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%)
We assign a fundamental rating of 4 out of 10 to OFC. OFC was compared to 128 industry peers in the Diversified REITs industry. OFC scores excellent on profitability, but there are concerns on its financial health. OFC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year OFC was profitable.
OFC had a positive operating cash flow in the past year.
OFC had positive earnings in each of the past 5 years.
In the past 5 years OFC always reported a positive cash flow from operatings.
1.2 Ratios
OFC has a Return On Assets of 4.59%. This is amongst the best in the industry. OFC outperforms 94.70% of its industry peers.
OFC's Return On Equity of 11.11% is amongst the best of the industry. OFC outperforms 93.18% of its industry peers.
With a decent Return On Invested Capital value of 3.68%, OFC is doing good in the industry, outperforming 79.55% of the companies in the same industry.
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 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's Profit Margin of 26.97% is fine compared to the rest of the industry. OFC outperforms 78.03% of its industry peers.
In the last couple of years the Profit Margin of OFC has grown nicely.
OFC has a better Operating Margin (25.84%) than 61.36% of its industry peers.
OFC's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 52.41%, OFC is not doing good in the industry: 81.06% of the companies in the same industry are doing better.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so OFC is destroying value.
The number of shares outstanding for OFC remains at a similar level compared to 1 year ago.
OFC has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.70, we must say that OFC is in the distress zone and has some risk of bankruptcy.
OFC has a better Altman-Z score (0.70) than 64.39% of its industry peers.
OFC has a Debt/Equity ratio of 1.23. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of OFC (1.23) is comparable to the rest of the 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.
With a Current ratio value of 0.27, OFC is not doing good in the industry: 93.94% of the companies in the same industry are doing better.
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's Quick ratio of 0.27 is on the low side compared to the rest of the industry. OFC is outperformed by 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.
The Earnings Per Share has been growing by 19.04% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to decrease by -6.71% on average over the next years.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 14.58 indicates a correct valuation of OFC.
Based on the Price/Earnings ratio, OFC is valued cheaper than 87.88% of the companies in the same industry.
OFC is valuated rather cheaply when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 21.47, which indicates a rather expensive current valuation of OFC.
OFC's Price/Forward Earnings ratio is rather cheap when compared to the industry. OFC is cheaper than 85.61% of the companies in the same industry.
OFC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.59, which is the current average of the S&P500 Index.
| 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.
Compared to an average industry Dividend Yield of 6.59, OFC is paying slightly less dividend.
OFC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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.
The Dividend Rate of OFC has been decling, while earnings will also be 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.