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OCWEN FINANCIAL CORP (OCN) Stock Fundamental Analysis

USA - NYSE:OCN - US6757466064 - Common Stock

25.08 USD
-0.19 (-0.75%)
Last: 6/7/2024, 8:04:00 PM
25.08 USD
0 (0%)
After Hours: 6/7/2024, 8:04:00 PM
Fundamental Rating

4

Taking everything into account, OCN scores 4 out of 10 in our fundamental rating. OCN was compared to 99 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 decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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4

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.
Of the past 5 years OCN 4 years had a positive operating cash flow.
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 worse Return On Assets (0.05%) than 67.65% of its industry peers.
OCN has a worse Return On Equity (1.53%) than 66.67% of its industry peers.
The Return On Invested Capital of OCN (2.85%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for OCN is significantly below the industry average of 7.66%.
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.
Looking at the Operating Margin, with a value of 44.71%, OCN belongs to the top of the industry, outperforming 86.27% of the companies in the same industry.
OCN's Operating Margin has improved in the last couple of years.
OCN has a Gross Margin of 94.58%. This is amongst the best in the industry. OCN outperforms 99.02% of its industry peers.
OCN's Gross Margin has improved in the last couple of years.
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

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), OCN is creating some value.
The number of shares outstanding for OCN has been increased compared to 1 year ago.
Compared to 5 years ago, OCN has less shares outstanding
The debt/assets ratio for OCN is higher compared to a year ago.
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

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.
Looking at the Altman-Z score, with a value of 0.21, OCN is doing worse than 62.75% of the companies in the same industry.
OCN has a Debt/Equity ratio of 27.58. This is a high value indicating a heavy dependency on external financing.
OCN has a worse Debt to Equity ratio (27.58) than 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.
OCN has a better Current ratio (2.15) than 77.45% of its industry peers.
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.
OCN has a Quick ratio of 2.15. This is in the better half of the industry: OCN outperforms 79.41% of its industry peers.
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.
OCN shows a small growth in Revenue. In the last year, the Revenue has grown by 6.07%.
OCN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.07% yearly.
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
The Revenue is expected to grow by 5.81% on average over the next years.
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

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.
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

Based on the Price/Earnings ratio of 33.89, the valuation of OCN can be described as expensive.
62.75% of the companies in the same industry are cheaper than OCN, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.02. OCN is valued slightly more expensive when compared to this.
OCN is valuated cheaply with a Price/Forward Earnings ratio of 3.55.
Based on the Price/Forward Earnings ratio, OCN is valued cheaply inside the industry as 97.06% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of OCN to the average of the S&P500 Index (22.57), we can say OCN is valued rather cheaply.
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.
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

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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 Change0%
Ins Owners36.44%
Ins Owner Change0.67%
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%