Capitol Federal EBITDA vs. Return On Equity

CFFN Stock  USD 6.50  0.06  0.91%   
Taking into consideration Capitol Federal's profitability measurements, Capitol Federal's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Capitol Federal's ability to earn profits and add value for shareholders.
 
EBITDA  
First Reported
2010-12-31
Previous Quarter
54.1 M
Current Value
51.4 M
Quarterly Volatility
100.6 M
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Capitol Federal's EV To Sales is very stable compared to the past year. As of the 12th of December 2024, Sales General And Administrative To Revenue is likely to grow to 0.37, while Price To Sales Ratio is likely to drop 4.38. At this time, Capitol Federal's Income Before Tax is very stable compared to the past year. As of the 12th of December 2024, Net Income is likely to grow to about 70.6 M, while Accumulated Other Comprehensive Income is likely to drop (5 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin1.832.06
Fairly Down
Slightly volatile
Net Profit Margin0.450.2309
Way Up
Very volatile
Operating Profit Margin0.310.3287
Notably Down
Slightly volatile
Pretax Profit Margin0.310.3287
Notably Down
Pretty Stable
For Capitol Federal profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Capitol Federal to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Capitol Federal Financial utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Capitol Federal's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Capitol Federal Financial over time as well as its relative position and ranking within its peers.
  

Capitol Federal's Revenue Breakdown by Earning Segment

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Is Regional Banks 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 Capitol Federal. If investors know Capitol 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 Capitol Federal listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.167
Dividend Share
0.34
Earnings Share
0.29
Revenue Per Share
1.278
Quarterly Revenue Growth
0.11
The market value of Capitol Federal Financial is measured differently than its book value, which is the value of Capitol that is recorded on the company's balance sheet. Investors also form their own opinion of Capitol Federal's value that differs from its market value or its book value, called intrinsic value, which is Capitol Federal'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 Capitol Federal's market value can be influenced by many factors that don't directly affect Capitol Federal'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 Capitol Federal's value and its price as these two are different measures arrived at by different means. Investors typically determine if Capitol Federal is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Capitol Federal'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.

Capitol Federal Financial Return On Equity vs. EBITDA Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Capitol Federal's current stock value. Our valuation model uses many indicators to compare Capitol Federal value to that of its competitors to determine the firm's financial worth.
Capitol Federal Financial is rated below average in ebitda category among its peers. It is rated below average in return on equity category among its peers . The ratio of EBITDA to Return On Equity for Capitol Federal Financial is about  1,478,224,044 . At this time, Capitol Federal's EBITDA is very stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Capitol Federal's earnings, one of the primary drivers of an investment's value.

Capitol Return On Equity vs. EBITDA

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

Capitol Federal

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
54.1 M
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
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.

Capitol Federal

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0366
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.

Capitol Return On Equity Comparison

Capitol Federal is currently under evaluation in return on equity category among its peers.

Capitol Federal Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Capitol Federal, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Capitol Federal will eventually generate negative long term returns. The profitability progress is the general direction of Capitol Federal's change in net profit over the period of time. It can combine multiple indicators of Capitol Federal, 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.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-4.8 M-5 M
Operating Income54.1 M51.4 M
Income Before Tax54.1 M65.1 M
Total Other Income Expense Net-20.7 M-21.7 M
Net Income38 M70.6 M
Income Tax Expense16.1 M23.5 M
Net Interest Income137.9 M142 M
Interest Income413.8 M330.7 M
Net Loss-91.5 M-86.9 M
Change To Netincome-4.8 M-4.6 M
Net Income Per Share 0.29  0.29 
Income Quality 0.76  0.72 
Net Income Per E B T 0.70  0.54 

Capitol Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Capitol Federal. 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 Capitol Federal 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 Capitol Federal's important profitability drivers and their relationship over time.

Use Capitol Federal 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 Capitol Federal 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 Capitol Federal will appreciate offsetting losses from the drop in the long position's value.

Capitol Federal Pair Trading

Capitol Federal Financial Pair Trading Analysis

The ability to find closely correlated positions to Capitol Federal could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Capitol Federal 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 Capitol Federal - 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 Capitol Federal Financial to buy it.
The correlation of Capitol Federal 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 Capitol Federal moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Capitol Federal 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 Capitol Federal 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Capitol Federal position

In addition to having Capitol Federal in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Management Thematic Idea Now

Management
Management Theme
Companies providing management services to businesses. The Management theme has 39 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Management Theme or any other thematic opportunities.
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When determining whether Capitol Federal Financial offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Capitol Federal's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Capitol Federal Financial Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Capitol Federal Financial Stock:
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You can also try the Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
To fully project Capitol Federal's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Capitol Federal 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 Capitol Federal's income statement, its balance sheet, and the statement of cash flows.
Potential Capitol Federal investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Capitol Federal investors may work on each financial statement separately, they are all related. The changes in Capitol Federal's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Capitol Federal's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.