NasdaqGS:OCFC

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

-0.4%

OCFC

1.2%

US Mortgage

1.3%

US Market


1 Year Return

-11.3%

OCFC

12.2%

US Mortgage

5.9%

US Market

Return vs Industry: OCFC underperformed the US Mortgage industry which returned 12.2% over the past year.

Return vs Market: OCFC underperformed the US Market which returned 5.9% over the past year.


Shareholder returns

OCFCIndustryMarket
7 Day-0.4%1.2%1.3%
30 Day-2.0%-0.6%-1.9%
90 Day-8.1%2.4%-1.8%
1 Year-8.8%-11.3%14.6%12.2%8.3%5.9%
3 Year30.7%21.5%39.9%30.4%45.6%36.2%
5 Year65.1%44.7%68.7%51.1%66.1%47.9%

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?

0.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: OCFC ($23.15) is trading below our estimate of fair value ($23.17)

Significantly Undervalued: OCFC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: OCFC is good value based on its PE Ratio (12.5x) compared to the Mortgage industry average (14.4x).

PE vs Market: OCFC is good value based on its PE Ratio (12.5x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: OCFC is good value based on its PEG Ratio (0.6x)


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 5 analysts?

21.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OCFC's forecast earnings growth (21.5% per year) is above the savings rate (2.7%).

Earnings vs Market: OCFC's earnings (21.5% per year) are forecast to grow faster than the US market (14.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: OCFC's revenue (13.3% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: OCFC's revenue (13.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High 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?

35.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: OCFC's earnings have grown significantly by 35.6% per year over the past 5 years.

Accelerating Growth: OCFC's earnings growth over the past year (107.2%) exceeds its 5-year average (35.6% per year).

Earnings vs Industry: OCFC earnings growth over the past year (107.2%) exceeded the Mortgage industry 31.7%.


Return on Equity

High ROE: OCFC's Return on Equity (8%) is considered low.


Return on Assets

ROA vs Industry: OCFC has a higher Return on Assets than the Mortgage industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate OCFC's Return on Capital Employed to determine if it has improved over the past 3 years.


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 0.3x 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 (0.3%)


Next Steps

Dividend

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

2.94%

Current Dividend Yield


Dividend Yield vs Market

company2.9%marketbottom25%1.5%markettop25%3.8%industryaverage2.8%forecastin3Years3.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: OCFC's dividend (2.94%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: OCFC's dividend (2.94%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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 (36.6%), 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 (33.4% payout ratio).


Next Steps

Management

What is the CEO of OceanFirst Financial's salary, the management and board of directors tenure and is there insider trading?

1.7yrs

Average management tenure


CEO

Chris Maher (52yo)

4.8yrs

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. Mr.  ...


CEO Compensation Analysis

Compensation vs. Market: Chris's total compensation ($USD2.93M) is about average for companies of similar size in the US market ($USD2.76M).

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


Management Age and Tenure

1.7yrs

Average Tenure

53.5yo

Average Age

Experienced Management: OCFC's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

2.9yrs

Average Tenure

60yo

Average Age

Experienced Board: OCFC's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$20,08809 May 19
Samuel Young
EntityIndividual
Role
Member of the Board of Directors
Director
Shares800
Max PriceUS$25.11
SellUS$75,75019 Mar 19
Joseph Iantosca
EntityIndividual
Role
Senior Key Executive
Consultant
Shares3,000
Max PriceUS$25.25
BuyUS$125,35008 Mar 19
John Lloyd
EntityIndividual
Shares5,000
Max PriceUS$25.07
SellUS$42,07507 Mar 19
Grace Vallacchi
EntityIndividual
Role
Member of the Board of Directors
Executive VP
Shares1,700
Max PriceUS$24.75
SellUS$61,87507 Mar 19
Joseph Iantosca
EntityIndividual
Role
Senior Key Executive
Consultant
Shares2,475
Max PriceUS$25.00
BuyUS$12,44028 Nov 18
Christopher Maher
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares500
Max PriceUS$24.88

Ownership Breakdown


Management Team

  • Michael Fitzpatrick (64yo)

    Executive VP & CFO

    • Tenure: 24.8yrs
    • Compensation: US$1.05m
  • Anthony Giordano (53yo)

    Interim Chief Information Officer

    • Tenure: 0.3yrs
  • Jill Hewitt (54yo)

    Senior VP & Investor Relations Officer

    • Tenure: 0yrs
  • Joe Iantosca (59yo)

    Consultant

    • Tenure: 0.3yrs
    • Compensation: US$1.20m
  • Steve Brady (66yo)

    Director

    • Tenure: 2.9yrs
    • Compensation: US$137.06k
  • Chris Maher (52yo)

    Chairman

    • Tenure: 4.8yrs
    • Compensation: US$2.93m
  • Joe Lebel (57yo)

    Executive VP & Chief Operating Officer

    • Tenure: 0.8yrs
    • Compensation: US$1.35m
  • Michele Estep (49yo)

    Executive VP & Chief Administrative Officer

    • Tenure: 0.8yrs
  • Steve Tsimbinos (49yo)

    Executive VP

    • Tenure: 0yrs
    • Compensation: US$1.12m
  • Angela Ho (35yo)

    Senior VP & Principal Accounting Officer

    • Tenure: 2.6yrs

Board Members

  • Grace Torres (60yo)

    Director

    • Tenure: 1.8yrs
    • Compensation: US$102.33k
  • Tony Coscia (60yo)

    Director

    • Tenure: 1.8yrs
    • Compensation: US$97.33k
  • John Walsh (66yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$139.14k
  • Angelo Catania (70yo)

    Director

    • Tenure: 13.8yrs
    • Compensation: US$135.50k
  • Michael Devlin (69yo)

    Director

    • Tenure: 3.4yrs
    • Compensation: US$110.83k
  • Sam Young (60yo)

    Director

    • Tenure: 2.9yrs
    • Compensation: US$105.13k
  • Steve Brady (66yo)

    Director

    • Tenure: 2.9yrs
    • Compensation: US$137.06k
  • Chris Maher (52yo)

    Chairman

    • Tenure: 4.8yrs
    • Compensation: US$2.93m
  • Jack Farris (60yo)

    Director

    • Tenure: 4.6yrs
    • Compensation: US$106.15k
  • Grace Vallacchi (55yo)

    Executive VP

    • Tenure: 0.8yrs

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$1.171b
  • Shares outstanding: 50.60m
  • 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, a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 23:37
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.