NasdaqCM:OFED

Stock Analysis Report

Oconee Federal Financial

Executive Summary

Oconee Federal Financial Corp. operates as a holding company for Oconee Federal Savings and Loan Association that provides various banking products and services in the Oconee County area of northwestern South Carolina and the northeast area of Georgia.

Snowflake

Fundamentals

Excellent balance sheet unattractive dividend payer.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-1.4%

OFED

1.6%

US Mortgage

0.4%

US Market


1 Year Return

-13.3%

OFED

15.2%

US Mortgage

6.9%

US Market

Return vs Industry: OFED underperformed the US Mortgage industry which returned 15.2% over the past year.

Return vs Market: OFED underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

OFEDIndustryMarket
7 Day-1.4%1.6%0.4%
30 Day0.2%0.7%-1.1%
90 Day-4.0%4.2%-0.5%
1 Year-11.9%-13.3%17.7%15.2%9.3%6.9%
3 Year5.2%0.4%41.2%31.8%45.8%36.4%
5 Year33.6%22.4%71.5%53.4%62.9%45.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

34.72x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: OFED ($22.68) is trading above our estimate of fair value ($5.49)

Significantly Undervalued: OFED is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: OFED is poor value based on its PE Ratio (34.7x) compared to the Mortgage industry average (14.4x).

PE vs Market: OFED is poor value based on its PE Ratio (34.7x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate OFED's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: OFED is overvalued based on its PB Ratio (1.5x) compared to the US Mortgage industry average (1.1x).


Next Steps

Future Growth

How is Oconee Federal Financial forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

13.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OFED's forecast earnings growth (13.5% per year) is above the savings rate (2.7%).

Earnings vs Market: OFED's earnings (13.5% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: Insufficient data to determine if OFED's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if OFED's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if OFED's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Oconee Federal Financial performed over the past 5 years?

-2.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: OFED's earnings have declined by -2.6% per year over the past 5 years.

Accelerating Growth: OFED's earnings growth over the past year (22.7%) exceeds its 5-year average (-2.6% per year).

Earnings vs Industry: OFED earnings growth over the past year (22.7%) underperformed the Mortgage industry 31.5%.


Return on Equity

High ROE: OFED's Return on Equity (4.2%) is considered low.


Return on Assets

ROA vs Industry: OFED's Return on Assets is below or equal to the Mortgage industry average last year.


Return on Capital Employed

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


Next Steps

Financial Health

How is Oconee Federal 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: OFED has a low level of unsold assets or inventory.

Debt Coverage by Assets: OFED's debt is covered by short term assets (assets are 2.188630x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: OFED has an appropriate level of bad loans (1.09%)


Next Steps

Dividend

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

1.76%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: OFED's dividend (1.76%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: OFED's dividend (1.76%) is low compared to the top 25% of dividend payers in the US market (3.73%).

Stable Dividend: Whilst dividend payments have been stable, OFED has been paying a dividend for less than 10 years.

Growing Dividend: OFED has only been paying a dividend for 9 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (61.2%), OFED's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Curt Evatt (47yo)

2.8yrs

Tenure

US$325,751

Compensation

Mr. Curtis T. Evatt has been the Chief Executive Officer of Oconee Federal Financial Corp. and Oconee Federal Savings and Loan Association since January 1, 2017. Mr. Evatt has been the President of Oconee  ...


CEO Compensation Analysis

Compensation vs. Market: Curt's total compensation ($USD325.75K) is about average for companies of similar size in the US market ($USD489.74K).

Compensation vs Earnings: Curt's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.8yrs

Average Tenure

51.5yo

Average Age

Experienced Management: OFED's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

10.8yrs

Average Tenure

71yo

Average Age

Experienced Board: OFED's board of directors are seasoned and experienced ( 10.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$39,33018 Sep 19
Charles Latiff
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Banking Officer
Shares1,800
Max PriceUS$21.85

Ownership Breakdown


Management Team

  • John Hobbs (56yo)

    Senior VP & CFO

    • Tenure: 2.5yrs
    • Compensation: US$158.18k
  • Curt Evatt (47yo)

    President

    • Tenure: 2.8yrs
    • Compensation: US$325.75k
  • Harry Mays (72yo)

    Secretary & Director

    • Tenure: 10.8yrs
    • Compensation: US$33.69k
  • Charles Latiff (45yo)

    Executive VP & Chief Banking Officer

    • Tenure: 4.4yrs
    • Compensation: US$235.14k

Board Members

  • Curt Evatt (47yo)

    President

    • Tenure: 2.8yrs
    • Compensation: US$325.75k
  • Harry Mays (72yo)

    Secretary & Director

    • Tenure: 10.8yrs
    • Compensation: US$33.69k
  • Robert McLellan (63yo)

    Chairman of the Board

    • Tenure: 2.8yrs
    • Compensation: US$39.99k
  • Cecil Sandifer (71yo)

    Independent Director

    • Tenure: 34.8yrs
    • Compensation: US$33.69k
  • W. Poore (75yo)

    Independent Director

    • Tenure: 24.8yrs
    • Compensation: US$33.69k

Company Information

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


Key Information

  • Name: Oconee Federal Financial Corp.
  • Ticker: OFED
  • Exchange: NasdaqCM
  • Founded: 1924
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$128.493m
  • Shares outstanding: 5.67m
  • Website: https://www.oconeefederal.com

Number of Employees


Location

  • Oconee Federal Financial Corp.
  • 201 East North Second Street
  • Seneca
  • South Carolina
  • 29678
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OFEDNasdaqCM (Nasdaq Capital Market)YesCommon SharesUSUSDJan 2011

Biography

Oconee Federal Financial Corp. operates as a holding company for Oconee Federal Savings and Loan Association that provides various banking products and services in the Oconee County area of northwestern So ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 00:08
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.