FFNW is now overvalued and could go down -29%

Based on our analysis, First Financial Northwest has received an overvalued rating of 2 out of 5 stars from Cashu. Several key financial ratios indicate that the company is not performing well compared to its sector, contributing to its poor valuation. The company's net profit margin is not available, whereas the sector average stands at 18.54%. A net profit margin measures how much profit a company makes for every dollar of revenue, indicating overall profitability. The absence of this metric raises concerns about First Financial Northwest's ability to generate profit effectively. Additionally, the return on equity (ROE) for First Financial Northwest is 0.66, significantly lower than the sector average of 8.14. ROE measures a company's ability to generate profit from shareholders' equity. A low ROE suggests that the company may not be utilizing its equity base efficiently to produce returns for investors. Furthermore, the dividend yield for First Financial Northwest is 1.15%, compared to the sector average of 3.08%. Dividend yield indicates the return on investment for shareholders based on dividends paid. A lower yield could suggest that the company is either not returning sufficient value to shareholders or may have less financial stability to support higher dividends. Finally, the return on assets (ROA) ratio is 0.08, well below the sector average of 0.88. ROA reflects how effectively a company uses its assets to generate profit. A lower ROA indicates inefficiency in asset utilization, further questioning the company's operational effectiveness. This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.