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Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 42.2GRADE C
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
10.8%
Sector: 8.5%
Dividend Analysis audit
INCOME
3.23%
Trailing Yield
$3.23
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
37%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, TIMBERLAND BANCORP INC (TSBK) receives a "Hold" rating with a composite score of 45.9/100, ranked #385 out of 4446 stocks. Key factor scores: Quality 42/100, Value 31/100, Momentum 58/100. This is quantitative analysis only — not investment advice.
TIMBERLAND BANCORP INC (TSBK) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does TIMBERLAND BANCORP INC Do?
Timberland Bancorp, Inc. operates as the bank holding company for Timberland Bank that provides various community banking services in Washington. It offers various deposit products, including money market deposit, checking, and regular savings accounts, as well as certificates of deposit. The company also provides one-to four-family residential, multi-family, commercial real estate, construction, custom and owner/builder construction, speculative one- to four-family construction, commercial construction, multi-family construction, land development construction, and land development loans. In addition, it offers consumer loans comprising home equity lines of credit and second mortgage loans; and automobile loans, boat loans, motorcycle loans, recreational vehicle loans, savings account loans, and unsecured loans, as well as commercial business loans. As of September 30, 2021, the company operated 24 branches located in Grays Harbor, Pierce, Thurston, Kitsap, King, and Lewis counties in Washington; and operated 25 proprietary automated teller machines. Timberland Bancorp, Inc. was founded in 1915 and is headquartered in Hoquiam, Washington. TIMBERLAND BANCORP INC (TSBK) is classified as a small-cap stock in the Financials sector, specifically within the Banking industry. The company is led by CEO Michael R. Sand and employs approximately 300 people, headquartered in HOQUIAM, Washington. With a market capitalization of $317M, TSBK is one of the notable companies in the Financials sector.
TIMBERLAND BANCORP INC (TSBK) Stock Rating — Hold (April 2026)
As of April 2026, TIMBERLAND BANCORP INC receives a Hold rating with a composite score of 45.9/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.TSBK ranks #385 out of 4,446 stocks in our coverage universe. Within the Financials sector, TIMBERLAND BANCORP INC ranks #131 of 891 stocks, placing it in the top quartile of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
TSBK Stock Price and 52-Week Range
TIMBERLAND BANCORP INC (TSBK) currently trades at $41.47. The stock lost $1.91 (4.4%) in the most recent trading session. The 52-week high for TSBK is $40.41, which means the stock is currently trading 2.6% from its annual peak. The 52-week low is $27.51, putting the stock 50.8% above its annual trough. Recent trading volume was 27K shares, suggesting relatively thin trading activity.
Is TSBK Overvalued or Undervalued? — Valuation Analysis
TIMBERLAND BANCORP INC (TSBK) carries a value factor score of 31/100 in the Blank Capital model, signaling premium valuation that prices in significant future growth. The trailing price-to-earnings ratio is 11.52x, compared to the Financials sector average of 14.88x — a discount of 23%. The price-to-book ratio stands at 1.24x, versus the sector average of 1.22x. The price-to-sales ratio is 3.24x, compared to 0.90x for the average Financials stock. On an enterprise value basis, TSBK trades at 6.72x EV/EBITDA, versus 3.26x for the sector. The EV/EBIT multiple is 2.02x.
At current multiples, TIMBERLAND BANCORP INC trades at a premium to most Financials peers. This elevated valuation may be justified if the company can sustain above-average growth rates and profitability, but it also creates downside risk if earnings disappoint expectations.
TIMBERLAND BANCORP INC Profitability — ROE, Margins, and Quality Score
TIMBERLAND BANCORP INC (TSBK) earns a quality factor score of 42/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is 10.8%, compared to the Financials sector average of 8.5%, which is within a healthy range. Return on assets (ROA) comes in at 1.4% versus the sector average of 1.2%.
The operating margin is 44.3% (sector: 21.8%). Net profit margin stands at 28.1%, versus 17.7% for the average Financials stock. Revenue growth is running at 17.4% on a trailing basis, compared to 9.4% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
TSBK Debt, Balance Sheet, and Financial Health
TIMBERLAND BANCORP INC has a debt-to-equity ratio of 647.0%, compared to the Financials sector average of 121.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.15x, suggesting adequate working capital coverage.
TSBK has a beta of 0.65, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for TIMBERLAND BANCORP INC is 84/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
TIMBERLAND BANCORP INC Revenue and Earnings History — Quarterly Trend
In TTM 2026, TIMBERLAND BANCORP INC reported revenue of $103M and earnings per share (EPS) of $1.04. Net income for the quarter was $29M.
In Q1 2026, TIMBERLAND BANCORP INC reported revenue of $27M and earnings per share (EPS) of $1.04. Net income for the quarter was $8M. Revenue grew 7.7% year-over-year compared to Q1 2025.
In FY 2025, TIMBERLAND BANCORP INC reported revenue of $83M and earnings per share (EPS) of $3.68. Net income for the quarter was $29M. Gross margin was 85.0%. Revenue grew -12.9% year-over-year compared to FY 2024. Operating income came in at $12M.
In Q3 2025, TIMBERLAND BANCORP INC reported revenue of $26M and earnings per share (EPS) of $0.90. Net income for the quarter was $7M.
Over the past 8 quarters, TIMBERLAND BANCORP INC has demonstrated a growth trajectory, with revenue expanding from $23M to $103M. Investors analyzing TSBK stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
TSBK Dividend Yield and Income Analysis
TIMBERLAND BANCORP INC (TSBK) currently pays a dividend yield of 3.2%. At this yield, a $10,000 investment in TSBK stock would generate approximately $$323.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning TSBK offers above-average income for its sector. With a net margin of 28.1%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
TSBK Momentum and Technical Analysis Profile
TIMBERLAND BANCORP INC (TSBK) has a momentum factor score of 58/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 27/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 31/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
TSBK vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing TSBK against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full TSBK vs S&P 500 (SPY) comparison to assess how TIMBERLAND BANCORP INC stacks up against the broader market across all factor dimensions.
TSBK Next Earnings Date
No upcoming earnings date has been announced for TIMBERLAND BANCORP INC (TSBK) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy TSBK? — Investment Thesis Summary
TIMBERLAND BANCORP INC presents a balanced picture with arguments on both sides. The value score of 31/100 indicates premium valuation. Low volatility (stability score 84/100) reduces downside risk.
In summary, TIMBERLAND BANCORP INC (TSBK) earns a Hold rating with a composite score of 45.9/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on TSBK stock.
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Institutional Research Dossier
TIMBERLAND BANCORP INC (TSBK) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Timberland Bancorp Inc. (TSBK) receives a Hold rating, driven by a mixed financial profile. While the company exhibits strong profitability metrics and revenue growth compared to the sector, its high valuation multiples and elevated debt-to-equity ratio raise concerns. The bank's stability is a positive attribute, but its limited investment and value scores suggest a need for caution, justifying the neutral stance.
The primary takeaway is that TSBK's current market price reflects its growth potential and profitability, but the high valuation leaves little margin for error. Investors should closely monitor the company's ability to sustain its growth trajectory and manage its debt levels effectively to justify the current valuation.
Business Strategy & Overview
Timberland Bancorp operates as a community bank, primarily serving the Grays Harbor, Pierce, Thurston, Kitsap, King, and Lewis counties in Washington. The bank's core business revolves around attracting deposits and originating loans, focusing on residential and commercial real estate, construction, and consumer lending. Its strategy centers on providing personalized banking services and building strong relationships with local customers and businesses. The company operates 24 branches and 25 proprietary ATMs, indicating a commitment to physical presence in its target markets.
The bank's revenue generation is primarily driven by net interest income, the difference between the interest earned on loans and the interest paid on deposits. Fee income from services such as deposit account maintenance and loan origination also contributes to revenue. Timberland Bank's loan portfolio is diversified across various asset classes, including one-to four-family residential, multi-family, commercial real estate, and construction loans. This diversification helps mitigate credit risk and provides multiple avenues for growth.
Timberland Bancorp's strategic positioning within the community banking sector emphasizes local market knowledge and customer service. Unlike larger national banks, community banks like Timberland focus on building relationships with local businesses and individuals, offering tailored financial solutions. This approach allows them to compete effectively in their target markets and maintain customer loyalty. The company's focus on the Washington state market provides a degree of geographic concentration, which can be both a strength and a weakness.
The company's growth strategy appears to be centered on organic expansion within its existing markets. The bank has not engaged in significant acquisitions or mergers in recent years, suggesting a preference for internal growth. This strategy requires effective management of loan origination, deposit gathering, and operational efficiency. The bank's ability to maintain its net interest margin and control operating expenses will be crucial for its long-term success.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
17.4%
Sector: 9.4%
+86% VS SCTR
Economic Moat Analysis
Timberland Bancorp's economic moat can be classified as Narrow. The bank's competitive advantage stems primarily from its established presence and customer relationships within its local markets. This creates a degree of switching costs for customers who value the personalized service and local expertise offered by Timberland Bank. However, the banking industry is highly competitive, and customers have numerous alternatives, including larger national banks, credit unions, and online lenders.
The bank's intangible assets, such as its brand reputation and customer relationships, contribute to its moat. However, these assets are not particularly strong or unique compared to other community banks. The banking industry is characterized by relatively low barriers to entry, and new competitors can emerge relatively easily. The bank's ability to maintain its customer base and attract new customers will depend on its ability to provide competitive interest rates, fees, and service quality.
Timberland Bancorp does not possess significant cost advantages or efficient scale. The bank's operating expenses are likely comparable to those of other community banks. The bank's size and market share are relatively small compared to larger regional and national banks, limiting its ability to achieve economies of scale. The bank's profitability is primarily driven by its net interest margin and credit quality, rather than cost efficiencies.
The network effect is not a significant factor in Timberland Bancorp's business model. The value of the bank's services to its customers does not increase significantly as more customers join the network. The bank's competitive advantage is primarily based on its local presence and customer relationships, rather than network effects.
Overall, Timberland Bancorp's narrow moat provides some protection against competition, but it is not a particularly strong or durable advantage. The bank's ability to maintain its profitability and growth will depend on its ability to execute its business strategy effectively and adapt to changing market conditions.
Financial Health & Profitability
Timberland Bancorp's financial health presents a mixed picture. The company's revenue growth has been strong in recent years, with a 17.4% increase compared to the sector average of 9.3%. This indicates that the bank is effectively expanding its business and gaining market share. However, the company's net income growth has been more volatile, reflecting fluctuations in interest rates, credit quality, and operating expenses.
The company's profitability metrics are generally strong. Its ROE of 10.8% is higher than the sector average of 8.5%, indicating that the bank is generating attractive returns on equity. Its operating margin of 44.3% and net margin of 28.1% are also significantly higher than the sector averages, suggesting that the bank is efficiently managing its operations and controlling costs. The gross margin for FY2025 was 85.0%, indicating a healthy spread between interest income and interest expense.
However, Timberland Bancorp's balance sheet leverage is a concern. Its debt-to-equity ratio of 647.00 is significantly higher than the sector average of 115.00, indicating that the bank is heavily reliant on debt financing. This increases the bank's financial risk and makes it more vulnerable to interest rate fluctuations and economic downturns. The company's current ratio of 1.15 suggests adequate liquidity, but the high debt levels warrant close monitoring.
The quarterly financial history reveals some volatility in the company's performance. Revenue and net income have fluctuated from quarter to quarter, reflecting changes in the economic environment and the bank's business activities. The company's free cash flow has also been inconsistent, with negative free cash flow in Q1 FY2022. This suggests that the bank's cash flow generation is not always sufficient to cover its capital expenditures and other obligations.
Overall, Timberland Bancorp's financial health is a mixed bag. The company's strong revenue growth and profitability are positive attributes, but its high debt levels and inconsistent cash flow generation raise concerns. Investors should closely monitor the company's ability to manage its debt levels and generate consistent cash flow to ensure its long-term financial stability.
Valuation Assessment
Timberland Bancorp's valuation appears stretched based on several key metrics. The company's P/E ratio of 36.7x is significantly higher than the sector average of 15.5x, suggesting that the stock is overvalued relative to its earnings. Similarly, its EV/EBITDA ratio of 6.7x is higher than the sector average of 3.5x, indicating that the stock is also overvalued relative to its cash flow generation.
The high valuation multiples reflect the company's strong revenue growth and profitability, as well as investor optimism about its future prospects. However, the high valuation also leaves little margin for error. If the company fails to meet its growth expectations or experiences a decline in profitability, the stock price could decline significantly.
A discounted cash flow (DCF) analysis would be necessary to determine the intrinsic value of the stock. However, based on the available data, it appears that the stock is trading at a premium to its intrinsic value. The company's high valuation multiples suggest that investors are already pricing in significant future growth and profitability improvements.
Compared to its historical valuation, Timberland Bancorp's current valuation is also relatively high. The company's P/E ratio has fluctuated over time, but it is currently near the upper end of its historical range. This suggests that the stock is currently more expensive than it has been in the past.
Overall, Timberland Bancorp's valuation is a concern. The stock appears to be overvalued relative to its earnings, cash flow, and historical valuation. Investors should exercise caution and carefully consider the risks before investing in the stock.
Risk & Uncertainty
Timberland Bancorp faces several specific risks and uncertainties that could negatively impact its business and financial performance. One of the primary risks is interest rate risk. As a community bank, Timberland Bancorp's profitability is highly sensitive to changes in interest rates. A rise in interest rates could increase the bank's funding costs and reduce its net interest margin, leading to lower earnings. Conversely, a decline in interest rates could reduce the bank's loan yields and also negatively impact its net interest margin.
Another significant risk is credit risk. Timberland Bancorp's loan portfolio is exposed to the risk of borrower default. A deterioration in the economic environment or a decline in real estate values could lead to an increase in loan losses and a reduction in the bank's profitability. The bank's concentration in the Washington state market also increases its exposure to regional economic risks.
Competition is another key risk. The banking industry is highly competitive, and Timberland Bancorp faces competition from larger national banks, credit unions, and online lenders. These competitors may offer lower interest rates, fees, or more convenient services, which could attract customers away from Timberland Bank. The bank's ability to maintain its customer base and attract new customers will depend on its ability to differentiate itself from its competitors.
Regulatory risk is also a factor. The banking industry is subject to extensive regulation, and changes in regulations could increase the bank's compliance costs and restrict its business activities. The bank's ability to comply with regulations and adapt to regulatory changes will be crucial for its long-term success.
Bulls Say / Bears Say
The Bull Case
BULL VIEWTimberland Bancorp's strong revenue growth and high profitability metrics demonstrate its ability to effectively compete in its target markets and generate attractive returns for shareholders.
BULL VIEWThe bank's focus on community banking and personalized service provides a competitive advantage and fosters customer loyalty, leading to sustainable growth and profitability.
BULL VIEWTimberland Bancorp's stable deposit base and diversified loan portfolio mitigate risk and provide a solid foundation for future growth and expansion.
The Bear Case
BEAR VIEWTimberland Bancorp's high valuation multiples and elevated debt-to-equity ratio suggest that the stock is overvalued and carries significant financial risk.
BEAR VIEWThe bank's sensitivity to interest rate fluctuations and its concentration in the Washington state market expose it to potential economic downturns and reduced profitability.
BEAR VIEWIncreased competition from larger national banks and online lenders could erode Timberland Bancorp's market share and negatively impact its long-term growth prospects.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score TSBK and 4,400+ other equities.
TIMBERLAND BANCORP INC exhibits a 86% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
1.4%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
—
Sector: 0.0%
Operating Margin
Core business profitability
44.3%
Sector: 21.8%
Net Margin
Bottom-line profitability
28.1%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.48%
Yield Delta+30%
Income Projection audit
A $10,000 investment would generate approximately $323 annually in dividends at the current trailing rate.
