OCEANFIRST FINANCIAL CORP (OCFC) Stock Fundamental Analysis
NASDAQ:OCFC - Nasdaq - US6752341080 - Common Stock - Currency: USD
Taking everything into account, OCFC scores 3 out of 10 in our fundamental rating. OCFC was compared to 397 industry peers in the Banks industry. Both the profitability and financial health of OCFC have multiple concerns. OCFC is not valued too expensively and it also shows a decent growth rate. Finally OCFC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
OCFC had positive earnings in the past year.
In the past year OCFC had a positive cash flow from operations.
OCFC had positive earnings in each of the past 5 years.
OCFC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 0.72%, OCFC perfoms like the industry average, outperforming 40.55% of the companies in the same industry.
The Return On Equity of OCFC (5.64%) is worse than 71.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.72% | ||
| ROE | 5.64% | ||
| ROIC | N/A |
ROA(3y)0.85%
ROA(5y)0.8%
ROE(3y)6.89%
ROE(5y)6.36%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
OCFC has a Profit Margin of 25.00%. This is comparable to the rest of the industry: OCFC outperforms 58.69% of its industry peers.
In the last couple of years the Profit Margin of OCFC has declined.
OCFC does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 25% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-5.59%
PM growth 5Y-3.4%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
OCFC does not have a ROIC to compare to the WACC, probably because it is not profitable.
OCFC has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, OCFC has more shares outstanding
The debt/assets ratio for OCFC has been reduced compared to a year ago.
2.2 Solvency
OCFC has a debt to FCF ratio of 3.05. This is a good value and a sign of high solvency as OCFC would need 3.05 years to pay back of all of its debts.
OCFC has a Debt to FCF ratio of 3.05. This is in the lower half of the industry: OCFC underperforms 60.71% of its industry peers.
A Debt/Equity ratio of 0.15 indicates that OCFC is not too dependend on debt financing.
OCFC has a Debt to Equity ratio of 0.15. This is comparable to the rest of the industry: OCFC outperforms 57.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC16.02%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
OCFC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.58%.
Measured over the past years, OCFC shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.02% on average per year.
The Revenue has decreased by -4.74% in the past year.
Measured over the past years, OCFC shows a small growth in Revenue. The Revenue has been growing by 5.20% on average per year.
EPS 1Y (TTM)-9.58%
EPS 3Y-4.9%
EPS 5Y-5.02%
EPS Q2Q%-20.45%
Revenue 1Y (TTM)-4.74%
Revenue growth 3Y2.46%
Revenue growth 5Y5.2%
Sales Q2Q%13.55%
3.2 Future
Based on estimates for the next years, OCFC will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.97% on average per year.
OCFC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.30% yearly.
EPS Next Y-1.21%
EPS Next 2Y11.97%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.07%
Revenue Next 2Y9.3%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
OCFC is valuated reasonably with a Price/Earnings ratio of 11.02.
62.72% of the companies in the same industry are more expensive than OCFC, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of OCFC to the average of the S&P500 Index (24.21), we can say OCFC is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.29, the valuation of OCFC can be described as very reasonable.
Based on the Price/Forward Earnings ratio, OCFC is valued a bit cheaper than 76.83% of the companies in the same industry.
OCFC is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.02 | ||
| Fwd PE | 8.29 |
4.2 Price Multiples
OCFC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.47 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y11.97%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.80%, OCFC is a good candidate for dividend investing.
OCFC's Dividend Yield is rather good when compared to the industry average which is at 3.49. OCFC pays more dividend than 84.13% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, OCFC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.8% |
5.2 History
The dividend of OCFC has a limited annual growth rate of 4.32%.
OCFC has paid a dividend for at least 10 years, which is a reliable track record.
OCFC has decreased its dividend in the last 3 years.
Dividend Growth(5Y)4.32%
Div Incr Years1
Div Non Decr Years2
5.3 Sustainability
OCFC pays out 52.97% of its income as dividend. This is a bit on the high side, but may be sustainable.
OCFC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP52.97%
EPS Next 2Y11.97%
EPS Next 3YN/A
16.64
-0.06 (-0.36%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners75.32%
Inst Owner Change-0.03%
Ins Owners2.89%
Ins Owner Change8.01%
Market Cap971.44M
Analysts78.46
Price Target21.2 (27.4%)
Short Float %1.43%
Short Ratio2.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.8% |
Yearly Dividend0.86
Dividend Growth(5Y)4.32%
DP52.97%
Div Incr Years1
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.38%
Min EPS beat(2)0.13%
Max EPS beat(2)2.63%
EPS beat(4)3
Avg EPS beat(4)-0.56%
Min EPS beat(4)-10.22%
Max EPS beat(4)5.21%
EPS beat(8)4
Avg EPS beat(8)-3.66%
EPS beat(12)7
Avg EPS beat(12)-1.58%
EPS beat(16)11
Avg EPS beat(16)0.98%
Revenue beat(2)0
Avg Revenue beat(2)-3.58%
Min Revenue beat(2)-4.06%
Max Revenue beat(2)-3.09%
Revenue beat(4)0
Avg Revenue beat(4)-4.01%
Min Revenue beat(4)-5.63%
Max Revenue beat(4)-3.09%
Revenue beat(8)0
Avg Revenue beat(8)-4.1%
Revenue beat(12)4
Avg Revenue beat(12)2.03%
Revenue beat(16)8
Avg Revenue beat(16)4.48%
PT rev (1m)-3.64%
PT rev (3m)-4.59%
EPS NQ rev (1m)-0.41%
EPS NQ rev (3m)-1.21%
EPS NY rev (1m)-1%
EPS NY rev (3m)-2.16%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.56%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.02 | ||
| Fwd PE | 8.29 | ||
| P/S | 2.53 | ||
| P/FCF | 11.47 | ||
| P/OCF | 10.53 | ||
| P/B | 0.57 | ||
| P/tB | 0.83 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.51
EY9.07%
EPS(NY)2.01
Fwd EY12.06%
FCF(TTM)1.45
FCFY8.72%
OCF(TTM)1.58
OCFY9.5%
SpS6.58
BVpS29.15
TBVpS19.97
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.72% | ||
| ROE | 5.64% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 25% | ||
| GM | N/A | ||
| FCFM | 22.04% |
ROA(3y)0.85%
ROA(5y)0.8%
ROE(3y)6.89%
ROE(5y)6.36%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-5.59%
PM growth 5Y-3.4%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 3.05 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 52.03% | ||
| Cap/Sales | 1.97% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 88.16% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC16.02%
ROIC/WACCN/A
Cap/Depr(3y)75.23%
Cap/Depr(5y)121.38%
Cap/Sales(3y)2.89%
Cap/Sales(5y)4.84%
Profit Quality(3y)121.9%
Profit Quality(5y)133.95%
High Growth Momentum
Growth
EPS 1Y (TTM)-9.58%
EPS 3Y-4.9%
EPS 5Y-5.02%
EPS Q2Q%-20.45%
EPS Next Y-1.21%
EPS Next 2Y11.97%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-4.74%
Revenue growth 3Y2.46%
Revenue growth 5Y5.2%
Sales Q2Q%13.55%
Revenue Next Year6.07%
Revenue Next 2Y9.3%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-27.35%
FCF growth 3Y-10.47%
FCF growth 5Y-2.3%
OCF growth 1Y-25.77%
OCF growth 3Y-16.77%
OCF growth 5Y-1.64%