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OCWEN FINANCIAL CORP (OCN) Stock Fundamental Analysis

NYSE:OCN - New York Stock Exchange, Inc. - US6757466064 - Common Stock - Currency: USD

25.08  -0.19 (-0.75%)

After market: 25.08 0 (0%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to OCN. OCN was compared to 101 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 is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

OCN had positive earnings in the past year.
OCN had a negative 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.
OCN Yearly Net Income VS EBIT VS OCF VS FCFOCN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M -1B

1.2 Ratios

OCN has a Return On Assets of 0.05%. This is in the lower half of the industry: OCN underperforms 67.65% of its industry peers.
The Return On Equity of OCN (1.53%) is worse than 66.67% of its industry peers.
OCN has a Return On Invested Capital (2.85%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for OCN is significantly below the industry average of 11.76%.
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 RankSector 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%
OCN Yearly ROA, ROE, ROICOCN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -10 -20 -30

1.3 Margins

OCN has a Profit Margin of 0.63%. This is in the lower half of the industry: OCN underperforms 63.73% of its industry peers.
With an excellent Operating Margin value of 44.71%, OCN belongs to the best of the industry, outperforming 86.27% of the companies in the same industry.
In the last couple of years the Operating Margin of OCN has grown nicely.
OCN's Gross Margin of 94.58% is amongst the best of the industry. OCN outperforms 99.02% of its industry peers.
In the last couple of years the Gross Margin of OCN has grown nicely.
Industry RankSector 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%
OCN Yearly Profit, Operating, Gross MarginsOCN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 40 60 80

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3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so OCN is still creating some value.
Compared to 1 year ago, OCN has more shares outstanding
OCN has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, OCN has a worse debt to assets ratio.
OCN Yearly Shares OutstandingOCN Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2M 4M 6M 8M
OCN Yearly Total Debt VS Total AssetsOCN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

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's Altman-Z score of 0.21 is on the low side compared to the rest of the industry. OCN is outperformed by 62.75% of its industry peers.
A Debt/Equity ratio of 27.58 is on the high side and indicates that OCN has dependencies on debt 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 RankSector Rank
Debt/Equity 27.58
Debt/FCF N/A
Altman-Z 0.21
ROIC/WACC1.42
WACC2.01%
OCN Yearly LT Debt VS Equity VS FCFOCN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B 4B 6B 8B 10B

2.3 Liquidity

A Current Ratio of 2.15 indicates that OCN has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.15, OCN is doing good in the industry, outperforming 77.45% of the companies in the same industry.
OCN has a Quick Ratio of 2.15. This indicates that OCN is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 2.15, OCN is doing good in the industry, outperforming 79.41% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.15
Quick Ratio 2.15
OCN Yearly Current Assets VS Current LiabilitesOCN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M

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5

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.
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)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

The Earnings Per Share is expected to grow by 68.72% on average over the next years. This is a very strong growth
OCN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.81% yearly.
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.
OCN Yearly Revenue VS EstimatesOCN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B
OCN Yearly EPS VS EstimatesOCN Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 -20

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5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 33.89, which means the current valuation is very expensive for OCN.
OCN's Price/Earnings ratio is a bit more expensive when compared to the industry. OCN is more expensive than 62.75% of the companies in the same industry.
OCN's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.85.
The Price/Forward Earnings ratio is 3.55, which indicates a rather cheap valuation of OCN.
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.
The average S&P500 Price/Forward Earnings ratio is at 20.89. OCN is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 33.89
Fwd PE 3.55
OCN Price Earnings VS Forward Price EarningsOCN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as OCN.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 24.96
OCN Per share dataOCN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 100 -100 -200

4.3 Compensation for Growth

OCN's 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 68.72% in the coming years.
PEG (NY)0.19
PEG (5Y)N/A
EPS Next 2Y68.72%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

No dividends for OCN!.
Industry RankSector Rank
Dividend Yield N/A

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OCWEN FINANCIAL CORP

NYSE:OCN (6/7/2024, 8:04:00 PM)

After market: 25.08 0 (0%)

25.08

-0.19 (-0.75%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)05-02 2024-05-02/bmo
Earnings (Next)08-01 2024-08-01/amc
Inst Owners51.13%
Inst Owner Change-0.74%
Ins Owners36.44%
Ins Owner Change0%
Market Cap195.87M
Analysts77.5
Price Target41.48 (65.39%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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 RankSector 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
Profitability
Industry RankSector 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%
ROICexcg growth 3Y37.88%
ROICexcg 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 RankSector 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%