| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 209.04 | 4535 |
| Intrinsic value (DCF) | 8.19 | 82 |
| Graham-Dodd Method | 6.08 | 35 |
| Graham Formula | n/a |
Kentucky First Federal Bancorp (NASDAQ: KFFB) is a regional banking holding company operating through its subsidiaries, First Federal Savings and Loan Association of Hazard and Frankfort First Bancorp, Inc. The company provides a range of banking services, including passbook savings, certificates of deposit, checking accounts, and individual retirement accounts. Its loan portfolio consists of residential mortgages, construction loans, multi-family and nonresidential real estate loans, commercial loans, and consumer loans such as home equity lines of credit and auto loans. Headquartered in Hazard, Kentucky, the bank serves local communities through seven branches. As a subsidiary of First Federal MHC, KFFB focuses on traditional savings and loan operations, emphasizing community banking in Kentucky. Despite its small market cap (~$20.9M), the bank plays a critical role in regional financial services, though recent financial performance has been challenged by negative net income and cash flow.
Kentucky First Federal Bancorp presents a high-risk, low-reward investment profile. The company's negative net income (-$1.72M) and diluted EPS (-$0.21) in the latest fiscal year raise concerns about profitability. While its low beta (0.01) suggests minimal market volatility exposure, the lack of dividends and weak operating cash flow (-$1.45M) limit investor appeal. The bank’s small market presence and regional focus may hinder growth opportunities compared to larger peers. However, its strong cash position ($17.58M) relative to market cap could provide stability. Investors should monitor potential turnaround efforts in loan portfolio performance and cost management before considering a position.
Kentucky First Federal Bancorp operates in a highly competitive regional banking sector dominated by larger institutions with greater scale and resources. Its competitive advantage lies in localized customer relationships and community-focused lending, but this is offset by limited geographic reach and operational inefficiencies. The bank’s loan portfolio is concentrated in Kentucky, exposing it to regional economic risks. Compared to peers, KFFB lacks digital banking innovation and diversified revenue streams, relying heavily on traditional interest income. Its negative profitability metrics suggest weaker underwriting or cost management than competitors. The bank’s subsidiary structure under First Federal MHC may provide stability but could also limit strategic flexibility. To improve positioning, KFFB would need to enhance operational efficiency, expand its deposit base, and potentially explore niche lending segments underserved by larger banks.