NasdaqGS:OCFC

Stock Analysis Report

Executive Summary

OceanFirst Financial Corp. operates as the holding company for OceanFirst Bank N.A.


Snowflake Analysis

Very undervalued with excellent balance sheet.


Similar Companies

Share Price & News

How has OceanFirst Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: OCFC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.04%

OCFC

-1.0%

US Mortgage

-1.0%

US Market


1 Year Return

-9.0%

OCFC

4.9%

US Mortgage

18.0%

US Market

Return vs Industry: OCFC underperformed the US Mortgage industry which returned 4.9% over the past year.

Return vs Market: OCFC underperformed the US Market which returned 18% over the past year.


Shareholder returns

OCFCIndustryMarket
7 Day0.04%-1.0%-1.0%
30 Day-6.2%-1.9%0.6%
90 Day-2.4%-2.1%7.9%
1 Year-6.3%-9.0%7.4%4.9%20.4%18.0%
3 Year-14.6%-20.8%18.7%10.3%48.0%38.5%
5 Year62.3%42.4%58.4%40.9%72.2%53.3%

Price Volatility Vs. Market

How volatile is OceanFirst Financial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is OceanFirst Financial undervalued compared to its fair value and its price relative to the market?

29.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OCFC ($23.27) is trading below our estimate of fair value ($32.87)

Significantly Below Fair Value: OCFC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: OCFC is good value based on its PE Ratio (13.2x) compared to the Mortgage industry average (13.6x).

PE vs Market: OCFC is good value based on its PE Ratio (13.2x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: OCFC is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: OCFC is good value based on its PB Ratio (1x) compared to the US Mortgage industry average (1.1x).


Next Steps

Future Growth

How is OceanFirst Financial forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

18.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OCFC's forecast earnings growth (18.1% per year) is above the savings rate (1.7%).

Earnings vs Market: OCFC's earnings (18.1% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: OCFC's earnings are forecast to grow, but not significantly.

Revenue vs Market: OCFC's revenue (11.6% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: OCFC's revenue (11.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OCFC's Return on Equity is forecast to be low in 3 years time (9.4%).


Next Steps

Past Performance

How has OceanFirst Financial performed over the past 5 years?

37.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OCFC has high quality earnings.

Growing Profit Margin: OCFC's current net profit margins (29.9%) are higher than last year (26.4%).


Past Earnings Growth Analysis

Earnings Trend: OCFC's earnings have grown significantly by 37.1% per year over the past 5 years.

Accelerating Growth: OCFC's earnings growth over the past year (23.1%) is below its 5-year average (37.1% per year).

Earnings vs Industry: OCFC earnings growth over the past year (23.1%) exceeded the Mortgage industry 11.3%.


Return on Equity

High ROE: OCFC's Return on Equity (7.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is OceanFirst Financial's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: OCFC has a low level of unsold assets or inventory.

Debt Coverage by Assets: OCFC's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

Asset Level: OCFC's level of assets compared to its equity is low.

Allowance for Bad Loans: OCFC has a low allowance for bad loans.

Low Risk Liabilities: OCFC's liabilities are made up of primarily low risk sources of funding.

Loan Level: OCFC has an acceptable proportion of non-loan assets held.

Low Risk Deposits: OCFC's loans are broadly funded by customer deposits.

Level of Bad Loans: OCFC has an appropriate level of bad loans (0.29%)


Next Steps

Dividend

What is OceanFirst Financial's current dividend yield, its reliability and sustainability?

2.92%

Current Dividend Yield


Dividend Yield vs Market

company2.9%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years3.1%

Current dividend yield vs market & industry

Notable Dividend: OCFC's dividend (2.92%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: OCFC's dividend (2.92%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

Stable Dividend: OCFC's dividend payments have been volatile in the past 10 years.

Growing Dividend: OCFC's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.5%), OCFC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: OCFC's dividends in 3 years are forecast to be well covered by earnings (34.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.0yrs

Average management tenure


CEO

Chris Maher (52yo)

5.1yrs

Tenure

US$2,928,584

Compensation

Mr. Christopher D. Maher, also known as Chris, has been the President of OceanFirst Financial Corp. (the “Financial Corp “) and OceanFirst Bank, National Association (the “Bank”) since March 25, 2013. He s ...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD2.93M) is about average for companies of similar size in the US market ($USD3.80M).

Compensation vs Earnings: Chris's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Christopher Maher
Chairman5.1yrsUS$2.93m0.25% $3.5m
Michael Fitzpatrick
Executive VP & CFO25.1yrsUS$1.05m0.39% $5.5m
Joseph Lebel
Executive VP & Chief Operating Officer1.1yrsUS$1.35m0.15% $2.1m
Steven Tsimbinos
Executive VP0yrsUS$1.12m0.10% $1.5m
Joseph Iantosca
Consultant0.6yrsUS$1.20m0.14% $2.0m
Steven Brady
Independent Director3.3yrsUS$137.06k0.17% $2.3m
Angela Ho
Senior VP & Principal Accounting Officer2.9yrsno data0.012% $169.3k
Anthony Giordano
Interim Chief Information Officer0.6yrsno data0.042% $593.7k
Michele Estep
Executive VP & Chief Administrative Officer1.1yrsno data0.074% $1.0m
Jill Hewitt
Senior VP & Investor Relations Officer0yrsno datano data

2.0yrs

Average Tenure

53.5yo

Average Age

Experienced Management: OCFC's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Christopher Maher
Chairman5.1yrsUS$2.93m0.25% $3.5m
Steven Brady
Independent Director3.3yrsUS$137.06k0.17% $2.3m
Grace Vallacchi
Executive VP1.1yrsno data0.044% $626.9k
Grace Torres
Independent Director2.1yrsUS$102.33k0.010% $144.8k
Anthony Coscia
Independent Director2.1yrsUS$97.33k0.071% $997.4k
John Walsh
Lead Director0yrsUS$139.14k0.057% $807.3k
Angelo Catania
Independent Director14.1yrsUS$135.50k0.048% $678.9k
Michael Devlin
Independent Director3.8yrsUS$110.83k0.24% $3.4m
Samuel Young
Independent Director3.3yrsUS$105.13k0.028% $390.8k
Jack Farris
Independent Director4.9yrsUS$106.15k0.011% $158.6k

3.3yrs

Average Tenure

60yo

Average Age

Experienced Board: OCFC's board of directors are considered experienced (3.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: OCFC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.3%.


Top Shareholders

Company Information

OceanFirst Financial Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: OceanFirst Financial Corp.
  • Ticker: OCFC
  • Exchange: NasdaqGS
  • Founded: 1902
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$1.411b
  • Shares outstanding: 60.12m
  • Website: https://www.oceanfirst.com

Number of Employees


Location

  • OceanFirst Financial Corp.
  • 110 West Front Street
  • Red Bank
  • New Jersey
  • 7701
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OCFCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 1996

Biography

OceanFirst Financial Corp. operates as the holding company for OceanFirst Bank N.A. that provides a range of community banking services. The company offers various deposit products to retail, government, and business customers, including money market accounts, savings accounts, interest-bearing checking accounts, non-interest-bearing accounts, and time deposits. It also provides commercial real estate, multi-family mortgage, and land loans; fixed-rate and adjustable-rate mortgage loans that are secured by one-to-four family residences; consumer loans, such as home equity loans and lines of credit, student loans, overdraft line of credit, loans on savings accounts, and other consumer loans; and commercial and industrial loans, and lines of credit. In addition, the company invests in mortgage-backed securities, securities issued by the U.S. Government and agencies, corporate securities, and other investments. Further, it offers bankcard and wealth management services; and sells alternative investment products and life insurance products. The company operates through its branch office in Toms River; administrative office located in Red Bank; and 58 additional branch offices and 3 deposit production facilities located throughout central and southern New Jersey, as well as commercial loan production offices in New York City, the Philadelphia area and Atlantic, Cape May, and Mercer Counties in New Jersey. OceanFirst Financial Corp. was founded in 1902 and is based in Red Bank, New Jersey. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 00:29
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.