NYSE:OCN

Stock Analysis Report

Executive Summary

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.


Snowflake Analysis

Moderate growth potential and overvalued.


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

Stable Share Price: OCN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-22.5%

OCN

-13.0%

US Mortgage

-2.6%

US Market


1 Year Return

-80.5%

OCN

-36.4%

US Mortgage

-13.3%

US Market

Return vs Industry: OCN underperformed the US Mortgage industry which returned -37.9% over the past year.

Return vs Market: OCN underperformed the US Market which returned -15.9% over the past year.


Shareholder returns

OCNIndustryMarket
7 Day-22.5%-13.0%-2.6%
30 Day-64.8%-36.1%-15.2%
90 Day-75.3%-41.2%-22.2%
1 Year-80.5%-80.5%-34.9%-36.4%-11.5%-13.3%
3 Year-92.9%-92.9%-28.7%-33.7%13.2%5.7%
5 Year-95.6%-95.6%-11.1%-20.9%31.8%17.2%

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 compared to its fair value and its price relative to the market?

0.13x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate OCN's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate OCN's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: OCN is unprofitable, so we can't compare its PE Ratio to the Mortgage industry average.

PE vs Market: OCN is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: OCN is good value based on its PB Ratio (0.1x) compared to the US Mortgage industry average (0.8x).


Next Steps

Future Growth

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

113.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OCN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: OCN is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: OCN's is expected to become profitable in the next 3 years.

Revenue vs Market: OCN's revenue is expected to decline over the next 3 years (-10.5% per year).

High Growth Revenue: OCN's revenue is forecast to decline over the next 3 years (-10.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Ocwen Financial performed over the past 5 years?

36.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OCN is currently unprofitable.

Growing Profit Margin: OCN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: OCN is unprofitable, but has reduced losses over the past 5 years at a rate of 36.4% per year.

Accelerating Growth: Unable to compare OCN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: OCN is unprofitable, making it difficult to compare its past year earnings growth to the Mortgage industry (10.9%).


Return on Equity

High ROE: OCN has a negative Return on Equity (-34.5%), as it is currently unprofitable.


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


Financial Institutions Analysis

Asset Level: OCN's level of assets compared to its equity 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, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if OCN has an acceptable proportion of non-loan assets held.

Low Risk Deposits: OCN has advanced significantly more loans than the customer deposits it holds.

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


Next Steps

Dividend

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


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 payouts.

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

Dividend 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

Management

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

1.5yrs

Average management tenure


CEO

Glen Messina (57yo)

1.5s

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

Compensation vs Market: Glen's total compensation ($USD7.63M) is above average for companies of similar size in the US market ($USD626.39K).

Compensation vs Earnings: Insufficient data to compare Glen's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Glen Messina
CEO, President & Director1.5yrsUS$7.63m0.36% $193.2k
John Britti
Executive VP & Chief Investment Officer5.83yrsUS$1.32m0.11% $60.7k
Scott Anderson
Executive VP & Chief Servicing Officer11.25yrsUS$814.24k0.13% $72.3k
Arthur Walker
Senior Vice President of Global Tax6.67yrsUS$934.65k0.064% $34.3k
June Campbell
Executive VP & CFO1.08yrsno data0.039% $21.2k
Francois Grunenwald
Senior VP & Chief Accounting Officer0.67yrno datano data
Michael Short
Vice President of Business Development and Investor Relationsno datano datano data
Stephen Swett
Investors Contactno datano datano data
Alberino Celini
Senior VP1.42yrsno datano data
Joseph Samarias
Chief Ethics Officer1yrno data0.036% $19.4k

1.5yrs

Average Tenure

53yo

Average Age

Experienced Management: OCN's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Glen Messina
CEO, President & Director1.5yrsUS$7.63m0.36% $193.2k
Kevin Stein
Independent Director1.17yrsno data0.031% $16.7k
Jenne Britell
Independent Director1.17yrsno data0.038% $20.5k
DeForest Soaries
Independent Director5.25yrsUS$263.00k0.044% $23.7k
Jacques Busquet
Independent Director4.25yrsUS$275.50k0.10% $54.5k
Phyllis Caldwell
Non-Executive Chairwoman4.08yrsUS$308.00k0.17% $89.0k
Alan Bowers
Independent Director4.92yrsUS$260.50k0.066% $35.6k
Robert Lipstein
Independent Director3.08yrsUS$258.00k0.20% $108.0k

3.6yrs

Average Tenure

63.5yo

Average Age

Experienced Board: OCN's board of directors are considered experienced (3.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: OCN insiders have bought more shares than they have sold 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

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$53.844m
  • Shares outstanding: 134.95m
  • 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 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 Lending segments. It provides commercial mortgage loan servicing, special servicing, and asset management services, as well as residential mortgage loan servicing, such as conventional, government-insured, and non-agency loans to owners of mortgage loans and foreclosed real estate. The company also originates and purchases conventional and government-insured residential forward and reverse mortgage loans through its correspondent lending arrangements, broker relationships, and retail channels of reverse mortgage lending. Ocwen Financial Corporation was founded in 1988 and is headquartered in West Palm Beach, Florida. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 01:49
End of Day Share Price2020/04/06 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.