Yes, TFS Financial (TFSL) has been a miserable performer over the last year, dropping from $19 per share to around $15 today. That’s following a run-up from $15 in the prior year or so, as investors priced in increased interest rates. But with three or four rate increases expected next year and coming off its most profitable year ever, TFS Financial still looks like a compelling buy.
Three reasons I continue to like the bank:
- Price to tangible book value is low
- Buybacks continue at a high (but lowered) pace
- Loan book is levered to higher interest rates