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OCN

Ocwen Financial NYSE:OCN Stock Report

Last Price

US$30.10

Market Cap

US$261.8m

7D

3.5%

1Y

9.7%

Updated

18 Aug, 2022

Data

Company Financials +
OCN fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance2/6
Financial Health0/6
Dividends0/6

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.

Ocwen Financial Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Ocwen Financial
Historical stock prices
Current Share PriceUS$30.10
52 Week HighUS$41.92
52 Week LowUS$17.76
Beta1.87
1 Month Change-7.39%
3 Month Change30.25%
1 Year Change9.65%
3 Year Change7.31%
5 Year Change-29.59%
Change since IPO-80.18%

Recent News & Updates

Shareholder Returns

OCNUS MortgageUS Market
7D3.5%1.0%1.4%
1Y9.7%-18.7%-8.4%

Return vs Industry: OCN exceeded the US Mortgage industry which returned -19.6% over the past year.

Return vs Market: OCN exceeded the US Market which returned -9% over the past year.

Price Volatility

Is OCN's price volatile compared to industry and market?
OCN volatility
OCN Average Weekly Movement9.5%
Mortgage Industry Average Movement3.5%
Market Average Movement7.6%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.1%

Stable Share Price: OCN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: OCN's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19885,600Glen Messinahttps://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 CapUS$261.83m
Earnings (TTM)US$88.29m
Revenue (TTM)US$1.03b

3.0x

P/E Ratio

0.5x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
OCN income statement (TTM)
RevenueUS$1.03b
Cost of RevenueUS$98.48m
Gross ProfitUS$932.30m
Other ExpensesUS$844.01m
EarningsUS$88.29m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)10.15
Gross Margin90.45%
Net Profit Margin8.57%
Debt/Equity Ratio2,005.8%

How did OCN perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is OCN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for OCN?

Other financial metrics that can be useful for relative valuation.

OCN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue10.6x
Enterprise Value/EBITDA24.9x
PEG Ratio-0.1x

Price to Earnings Ratio vs Peers

How does OCN's PE Ratio compare to its peers?

OCN PE Ratio vs Peers
The above table shows the PE ratio for OCN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average23x
PBFS Pioneer Bancorp
57.5xn/aUS$250.7m
TBNK Territorial Bancorp
11x-12.2%US$188.1m
TSBK Timberland Bancorp
9.8xn/aUS$220.9m
NECB Northeast Community Bancorp
13.8x28.1%US$193.2m
OCN Ocwen Financial
3x-26.1%US$261.8m

Price-To-Earnings vs Peers: OCN is good value based on its Price-To-Earnings Ratio (3x) compared to the peer average (23x).


Price to Earnings Ratio vs Industry

How does OCN's PE Ratio compare vs other companies in the US Mortgage Industry?

Price-To-Earnings vs Industry: OCN is good value based on its Price-To-Earnings Ratio (3x) compared to the US Mortgage industry average (12x)


Price to Earnings Ratio vs Fair Ratio

What is OCN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

OCN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3x
Fair PE Ratio6.8x

Price-To-Earnings vs Fair Ratio: OCN is good value based on its Price-To-Earnings Ratio (3x) compared to the estimated Fair Price-To-Earnings Ratio (6.8x).


Share Price vs Fair Value

What is the Fair Price of OCN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

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.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

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


-26.1%

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 (-26.1% per year).

Earnings vs Market: OCN's earnings are forecast to decline over the next 3 years (-26.1% per year).

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

Revenue vs Market: OCN's revenue (7.7% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: OCN's revenue (7.7% per year) is forecast to grow slower than 20% 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 (7.9%).


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Past Performance

How has Ocwen Financial performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


43.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: OCN has a large one-off gain of $13.4M impacting its June 30 2022 financial results.

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 43.8% 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 (3.1%).


Return on Equity

High ROE: OCN's Return on Equity (16.2%) is considered low.


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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 (22.3x) 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.


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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.


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Management

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

3.6yrs

Average management tenure


CEO

Glen Messina (60 yo)

3.83yrs

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 ($USD6.63M) is above average for companies of similar size in the US market ($USD1.67M).

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 (3.6 years average tenure).


Board Members

Experienced Board: OCN's board of directors are considered experienced (6.6 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 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
  • Implied Market Cap: US$261.831m
  • Shares outstanding: 8.70m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/18 00:00
End of Day Share Price2022/08/18 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.