MeritValue

SECURITY FEDERAL CORP

SFDLdata completeness 88%17 fiscal years on file

Data notes: no data for concept 'totalDebt'

The thesis, from the filings

SECURITY FEDERAL CORP earns about 289% on invested capital, far above its ~9% cost of capital, and has bought back 3% of its shares over 5 years — the marks of a durable business run for its owners. The estimate methods put fair value between $33.55 and $63.65 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$37.1M1$42.6M2$65M3$77.3M4$78.7M4
Net income$12.8M5$10.2M6$10.2M7$9.81M8$13.7M8
Operating cash flow$19.3M9$21.9M10$8.86M11$28.4M12$14.4M12
Capital expenditure$2.15M13$4.69M14$2.85M15$2.76M16$5.58M16
Free cash flow (derived)$17.1M9$17.2M10$6M11$25.7M12$8.8M12
Total debt—————
Cash & equivalents$27.6M17$28.5M18$128.3M19$178.3M20$75.3M20
Diluted shares3.3M3.3M3.2M3.2M3.2M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$634.55
your share of equity
Profit it earned you last year
$43.28
Free cash flow it threw off
$27.86
Debt you’d be carrying
—

10 shares is a claim on $634.55 of net worth that earned you $43.28 and generated $27.86 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
289% avg · 5y
FY21 —FY22 11%FY23 71%FY24 1032%FY25 41%

It earned about 289% on invested capital, year after year, against a ~9% cost of capital — the footprint of real pricing power. Competition usually drags returns like this back down; here it hasn't.

seeing a moat in the numbers →
Management signal · capital allocation
−3% shares · 5y

Share count is down 3% over 5 years — management has been buying back stock, quietly handing owners a bigger slice.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $33.55 and $63.65 a share. They rest on different assumptions, so where they diverge is the story.

DCF · Growth Exit 10Y
$60.66
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth0.0%
  • fcfBase$8.8M
DCF · Growth Exit 5Y
$63.65
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth0.0%
  • fcfBase$8.8M
Earnings Power Value
$33.55
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$10.2M
  • growthAssumed0.0%
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years0.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $63.65
The three cases
Bear0.0%$63.65
Base0.0%$63.65
Bull5.0%$73.29

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 0.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0000939057-23-000085 (InterestAndDividendIncomeOperating)
  2. 10-K · period ending 2022-12-31 · accession 0001437749-24-008852 (InterestAndDividendIncomeOperating)
  3. 10-K · period ending 2023-12-31 · accession 0001437749-25-007686 (InterestAndDividendIncomeOperating)
  4. 10-K · period ending 2024-12-31 · accession 0001437749-26-009181 (InterestAndDividendIncomeOperating)
  5. 10-K · period ending 2021-12-31 · accession 0000939057-23-000085 (NetIncomeLoss)
  6. 10-K · period ending 2022-12-31 · accession 0001437749-24-008852 (NetIncomeLoss)
  7. 10-K · period ending 2023-12-31 · accession 0001437749-25-007686 (NetIncomeLoss)
  8. 10-K · period ending 2024-12-31 · accession 0001437749-26-009181 (NetIncomeLoss)
  9. 10-K · period ending 2021-12-31 · accession 0000939057-23-000085 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-12-31 · accession 0001437749-24-008852 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-12-31 · accession 0001437749-25-007686 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-12-31 · accession 0001437749-26-009181 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2021-12-31 · accession 0000939057-23-000085 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2022-12-31 · accession 0001437749-24-008852 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2023-12-31 · accession 0001437749-25-007686 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2024-12-31 · accession 0001437749-26-009181 (PaymentsToAcquirePropertyPlantAndEquipment)
  17. 10-K · period ending 2021-12-31 · accession 0000939057-23-000085 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2022-12-31 · accession 0001437749-24-008852 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-12-31 · accession 0001437749-25-007686 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2024-12-31 · accession 0001437749-26-009181 (CashAndCashEquivalentsAtCarryingValue)