TFS Financial Profitability Analysis
| TFSL Stock | USD 14.29 0.24 1.65% |
For TFS Financial profitability analysis, we use financial ratios and fundamental drivers that measure the ability of TFS Financial to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well TFS Financial utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between TFS Financial's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of TFS Financial over time as well as its relative position and ranking within its peers.
TFS |
Is Banking space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of TFS Financial. If investors know TFS will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about TFS Financial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of TFS Financial is measured differently than its book value, which is the value of TFS that is recorded on the company's balance sheet. Investors also form their own opinion of TFS Financial's value that differs from its market value or its book value, called intrinsic value, which is TFS Financial's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because TFS Financial's market value can be influenced by many factors that don't directly affect TFS Financial's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between TFS Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if TFS Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, TFS Financial's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
TFS Financial Return On Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining TFS Financial's current stock value. Our valuation model uses many indicators to compare TFS Financial value to that of its competitors to determine the firm's financial worth. TFS Financial is rated below average in return on equity category among its peers. It is rated below average in return on asset category among its peers reporting about 0.11 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for TFS Financial is roughly 8.94 . Comparative valuation analysis is a catch-all technique that is used if you cannot value TFS Financial by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.TFS Return On Asset vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
TFS Financial |
| = | 0.042 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
TFS Financial |
| = | 0.0047 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
TFS Return On Asset Comparison
TFS Financial is currently under evaluation in return on asset category among its peers.
TFS Financial Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in TFS Financial, profitability is also one of the essential criteria for including it into their portfolios because, without profit, TFS Financial will eventually generate negative long term returns. The profitability progress is the general direction of TFS Financial's change in net profit over the period of time. It can combine multiple indicators of TFS Financial, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
TFS Financial Corporation, through its subsidiaries, provides retail consumer banking services in the United States. TFS Financial Corporation operates as a subsidiary of Third Federal Savings and Loan Association of Cleveland, MHC. Tfs Financial operates under BanksRegional classification in the United States and is traded on NASDAQ Exchange. It employs 1005 people.
TFS Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on TFS Financial. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of TFS Financial position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the TFS Financial's important profitability drivers and their relationship over time.
TFS Financial Profitability Trends
TFS Financial profitability trend refers to the progression of profit or loss within a business. An upward trend means that TFS Financial's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is TFS Financial's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.
Use TFS Financial in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if TFS Financial position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in TFS Financial will appreciate offsetting losses from the drop in the long position's value.TFS Financial Pair Trading
TFS Financial Pair Trading Analysis
The ability to find closely correlated positions to TFS Financial could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace TFS Financial when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back TFS Financial - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling TFS Financial to buy it.
The correlation of TFS Financial is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as TFS Financial moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if TFS Financial moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for TFS Financial can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your TFS Financial position
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Check out World Market Map. For more information on how to buy TFS Stock please use our How to buy in TFS Stock guide.You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.
To fully project TFS Financial's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of TFS Financial at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include TFS Financial's income statement, its balance sheet, and the statement of cash flows.