Broadway Financial Corporation (BYFC) | Investment Case

1. Company Snapshot

1.a. Company Description

Broadway Financial Corporation operates as the holding company for City First Bank, National Association that provides various banking products and services in the United States.It accepts various deposit accounts, including savings accounts, checking accounts, NOW accounts, money market accounts, and fixed-term certificates of deposit.The company also offers mortgage loans, which are secured by multi-family residential properties; single family residential properties; and commercial real estate, including charter schools, community facilities, and churches, as well as commercial business, construction, and consumer loans.

In addition, it invests in securities issued by federal government agencies, residential mortgage-backed securities, and other investments.The company operates through three branch offices.Broadway Financial Corporation was founded in 1946 and is headquartered in Los Angeles, California.

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1.b. Last Insights on BYFC

Broadway Financial Corporation faced challenges in recent months, including a decline in net income attributable to common stockholders, which turned to a net loss of $147 thousand in Q2 2025 from a net income of $269 thousand in Q2 2024. The company also received a Nasdaq notification for late filing of its Form 10-Q, citing non-compliance with listing rules. Furthermore, despite the appointment of Justin Jennings as Executive Vice President, Chief Deposit Officer, to lead deposit strategy and digital banking, the company's financial performance and regulatory compliance issues are areas of concern.

1.c. Company Highlights

Last Price	5.76
Change Percentage	1.05%
Open	5.89
Previous Close	5.7
Market Cap ( Millions)	53
Volume	19605
Year High	9.46
Year Low	5.51
M A 50	6.53
M A 200	6.96

FCF Yield	-2.13%
Dividend Yield	0.00%
ROE	0.22%
Debt / Equity	46.58%
Net Debt / EBIDTA	8413.74%
Price To Book	0.17
Price Earnings Ratio	80.63
Price To FCF	-47.01
Price To sales	0.95
EV / EBITDA	127.21

2. Transcript Summary

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3. NewsRoom

Broadway Financial Corporation Announces Notification from Nasdaq Regarding Late Filing of Form 10-Q

Nov -25

Source: prnewswire.com

Broadway Financial (NASDAQ:BYFC) Shares Pass Below 200-Day Moving Average – Should You Sell?

Nov -22

Source: defenseworld.net

City First Bank Appoints Justin Jennings as Executive Vice President, Chief Deposit Officer

Oct -20

Source: prnewswire.com

Broadway Financial Corporation Announces Notification from Nasdaq Regarding Late Filing of Form 10-Q

Aug -22

Source: prnewswire.com

Broadway Financial Corporation Announces Results of Operations for Second Quarter 2025

Jul -31

Source: prnewswire.com

Broadway Financial Corporation Announces Revised Results of Operations for First Quarter 2025

Jul -29

Source: prnewswire.com

Broadway Financial Corporation Announces Notification from Nasdaq regarding late filing of Form 10-Q

Jun -02

Source: prnewswire.com

Broadway Financial Corporation Announces Results of Operations for First Quarter 2025

Apr -28

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.20%)

6. Segments

Banking and Related Activities

Expected Growth: 5.2%

The growth of Broadway Financial Corporation's banking and related activities is driven by increasing demand for digital banking services, rising adoption of online lending platforms, and growing need for investment products among individual and commercial clients.

7. Detailed Products

Commercial Banking

Broadway Financial Corporation offers a range of commercial banking services, including cash management, treasury management, and commercial lending, to help businesses manage their finances and achieve their goals.

Consumer Banking

Broadway Financial Corporation provides consumer banking services, including checking and savings accounts, credit cards, and personal loans, to help individuals manage their finances and achieve their personal goals.

Mortgage Lending

Broadway Financial Corporation offers mortgage lending services, including residential and commercial mortgages, to help individuals and businesses achieve their real estate goals.

Investment Services

Broadway Financial Corporation provides investment services, including brokerage, investment management, and wealth management, to help individuals and businesses achieve their long-term financial goals.

Treasury Management

Broadway Financial Corporation offers treasury management services, including cash management, foreign exchange, and trade finance, to help businesses manage their cash flow and optimize their financial performance.

8. Broadway Financial Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Broadway Financial Corporation is medium due to the presence of alternative financial institutions and online banking platforms.

Bargaining Power Of Customers

The bargaining power of customers is high due to the availability of multiple financial institutions and online banking platforms, giving customers the power to switch between providers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the company's strong financial position and ability to negotiate with suppliers.

Threat Of New Entrants

The threat of new entrants is medium due to the presence of regulatory barriers and the need for significant capital investment to enter the market.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of multiple financial institutions and online banking platforms, leading to intense competition for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	58.48%
Debt Cost	6.43%
Equity Weight	41.52%
Equity Cost	7.08%
WACC	6.70%
Leverage	140.84%

11. Quality Control: Broadway Financial Corporation passed 5 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

CapFed

A-Score: 5.7/10

Value: 5.2

Growth: 0.8

Quality: 5.0

Yield: 9.0

Momentum: 6.5

Volatility: 7.7

1-Year Total Return ->

Rhinebeck Bancorp

A-Score: 4.7/10

Value: 7.5

Growth: 1.7

Quality: 3.5

Yield: 0.0

Momentum: 8.5

Volatility: 7.0

1-Year Total Return ->

John Marshall Bancorp

A-Score: 4.7/10

Value: 5.7

Growth: 4.7

Quality: 6.1

Yield: 2.0

Momentum: 4.0

Volatility: 5.7

1-Year Total Return ->

Broadway Financial

A-Score: 4.5/10

Value: 5.2

Growth: 5.3

Quality: 4.7

Yield: 0.0

Momentum: 7.5

Volatility: 4.3

1-Year Total Return ->

Bogota Financial

A-Score: 4.2/10

Value: 4.4

Growth: 2.1

Quality: 2.6

Yield: 0.0

Momentum: 8.0

Volatility: 8.0

1-Year Total Return ->

Blue Ridge Bankshares

A-Score: 4.1/10

Value: 2.6

Growth: 1.4

Quality: 4.2

Yield: 2.0

Momentum: 9.0

Volatility: 5.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

64.97%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.70%

Broadway Financial Corporation - US1114447097

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on BYFC

1.c. Company Highlights

Weak Momentum

Higher Growth

More Volatile

Lower Yield

Lower Quality

Expensive

Strong Momentum

Stable Momentum

Fairly Valued

Average Quality

Medium Volatility

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.20%)

6. Segments

Banking and Related Activities

Expected Growth: 5.2%

7. Detailed Products

Commercial Banking

Consumer Banking

Mortgage Lending

Investment Services

Treasury Management

8. Broadway Financial Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Broadway Financial Corporation passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

5.76$

Current Price

5.76$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA