NYSE:OFG.PRD

Stock Analysis Report

Executive Summary

OFG Bancorp, a financial holding company, provides various banking and financial services.

Snowflake

Fundamentals

Excellent balance sheet with proven track record.

Share Price & News

How has OFG Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.5%

OFG.PRD

1.4%

US Banks

1.0%

US Market


1 Year Return

8.5%

OFG.PRD

0.2%

US Banks

6.7%

US Market

Return vs Industry: OFG.PRD exceeded the US Banks industry which returned 0.2% over the past year.

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


Share holder returns

OFG.PRDIndustryMarket
7 Day-0.5%1.4%1.0%
30 Day-0.4%-2.6%-1.8%
90 Day4.5%0.8%-1.8%
1 Year16.3%8.5%3.1%0.2%9.1%6.7%
3 Year44.2%15.7%52.0%41.5%46.1%36.6%
5 Year68.3%13.6%69.7%51.2%66.9%48.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

25%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: OFG.PRD ($26.82) is trading below our estimate of fair value ($35.95)

Significantly Undervalued: OFG.PRD is trading below fair value, but not by a significant amount.


Price Based on Earnings

PE vs Industry: OFG.PRD is poor value based on its PE Ratio (13x) compared to the Banks industry average (12.5x).

PE vs Market: OFG.PRD is good value based on its PE Ratio (13x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: OFG.PRD is good value based on its PEG Ratio (0.7x)


Price Based on Value of Assets

PB vs Industry: OFG.PRD is overvalued based on its PB Ratio (1.2x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is OFG Bancorp expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

18.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: OFG.PRD's forecast earnings growth (18.3% per year) is above the savings rate (2.7%).

Earnings vs Market: OFG.PRD's earnings (18.3% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: OFG.PRD's earnings are forecast to grow, but not significantly.

Revenue vs Market: OFG.PRD's revenue (40.6% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: OFG.PRD's revenue (40.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: OFG.PRD's Return on Equity is forecast to be low in 3 years time (9.6%).


Next Steps

Past Performance

How has OFG Bancorp performed over the past 5 years?

12.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: OFG.PRD's earnings have grown by 12.7% per year over the past 5 years.

Accelerating Growth: OFG.PRD's earnings growth over the past year (101.7%) exceeds its 5-year average (12.7% per year).

Earnings vs Industry: OFG.PRD earnings growth over the past year (101.7%) exceeded the Banks industry 31.8%.


Return on Equity

High ROE: OFG.PRD's Return on Equity (9.1%) is considered low.


Return on Assets

ROA vs Industry: OFG.PRD has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

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


Next Steps

Financial Health

How is OFG Bancorp'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: OFG.PRD has a low level of unsold assets or inventory.

Debt Coverage by Assets: OFG.PRD's debt is covered by short term assets (assets are 2.323580x debt).


Financial Institutions Analysis

Asset Level: OFG.PRD's level of assets compared to its equity is low.

Allowance for Bad Loans: OFG.PRD has a sufficient allowance for bad loans.

Low Risk Liabilities: OFG.PRD's liabilities are made up of primarily low risk sources of funding.

Loan Level: OFG.PRD has an acceptable proportion of non-loan assets held.

Low Risk Deposits: OFG.PRD's loans are broadly funded by customer deposits.

Level of Bad Loans: OFG.PRD has a high level of bad loans (2.46%)


Next Steps

Dividend

What is OFG Bancorp's current dividend yield, its reliability and sustainability?

1.33%

Expected Dividend Yield


Dividend Yield vs Market

company1.2%marketbottom25%1.5%markettop25%3.8%industryaverage2.5%forecastin3Years1.3%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: OFG.PRD's dividend (1.22%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: OFG.PRD's dividend (1.22%) is low compared to the top 25% of dividend payers in the US market (3.77%).

Stable Dividend: OFG.PRD's dividend payments have been volatile in the past 10 years.

Growing Dividend: OFG.PRD's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (15.2%), OFG.PRD's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: OFG.PRD's dividends in 3 years are forecast to be thoroughly covered by earnings (14.1% payout ratio).


Next Steps

Management

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

11.8yrs

Average management tenure


CEO

José Fernández (55yo)

15.8yrs

Tenure

US$2,800,477

Compensation

Mr. José Rafael Fernández, also known as Jos, has been the Chief Executive Officer and President of OFG Bancorp since 2004. Mr. Fernández has been President of Oriental Financial Services Corp., a subsidia ...


CEO Compensation Analysis

Compensation vs. Market: José's total compensation ($USD2.80M) is about average for companies of similar size in the US market ($USD2.71M).

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


Management Age and Tenure

11.8yrs

Average Tenure

55yo

Average Age

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


Board Age and Tenure

6.3yrs

Average Tenure

63.5yo

Average Age

Experienced Board: OFG.PRD's board of directors are considered experienced (6.3 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.


Ownership Breakdown


Management Team

  • José Fernández (55yo)

    Vice Chairman

    • Tenure: 15.8yrs
    • Compensation: US$2.80m
  • Luis Alejandro (58yo)

    Senior Vice President and Senior Vice President of Branch Administration

    • Tenure: 18.3yrs
  • Ganesh Kumar (55yo)

    Senior EVP

    • Tenure: 2.6yrs
    • Compensation: US$1.86m
  • Cesar Ortiz (44yo)

    Senior VP and Director of Commercial Credit & Operations

    • Tenure: 12.3yrs
    • Compensation: US$396.47k
  • Ramón Rosado-Linera (55yo)

    Senior VP & Director of the U.S. Loan Program

    • Tenure: 0yrs
    • Compensation: US$387.30k
  • Carlos Souffront

    Executive VP

    • Tenure: 11.8yrs
  • Rafael Cruz (63yo)

    Senior VP and Chief Risk & Compliance Officer

    • Tenure: 9.8yrs
    • Compensation: US$343.04k
  • Maritza Arizmendi Díaz (51yo)

    Executive VP & CFO

    • Tenure: 2.6yrs
    • Compensation: US$622.09k
  • Jennifer Nazario

    Senior Vice President of Human Resources

    • Tenure: 0yrs
  • Steven Anreder

    Investor Relations Contact

    • Tenure: 0yrs

Board Members

  • José Fernández (55yo)

    Vice Chairman

    • Tenure: 15.8yrs
    • Compensation: US$2.80m
  • Julian Inclán (71yo)

    Independent Chairman of the Board

    • Tenure: 7.3yrs
    • Compensation: US$165.56k
  • Sue Harnett (62yo)

    Director

    • Tenure: 0.3yrs
  • Juan Aguayo (55yo)

    Independent Director

    • Tenure: 15yrs
    • Compensation: US$88.18k
  • Pedro Morazzani Ferrer (66yo)

    Independent Director

    • Tenure: 12.9yrs
    • Compensation: US$107.88k
  • Edwin Hernández (65yo)

    Independent Director

    • Tenure: 1yrs
    • Compensation: US$11.00k
  • Jorge Colón Gerena (52yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$77.71k
  • Néstor de Jesús (67yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$77.94k

Company Information

OFG Bancorp's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: OFG Bancorp
  • Ticker: OFG.PRD
  • Exchange: NYSE
  • Founded: 1964
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$1.180b
  • Shares outstanding: 51.35m
  • Website: https://www.ofgbancorp.com

Number of Employees


Location

  • OFG Bancorp
  • 254 Muñoz Rivera Avenue
  • San Juan
  • Puerto Rico
  • 918
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OFGNYSE (New York Stock Exchange)YesCommon StockUSUSDJun 1992
OFPDB (Deutsche Boerse AG)YesCommon StockDEEURJun 1992
OFG.PRDNYSE (New York Stock Exchange)PERP PFD-DUSUSDNov 2012
OFG.PRBNYSE (New York Stock Exchange)7% PFD SER BUSUSDApr 2013

Biography

OFG Bancorp, a financial holding company, provides various banking and financial services. It operates in three segments: Banking, Wealth Management, and Treasury. The company offers checking and savings a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 02:45
End of Day Share Price2019/10/11 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.

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