"… * FY Revenue of $59.6M.
[TFS Financial reports FY results (NASDAQ:TFSL) | Seeking Alpha](TFS Financial reports FY results (NASDAQ:TFSL) | Seeking Alpha
Cheers!
Murph
BL Home Fool
(long TFSL)
Hi Murph!
Here is a link to the related presentation slides for the quarter and FY:
Take a look at slide 6 where they say:
“Dividends, managed portfolio growth, and strategic share repurchases will represent the focus for future capital deployment.”
It’s taken me a long time but I have warmed up to this dividend-income generator. And 15% growth in net interest income is pretty good.
Murph–do you remember Jim Royal’s estimate of fair value for TFSL? Or, do you have one?
David
(Long TFSL)
Hey, David,
Absent a second-step conversion, I think the highest valuation you’ll see here is about 70% of partially converted TBV. (PC TBV = TBV/actually trading shares).
Jim
Thanks, Jim, for replying so quickly.
So, if I understand your reply, your calculation would place fair value at around $24.00, yes?
David
Yes, that’s about where it will top out on any upswing. Typically the bottom has been about 40% of PC TBV, or about $13.80.
Jim
Thanks, Jim, for your feedback!
David
Hi David!
Looks like Jim has responded to your question, and he is the go-to guy on TFSL!
FYI, here is a SA article on the past quarter’s results:
[TFS Financial Corporation: A Unique Shareholder-Friendly Bank (NASDAQ:TFSL) | Seeking Alpha](TFS Financial Corporation: A Unique Shareholder-Friendly Bank (NASDAQ:TFSL) | Seeking Alpha
Cheers!
Murph
BL Home Fool
(long TFSL)
Thanks, Murph!
David
What jumped out at me was the repurchase of 337,259 shares this FY (at an average price of $14.97). Last time they bought back any appreciable number of shares was FY2019 (348,293 shares, if I didn’t make a typo in the spreadsheet where I track all this stuff).
-bakerbenji (long TFSL)
Yeah, the return to almost any level of repurchase activity was definitely a surprise. It amounted to about 0.6% of public shares in the quarter, but it’s the direction they ought to be going.
Jim