Logo image of OFC

CORPORATE OFFICE PROPERTIES (OFC) Stock Fundamental Analysis

NYSE:OFC - US22002T1088 - REIT

24.94 USD
+0.39 (+1.59%)
Last: 9/14/2023, 9:45:33 PM
24.94 USD
0 (0%)
After Hours: 9/14/2023, 9:45:33 PM
Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to OFC. OFC was compared to 129 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 quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

Quickly go to:

7

1. Profitability

1.1 Basic Checks

In the past year OFC was profitable.
OFC had a positive operating cash flow in the past year.
Each year in the past 5 years OFC has been profitable.
OFC had a positive operating cash flow in each of the past 5 years.
OFC Yearly Net Income VS EBIT VS OCF VS FCFOFC 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 0 100M -100M 200M -200M

1.2 Ratios

OFC's Return On Assets of 4.59% is amongst the best of the industry. OFC outperforms 94.70% of its industry peers.
OFC has a better Return On Equity (11.11%) than 93.18% of its industry peers.
OFC's Return On Invested Capital of 3.68% is fine compared to the rest of the industry. OFC outperforms 79.55% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for OFC is in line with the industry average of 3.06%.
The last Return On Invested Capital (3.68%) for OFC is above the 3 year average (3.42%), which is a sign of increasing profitability.
Industry RankSector 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%
OFC Yearly ROA, ROE, ROICOFC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 0 2 4 6 8 10

1.3 Margins

The Profit Margin of OFC (26.97%) is better than 78.03% of its industry peers.
In the last couple of years the Profit Margin of OFC has grown nicely.
With a decent Operating Margin value of 25.84%, OFC is doing good in 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.
OFC's Gross Margin of 52.41% is on the low side compared to the rest of the industry. OFC is outperformed by 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 RankSector 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%
OFC Yearly Profit, Operating, Gross MarginsOFC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 0 10 20 30 40 50

More info and screens

1

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.
OFC has a better debt/assets ratio than last year.
OFC Yearly Shares OutstandingOFC Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 20M 40M 60M 80M 100M
OFC Yearly Total Debt VS Total AssetsOFC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 1B 2B 3B 4B

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.
Looking at the Altman-Z score, with a value of 0.70, OFC is in the better half of the industry, outperforming 64.39% of the companies in the same industry.
A Debt/Equity ratio of 1.23 is on the high side and indicates that OFC has dependencies on debt financing.
OFC's Debt to Equity ratio of 1.23 is in line compared to the rest of the industry. OFC outperforms 44.70% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.23
Debt/FCF N/A
Altman-Z 0.7
ROIC/WACC0.58
WACC6.35%
OFC Yearly LT Debt VS Equity VS FCFOFC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 0 500M 1B 1.5B 2B

2.3 Liquidity

A Current Ratio of 0.27 indicates that OFC may have some problems paying its short term obligations.
OFC has a Current ratio of 0.27. This is amonst the worse of the industry: OFC underperforms 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.
The Quick ratio of OFC (0.27) is worse than 93.18% of its industry peers.
Industry RankSector Rank
Current Ratio 0.27
Quick Ratio 0.27
OFC Yearly Current Assets VS Current LiabilitesOFC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 100M 200M 300M

More info and screens

4

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.
Measured over the past years, OFC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.04% on average per year.
OFC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -39.95%.
OFC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.82% yearly.
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

OFC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -6.71% yearly.
OFC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.76% yearly.
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
OFC Yearly Revenue VS EstimatesOFC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 200M 400M 600M 800M
OFC Yearly EPS VS EstimatesOFC Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 0.5 1 1.5

More info and screens

3

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 14.58, OFC is valued correctly.
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.
When comparing the Price/Earnings ratio of OFC to the average of the S&P500 Index (27.08), we can say OFC is valued slightly cheaper.
A Price/Forward Earnings ratio of 21.47 indicates a rather expensive valuation of OFC.
85.61% of the companies in the same industry are more expensive than OFC, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.72. OFC is around the same levels.
Industry RankSector Rank
PE 14.58
Fwd PE 21.47
OFC Price Earnings VS Forward Price EarningsOFC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
OFC Per share dataOFC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

4.3 Compensation for Growth

The decent profitability rating of OFC 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%

More info and screens

5

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 6.16.
OFC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
Industry RankSector Rank
Dividend Yield 4.57%

5.2 History

The dividend of OFC decreases each year by -1.49%.
OFC has paid a dividend for at least 10 years, which is 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
OFC Yearly Dividends per shareOFC Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 0.2 0.4 0.6 0.8 1

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%
OFC Yearly Income VS Free CF VS DividendOFC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 0 100M -100M -200M
OFC Dividend Payout.OFC Dividend Payout, showing the Payout Ratio.OFC Dividend Payout.PayoutRetained Earnings

More info and screens

CORPORATE OFFICE PROPERTIES

NYSE:OFC (9/14/2023, 9:45:33 PM)

After market: 24.94 0 (0%)

24.94

+0.39 (+1.59%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)07-27 2023-07-27/amc
Earnings (Next)10-25 2023-10-25/amc
Inst Owners104.34%
Inst Owner Change0.43%
Ins Owners0.74%
Ins Owner Change0%
Market Cap2.81B
Analysts80
Price Target29.47 (18.16%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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 RankSector 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
Profitability
Industry RankSector 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%
ROICexcg growth 3Y1.59%
ROICexcg 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 RankSector 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%