Sound Financial Bancorp, Inc. (SFBC) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+57.6%

$69.69

vs $44.23 price

Levered DCF

$71.53

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

13.08

Safe zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	15.58×	29.09×	13.49×	11.52×	12.57×	9.2×	13.64×	11.54×
P/B	1.02×	1.29×	0.92×	1.04×	1.23×	0.96×	1.17×	1.14×
P/S	1.81×	2.16×	1.67×	2.28×	2.79×	1.94×	2.36×	2.18×
EV / EBITDA	-0.53×	18.13×	9.36×	8.3×	-3.9×	-7.06×	5.15×	10.63×
Gross margin	63.1%	57.5%	70.3%	87.3%	89.4%	80.2%	80.6%	84.3%
Operating margin	14.1%	9.1%	16.2%	24.5%	27.7%	26.7%	21.6%	23.4%
Net margin	11.6%	7.5%	13.4%	19.8%	22.2%	21.1%	17.3%	18.8%
Current ratio	0.15×	0.07×	0.07×	0.08×	0.24×	0.28×	0.11×	0.12×
Debt / equity	0.2×	0.39×	0.56×	0.62×	0.19×	0.22×	0.2×	1.17×
Interest coverage	0.38×	0.21×	0.54×	2.42×	2.89×	1.52×	1.09×	1.63×
Dividend yield	1.7%	1.5%	2.1%	2.0%	1.8%	2.5%	1.6%	1.7%
Payout ratio	27.2%	42.0%	25.7%	23.1%	22.3%	23.2%	21.5%	19.4%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	6.5%	4.5%	7.4%	9.0%	9.8%	10.5%	8.6%	9.8%
Return on invested capital	5.0%	3.0%	4.4%	5.3%	7.6%	7.9%	6.5%	4.3%
Return on assets	0.7%	0.5%	0.7%	0.9%	1.0%	1.0%	0.9%	1.0%
Free cash flow yield	6.3%	2.1%	6.9%	9.5%	16.4%	-1.1%	11.4%	11.9%
Earnings yield	6.4%	3.5%	8.0%	8.7%	8.0%	10.9%	7.3%	8.7%
Enterprise value	-$5.4M	$131M	$99.7M	$103.5M	-$50.7M	-$92.8M	$50.7M	$103.5M
Net debt / EBITDA	-11.49×	-0.4×	0.64×	0.18×	-12.73×	-13.31×	-4.09×	2.28×
Cash conversion cycle (days)	12	10	5	-0	3	3	10	14