NasdaqGS:ORIT

Stock Analysis Report

Executive Summary

Oritani Financial Corp. operates as a savings and loan holding company for Oritani Bank that provides various banking services for individual and corporate customers.


Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0.2%

ORIT

-1.9%

US Mortgage

0.06%

US Market


1 Year Return

25.6%

ORIT

5.7%

US Mortgage

19.4%

US Market

Return vs Industry: ORIT exceeded the US Mortgage industry which returned 18.8% over the past year.

Return vs Market: ORIT matched the US Market which returned 24.7% over the past year.


Shareholder returns

ORITIndustryMarket
7 Day0.2%-1.9%0.06%
30 Day0.05%-1.8%1.1%
90 Day12.3%-1.8%8.9%
1 Year33.8%25.6%8.2%5.7%21.9%19.4%
3 Year32.0%5.5%19.0%10.6%48.9%39.3%
5 Year77.1%25.8%60.2%42.4%71.9%53.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

16x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ORIT ($18.84) is trading above our estimate of fair value ($12.03)

Significantly Below Fair Value: ORIT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ORIT is poor value based on its PE Ratio (16x) compared to the Mortgage industry average (14.2x).

PE vs Market: ORIT is good value based on its PE Ratio (16x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

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


Next Steps

Future Growth

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

6.3%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Oritani Financial has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Oritani Financial performed over the past 5 years?

1.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ORIT has high quality earnings.

Growing Profit Margin: ORIT's current net profit margins (48.8%) are higher than last year (38.8%).


Past Earnings Growth Analysis

Earnings Trend: ORIT's earnings have grown by 1.4% per year over the past 5 years.

Accelerating Growth: ORIT's earnings growth over the past year (15.1%) exceeds its 5-year average (1.4% per year).

Earnings vs Industry: ORIT earnings growth over the past year (15.1%) underperformed the Mortgage industry 23.1%.


Return on Equity

High ROE: ORIT's Return on Equity (9.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Oritani 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: ORIT has a low level of unsold assets or inventory.

Debt Coverage by Assets: ORIT's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: ORIT has an appropriate level of bad loans (0.19%)


Next Steps

Dividend

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

4.62%

Current Dividend Yield


Dividend Yield vs Market

company4.6%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: ORIT's dividend (4.62%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: ORIT's dividend (4.62%) is in the top 25% of dividend payers in the US market (3.66%)


Stability and Growth of Payments

Stable Dividend: ORIT's dividends per share have been stable in the past 10 years.

Growing Dividend: ORIT's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (84.9%), ORIT's 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

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

11.9yrs

Average management tenure


CEO

Kevin Lynch (73yo)

21.9yrs

Tenure

US$3,523,506

Compensation

Mr. Kevin J. Lynch has been the President and Chief Executive Officer of Oritani Bank since 1993 and served as President and Chief Executive Officer of Oritani Financial Corp. since its creation in 1998. M ...


CEO Compensation Analysis

Compensation vs Market: Kevin's total compensation ($USD3.52M) is above average for companies of similar size in the US market ($USD2.53M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kevin Lynch
Chairman21.9yrsUS$3.52m1.97% $15.9m
John Fields
Executive VP3.3yrsUS$911.62k0.86% $6.9m
Philip Wyks
Senior VP & Corporate Secretary28.9yrsUS$603.35k0.21% $1.7m
Louis Manderino
Chief Credit Officer9.9yrsUS$543.69k0.22% $1.8m
Kurt Breitenstein
Executive VP & Chief Lending Officer3.2yrsUS$439.28k0.020% $161.9k
Ann Jetton
Senior VP & Principal Accounting Officer0yrsno data0.15% $1.2m
Paul Skinner
VP & Chief Information Officer11.9yrsno datano data
Amy Lubow
VP & Chief Compliance Officer2.9yrsno datano data
Michele Calise
Senior VP & Retail Banking Officer0yrsno datano data

11.9yrs

Average Tenure

57yo

Average Age

Experienced Management: ORIT's management team is seasoned and experienced (11.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kevin Lynch
Chairman21.9yrsUS$3.52m1.97% $15.9m
John Fields
Executive VP3.3yrsUS$911.62k0.86% $6.9m
Robert Hekemian
Independent Director20.9yrsUS$378.69k0.70% $5.6m
James Doyle
Independent Director21.9yrsUS$295.64k0.56% $4.5m
Nicholas Antonaccio
Lead Director11.8yrsUS$226.75k0.20% $1.6m
John Skelly
Independent Director20.9yrsUS$230.58k0.93% $7.5m
Harvey Hirschfeld
Independent Director5.7yrsUS$207.95k0.071% $574.7k
Judith Schumacher-Tilton
Independent Director1.3yrsUS$77.00k0.12% $928.1k

16.3yrs

Average Tenure

71.5yo

Average Age

Experienced Board: ORIT's board of directors are seasoned and experienced ( 16.3 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Oritani Financial Corp.
  • Ticker: ORIT
  • Exchange: NasdaqGS
  • Founded: 1911
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$806.729m
  • Shares outstanding: 43.37m
  • Website: https://www.oritani.com

Number of Employees


Location

  • Oritani Financial Corp.
  • 370 Pascack Road
  • Washington Township
  • New Jersey
  • 7676
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ORITNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 2007

Biography

Oritani Financial Corp. operates as a savings and loan holding company for Oritani Bank that provides various banking services for individual and corporate customers. The company accepts a range of deposit products, such as non-interest and interest-bearing demand and NOW checking accounts, money market deposit accounts, savings accounts, retirement accounts, and time deposits. Its loan products include residential commercial real estate loans comprising mortgage loans secured by apartment buildings; commercial real estate loans consisting of mortgage loans secured by retail anchor shopping centers, commercial offices, retail space, warehouses, and mixed-use buildings; residential real estate loans, such as one to four family residential real property and home equity loans; and second mortgage and equity loans, and home equity lines of credit, as well as construction loans. The company also invests in securities and real estate properties. As of June 30, 2019, it operated 25 full service branches in Bergen, Hudson, Essex, and Passaic Counties, New Jersey; and lending offices in New York City and Cherry Hill, New Jersey. Oritani Financial Corp. was founded in 1911 and is headquartered in Washington Township, New Jersey. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/03 00:00
End of Day Share Price2019/11/29 00:00
Earnings2019/09/30
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.