FFIC

We rate FLUSHING FINANCIAL CORP (FFIC) as a Hold with a composite score of 50.7/100 at a current price of $15.96. The stock presents a mixed quantitative picture — neither compelling enough to warrant new accumulation nor weak enough to justify selling for existing holders. Our factors are split, and the overall profile suggests patience is warranted.

The rating is primarily driven by strength in momentum (64th percentile) and value (56th percentile), which together account for the majority of the composite score. Offsetting weakness in investment (28th percentile) and quality (33th percentile) tempers our overall conviction. We assign a No Moat rating (19/100), High uncertainty, and Poor capital allocation.

Key items to watch: whether strong momentum is fundamentally supported by revenue trends; balance sheet deleveraging progress. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.

FLUSHING FINANCIAL CORP holds a top-quartile position (#0 of 50) within the Finance, Insurance, And Real Estate sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 50.7/100 places it at rank #1896 in our full 7,333-stock universe. At $466M in market capitalization, FLUSHING FINANCIAL CORP is a small-cap player in the Finance, Insurance, And Real Estate space, which limits certain scale advantages but may allow for more agile strategic execution.

Despite positive momentum (64th percentile), revenue contraction of -98% creates a divergence between price action and fundamental trajectory. This divergence suggests either that the market is looking through near-term weakness or that technical factors are temporarily inflating the stock. Investors should assess whether the revenue decline reflects cyclical weakness or structural challenges.

The margin cascade tells an important story: gross margins of 0% (-76.5pp vs sector) narrow to operating margins of 319% (+301.8pp vs sector) and net margins of 153.7%, yielding a gross-to-net conversion rate of N/A%. The significant margin erosion from gross to net suggests elevated operating expenses, high interest costs, or other structural drags that warrant monitoring.

At a current price of $15.96, FLUSHING FINANCIAL CORP is trading near fair value based on current fundamentals. Our value factor score of 56/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. Valuation metrics are mixed, with no strong signal of mispricing in either direction.

The stock currently trades at a P/E of 23.7x (a 99% premium to the sector median of 11.9x), EV/EBITDA of 12.9x (at a premium), P/B of 0.8x, P/S of 4.4x. The above-sector P/E multiple suggests the market is pricing in superior growth or quality, which our analysis finds only partially justified by current fundamentals.

We assign a High uncertainty rating to FLUSHING FINANCIAL CORP. Key risk factors include significant leverage (1147% debt-to-equity), weak quality scores (33th percentile). The wide range of potential outcomes widens our fair value estimate and increases the possibility of permanent capital impairment. Investors considering this name should size positions accordingly and demand a meaningful margin of safety before initiating.

Specific risk factors that inform our assessment include: significant leverage (1147% debt-to-equity); weak quality scores (33th percentile). Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 43th percentile and quality factor at the 33th percentile provide a quantitative summary of the overall risk landscape.

Key risk mitigants include: a 6.37% dividend yield anchors total return. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile warrants caution and disciplined position management.

We rate FLUSHING FINANCIAL CORP's capital allocation as Poor. Key concerns include low returns on equity (3.3%), elevated leverage (1147% D/E), weak asset returns (ROA 0.3%). Exemplary capital allocators generate ROE above 20% and maintain conservative leverage — FLUSHING FINANCIAL CORP significantly underperforms these benchmarks, raising questions about management's ability to create shareholder value.

Investors should scrutinize management's reinvestment decisions and balance sheet trajectory before committing capital. Poor capital allocation often compounds over time: overlevered balance sheets limit strategic flexibility, while low returns on capital destroy shareholder value. We would need to see sustained improvement in profitability metrics and balance sheet discipline before considering an upgrade.

In summary, FLUSHING FINANCIAL CORP receives a Hold rating with a composite score of 50.7/100 (rank #1896 of 7,333). Our quantitative framework assigns a No Moat (19/100, trend: stable), High uncertainty, and Poor capital allocation. The average factor score across quality, value, momentum, stability, and investment is 45/100.

Our analysis supports a neutral stance on FLUSHING FINANCIAL CORP. While the quantitative profile is not weak enough to warrant selling, it lacks the multi-factor strength required for a buy recommendation. Existing holders should maintain positions and monitor for catalysts — either fundamental improvement or valuation compression — that would shift the risk-reward balance.