NasdaqGS:OPB

Stock Analysis Report

Executive Summary

Opus Bank provides various banking products, services, and solutions for small and mid-sized companies, entrepreneurs, real estate investors, professionals, and high net worth individuals.

Snowflake

Fundamentals

Flawless balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Opus Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.8%

OPB

3.7%

US Banks

1.8%

US Market


1 Year Return

-8.1%

OPB

1.9%

US Banks

7.3%

US Market

Return vs Industry: OPB underperformed the US Banks industry which returned 1.9% over the past year.

Return vs Market: OPB underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

OPBIndustryMarket
7 Day3.8%3.7%1.8%
30 Day3.0%0.2%-0.7%
90 Day8.8%2.5%0.06%
1 Year-6.2%-8.1%4.9%1.9%9.7%7.3%
3 Year1.9%-1.4%51.7%41.2%46.3%36.9%
5 Year-17.3%-21.9%69.7%51.2%64.5%46.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Opus Bank undervalued compared to its fair value and its price relative to the market?

38.94x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: OPB ($22.83) is trading above our estimate of fair value ($1.55)

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


Price To Earnings Ratio

PE vs Industry: OPB is poor value based on its PE Ratio (38.9x) compared to the Banks industry average (12.6x).

PE vs Market: OPB is poor value based on its PE Ratio (38.9x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: OPB is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: OPB is good value based on its PB Ratio (0.8x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Opus Bank forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

31.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OPB's forecast earnings growth (31.2% per year) is above the savings rate (2.7%).

Earnings vs Market: OPB's earnings (31.2% per year) are forecast to grow faster than the US market (14.6% per year).

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

Revenue vs Market: OPB's revenue (7.1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: OPB's revenue (7.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: OPB's Return on Equity is forecast to be low in 3 years time (5.5%).


Next Steps

Past Performance

How has Opus Bank performed over the past 5 years?

-16.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: OPB's earnings have declined by -16.5% per year over the past 5 years.

Accelerating Growth: OPB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: OPB had negative earnings growth (-56.1%) over the past year, making it difficult to compare to the Banks industry average (30.5%).


Return on Equity

High ROE: OPB's Return on Equity (2.1%) is considered low.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Opus Bank'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: OPB has a low level of unsold assets or inventory.

Debt Coverage by Assets: OPB's debt is not covered by short term assets (assets are 0.8x debt).


Financial Institutions Analysis

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

Allowance for Bad Loans: OPB has a sufficient allowance for bad loans.

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

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

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

Level of Bad Loans: OPB has an appropriate level of bad loans (0.37%)


Next Steps

Dividend

What is Opus Bank's current dividend yield, its reliability and sustainability?

1.93%

Current Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%1.5%markettop25%3.7%industryaverage3.0%forecastin3Years2.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: OPB's dividend (1.93%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: OPB's dividend (1.93%) is low compared to the top 25% of dividend payers in the US market (3.72%).

Stable Dividend: OPB has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: OPB's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (75%), OPB's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: OPB's dividends in 3 years are forecast to be well covered by earnings (29.9% payout ratio).


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

Paul Taylor (58yo)

0.4yrs

Tenure

0

Mr. Paul W. Taylor serves as Chief Executive Officer, President and Director of Opus Bank since May 01, 2019. He was a Director of Pacific Mercantile Bancorp and Pacific Mercantile Bank since March 04, 201 ...


Management Age and Tenure

1.9yrs

Average Tenure

50yo

Average Age

Experienced Management: OPB's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Age and Tenure

1.7yrs

Average Tenure

61.5yo

Average Age

Experienced Board: OPB's board of directors are not considered experienced ( 1.7 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$2,058,26315 Oct 19
Elliott Management Corporation
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Elliott Management Corporation
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SellUS$42,22430 Apr 19
Joseph Simpson
EntityIndividual
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SellUS$9,07329 Apr 19
Paul Greig
EntityIndividual
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Chairman of the Board
Chairman of the Board
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SellUS$15,46109 Apr 19
Balaji Krishna
EntityIndividual
Role
Head of Sales
Executive VP
Shares679
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SellUS$92,93122 Feb 19
Jennifer Simmons
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
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Jennifer Simmons
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Chief Operating Officer
Executive VP & COO
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Paul Greig
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Paul Greig
EntityIndividual
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SellUS$9,37106 Nov 18
Jennifer Simmons
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
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Ownership Breakdown


Management Team

  • Curtis Glovier (55yo)

    Senior Executive VP

    • Tenure: 3.2yrs
    • Compensation: US$1.47m
  • Brett Villaume

    Senior VP & Director of Investor Relations

    • Tenure: 0yrs
  • Paul Taylor (58yo)

    President

    • Tenure: 0.4yrs
  • Angelee Harris (49yo)

    Executive VP & General Counsel

    • Tenure: 0.3yrs
  • Brian Fitzmaurice (58yo)

    Vice Chairman & Senior Chief Credit Officer

    • Tenure: 0yrs
    • Compensation: US$2.13m
  • Balaji Krishna (43yo)

    Executive VP

    • Tenure: 2.8yrs
  • Ed Padilla (50yo)

    Vice Chairman

    • Tenure: 0yrs
    • Compensation: US$1.76m
  • Jenny Simmons (45yo)

    Executive VP & COO

    • Tenure: 4yrs
  • Kevin Thompson (46yo)

    Executive VP & CFO

    • Tenure: 1.9yrs
    • Compensation: US$662.10k
  • Greg von der Linden (51yo)

    Executive VP & Chief Human Resources Officer

    • Tenure: 0.8yrs

Board Members

  • David King (60yo)

    Director

    • Tenure: 3yrs
  • Marsha Cameron (64yo)

    Director

    • Tenure: 1.5yrs
    • Compensation: US$188.42k
  • Mike Meyer (80yo)

    Director

    • Tenure: 9.1yrs
    • Compensation: US$250.24k
  • Melanie Cibik (59yo)

    Director

    • Tenure: 0.2yrs
  • Paul Greig (63yo)

    Chairman of the Board

    • Tenure: 1.8yrs
    • Compensation: US$1.63m
  • Paul Taylor (58yo)

    President

    • Tenure: 0.4yrs
  • Mal Durkee

    Director

    • Tenure: 0.4yrs
  • Rich Thomas (70yo)

    Director

    • Tenure: 2.2yrs
    • Compensation: US$255.03k
  • Mark Deason (41yo)

    Director

    • Tenure: 1.7yrs

Company Information

Opus Bank's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Opus Bank
  • Ticker: OPB
  • Exchange: NasdaqGS
  • Founded: 1982
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$827.620m
  • Shares outstanding: 36.25m
  • Website: https://www.opusbank.com

Number of Employees


Location

  • Opus Bank
  • 19900 MacArthur Boulevard
  • 12th Floor
  • Irvine
  • California
  • 92612
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OPBNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDApr 2014

Biography

Opus Bank provides various banking products, services, and solutions for small and mid-sized companies, entrepreneurs, real estate investors, professionals, and high net worth individuals. The company acce ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 00:30
End of Day Share Price2019/10/17 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.