NYSE:OCN

Stock Analysis Report

Executive Summary

Ocwen Financial Corporation, a financial services holding company, originates and services loans in the United States, the United States Virgin Islands, India, and Philippines.

Snowflake

Fundamentals

Overvalued with weak fundamentals.

Risks

  • Ocwen Financial has significant price volatility in the past 3 months.
  • Ocwen Financial is covered by less than 3 analysts.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

22.6%

NYSE:OCN

-1.6%

US Mortgage

-1.9%

US Market


1 Year Return

-58.5%

NYSE:OCN

-2.6%

US Mortgage

-3.3%

US Market

OCN underperformed the Mortgage industry which returned -2.8% over the past year.

OCN underperformed the Market in United States of America which returned -3% over the past year.


Share holder returns

OCNIndustryMarket
7 Day22.6%-1.6%-1.9%
30 Day-10.9%-2.8%-6.2%
90 Day5.3%-1.3%0.3%
1 Year-58.5%-58.5%-0.6%-2.6%-1.1%-3.3%
3 Year-47.2%-47.2%29.6%21.0%37.9%28.9%
5 Year-93.6%-93.6%55.3%39.0%50.8%34.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Ocwen Financial undervalued based on future cash flows and its price relative to the stock market?

0.57x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Ocwen Financial to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Ocwen Financial to establish if it is available at substantial discount.


Price Based on Earnings

Ocwen Financial is loss making, we can't compare its value to the US Mortgage industry average.

Ocwen Financial is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Ocwen Financial, we can't assess if its growth is good value.


Price Based on Value of Assets

Ocwen Financial is good value based on assets compared to the US Mortgage industry average.


Next Steps

Future Growth

How is Ocwen Financial expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

90.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Ocwen Financial's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Ocwen Financial is not considered high growth as it is expected to be loss making for the next 1-3 years.

Ocwen Financial's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Unable to compare Ocwen Financial's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.

Unable to compare Ocwen Financial's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Ocwen Financial will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.


Next Steps

Past Performance

How has Ocwen Financial performed over the past 5 years?

11.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Ocwen Financial does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.

Unable to compare Ocwen Financial's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Ocwen Financial's 1-year growth to the US Mortgage industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Ocwen Financial has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

Ocwen Financial used its assets less efficiently than the US Mortgage industry average last year based on Return on Assets.


Return on Capital Employed

It is difficult to establish if Ocwen Financial improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Ocwen 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

Information is not available.

Information is not available.


Financial Institutions Analysis

Unable to establish if Ocwen Financial has an acceptable proportion of non-loan assets without balance sheet data.

Unable to establish if Ocwen Financial has a sufficient allowance for bad loans without relevant financial data.

Unable to establish if Ocwen Financial's liabilities are primarily made up of low risk funding sources without deposits or liabilities data.

Ocwen Financial's level of assets compared to its equity is very high (i.e. bank has borrowed heavily to fund lending).

Ocwen Financial reports no customer deposits, loans are made up entirely of borrowed funds.

Unable to establish if Ocwen Financial has an acceptable level of bad loans without bad loans data.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Ocwen Financial's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Ocwen Financial's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Ocwen Financial has not reported any payouts.

Unable to verify if Ocwen Financial's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Ocwen Financial has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

Glen Messina (57yo)

0.8yrs

Tenure

US$7,633,883

Compensation

Mr. Glen A. Messina serves as the President, CEO and Director of Ocwen Financial Corp. since October 4, 2018. Mr. Messina serves as President & Director of PHH Mortgage Corporation. Mr. Messina was Consult ...


CEO Compensation Analysis

Glen's remuneration is higher than average for companies of similar size in United States of America.

Insufficient data for Glen to compare compensation growth.


Management Age and Tenure

0.8yrs

Average Tenure

53yo

Average Age

The average tenure for the Ocwen Financial management team is less than 2 years, this suggests a new team.


Board Age and Tenure

2.9yrs

Average Tenure

63.5yo

Average Age

The average tenure for the Ocwen Financial board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by Ocwen Financial individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$17,30021 Aug 19
Jacques Busquet
EntityIndividual
Role
Member of the Board of Directors
Director
Shares10,000
Max PriceUS$1.73
BuyUS$30,40020 Aug 19
Jacques Busquet
EntityIndividual
Role
Member of the Board of Directors
Director
Shares20,000
Max PriceUS$1.52
BuyUS$50,24420 Aug 19
Jenne Britell
EntityIndividual
Role
Member of the Board of Directors
Director
Shares31,600
Max PriceUS$1.59
BuyUS$45,90019 Aug 19
Kevin Stein
EntityIndividual
Role
Member of the Board of Directors
Director
Shares30,000
Max PriceUS$1.53
BuyUS$50,62515 Aug 19
June Campbell
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares33,750
Max PriceUS$1.50
BuyUS$197,56013 Aug 19
Glen Messina
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares132,000
Max PriceUS$1.53
BuyUS$250,01313 Aug 19
Robert Lipstein
EntityIndividual
Role
Member of the Board of Directors
Director
Shares161,105
Max PriceUS$1.56
BuyUS$47,40013 Aug 19
Timothy Yanoti
EntityIndividual
Shares35,000
Max PriceUS$1.39
BuyUS$76,68013 Aug 19
Phyllis Caldwell
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairwoman
Shares52,163
Max PriceUS$1.47
BuyUS$459,93615 Feb 19
Omega Advisors, Inc.
EntityCompany
Shares275,007
Max PriceUS$1.70
SellUS$2,372,73308 Dec 18
Omega Advisors, Inc.
EntityCompany
Shares1,325,666
Max PriceUS$1.79
SellUS$828,04806 Dec 18
Omega Advisors, Inc.
EntityCompany
Shares425,000
Max PriceUS$2.05

Ownership Breakdown


Management Team

  • John Britti (59yo)

    Executive VP & Chief Investment Officer

    • Tenure: 5.2yrs
    • Compensation: US$1.32m
  • Michael Short

    Vice President of Business Development and Investor Relations

    • Tenure: 0.0yrs
  • Stephen Swett

    Investors Contact

    • Tenure: 0.0yrs
  • Glen Messina (57yo)

    CEO, President & Director

    • Tenure: 0.8yrs
    • Compensation: US$7.63m
  • Scott Anderson (50yo)

    Executive VP & Chief Servicing Officer

    • Tenure: 10.6yrs
    • Compensation: US$814.24k
  • Albert Celini (56yo)

    Senior VP

    • Tenure: 0.8yrs
  • Arthur Walker (48yo)

    Senior Vice President of Global Tax

    • Tenure: 6.0yrs
    • Compensation: US$934.65k
  • June Campbell (61yo)

    Executive VP & CFO

    • Tenure: 0.4yrs
  • Joe Samarias (47yo)

    Chief Ethics Officer

    • Tenure: 0.3yrs
  • Francois Grunenwald (48yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 0.0yrs

Board Members

  • Kevin Stein (57yo)

    Director

    • Tenure: 0.5yrs
  • Jenne Britell (77yo)

    Director

    • Tenure: 0.5yrs
  • Buster Soaries (68yo)

    Director

    • Tenure: 4.6yrs
    • Compensation: US$263.00k
  • Jacques Busquet (70yo)

    Director

    • Tenure: 3.6yrs
    • Compensation: US$275.50k
  • Phyllis Caldwell (59yo)

    Non-Executive Chairwoman

    • Tenure: 3.4yrs
    • Compensation: US$308.00k
  • Alan Bowers (64yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: US$260.50k
  • Glen Messina (57yo)

    CEO, President & Director

    • Tenure: 0.8yrs
    • Compensation: US$7.63m
  • Bob Lipstein (63yo)

    Director

    • Tenure: 2.4yrs
    • Compensation: US$258.00k

Company Information

Ocwen Financial Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ocwen Financial Corporation
  • Ticker: OCN
  • Exchange: NYSE
  • Founded: 1988
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$240.926m
  • Shares outstanding: 134.60m
  • Website: https://www.ocwen.com

Number of Employees


Location

  • Ocwen Financial Corporation
  • 1661 Worthington Road
  • Suite 100
  • West Palm Beach
  • Florida
  • 33409
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OCNNYSE (New York Stock Exchange)YesCommon StockUSUSDSep 1996
OW0DB (Deutsche Boerse AG)YesCommon StockDEEURSep 1996
0KASLSE (London Stock Exchange)YesCommon StockGBUSDSep 1996

Biography

Ocwen Financial Corporation, a financial services holding company, originates and services loans in the United States, the United States Virgin Islands, India, and Philippines. Its Servicing segment provid ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/25 23:43
End of Day Share Price2019/08/23 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.