CORPORATE OFFICE PROPERTIES (OFC)
US22002T1088 - REIT
Overall OFC gets a fundamental rating of 4 out of 10. We evaluated OFC against 126 industry peers in the Diversified REITs industry. OFC has an excellent profitability rating, but there are concerns on its financial health. OFC is quite expensive at the moment. 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.
In the past 5 years OFC always reported a positive cash flow from operatings.
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 Return On Equity of 11.11%. This is amongst the best in the industry. OFC outperforms 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.
The Average Return On Invested Capital over the past 3 years for OFC is in line with the industry average of 2.95%.
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 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.
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.
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.
OFC's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, OFC has about the same amount of shares outstanding.
OFC has more shares outstanding than it did 5 years ago.
The debt/assets ratio for OFC has been reduced compared to a year ago.
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.
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
OFC has a Current 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 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.
The Quick ratio of OFC (0.27) is worse than 93.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.27 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 35.71% over the past year.
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.
The Revenue for OFC has decreased by -39.95% in the past year. This is quite bad
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 growth Q2Q34.62%
Revenue 1Y (TTM)-39.95%
Revenue growth 3Y4.85%
Revenue growth 5Y3.82%
Revenue growth 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.
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
With a Price/Earnings ratio of 14.58, OFC is valued correctly.
Based on the Price/Earnings ratio, OFC is valued cheaply inside the industry as 87.88% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of OFC to the average of the S&P500 Index (24.55), we can say OFC is valued slightly 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.
The average S&P500 Price/Forward Earnings ratio is at 20.92. OFC is around the same levels.
| 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
The decent profitability rating of OFC may justify a higher PE ratio.
A cheap valuation may be justified as OFC's earnings are expected to decrease with -6.71% in the coming years.
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 6.00.
Compared to an average S&P500 Dividend Yield of 2.39, 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 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
5.3 Sustainability
OFC pays out 64.50% of its income as dividend. 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%
CORPORATE OFFICE PROPERTIES
NYSE:OFC (9/14/2023, 8:45:33 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)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.81B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.57% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.58 | ||
| Fwd PE | 21.47 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.59% | ||
| ROE | 11.11% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 25.84% | ||
| PM (TTM) | 26.97% | ||
| GM | 52.41% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.27 | ||
| Quick Ratio | 0.27 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)35.71%
EPS 3Y-3.64%
EPS 5Y
EPS growth Q2Q
EPS Next Y-0.32%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-39.95%
Revenue growth 3Y4.85%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y