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

Fundamentals

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


Market Performance


7 Day Return

2.9%

ORIT

1.1%

US Mortgage

1.0%

US Market


1 Year Return

17.1%

ORIT

13.0%

US Mortgage

6.7%

US Market

Return vs Industry: ORIT exceeded the US Mortgage industry which returned 13% over the past year.

Return vs Market: ORIT exceeded the US Market which returned 6.7% over the past year.


Share holder returns

ORITIndustryMarket
7 Day2.9%1.1%1.0%
30 Day-2.1%-0.5%-1.8%
90 Day4.6%2.2%-1.8%
1 Year25.6%17.1%15.4%13.0%9.1%6.7%
3 Year45.6%16.2%40.4%30.9%46.1%36.6%
5 Year84.8%28.7%68.9%51.2%66.9%48.6%

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 based on future cash flows and its price relative to the stock market?

15.09x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: ORIT ($18.01) is trading above our estimate of fair value ($11.76)

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


Price Based on Earnings

PE vs Industry: ORIT is poor value based on its PE Ratio (15.1x) compared to the Mortgage industry average (14.5x).

PE vs Market: ORIT is good value based on its PE Ratio (15.1x) compared to the US market (17.5x).


Price Based on Expected Growth

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


Price Based on Value of Assets

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 expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

10.4%

Forecasted Banks industry annual growth in earnings


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: Insufficient data to determine if ORIT's forecast earnings growth is above the savings rate (2.7%).

Earnings vs Market: Insufficient data to determine if ORIT's earnings are forecast to grow faster than the US market

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

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

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


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

How has Oritani Financial performed over the past 5 years?

1.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ORIT's earnings have grown by 1.8% per year over the past 5 years.

Accelerating Growth: ORIT's earnings growth over the past year (21.4%) exceeds its 5-year average (1.8% per year).

Earnings vs Industry: ORIT earnings growth over the past year (21.4%) underperformed the Mortgage industry 31.7%.


Return on Equity

High ROE: ORIT's Return on Equity (9.8%) is considered low.


Return on Assets

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


Return on Capital Employed

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


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 (0.28%)


Next Steps

Dividend

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

5.55%

Expected Dividend Yield


Dividend Yield vs Market

company6.4%marketbottom25%1.5%markettop25%3.8%industryaverage2.2%forecastin3Years5.6%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: ORIT's dividend (6.39%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: ORIT's dividend (6.39%) is in the top 25% of dividend payers in the US market (3.77%)

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 (83.8%), 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

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

11.8yrs

Average management tenure


CEO

Kevin Lynch (73yo)

21.8yrs

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 ($USD3.52M) is about average for companies of similar size in the US market ($USD2.71M).

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


Management Age and Tenure

11.8yrs

Average Tenure

57yo

Average Age

Experienced Management: ORIT's management team is seasoned and experienced (11.8 years average tenure).


Board Age and Tenure

16.2yrs

Average Tenure

71.5yo

Average Age

Experienced Board: ORIT's board of directors are seasoned and experienced ( 16.2 years average tenure).


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

BuyUS$85,16926 Apr 19
Judith Schumacher-Tilton
EntityIndividual
Role
Member of the Board of Directors
Director
Shares5,000
Max PriceUS$17.14
BuyUS$170,00331 Jan 19
Judith Schumacher-Tilton
EntityIndividual
Role
Member of the Board of Directors
Director
Shares10,000
Max PriceUS$17.02
BuyUS$46,26026 Nov 18
Judith Schumacher-Tilton
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,000
Max PriceUS$15.42
BuyUS$73,31108 Nov 18
Judith Schumacher-Tilton
EntityIndividual
Role
Member of the Board of Directors
Director
Shares5,000
Max PriceUS$14.67
BuyUS$28,95502 Nov 18
James Doyle
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,000
Max PriceUS$14.48

Ownership Breakdown


Management Team

  • Kevin Lynch (73yo)

    Chairman

    • Tenure: 21.8yrs
    • Compensation: US$3.52m
  • Jack Fields (56yo)

    Executive VP

    • Tenure: 3.1yrs
    • Compensation: US$911.62k
  • Philip Wyks (65yo)

    Senior VP & Corporate Secretary

    • Tenure: 28.8yrs
    • Compensation: US$603.35k
  • Annie Jetton (53yo)

    Senior VP & Principal Accounting Officer

    • Tenure: 0yrs
  • Paul Skinner (57yo)

    VP & Chief Information Officer

    • Tenure: 11.8yrs
  • Louis Manderino (64yo)

    Chief Credit Officer

    • Tenure: 9.8yrs
    • Compensation: US$543.69k
  • Kurt Breitenstein (51yo)

    Executive VP & Chief Lending Officer

    • Tenure: 3yrs
    • Compensation: US$439.28k
  • Michele Calise (61yo)

    Senior VP & Retail Banking Officer

    • Tenure: 0yrs
  • Amy Lubow (57yo)

    VP & Chief Compliance Officer

    • Tenure: 2.8yrs

Board Members

  • Robert Hekemian (59yo)

    Director

    • Tenure: 20.8yrs
    • Compensation: US$378.69k
  • Kevin Lynch (73yo)

    Chairman

    • Tenure: 21.8yrs
    • Compensation: US$3.52m
  • James Doyle (69yo)

    Director

    • Tenure: 21.8yrs
    • Compensation: US$295.64k
  • Jack Fields (56yo)

    Executive VP

    • Tenure: 3.1yrs
    • Compensation: US$911.62k
  • Nicholas Antonaccio (72yo)

    Lead Director

    • Tenure: 11.6yrs
    • Compensation: US$226.75k
  • John Skelly (79yo)

    Director

    • Tenure: 20.8yrs
    • Compensation: US$230.58k
  • Harvey Hirschfeld (71yo)

    Director

    • Tenure: 5.5yrs
    • Compensation: US$207.95k
  • Judith Schumacher-Tilton (72yo)

    Director

    • Tenure: 1.2yrs
    • Compensation: US$77.00k

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$781.085m
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 01:53
End of Day Share Price2019/10/11 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.

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