CORPORATE OFFICE PROPERTIES (OFC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OFC - US22002T1088 - REIT
24.94 USD
+0.39 (+1.59%)
24.94 USD
0 (0%)
Taking everything into account, OFC scores 4 out of 10 in our fundamental rating. OFC was compared to 127 industry peers in the Diversified REITs industry. While OFC belongs to the best of the industry regarding profitability, there are concerns on its financial health. OFC is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
OFC had positive earnings in the past year.
In the past year OFC had a positive cash flow from operations.
OFC had positive earnings in each of the past 5 years.
OFC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 4.59%, OFC belongs to the best of the industry, outperforming 94.70% of the companies in the same industry.
OFC has a better Return On Equity (11.11%) than 93.18% of its industry peers.
OFC has a better Return On Invested Capital (3.68%) than 79.55% of its industry peers.
The Average Return On Invested Capital over the past 3 years for OFC is in line with the industry average of 3.06%.
The 3 year average ROIC (3.42%) for OFC is below the current ROIC(3.68%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.59% | ||
| ROE | 11.11% | ||
| ROIC | 3.68% |
ROA(3y)2.74%
ROA(5y)3.03%
ROE(3y)6.92%
ROE(5y)7.33%
ROIC(3y)3.42%
ROIC(5y)3.4%
1.3 Margins
OFC has a better Profit Margin (26.97%) than 78.03% of its industry peers.
In the last couple of years the Profit Margin of OFC has grown nicely.
Looking at the Operating Margin, with a value of 25.84%, OFC is in the better half of the industry, outperforming 61.36% of the companies in the same industry.
OFC's Operating Margin has been stable in the last couple of years.
The Gross Margin of OFC (52.41%) is worse than 81.06% of its industry peers.
In the last couple of years the Gross Margin of OFC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.84% | ||
| PM (TTM) | 26.97% | ||
| GM | 52.41% |
OM growth 3Y0.21%
OM growth 5Y-0.06%
PM growth 3Y-7.83%
PM growth 5Y20.96%
GM growth 3Y-1.77%
GM growth 5Y-1.2%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), OFC is destroying value.
Compared to 1 year ago, OFC has about the same amount of shares outstanding.
Compared to 1 year ago, OFC has an improved debt to assets ratio.
2.2 Solvency
OFC has an Altman-Z score of 0.70. This is a bad value and indicates that OFC is not financially healthy and even has some risk of bankruptcy.
OFC's Altman-Z score of 0.70 is fine compared to the rest of the industry. OFC outperforms 64.39% of its industry peers.
A Debt/Equity ratio of 1.23 is on the high side and indicates that OFC has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.23, OFC is in line with its industry, outperforming 44.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.7 |
ROIC/WACC0.58
WACC6.35%
2.3 Liquidity
A Current Ratio of 0.27 indicates that OFC may have some problems paying its short term obligations.
OFC has a worse Current ratio (0.27) than 93.94% of its industry peers.
OFC has a Quick Ratio of 0.27. This is a bad value and indicates that OFC is not financially healthy enough and could expect problems in meeting its short term obligations.
OFC has a Quick ratio of 0.27. This is amonst the worse of the industry: OFC underperforms 93.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.27 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
OFC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.71%, which is quite impressive.
OFC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.04% yearly.
Looking at the last year, OFC shows a very negative growth in Revenue. The Revenue has decreased by -39.95% in the last year.
The Revenue has been growing slightly by 3.82% on average over the past years.
EPS 1Y (TTM)35.71%
EPS 3Y-3.64%
EPS 5Y19.04%
EPS Q2Q%34.62%
Revenue 1Y (TTM)-39.95%
Revenue growth 3Y4.85%
Revenue growth 5Y3.82%
Sales Q2Q%-14.31%
3.2 Future
Based on estimates for the next years, OFC will show a decrease in Earnings Per Share. The EPS will decrease by -6.71% on average per year.
The Revenue is expected to grow by 7.76% on average over the next years.
EPS Next Y-0.32%
EPS Next 2Y-12.87%
EPS Next 3Y-6.71%
EPS Next 5YN/A
Revenue Next Year9.39%
Revenue Next 2Y7.67%
Revenue Next 3Y6.46%
Revenue Next 5Y7.76%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
The Price/Earnings ratio is 14.58, which indicates a correct valuation of OFC.
OFC's Price/Earnings ratio is rather cheap when compared to the industry. OFC is cheaper than 87.88% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.92, OFC is valued a bit cheaper.
OFC is valuated rather expensively with a Price/Forward Earnings ratio of 21.47.
Based on the Price/Forward Earnings ratio, OFC is valued cheaper than 85.61% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of OFC to the average of the S&P500 Index (23.46), we can say OFC is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.58 | ||
| Fwd PE | 21.47 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
OFC has a very decent profitability rating, which may justify a higher PE ratio.
OFC's earnings are expected to decrease with -6.71% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.77
EPS Next 2Y-12.87%
EPS Next 3Y-6.71%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.57%, OFC is a good candidate for dividend investing.
OFC's Dividend Yield is slightly below the industry average, which is at 6.43.
Compared to an average S&P500 Dividend Yield of 2.00, OFC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.57% |
5.2 History
The dividend of OFC decreases each year by -1.49%.
OFC has been paying a dividend for at least 10 years, so it has a reliable track record.
OFC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-1.49%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
64.50% of the earnings are spent on dividend by OFC. This is not a sustainable payout ratio.
OFC's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP64.5%
EPS Next 2Y-12.87%
EPS Next 3Y-6.71%
24.94
+0.39 (+1.59%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners104.34%
Inst Owner Change1.36%
Ins Owners0.74%
Ins Owner Change0%
Market Cap2.81B
Revenue(TTM)711.05M
Net Income(TTM)191.77M
Analysts80
Price Target29.47 (18.16%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.57% |
Yearly Dividend1.1
Dividend Growth(5Y)-1.49%
DP64.5%
Div Incr Years0
Div Non Decr Years10
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)106.77%
Min EPS beat(2)53.64%
Max EPS beat(2)159.9%
EPS beat(4)2
Avg EPS beat(4)51.67%
Min EPS beat(4)-4.53%
Max EPS beat(4)159.9%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)112733%
Min Revenue beat(2)110361%
Max Revenue beat(2)115106%
Revenue beat(4)4
Avg Revenue beat(4)87603.1%
Min Revenue beat(4)27.88%
Max Revenue beat(4)124918%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.78%
PT rev (3m)2.36%
EPS NQ rev (1m)-4.07%
EPS NQ rev (3m)-3.51%
EPS NY rev (1m)4.32%
EPS NY rev (3m)25.83%
Revenue NQ rev (1m)-99.9%
Revenue NQ rev (3m)-99.9%
Revenue NY rev (1m)3%
Revenue NY rev (3m)4.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.58 | ||
| Fwd PE | 21.47 | ||
| P/S | 3.95 | ||
| P/FCF | N/A | ||
| P/OCF | 10.32 | ||
| P/B | 1.63 | ||
| P/tB | 1.63 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.71
EY6.86%
EPS(NY)1.16
Fwd EY4.66%
FCF(TTM)-0.68
FCFYN/A
OCF(TTM)2.42
OCFY9.69%
SpS6.32
BVpS15.34
TBVpS15.34
PEG (NY)N/A
PEG (5Y)0.77
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.59% | ||
| ROE | 11.11% | ||
| ROCE | 4.66% | ||
| ROIC | 3.68% | ||
| ROICexc | 3.69% | ||
| ROICexgc | 3.74% | ||
| OM | 25.84% | ||
| PM (TTM) | 26.97% | ||
| GM | 52.41% | ||
| FCFM | N/A |
ROA(3y)2.74%
ROA(5y)3.03%
ROE(3y)6.92%
ROE(5y)7.33%
ROIC(3y)3.42%
ROIC(5y)3.4%
ROICexc(3y)3.43%
ROICexc(5y)3.41%
ROICexgc(3y)3.51%
ROICexgc(5y)3.49%
ROCE(3y)4.33%
ROCE(5y)4.3%
ROICexgc growth 3Y1.59%
ROICexgc growth 5Y0.48%
ROICexc growth 3Y1.56%
ROICexc growth 5Y0.57%
OM growth 3Y0.21%
OM growth 5Y-0.06%
PM growth 3Y-7.83%
PM growth 5Y20.96%
GM growth 3Y-1.77%
GM growth 5Y-1.2%
F-Score6
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 48.97% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.27 | ||
| Quick Ratio | 0.27 | ||
| Altman-Z | 0.7 |
F-Score6
WACC6.35%
ROIC/WACC0.58
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)54.61%
Cap/Sales(5y)54.16%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)35.71%
EPS 3Y-3.64%
EPS 5Y19.04%
EPS Q2Q%34.62%
EPS Next Y-0.32%
EPS Next 2Y-12.87%
EPS Next 3Y-6.71%
EPS Next 5YN/A
Revenue 1Y (TTM)-39.95%
Revenue growth 3Y4.85%
Revenue growth 5Y3.82%
Sales Q2Q%-14.31%
Revenue Next Year9.39%
Revenue Next 2Y7.67%
Revenue Next 3Y6.46%
Revenue Next 5Y7.76%
EBIT growth 1Y-38.03%
EBIT growth 3Y5.07%
EBIT growth 5Y3.75%
EBIT Next Year87.41%
EBIT Next 3Y26.81%
EBIT Next 5YN/A
FCF growth 1Y48.39%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y25.34%
OCF growth 3Y5.16%
OCF growth 5Y2.93%
CORPORATE OFFICE PROPERTIES / OFC FAQ
Can you provide the ChartMill fundamental rating for CORPORATE OFFICE PROPERTIES?
ChartMill assigns a fundamental rating of 4 / 10 to OFC.
What is the valuation status of CORPORATE OFFICE PROPERTIES (OFC) stock?
ChartMill assigns a valuation rating of 3 / 10 to CORPORATE OFFICE PROPERTIES (OFC). This can be considered as Overvalued.
What is the profitability of OFC stock?
CORPORATE OFFICE PROPERTIES (OFC) has a profitability rating of 7 / 10.
Can you provide the financial health for OFC stock?
The financial health rating of CORPORATE OFFICE PROPERTIES (OFC) is 1 / 10.
Can you provide the expected EPS growth for OFC stock?
The Earnings per Share (EPS) of CORPORATE OFFICE PROPERTIES (OFC) is expected to decline by -0.32% in the next year.