OCWEN FINANCIAL CORP (OCN)
US6757466064 - Common Stock
We assign a fundamental rating of 4 out of 10 to OCN. OCN was compared to 102 industry peers in the Financial Services industry. OCN has a medium profitability rating, but doesn't score so well on its financial health evaluation. OCN has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year OCN has reported negative net income.
OCN had a positive operating cash flow in the past year.
In multiple years OCN reported negative net income over the last 5 years.
OCN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
OCN has a worse Return On Assets (-0.51%) than 71.57% of its industry peers.
OCN has a worse Return On Equity (-15.85%) than 79.41% of its industry peers.
OCN's Return On Invested Capital of 2.71% is in line compared to the rest of the industry. OCN outperforms 51.96% of its industry peers.
The Average Return On Invested Capital over the past 3 years for OCN is significantly below the industry average of 7.99%.
The last Return On Invested Capital (2.71%) for OCN is above the 3 year average (2.53%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.51% | ||
| ROE | -15.85% | ||
| ROIC | 2.71% |
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
OCN has a Operating Margin of 39.59%. This is amongst the best in the industry. OCN outperforms 82.35% of its industry peers.
OCN's Operating Margin has improved in the last couple of years.
The Gross Margin of OCN (94.63%) is better than 99.02% of its industry peers.
In the last couple of years the Gross Margin of OCN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 39.59% | ||
| PM (TTM) | N/A | ||
| GM | 94.63% |
OM growth 3Y40.09%
OM growth 5Y26.37%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y12.91%
GM growth 5Y5.26%
2. Health
2.1 Basic Checks
OCN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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
Based on the Altman-Z score of 0.21, we must say that OCN is in the distress zone and has some risk of bankruptcy.
OCN has a Altman-Z score (0.21) which is in line with its industry peers.
A Debt/Equity ratio of 28.42 is on the high side and indicates that OCN has dependencies on debt financing.
OCN has a worse Debt to Equity ratio (28.42) than 96.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 28.42 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.21 |
ROIC/WACC1.34
WACC2.02%
2.3 Liquidity
OCN has a Current Ratio of 1.99. This is a normal value and indicates that OCN is financially healthy and should not expect problems in meeting its short term obligations.
OCN has a better Current ratio (1.99) than 77.45% of its industry peers.
A Quick Ratio of 1.99 indicates that OCN should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.99, OCN is doing good in the industry, outperforming 78.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.99 |
3. Growth
3.1 Past
OCN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -396.80%.
The Revenue has grown by 11.81% in the past year. This is quite good.
Measured over the past years, OCN shows a small growth in Revenue. The Revenue has been growing by 0.07% on average per year.
EPS 1Y (TTM)-396.8%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q29.25%
Revenue 1Y (TTM)11.81%
Revenue growth 3Y3.54%
Revenue growth 5Y0.07%
Revenue growth Q2Q10.72%
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 68.99% on average per year.
Based on estimates for the next years, OCN will show a small growth in Revenue. The Revenue will grow by 4.74% on average per year.
EPS Next Y166.15%
EPS Next 2Y68.99%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.74%
Revenue Next 2Y4.74%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
OCN reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
OCN is valuated cheaply with a Price/Forward Earnings ratio of 4.70.
Based on the Price/Forward Earnings ratio, OCN is valued cheaply inside the industry as 95.10% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of OCN to the average of the S&P500 Index (20.47), we can say OCN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 4.7 |
4.2 Price Multiples
OCN's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 26.28 |
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.
A more expensive valuation may be justified as OCN's earnings are expected to grow with 68.99% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y68.99%
EPS Next 3YN/A
5. Dividend
5.1 Amount
OCN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
OCWEN FINANCIAL CORP
NYSE:OCN (5/16/2024, 7:08:30 PM)
After market: 25.91 0 (0%)25.91
+0.25 (+0.97%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap201.06M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 4.7 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.51% | ||
| ROE | -15.85% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 39.59% | ||
| PM (TTM) | N/A | ||
| GM | 94.63% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 28.42 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.99 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-396.8%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y166.15%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.81%
Revenue growth 3Y3.54%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y