Ocwen Financial (NYSE:OCN) - Share price, News & Analysis

OCN fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	3/6
Financial Health	0/6
Dividends	0/6

OCN Stock Overview

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

Rewards

PE ratio (3.1x) is below the US market (15.5x)

Became profitable this year

Risk Analysis

Earnings are forecast to decline by an average of 17.7% per year for the next 3 years

Shareholders have been diluted in the past year

Ocwen Financial Competitors

Rocket Companies

NYSE:RKT

US$16.3b

Mr. Cooper Group

NasdaqCM:COOP

US$3.2b

PennyMac Financial Services

NYSE:PFSI

US$2.5b

Flagstar Bancorp

NYSE:FBC

US$1.8b

Price History & Performance

Summary of all time highs, changes and price drops for Ocwen Financial
Historical stock prices
Current Share Price	US$22.35
52 Week High	US$41.92
52 Week Low	US$17.76
Beta	1.94
1 Month Change	7.45%
3 Month Change	-37.88%
1 Year Change	-31.55%
3 Year Change	-10.24%
5 Year Change	-43.56%
Change since IPO	-85.28%

Shareholder Returns

	OCN	US Mortgage	US Market
7D	-2.0%	5.9%	2.7%
1Y	-31.5%	-30.2%	-8.1%

Return vs Industry: OCN exceeded the US Mortgage industry which returned -33.1% over the past year.

Return vs Market: OCN underperformed the US Market which returned -10.8% over the past year.

Price Volatility

Is OCN's price volatile compared to industry and market?
OCN volatility
OCN Average Weekly Movement	9.9%
Mortgage Industry Average Movement	3.9%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	2.9%

Stable Share Price: OCN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: OCN's weekly volatility (10%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1988	5,800	Glen Messina	https://www.ocwen.com

Ocwen Financial Corporation, a financial services company, originates and services mortgage loans in the United States, the United States Virgin Islands, India, and the Philippines. The company operates through Servicing and Originations segments. It provides commercial mortgage loan servicing, special servicing, and asset management services, as well as residential mortgage loan servicing, such as forward and reverse conventional, government-insured, and non-agency loans, including the reverse mortgage loans to owners of mortgage loans and foreclosed real estate.

Ocwen Financial Fundamentals Summary

How do Ocwen Financial's earnings and revenue compare to its market cap?
OCN fundamental statistics
Market Cap	US$201.94m
Earnings (TTM)	US$67.62m
Revenue (TTM)	US$1.07b

3.1x

P/E Ratio

0.4x

P/B Ratio

Is OCN overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
OCN income statement (TTM)
Revenue	US$1.07b
Cost of Revenue	US$100.32m
Gross Profit	US$973.74m
Other Expenses	US$906.13m
Earnings	US$67.62m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	7.31
Gross Margin	90.66%
Net Profit Margin	6.30%
Debt/Equity Ratio	2,052.3%

How did OCN perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

3.06x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate OCN's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate OCN's fair value for valuation analysis.

Price To Earnings Ratio

PE vs Industry: OCN is good value based on its PE Ratio (3.1x) compared to the US Mortgage industry average (12.1x).

PE vs Market: OCN is good value based on its PE Ratio (3.1x) compared to the US market (15.5x).

Price to Earnings Growth Ratio

PEG Ratio: OCN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

Price to Book Ratio

PB vs Industry: OCN is good value based on its PB Ratio (0.4x) compared to the US Mortgage industry average (0.9x).

Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-17.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: OCN's earnings are forecast to decline over the next 3 years (-17.7% per year).

Earnings vs Market: OCN's earnings are forecast to decline over the next 3 years (-17.7% per year).

High Growth Earnings: OCN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: OCN's revenue (0.2% per year) is forecast to grow slower than the US market (7.9% per year).

High Growth Revenue: OCN's revenue (0.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

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

Past Performance

How has Ocwen Financial performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

36.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: OCN has high quality earnings.

Growing Profit Margin: OCN became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: OCN has become profitable over the past 5 years, growing earnings by 36.2% per year.

Accelerating Growth: OCN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: OCN has become profitable in the last year, making it difficult to compare its past year earnings growth to the Mortgage industry (7.1%).

Return on Equity

High ROE: OCN's Return on Equity (12.7%) is considered low.

Financial Health

How is Ocwen Financial's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

0/6

Financial Health Score 0/6

Asset Level
Allowance for Bad Loans
Low Risk Liabilities
Loan Level
Low Risk Deposits
Level of Bad Loans

Financial Position Analysis

Debt to Equity History and Analysis

Balance Sheet

Financial Institutions Analysis

Asset Level: OCN's Assets to Equity ratio (23x) is very high.

Allowance for Bad Loans: Insufficient data to determine if OCN has a sufficient allowance for bad loans.

Low Risk Liabilities: OCN reports no customer deposits, 100% of its liabilities are made up of higher risk sources of funding.

Loan Level: Insufficient data to determine if OCN has an appropriate level of Loans to Assets ratio.

Low Risk Deposits: OCN reports no customer deposits, loans are made up entirely of externally borrowed funds.

Level of Bad Loans: Insufficient data to determine if OCN has an appropriate level of bad loans.

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate OCN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate OCN's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if OCN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if OCN's dividend payments have been increasing.

Current Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of OCN's dividend in 3 years as they are not forecast to pay a notable one for the US market.

Next Steps

Explore strong dividend paying companies in the Banks industry.

Management

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

3.4yrs

Average management tenure

CEO

Glen Messina (59 yo)

3.58yrs

Tenure

US$6,627,653

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 & CEO of PHH Mortgage Corporation. Mr. Messina was Consultant o...

CEO Compensation Analysis

Compensation vs Market: Glen's total compensation ($USD6.63M) is above average for companies of similar size in the US market ($USD1.68M).

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

Leadership Team

Experienced Management: OCN's management team is considered experienced (3.4 years average tenure).

Board Members

Experienced Board: OCN's board of directors are considered experienced (6.3 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.2%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/17 00:00
End of Day Share Price	2022/05/17 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31