NasdaqGM:OPBK

Stock Analysis Report

Executive Summary

OP Bancorp operates as the bank holding company for Open Bank that provides banking products and services in California.

Rewards

Trading at 7.8% below its fair value

Earnings grew by 32.6% over the past year

Risk Analysis

Unstable dividend track record

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has OP Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0.1%

OPBK

-0.3%

US Mortgage

0.7%

US Market


1 Year Return

7.5%

OPBK

22.7%

US Mortgage

18.2%

US Market

Return vs Industry: OPBK underperformed the US Mortgage industry which returned 22.7% over the past year.

Return vs Market: OPBK underperformed the US Market which returned 18.2% over the past year.


Shareholder returns

OPBKIndustryMarket
7 Day0.1%-0.3%0.7%
30 Day2.2%-0.4%1.5%
90 Day-1.2%5.4%5.0%
1 Year9.8%7.5%25.4%22.7%20.8%18.2%
3 Year34.8%31.9%25.2%16.4%45.2%35.8%
5 Year42.4%39.4%75.4%56.4%71.6%52.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is OP Bancorp undervalued compared to its fair value and its price relative to the market?

7.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OPBK ($9.83) is trading below our estimate of fair value ($10.66)

Significantly Below Fair Value: OPBK is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: OPBK is good value based on its PE Ratio (9.7x) compared to the Mortgage industry average (14.3x).

PE vs Market: OPBK is good value based on its PE Ratio (9.7x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: OPBK is poor value based on its PEG Ratio (5.6x)


Price to Book Ratio

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


Next Steps

Future Growth

How is OP Bancorp forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

1.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

Earnings vs Market: OPBK's earnings (1.7% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: OPBK's revenue (6.4% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: OPBK's revenue (6.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OPBK's Return on Equity is forecast to be low in 3 years time (11.2%).


Next Steps

Past Performance

How has OP Bancorp performed over the past 5 years?

28.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OPBK has high quality earnings.

Growing Profit Margin: OPBK's current net profit margins (29.4%) are higher than last year (25.1%).


Past Earnings Growth Analysis

Earnings Trend: OPBK's earnings have grown significantly by 28.2% per year over the past 5 years.

Accelerating Growth: OPBK's earnings growth over the past year (32.6%) exceeds its 5-year average (28.2% per year).

Earnings vs Industry: OPBK earnings growth over the past year (32.6%) exceeded the Mortgage industry 23.1%.


Return on Equity

High ROE: OPBK's Return on Equity (11.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is OP Bancorp'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: OPBK has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if OPBK's debt is covered by short term assets.


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: OPBK has an appropriate level of bad loans (0.16%)


Next Steps

Dividend

What is OP Bancorp's current dividend yield, its reliability and sustainability?

2.03%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Years2.4%

Current dividend yield vs market & industry

Notable Dividend: OPBK's dividend (2.03%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: OPBK's dividend (2.03%) is low compared to the top 25% of dividend payers in the US market (3.7%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether OPBK's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if OPBK's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (14.9%), OPBK's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: OPBK's dividends in 3 years are forecast to be well covered by earnings (27.1% payout ratio).


Next Steps

Management

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

5.0yrs

Average management tenure


CEO

Min Kim (59yo)

3.9yrs

Tenure

US$951,817

Compensation

Ms. Min Jung Kim has been Chief Executive Officer, President and Director at Open Bank (Los Angeles CA) (also known as First Standard Bank) since April 1, 2010. Ms. Kim has been Chief Executive Officer, Pr ...


CEO Compensation Analysis

Compensation vs Market: Min's total compensation ($USD951.82K) is about average for companies of similar size in the US market ($USD1.12M).

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


Management Age and Tenure

5.0yrs

Average Tenure

56yo

Average Age

Experienced Management: OPBK's management team is seasoned and experienced (5 years average tenure).


Board Age and Tenure

3.9yrs

Average Tenure

69yo

Average Age

Experienced Board: OPBK's board of directors are considered experienced (3.9 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$49,75727 Nov 19
Christine Oh
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares5,000
Max PriceUS$9.95
SellUS$158,58521 Nov 19
Yong Shin
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares16,338
Max PriceUS$9.71
SellUS$423,57319 Nov 19
Yong Shin
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares43,662
Max PriceUS$9.70
SellUS$47,50207 Jun 19
Christine Oh
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares5,000
Max PriceUS$9.50
SellUS$210,20017 May 19
Soo Hun Jung
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares20,000
Max PriceUS$10.51
BuyUS$268,20014 Dec 18
Brian Choi
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares30,000
Max PriceUS$8.94

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.1%.


Management Team

  • Min Kim (59yo)

    President

    • Tenure: 3.9yrs
    • Compensation: US$951.82k
  • Christine Oh (52yo)

    Executive VP

    • Tenure: 3.8yrs
    • Compensation: US$530.96k
  • Steve Park (54yo)

    Executive VP & Chief Credit Officer of Open Bank

    • Tenure: 9.5yrs
    • Compensation: US$531.34k
  • Ki Yoon (58yo)

    • Tenure: 6.2yrs

Board Members

  • Min Kim (59yo)

    President

    • Tenure: 3.9yrs
    • Compensation: US$951.82k
  • Ernest Dow (69yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$48.00k
  • Yong Shin (59yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$48.00k
  • Ock Kim (77yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$48.00k
  • Jason Hwang (69yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$48.00k
  • Chong Jung (69yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$48.00k
  • Brian Choi (67yo)

    Chairman of the Board

    • Tenure: 3.9yrs
    • Compensation: US$66.00k
  • Susan Park (71yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$48.00k

Company Information

OP Bancorp's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: OP Bancorp
  • Ticker: OPBK
  • Exchange: NasdaqGM
  • Founded: 2005
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$154.358m
  • Shares outstanding: 15.70m
  • Website: https://www.myopenbank.com

Number of Employees


Location

  • OP Bancorp
  • 1000 Wilshire Boulevard
  • Suite 500
  • Los Angeles
  • California
  • 90017
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OPBKNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDJul 2005

Biography

OP Bancorp operates as the bank holding company for Open Bank that provides banking products and services in California. It offers demand, checking, savings, money market, and time deposit accounts, as wel ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 00:01
End of Day Share Price2019/12/10 00:00
Earnings2019/09/30
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.