OCWEN FINANCIAL CORP (OCN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OCN - US6757466064 - Common Stock
25.08 USD
-0.19 (-0.75%)
25.08 USD
0 (0%)
Overall OCN gets a fundamental rating of 4 out of 10. We evaluated OCN against 98 industry peers in the Financial Services industry. While OCN is still in line with the averages on profitability rating, there are concerns on its financial health. OCN has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year OCN was profitable.
OCN had a negative operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: OCN reported negative net income in multiple years.
OCN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.05%, OCN is doing worse than 67.65% of the companies in the same industry.
OCN has a worse Return On Equity (1.53%) than 66.67% of its industry peers.
OCN has a Return On Invested Capital (2.85%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for OCN is significantly below the industry average of 8.44%.
The last Return On Invested Capital (2.85%) for OCN is above the 3 year average (2.53%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.05% | ||
| ROE | 1.53% | ||
| ROIC | 2.85% |
ROA(3y)-0.05%
ROA(5y)-0.38%
ROE(3y)-2.14%
ROE(5y)-10.12%
ROIC(3y)2.53%
ROIC(5y)2.24%
1.3 Margins
The Profit Margin of OCN (0.63%) is worse than 63.73% of its industry peers.
OCN has a better Operating Margin (44.71%) than 86.27% of its industry peers.
In the last couple of years the Operating Margin of OCN has grown nicely.
Looking at the Gross Margin, with a value of 94.58%, OCN belongs to the top of the industry, outperforming 99.02% of the companies in the same industry.
OCN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 44.71% | ||
| PM (TTM) | 0.63% | ||
| GM | 94.58% |
OM growth 3Y40.09%
OM growth 5Y26.37%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y12.91%
GM growth 5Y5.26%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), OCN is creating some value.
OCN has more shares outstanding than it did 1 year ago.
OCN has less shares outstanding than it did 5 years ago.
OCN has a worse debt/assets ratio than last year.
2.2 Solvency
OCN has an Altman-Z score of 0.21. This is a bad value and indicates that OCN is not financially healthy and even has some risk of bankruptcy.
OCN has a Altman-Z score of 0.21. This is in the lower half of the industry: OCN underperforms 62.75% of its industry peers.
OCN has a Debt/Equity ratio of 27.58. This is a high value indicating a heavy dependency on external financing.
OCN's Debt to Equity ratio of 27.58 is on the low side compared to the rest of the industry. OCN is outperformed by 96.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 27.58 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.21 |
ROIC/WACC1.42
WACC2.01%
2.3 Liquidity
OCN has a Current Ratio of 2.15. This indicates that OCN is financially healthy and has no problem in meeting its short term obligations.
OCN has a Current ratio of 2.15. This is in the better half of the industry: OCN outperforms 77.45% of its industry peers.
A Quick Ratio of 2.15 indicates that OCN has no problem at all paying its short term obligations.
OCN's Quick ratio of 2.15 is fine compared to the rest of the industry. OCN outperforms 79.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 2.15 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 108.67% over the past year.
Looking at the last year, OCN shows a small growth in Revenue. The Revenue has grown by 6.07% in the last year.
The Revenue has been growing slightly by 0.07% on average over the past years.
EPS 1Y (TTM)108.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%170.04%
Revenue 1Y (TTM)6.07%
Revenue growth 3Y3.54%
Revenue growth 5Y0.07%
Sales Q2Q%-8.67%
3.2 Future
Based on estimates for the next years, OCN will show a very strong growth in Earnings Per Share. The EPS will grow by 68.72% on average per year.
Based on estimates for the next years, OCN will show a small growth in Revenue. The Revenue will grow by 5.81% on average per year.
EPS Next Y177.63%
EPS Next 2Y68.72%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.39%
Revenue Next 2Y5.81%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
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
Based on the Price/Earnings ratio of 33.89, the valuation of OCN can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of OCN indicates a slightly more expensive valuation: OCN is more expensive than 62.75% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.77, OCN is valued a bit more expensive.
With a Price/Forward Earnings ratio of 3.55, the valuation of OCN can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OCN indicates a rather cheap valuation: OCN is cheaper than 97.06% of the companies listed in the same industry.
OCN is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.89 | ||
| Fwd PE | 3.55 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as OCN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 24.96 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
OCN's earnings are expected to grow with 68.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.19
PEG (5Y)N/A
EPS Next 2Y68.72%
EPS Next 3YN/A
5. Dividend
5.1 Amount
OCN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
25.08
-0.19 (-0.75%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners51.13%
Inst Owner Change4.64%
Ins Owners36.44%
Ins Owner Change0%
Market Cap195.87M
Revenue(TTM)1.04B
Net Income(TTM)6.60M
Analysts77.5
Price Target41.48 (65.39%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-264.62%
Min EPS beat(2)-741.07%
Max EPS beat(2)211.83%
EPS beat(4)2
Avg EPS beat(4)-50.98%
Min EPS beat(4)-741.07%
Max EPS beat(4)329.04%
EPS beat(8)3
Avg EPS beat(8)-4157.22%
EPS beat(12)5
Avg EPS beat(12)-3100.7%
EPS beat(16)7
Avg EPS beat(16)-2275.15%
Revenue beat(2)1
Avg Revenue beat(2)-3.77%
Min Revenue beat(2)-12.44%
Max Revenue beat(2)4.91%
Revenue beat(4)2
Avg Revenue beat(4)-2.62%
Min Revenue beat(4)-12.44%
Max Revenue beat(4)4.91%
Revenue beat(8)3
Avg Revenue beat(8)-3.37%
Revenue beat(12)3
Avg Revenue beat(12)-6.05%
Revenue beat(16)5
Avg Revenue beat(16)-4.72%
PT rev (1m)0%
PT rev (3m)1.67%
EPS NQ rev (1m)6.56%
EPS NQ rev (3m)6.56%
EPS NY rev (1m)17.35%
EPS NY rev (3m)21.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.5%
Revenue NY rev (1m)-2.23%
Revenue NY rev (3m)-0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.89 | ||
| Fwd PE | 3.55 | ||
| P/S | 0.19 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.96 |
EPS(TTM)0.74
EY2.95%
EPS(NY)7.06
Fwd EY28.15%
FCF(TTM)-25.16
FCFYN/A
OCF(TTM)-10.15
OCFYN/A
SpS133.66
BVpS55.33
TBVpS-249.41
PEG (NY)0.19
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.05% | ||
| ROE | 1.53% | ||
| ROCE | 3.61% | ||
| ROIC | 2.85% | ||
| ROICexc | 2.9% | ||
| ROICexgc | 3.89% | ||
| OM | 44.71% | ||
| PM (TTM) | 0.63% | ||
| GM | 94.58% | ||
| FCFM | N/A |
ROA(3y)-0.05%
ROA(5y)-0.38%
ROE(3y)-2.14%
ROE(5y)-10.12%
ROIC(3y)2.53%
ROIC(5y)2.24%
ROICexc(3y)2.57%
ROICexc(5y)2.3%
ROICexgc(3y)3.56%
ROICexgc(5y)3.19%
ROCE(3y)3.2%
ROCE(5y)2.84%
ROICexgc growth 3Y37.88%
ROICexgc growth 5Y16.11%
ROICexc growth 3Y36.42%
ROICexc growth 5Y18.63%
OM growth 3Y40.09%
OM growth 5Y26.37%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y12.91%
GM growth 5Y5.26%
F-Score6
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 27.58 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 24.94 | ||
| Cap/Depr | 1055.86% | ||
| Cap/Sales | 11.23% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.15 | ||
| Quick Ratio | 2.15 | ||
| Altman-Z | 0.21 |
F-Score6
WACC2.01%
ROIC/WACC1.42
Cap/Depr(3y)3528.28%
Cap/Depr(5y)2500.81%
Cap/Sales(3y)37.67%
Cap/Sales(5y)31.03%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)108.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%170.04%
EPS Next Y177.63%
EPS Next 2Y68.72%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.07%
Revenue growth 3Y3.54%
Revenue growth 5Y0.07%
Sales Q2Q%-8.67%
Revenue Next Year3.39%
Revenue Next 2Y5.81%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y44.66%
EBIT growth 3Y45.05%
EBIT growth 5Y26.46%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y80.75%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y49.1%
OCF growth 3Y-65.84%
OCF growth 5Y-47.96%
OCWEN FINANCIAL CORP / OCN FAQ
What is the ChartMill fundamental rating of OCWEN FINANCIAL CORP (OCN) stock?
ChartMill assigns a fundamental rating of 4 / 10 to OCN.
Can you provide the valuation status for OCWEN FINANCIAL CORP?
ChartMill assigns a valuation rating of 5 / 10 to OCWEN FINANCIAL CORP (OCN). This can be considered as Fairly Valued.
What is the profitability of OCN stock?
OCWEN FINANCIAL CORP (OCN) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for OCN stock?
The Price/Earnings (PE) ratio for OCWEN FINANCIAL CORP (OCN) is 33.89 and the Price/Book (PB) ratio is 0.45.
What is the expected EPS growth for OCWEN FINANCIAL CORP (OCN) stock?
The Earnings per Share (EPS) of OCWEN FINANCIAL CORP (OCN) is expected to grow by 177.63% in the next year.