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Security FederalSFDL 73 ROA % is 1.06% as of Dec. 2025, which is 41% above its 10-year median of 0.75. GuruFocus rates SFDL with a GF Score™ of 73/100 and a GF Value™ of $33.66 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,528 Banks companies, Security Federal ranks worse than 60.08% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Security Federal's annualizedNet Income for the quarter that ended in Dec. 2025 was $17.16 Mil.
Security Federal's average Total Assets over the quarter that ended in Dec. 2025 was $1,615.05 Mil. Therefore, Security Federal's annualized ROA % for the quarter that ended in Dec. 2025 was 1.06%.
The historical rank and industry rank for Security Federal's ROA % or its related term are showing as below:
SFDL'
s ROA % Range Over the Past 10 Years
Min: 0.62 Med: 0.75 Max: 1.03
Current: 0.85
During the past 13 years, Security Federal's highest ROA % was 1.03%. The lowest was 0.62%. And the median was 0.75%.
SFDL's ROA % is ranked worse than 60.08% of 1528
companies
in the Banks industry
Industry Median: 1
vs SFDL: 0.85
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Dec. 2025) net income data. The Revenue data used here is four times the quarterly (Dec. 2025) revenue data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Security Federal ROA % Related Terms
Security Federal ROA % Historical Data
* Premium members only.
The historical data trend for Security Federal's ROA % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Banks - Regional subindustry, Security Federal's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Security Federal ROA % vs Banks Industry
For the Banks industry and Financial Services sector, Security Federal's ROA % distribution charts can be found below:
* The bar in red indicates where Security Federal's ROA % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Dec. 2025) net income data.
ROA % is displayed in the 30-year financial page.
Security Federal (SFDL) has a ROA % of 1.06% as of Dec. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Security Federal and its competitors. This is 41% above median its historical median of 0.75. Over the past decade, Security Federal's ROA % has ranged from 0.62 to 1.03. According to the industry distribution chart, Security Federal ranks #918 out of 1528 companies in the Banks industry, placing it in the top 60.1%.
Is Security Federal's ROA % too high?
Security Federal's current ROA % of 1.06% is 41% above median its 10-year median of 0.75. Over the past 10 years, this metric has ranged from a low of 0.62 to a high of 1.03. The Banks industry median ROA % is 1.00. Security Federal's value of 1.06% is 6% above this industry median. Based on the distribution chart, Security Federal ranks #918 out of 1528 companies in the Banks industry, which is below the industry midpoint. Overall, Security Federal has a GF Score™ of 73/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Security Federal's ROA % compare to CWBK and CTUY?
According to the Banks industry distribution chart, Security Federal ranks #918 out of 1528 companies for ROA %. This places Security Federal in the lower half of its industry. The industry median ROA % is 1.00. Security Federal's value of 1.06% is 6% above this benchmark. Historically, Security Federal's own ROA % has ranged from 0.62 to 1.03 over the past decade. While the company's 10-year median is 0.75 vs. the industry median of 1.00, Security Federal has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for a Banks company?
The median ROA % among Banks companies is 1.00, based on 1,528 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Security Federal's current ROA % of 1.06% is 6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Security Federal and its competitors. For the Banks industry, the median ROA % is 1.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Security Federal's current ROA % is 1.06%, which is 41% above median its own 10-year median of 0.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Security Federal stock overvalued right now?
Based on GuruFocus' analysis, Security Federal (SFDL) is currently considered Modestly Overvalued. The stock's GF Value™ is $33.66, compared to a current price of $41.67 — trading 23.8% above its estimated fair value. The current ROA % is 1.06%, which is 41% above median its 10-year median of 0.75 and 6% above the Banks industry median of 1.00. Security Federal's overall GF Score™ is 73/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Security Federal (SFDL), the current ROA % is 1.06% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Security Federal (SFDL) Overvalued in 2026?
Based on GuruFocus' analysis, Security Federal stock appears to be overvalued.
The current stock price of $41.67 is trading 23.8% above its estimated GF Value™ of $33.66.
GuruFocus considers Security Federal to be Modestly Overvalued.
Key valuation signals for SFDL:
ROA %: 1.06% (41% above median its 10-year median of 0.75)
GF Value™: $33.66 vs. price of $41.67 (23.8% above fair value)
Industry Position: 6% above the Banks median (#918 of 1528)
No single metric tells the full story. See the SFDL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Security Federal Corp and its subsidiaries are involved in the business of providing commercial and personal banking services as well as auto, business, home, and health insurance. The primary business of the company is to accept deposits from the general public and originate commercial real estate loans, commercial business loans, consumer loans as well as mortgage loans to buy or refinance one-to-four family residential real estate. It also originates construction loans and loans for the acquisition, development, and construction of residential subdivisions and commercial projects. The company also operates Security Federal Trust and Investments that offers trust, financial planning, and financial management services.
73GF Score
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