Yep, you'll definitely be able to make something like Flashback or Another World with it, but note that it's quite simple and low-level, so you'll need to build all the subsystems yourself. As an example, SFML gives you the ability to draw an image on screen, but if you want to animate it then you'll have to write all the code to do that. Compare that to, for example, cocos2d-x, which provides animation classes, render batching, a scene-graph, etc. In my own experience, I chose SFML, and have implemented a substantial (>50k LOC) game engine on top of it.
SFML is a good library if you want/need to start at a very solid low-level and have the time and resources to also build the game engine basics, but probably not the best choice if you just want to make games.