Kentucky First Federal Bancorp reports 1,645% Net Income decline in 2020
09/21/2020 • About Kentucky First Federal Bancorp (
$KFFB) • By InTwits
Kentucky First Federal Bancorp reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- Kentucky First Federal Bancorp has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.8%. At the same time it's a lot of higher than industry average of 2.1%.
- CAPEX is quite volatile: $0m in FY2020, $0m in FY2019, $0m in FY2018, $0m in FY2017, $1m in FY2016
- The company has unprofitable business model: ROIC is -10.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue increased on 2.2%. Revenue growth showed slowdown in FY20Q4 - it was -4.2% YoY. During the last 5 years Revenue growth topped in FY2018 at 7.7% and was decelerating since that time.
Net Income margin dropped on 101 pp from 6.3% to -94.9% in FY2020.
Investments (CAPEX, working capital and M&A)
In FY2020 Kentucky First Federal Bancorp had CAPEX/Revenue of 1.2%. CAPEX/Revenue showed almost no change from FY2017 to FY2020. For the last three years the average CAPEX/Revenue was 1.2%.
Return on investment
The company operates at negative ROIC (-10.1%) and ROE (-21.2%). ROIC dropped on 10.8 pp from 0.74% to -10.1% in FY2020. ROE dropped on 22.4 pp from 1.2% to -21.2% in FY2020. ROIC pursued a declining trend in FY2016-FY2020.
Leverage (Debt)
Debt dropped on 18.0% while cash dropped on 11.1%.
The company has no short term refinancing risk: short term debt is zero.
Management team
Don D Jennings is a the company's CEO. Don D Jennings has spent 8 years with the company. The company's CFO R Clay Hulette has spent 16 years with the company.
Financial and operational results
FY ended 06/30/2020
Kentucky First Federal Bancorp ($KFFB) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 12.021 | 11.678 | 12.577 | 12.943 | 13.222 | 2.2% |
| Net Income | 1.501 | 0.935 | 1.323 | 0.812 | -12.547 | -1,645.2% |
Balance Sheet
|
|---|
| Cash | 4.297 | 4.035 | 2.337 | 1.870 | 1.662 | -11.1% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 33.211 | 55.780 | 53.052 | 66.703 | 54.715 | -18.0% |
Cash flow
|
|---|
| Capex | 1.108 | 0.124 | 0.151 | 0.148 | 0.165 | 11.5% |
Ratios
|
|---|
| Revenue growth | -6.8% | -2.9% | 7.7% | 2.9% | 2.2% | |
|
|---|
| Net Income Margin | 12.5% | 8.0% | 10.5% | 6.3% | -94.9% | -101.2% |
| CAPEX, % of revenue | 9.2% | 1.1% | 1.2% | 1.1% | 1.2% | 0.1% |
|
|---|
| ROIC | 2.1% | 1.3% | 1.0% | 0.7% | -10.1% | -10.8% |
| ROE | 2.2% | 1.4% | 2.0% | 1.2% | -21.2% | -22.4% |
Kentucky First Federal Bancorp ($KFFB) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 3 | 3 | 3 | 3 | | 9.2% | 3.7% | 0.4% | -4.2% |
| Net Income | 0 | 0 | 0 | -13 | | 69.6% | 48.5% | 15.9% | -4,523.0% |
Balance Sheet
|
|---|
| Cash | 2 | 1 | 2 | 2 | | 27.0% | -9.5% | 2.5% | -11.1% |
| Long Term Debt | 64 | 62 | 55 | 55 | | 28.7% | 10.9% | -1.8% | -18.0% |
Ratios
|
|---|
| Net Income Margin | 6.9% | 7.4% | 7.3% | -415.6% | | 2.4% | 2.2% | 1.0% | -424.6% |
Peers in Thrifts & Mortgage Finance
Below you can find Kentucky First Federal Bancorp benchmarking vs. other companies in Thrifts & Mortgage Finance industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Oconee Federal Financial Corp. ($OFED) | - | -5.5% | -3.0% | 9.8% | 1.0% |
| |
|---|
| Median (1 company) | - | -5.5% | -3.0% | 9.8% | 1.0% |
|---|
| Kentucky First Federal Bancorp ($KFFB) | - | -2.9% | 7.7% | 2.9% | 2.2% |
Top companies by CAPEX/Revenue, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Oconee Federal Financial Corp. ($OFED) | 1.0% | 1.0% | 3.6% | 8.8% | 8.9% |
| |
|---|
| Median (1 company) | 1.0% | 1.0% | 3.6% | 8.8% | 8.9% |
|---|
| Kentucky First Federal Bancorp ($KFFB) | 9.2% | 1.1% | 1.2% | 1.1% | 1.2% |
Top companies by ROIC, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Oconee Federal Financial Corp. ($OFED) | 8.6% | 8.1% | 5.5% | 5.2% | 5.3% |
| |
|---|
| Median (1 company) | 8.6% | 8.1% | 5.5% | 5.2% | 5.3% |
|---|
| Kentucky First Federal Bancorp ($KFFB) | 2.1% | 1.3% | 1.0% | 0.7% | -10.1% |
