OCWEN FINANCIAL CORP (OCN) Stock Fundamental Analysis
USA - NYSE:OCN - US6757466064 - Common Stock
25.08 USD
-0.19 (-0.75%)
25.08 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to OCN. OCN was compared to 101 industry peers in the Financial Services industry. There are concerns on the financial health of OCN while its profitability can be described as average. OCN has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
OCN had positive earnings in the past year.
In the past year OCN has reported a negative cash flow from operations.
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
With a Return On Assets value of 0.05%, OCN is not doing good in the industry: 67.65% of the companies in the same industry are doing better.
OCN's Return On Equity of 1.53% is on the low side compared to the rest of the industry. OCN is outperformed by 66.67% of its industry peers.
With a Return On Invested Capital value of 2.85%, OCN perfoms like the industry average, outperforming 49.02% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for OCN is significantly below the industry average of 7.64%.
The 3 year average ROIC (2.53%) for OCN is below the current ROIC(2.85%), indicating increased profibility in the last year.
| 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
With a Profit Margin value of 0.63%, OCN is not doing good in the industry: 63.73% of the companies in the same industry are doing better.
OCN has a better Operating Margin (44.71%) than 86.27% of its industry peers.
OCN's Operating Margin has improved in the last couple of years.
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 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
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.
With a Altman-Z score value of 0.21, OCN is not doing good in the industry: 62.75% of the companies in the same industry are doing better.
A Debt/Equity ratio of 27.58 is on the high side and indicates that OCN has dependencies on debt financing.
With a Debt to Equity ratio value of 27.58, OCN is not doing good in the industry: 96.08% of the companies in the same industry are doing better.
| 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.
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.
A Quick Ratio of 2.15 indicates that OCN has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.15, OCN is in the better half of the industry, outperforming 79.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 2.15 |
3. Growth
3.1 Past
OCN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 108.67%, which is quite impressive.
The Revenue has been growing slightly by 6.07% in the past year.
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
OCN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 68.72% yearly.
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
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
The Price/Earnings ratio is 33.89, which means the current valuation is very expensive for OCN.
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.
OCN is valuated rather expensively when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 3.55, the valuation of OCN can be described as very cheap.
Based on the Price/Forward Earnings ratio, OCN is valued cheaply inside the industry as 97.06% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.71, OCN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.89 | ||
| Fwd PE | 3.55 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OCN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 24.96 |
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
5. Dividend
5.1 Amount
No dividends for OCN!.
| 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 Change1.09%
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 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
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%
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 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%