Security Federal Valuation
| SFDL Stock | USD 28.00 0.50 1.82% |
At this time, the company appears to be undervalued. Security Federal has a current Real Value of $32.6 per share. The regular price of the company is $28.0. Our model measures the value of Security Federal from inspecting the company fundamentals such as Return On Equity of 0.0742, operating margin of 0.27 %, and Shares Outstanding of 3.25 M as well as reviewing its technical indicators and probability of bankruptcy.
Undervalued
Today
Please note that Security Federal's price fluctuation is very steady at this time. Calculation of the real value of Security Federal is based on 3 months time horizon. Increasing Security Federal's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Security pink sheet is determined by what a typical buyer is willing to pay for full or partial control of Security Federal. Since Security Federal is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Security Pink Sheet. However, Security Federal's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 28.0 | Real 32.6 | Hype 28.0 |
The intrinsic value of Security Federal's stock can be calculated using various methods such as discounted cash flow or dividend analysis. That value may differ from its market price, which is determined by factors such as investor sentiment, market trends, headlines, and other external factors that may influence Security Federal's stock price.
Estimating the potential upside or downside of Security Federal helps investors to forecast how Security pink sheet's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Security Federal more accurately as focusing exclusively on Security Federal's fundamentals will not take into account other important factors: Security Federal Total Value Analysis
Security Federal is at this time forecasted to have valuation of 170.48 M with market capitalization of 92.71 M, debt of 61.94 M, and cash on hands of 79.97 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Security Federal fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
170.48 M | 92.71 M | 61.94 M | 79.97 M |
Security Federal Investor Information
About 45.0% of the company outstanding shares are owned by corporate insiders. The company has price-to-book ratio of 0.54. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Security Federal last dividend was issued on the 27th of February 2023. The entity had 3:2 split on the 17th of March 2003. Based on the analysis of Security Federal's profitability, liquidity, and operating efficiency, Security Federal is not in a good financial situation at this time. It has a very high probability of going through financial hardship in December.Security Federal Asset Utilization
The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The latest return on assets of Security suggests not a very effective usage of assets in November.Security Federal Ownership Allocation
The market capitalization of Security Federal is $92.71 Million. Security Federal maintains significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company's outstanding shares. Note, that even with substantial debt, if the true value of the company is larger than the current market value, you may still be able to generate positive returns on investment in this company at some point.Security Federal Profitability Analysis
The company reported the previous year's revenue of 47.16 M. Net Income was 10.23 M with profit before overhead, payroll, taxes, and interest of 47.16 M.Security Federal Past Distributions to stockholders
About Security Federal Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Security Federal. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Security Federal based exclusively on its fundamental and basic technical indicators. By analyzing Security Federal's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Security Federal's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Security Federal. We calculate exposure to Security Federal's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Security Federal's related companies.Security Federal Corporation operates as the bank holding company for Security Federal Bank that provides various banking products and services. Security Federal Corporation was founded in 1922 and is headquartered in Aiken, South Carolina. Security Federal operates under BanksRegional classification in the United States and is traded on OTC Exchange. It employs 232 people.
8 Steps to conduct Security Federal's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Security Federal's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Security Federal's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Security Federal's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Security Federal's revenue streams: Identify Security Federal's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Security Federal's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Security Federal's growth potential: Evaluate Security Federal's management, business model, and growth potential.
- Determine Security Federal's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Security Federal's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of Security Federal represents a small ownership stake in the entity. As a stockholder of Security, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Security Federal Dividends Analysis For Valuation
Please note that Security Federal has scaled down on payment of dividends at this time.
There are various types of dividends Security Federal can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Security shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Security Federal directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Security pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Security Federal by the value of the dividends paid out.
Security Federal Growth Indicators
Investing in growth stocks can be very risky. If the company such as Security Federal does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 3.3 M | |
| Quarterly Earnings Growth Y O Y | 0.629 |
Other Information on Investing in Security Pink Sheet
Security Federal financial ratios help investors to determine whether Security Pink Sheet is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Security with respect to the benefits of owning Security Federal security.