Flushing Financial Corp (NASDAQ: FFIC)

Sector: Financial Services Industry: Banks - Regional CIK: 0000923139
Market Cap 430.03 Mn
P/B 0.60
P/E -12.50
P/S 2.99
ROIC (Qtr) -2.49
Div Yield % 7.15
Rev 1y % (Qtr) 13.74
Total Debt (Qtr) 540.71 Mn
Debt/Equity (Qtr) 0.76

About

Flushing Financial Corp, known by its stock symbol FFIC, is a Delaware corporation that has been in operation since 1994 as a full-service commercial bank in the state of New York. The company's primary business involves the operation of the Bank, with two subsidiaries: Flushing Service Corporation and FSB Properties Inc. Additionally, Flushing Financial Corp operates internet branches, iGObanking.com and BankPurely. Flushing Financial Corp operates primarily in the banking industry, with a focus on the New York City metropolitan area. The company...

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Price action

Investment thesis

Bull case

  • Strong tangible asset base of 8.87B provides 16.41x coverage of total debt 540.71M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 55.86M provides strong 24.79x coverage of stock compensation 2.25M, indicating sustainable incentive practices.
  • Robust free cash flow of 51.89M exceeds capital expenditure of 3.97M by 13.08x, indicating strong organic growth funding capability.
  • Retained earnings of 483.94M provide strong 566.67x coverage of intangibles 854000, indicating quality earnings retention.
  • Retained earnings of 483.94M represent substantial 0.68x of equity 711.23M, indicating strong internal capital generation.

Bear case

  • Operating cash flow of 55.86M barely covers its investment activities of 297.75M, with a coverage ratio of 0.19, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 55.86M provides thin coverage of dividend payments of (29.16M) with a -1.92 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Operating cash flow of 55.86M provides minimal -5.18x coverage of tax expenses of (10.78M), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of (45.17M) show weak coverage of depreciation charges of 5.83M, with a -7.74 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 51.89M represents just -0.15x of debt issuance (356.12M), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Peer comparison

Companies in the Banks - Regional
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 USB Us Bancorp \De\ 84.44 Bn 12.40 3.25 77.98 Bn
2 PNC Pnc Financial Services Group, Inc. 84.36 Bn 13.61 3.73 62.34 Bn
3 NU Nu Holdings Ltd. 81.47 Bn 32.21 5.79 4.49 Bn
4 NWG NatWest Group plc 66.53 Bn 9.88 3.05 169.04 Bn
5 TFC Truist Financial Corp 64.60 Bn 13.18 3.53 71.11 Bn
6 MTB M&T Bank Corp 32.73 Bn 12.47 3.60 14.99 Bn
7 FITB Fifth Third Bancorp 31.96 Bn 14.15 3.93 18.94 Bn
8 FCNCA First Citizens Bancshares Inc /De/ 28.98 Bn 12.78 3.26 40.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.10 0.14
EV to Cash from Ops. EV/CFO 16.65 7.21
EV to Debt EV to Debt 1.72 5.20
EV to EBIT EV/EBIT -20.59 14.98
EV to EBITDA EV/EBITDA -25.30 8.92
EV to Free Cash Flow [EV/FCF] EV/FCF 17.93 8.87
EV to Market Cap EV to Market Cap 2.16 1.04
EV to Revenue EV/Rev 6.47 -3.76
Price to Book Value [P/B] P/B 0.60 1.17
Price to Earnings [P/E] P/E -12.50 15.63
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -1.18 271.44
Dividend Payout Ratio % Div Payout % (Qtr) -71.50 35.28
Dividend per Basic Share Div per Share (Qtr) 0.88 0.89
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 57.29 34.52
Interest Coverage Interest Coverage 0.00 -0.05
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -28.72 -73.15
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -46.60 15.78
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 5.32
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -232.22 110.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -188.42 38.80
EBIT Growth (1y) % EBIT 1y % (Qtr) -227.81 61.46
EBT Growth (1y) % EBT 1y % (Qtr) -227.81 61.37
EPS Growth (1y) % EPS 1y % (Qtr) -241.38 76.34
FCF Growth (1y) % FCF 1y % (Qtr) 79.45 161.72
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -25.74 14.15
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.02 0.04
Cash Payout Ratio Cash Payout (Qtr) 0.49 0.26
Cash Ratio Cash Ratio 0.00 0.00
Current Ratio Current Ratio 0.00 0.01
Debt to Equity Ratio Debt/Equity (Qtr) 0.76 0.53
Interest Cover Ratio Interest Cover Ratio 0.00 -0.05
Times Interest Earned Times Interest Earned 0.00 -0.05
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -27.30 147.97
EBIT Margin % EBIT Margin % (Qtr) -31.40 155.41
EBT Margin % EBT Margin % (Qtr) -31.40 154.66
Gross Margin % Gross Margin % (Qtr) 100.00 97.82
Net Profit Margin % Net Margin % (Qtr) -23.90 115.63