TFS Financial Corp: A Long-Forgotten Second-Step Thrift Conversion Can Still Provide Value

Dan Stringer
3.48K Followers

Summary

  • TFS Financial Corporation offers a steady 9%+ dividend yield, making it an attractive option for income-focused investors despite its complex share structure.
  • The company's consistent performance through various economic cycles and interest rate environments highlights its resilience and strong management.
  • TFSL's valuation is convoluted due to its split ownership, but its public float trades at a very cheap price-to-book ratio of 0.34x.
  • Potential risks include the possibility of a second-step conversion and dividend cuts, but the strong management and high reserves mitigate these concerns.

Putting a coin in a white piggy bank at home.

Guido Mieth

TFS Financial Corporation (NASDAQ:TFSL) is a community bank with physical presences in Ohio and Florida. They also serve twenty-seven other states and the District of Columbia through their online operations. The company was founded in 1938 by the

This article was written by

3.48K Followers
I am interested in small capitalized companies with a high optionality to the upside compared to the relative downside risk. I am grounded in a value based approach but will also explore special and short situations. I am a trained CPA and continue to practice in industry.Warning: my twitter account is very random but will have a lot of economic and business items sprinkled with Green Bay Packer comments.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of TFSL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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