CORPORATE OFFICE PROPERTIES (OFC) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:OFC • US22002T1088

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

4

Taking everything into account, OFC scores 4 out of 10 in our fundamental rating. OFC was compared to 124 industry peers in the Diversified REITs industry. There are concerns on the financial health of OFC while its profitability can be described as average. OFC is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

6

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 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 2016 2017 2018 2019 2020 2021 2022 0 100M -100M 200M -200M

1.2 Ratios

  • The Return On Assets of OFC (4.59%) is better than 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.
  • OFC has a Return On Invested Capital of 3.68%. This is in the better half 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 3.05%.
  • The 3 year average ROIC (3.42%) for OFC is below the current ROIC(3.68%), indicating increased profibility in the last year.
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 2016 2017 2018 2019 2020 2021 2022 0 2 4 6 8 10

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.
  • OFC's Profit Margin has improved in the last couple of years.
  • The Operating Margin of OFC (25.84%) is better than 61.36% of its industry peers.
  • In the last couple of years the Operating Margin of OFC has remained more or less at the same level.
  • OFC has a worse Gross Margin (52.41%) 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 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 2016 2017 2018 2019 2020 2021 2022 0 10 20 30 40 50

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1

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 a better debt/assets ratio than last year.
OFC Yearly Shares OutstandingOFC Yearly Shares OutstandingYearly Shares Outstanding 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 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.
  • With a decent Altman-Z score value of 0.70, OFC is doing good in 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 has a Debt to Equity ratio of 1.23. This is comparable 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 2016 2017 2018 2019 2020 2021 2022 0 500M 1B 1.5B 2B

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.
  • The Current ratio of OFC (0.27) is worse than 93.94% of its industry peers.
  • A Quick Ratio of 0.27 indicates that OFC may have some problems paying its short term obligations.
  • OFC has a worse Quick ratio (0.27) 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 2016 2017 2018 2019 2020 2021 2022 100M 200M 300M

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4

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 35.71% over the past year.
  • OFC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.04% yearly.
  • OFC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -39.95%.
  • 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.
  • Based on estimates for the next years, OFC will show a small growth in Revenue. The Revenue will grow by 7.76% on average per year.
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.
OFC Yearly Revenue VS EstimatesOFC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 0.5 1 1.5

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3

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 14.58, which indicates a correct valuation of OFC.
  • Based on the Price/Earnings ratio, OFC is valued cheaply inside the industry as 87.88% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 28.32, OFC is valued a bit cheaper.
  • The Price/Forward Earnings ratio is 21.47, which indicates a rather expensive current valuation of OFC.
  • Based on the Price/Forward Earnings ratio, OFC is valued cheaply inside the industry as 85.61% of the companies are valued more expensively.
  • OFC is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
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 20 40 60

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

  • OFC has a very decent profitability rating, which 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%

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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 6.98.
  • OFC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
Industry RankSector 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
OFC Yearly Dividends per shareOFC Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • OFC pays out 64.50% of its income as dividend. 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 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

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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.


Can you provide the valuation status for CORPORATE OFFICE PROPERTIES?

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 PE and PB ratios for OFC stock?

The Price/Earnings (PE) ratio for CORPORATE OFFICE PROPERTIES (OFC) is 14.58 and the Price/Book (PB) ratio is 1.63.


How financially healthy is CORPORATE OFFICE PROPERTIES?

The financial health rating of CORPORATE OFFICE PROPERTIES (OFC) is 1 / 10.