revenue: $393.2M
Net Margin: 11.6%
Free Cash Flow: $70.5M
Current Ratio: N/A
Debt/Equity: 0.00x
EPS: $0.16
AI Grade: C with 72% confidence
TFS Financial CORP (TFSL) receives a C fundamental grade with 72% confidence from our AI analysis based on SEC 10-K filings. With revenue of $393.2M, net profit margin of 11.6%, and return on equity (ROE) of 2.4%, TFS Financial CORP demonstrates mixed fundamentals in the Finance sector. Below is our complete TFSL stock analysis for 2026.

Is TFS Financial CORP (TFSL) a Good Investment?

Claude

TFS Financial exhibits concerning structural profitability challenges with critical interest coverage of only 0.2x, indicating insufficient operating income to service interest expenses—a red flag for any financial institution. While exceptional revenue growth of 160.7% YoY and strong free cash flow generation ($70.5M) demonstrate operational activity, severe margin compression (net income growth of only 1.6% despite massive revenue growth) and critically low returns (ROE 2.4%, ROA 0.3%) indicate deteriorating financial health and operational efficiency.

TFS Financial CORP Key Strengths (TFSL)

Claude
  • + Exceptional revenue growth of 160.7% YoY demonstrates strong business activity and market demand
  • + Positive free cash flow of $70.5M with strong 17.9% FCF margin shows cash generation capacity
  • + No reported long-term debt (0.00x debt/equity ratio) limits leverage risk

TFSL Stock Risks: TFS Financial CORP Investment Risks

Claude
  • ! Critical interest coverage ratio of 0.2x—company cannot cover interest expenses from operating income, a severe red flag for financial institutions
  • ! Extreme margin compression with net income growing only 1.6% despite 160.7% revenue growth signals deteriorating operational efficiency
  • ! Critically low return metrics (ROE 2.4%, ROA 0.3%) well below industry standards indicate poor capital allocation and profitability

Key Metrics to Watch

Claude
  • * Interest coverage ratio and interest expense trends—must improve above 1.0x for sustainability
  • * Net profit margin and net income growth relative to revenue to confirm margin stabilization
  • * Return on equity and return on assets—need substantial improvement toward industry benchmarks

TFS Financial CORP (TFSL) Financial Metrics & Key Ratios

Revenue
$393.2M
Net Income
$45.5M
EPS (Diluted)
$0.16
Free Cash Flow
$70.5M
Total Assets
$17.5B
Cash Position
$437.3M

💡 AI Analyst Insight

The current ratio below 1.0x warrants monitoring of short-term liquidity.

TFSL Profit Margin, ROE & Profitability Analysis

Gross Margin N/A
Operating Margin 14.8%
Net Margin 11.6%
ROE 2.4%
ROA 0.3%
FCF Margin 17.9%

TFSL vs Finance Sector: How TFS Financial CORP Compares

How TFS Financial CORP compares to Finance sector averages

Net Margin
TFSL 11.6%
vs
Sector Avg 25.0%
TFSL Sector
ROE
TFSL 2.4%
vs
Sector Avg 12.0%
TFSL Sector
Current Ratio
TFSL 0.0x
vs
Sector Avg 1.2x
TFSL Sector
Debt/Equity
TFSL 0.0x
vs
Sector Avg 2.0x
TFSL Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is TFS Financial CORP Stock Overvalued? TFSL Valuation Analysis 2026

Based on fundamental analysis, TFS Financial CORP has mixed fundamental signals relative to the Finance sector in 2026.

Return on Equity
2.4%
Sector avg: 12%
Net Profit Margin
11.6%
Sector avg: 25%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.00x
Sector avg: 2x

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.

TFS Financial CORP Balance Sheet: TFSL Debt, Cash & Liquidity

Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.00x
Debt/Assets
89.0%
Interest Coverage
0.17x
Long-term Debt
N/A

TFSL Revenue & Earnings Growth: 5-Year Financial Trend

TFSL 5-year financial data:
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: TFS Financial CORP's revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $0.26 reflects profitable operations.

TFSL Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
17.9%
Free cash flow / Revenue

TFSL Quarterly Earnings & Performance

Quarterly financial performance data for TFS Financial CORP including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2019 $251.0K -$1.1M $0.07

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

TFS Financial CORP Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$76.4M
Cash generated from operations
Stock Buybacks
$5.1M
Shares repurchased (TTM)
Capital Expenditures
$5.9M
Investment in assets
Dividends Paid
$30.0M
Returned to shareholders

TFSL SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for TFS Financial CORP (CIK: 0001381668)

📋 Recent SEC Filings

Date Form Document Action
May 28, 2026 8-K tfsl-20260528.htm View →
May 27, 2026 4 xslF345X06/wk-form4_1779910271.xml View →
May 27, 2026 4 xslF345X06/wk-form4_1779910228.xml View →
May 26, 2026 8-K tfsl-20260526.htm View →
May 20, 2026 4 xslF345X06/wk-form4_1779291973.xml View →

Frequently Asked Questions about TFSL

What is the AI rating for TFSL?

TFS Financial CORP (TFSL) has an AI grade of C with 72% confidence, based on fundamental analysis of SEC EDGAR filings.

What are TFSL's key strengths?

Claude: Exceptional revenue growth of 160.7% YoY demonstrates strong business activity and market demand. Positive free cash flow of $70.5M with strong 17.9% FCF margin shows cash generation capacity.

What are the risks of investing in TFSL?

Claude: Critical interest coverage ratio of 0.2x—company cannot cover interest expenses from operating income, a severe red flag for financial institutions. Extreme margin compression with net income growing only 1.6% despite 160.7% revenue growth signals deteriorating operational efficiency.

What is TFSL's revenue and growth?

TFS Financial CORP reported revenue of $393.2M.

Does TFSL pay dividends?

TFS Financial CORP pays dividends, with $30.0M distributed to shareholders in the trailing twelve months.

Where can I find TFSL SEC filings?

Official SEC filings for TFS Financial CORP (CIK: 0001381668) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is TFSL's EPS?

TFS Financial CORP has a diluted EPS of $0.16.

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 grade reflects both perspectives for balanced insights.

What is TFSL's fundamental grade?

Based on our AI fundamental analysis in June 2026, TFS Financial CORP has a C grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is TFSL stock overvalued or undervalued?

Valuation metrics for TFSL: ROE of 2.4% (sector avg: 12%), net margin of 11.6% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.

What is TFSL's AI grade for 2026?

Our dual AI analysis gives TFS Financial CORP a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is TFSL's free cash flow?

TFS Financial CORP's operating cash flow is $76.4M, with capital expenditures of $5.9M. FCF margin is 17.9%.

How does TFSL compare to other Finance stocks?

Vs Finance sector averages: Net margin 11.6% (avg: 25%), ROE 2.4% (avg: 12%), current ratio N/A (avg: 1.2).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: May 8, 2026 | Data as of: 2026-03-31 | Powered by Claude AI