Capitol Federal Financial Returns to Profit, Challenges Skepticism on Earnings Quality and Valuation

Capitol Federal Financial (CFFN) has returned to profitability after a five-year decline in earnings of 28.6%. The company's share price has more than doubled, with a current price of $6.02 and a DCF fair value of $3.01, indicating a 100% premium to discounted cash flow valuation. However, concerns remain about future growth assumptions and dividend sustainability, as the fair value gap raises questions about whether the latest profit trends can continue.