NYSE:OFG

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Excellent balance sheet average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: OFG is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: OFG's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

3.3%

OFG

1.9%

US Banks

1.5%

US Market


1 Year Return

-16.5%

OFG

-16.6%

US Banks

22.3%

US Market

Return vs Industry: OFG matched the US Banks industry which returned -16.7% over the past year.

Return vs Market: OFG underperformed the US Market which returned 22.1% over the past year.


Shareholder returns

OFGIndustryMarket
7 Day3.3%1.9%1.5%
30 Day24.2%24.3%8.8%
90 Day32.3%18.9%10.8%
1 Year-14.8%-16.5%-13.5%-16.6%25.1%22.3%
3 Year105.2%94.2%-3.2%-11.4%49.5%39.6%
5 Year195.9%165.6%47.2%28.7%105.8%83.3%

Long-Term 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

Valuation

Is OFG Bancorp undervalued compared to its fair value and its price relative to the market?

21.31x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: OFG ($18.06) is trading above our estimate of fair value ($13.58)

Significantly Below Fair Value: OFG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: OFG is poor value based on its PE Ratio (21.3x) compared to the US Banks industry average (11.4x).

PE vs Market: OFG is poor value based on its PE Ratio (21.3x) compared to the US market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: OFG is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: OFG's PB Ratio (1x) is in line with the US Banks industry average.


Next Steps

Future Growth

How is OFG Bancorp forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

39.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OFG's forecast earnings growth (39.5% per year) is above the savings rate (2.2%).

Earnings vs Market: OFG's earnings (39.5% per year) are forecast to grow faster than the US market (21.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: OFG's revenue (8.1% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: OFG's revenue (8.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OFG's Return on Equity is forecast to be low in 3 years time (10%).


Next Steps

Past Performance

How has OFG Bancorp performed over the past 5 years?

23.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OFG has a large one-off loss of $25.2M impacting its September 30 2020 financial results.

Growing Profit Margin: OFG's current net profit margins (11.2%) are lower than last year (22.6%).


Past Earnings Growth Analysis

Earnings Trend: OFG's earnings have grown significantly by 23.2% per year over the past 5 years.

Accelerating Growth: OFG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: OFG had negative earnings growth (-40.2%) over the past year, making it difficult to compare to the Banks industry average (-4.1%).


Return on Equity

High ROE: OFG's Return on Equity (4.7%) is considered low.


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


Financial Institutions Analysis

Asset Level: OFG's Assets to Equity ratio (9.4x) is low.

Allowance for Bad Loans: OFG has a sufficient allowance for bad loans (121%).

Low Risk Liabilities: 96% of OFG's liabilities are made up of primarily low risk sources of funding.

Loan Level: OFG has an appropriate level of Loans to Assets ratio (65%).

Low Risk Deposits: OFG's Loans to Deposits ratio (76%) is appropriate.

Level of Bad Loans: OFG has a high level of bad loans (2.9%).


Next Steps

Dividend

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

1.55%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: OFG's dividend (1.55%) is higher than the bottom 25% of dividend payers in the US market (1.49%).

High Dividend: OFG's dividend (1.55%) is low compared to the top 25% of dividend payers in the US market (4.1%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33%), OFG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: OFG's dividends in 3 years are forecast to be thoroughly covered by earnings (14.4% payout ratio).


Next Steps

Management

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

12.9yrs

Average management tenure


CEO

José Fernández (56 yo)

16.92yrs

Tenure

US$2,852,604

Compensation

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


CEO Compensation Analysis

Compensation vs Market: José's total compensation ($USD2.85M) is about average for companies of similar size in the US market ($USD2.60M).

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


Leadership Team

NamePositionTenureCompensationOwnership
José Fernández
Vice Chairman16.92yrsUS$2.85m0.46%
$ 4.3m
Maritza Arizmendi Diaz
Executive VP & CFO3.75yrsUS$716.05k0.028%
$ 260.4k
Ganesh Kumar
Senior EVP & COO3.75yrsUS$1.88m0.097%
$ 898.1k
Ramón Rosado-Linera
Senior VP & Director of the U.S. Loan Programno dataUS$425.36k0.019%
$ 177.3k
Krisen Torres
Vice President Financial Reporting & Accounting Controlno datano datano data
Steven Anreder
Investor Relations Contactno datano datano data
Carlos Souffront
Executive VP12.92yrsno data0.13%
$ 1.2m
Jose Cabrera
Chief Risk & Compliance Officer0.75yrno datano data
Jennifer Nazario
Senior Vice President of Human Resourcesno datano datano data
Luis Alejandro
Senior Vice President and Senior Vice President of Branch Administration19.42yrsno datano data
Carlos Viña
Senior Vice President of Oriental Insurance12.92yrsno datano data
Ada García
Senior Vice President of Retail Channel Business Developmentno datano datano data

12.9yrs

Average Tenure

56yo

Average Age

Experienced Management: OFG's management team is seasoned and experienced (12.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
José Fernández
Vice Chairman16.92yrsUS$2.85m0.46%
$ 4.3m
Julian Inclán
Independent Chairman of the Board8.42yrsUS$173.56k0.23%
$ 2.1m
Susan Harnett
Independent Director1.42yrsUS$32.50kno data
Juan Aguayo
Independent Director16.17yrsUS$79.98k0.065%
$ 606.3k
Pedro Morazzani Ferrer
Independent Director14.08yrsUS$105.07k0.064%
$ 596.4k
Edwin Hernández
Independent Director2.17yrsUS$51.85k0.14%
$ 1.3m
Jorge Colón Gerena
Independent Director6.58yrsUS$84.86k0.11%
$ 975.5k
Néstor de Jesús
Independent Director4.92yrsUS$92.73k0.035%
$ 328.7k

7.5yrs

Average Tenure

64.5yo

Average Age

Experienced Board: OFG's board of directors are considered experienced (7.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: OFG 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

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


Key Information

  • Name: OFG Bancorp
  • Ticker: OFG
  • Exchange: NYSE
  • Founded: 1964
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$927.328m
  • 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.PRBNYSE (New York Stock Exchange)7% SER B PFDUSUSDOct 2003
OFG.PRDNYSE (New York Stock Exchange)PERP PFD-DUSUSDNov 2012

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 Analysis2020/12/05 00:03
End of Day Share Price2020/12/04 00:00
Earnings2020/09/30
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.