NYSE:OFG

Stock Analysis Report

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Market Cap

US$1.2b

Last Updated

2021/07/30 01:02 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Solid track record with excellent balance sheet.


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 +/- 5% a week.

Volatility Over Time: OFG's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

7.5%

OFG

2.1%

US Banks

0.8%

US Market


1 Year Return

74.1%

OFG

60.1%

US Banks

37.5%

US Market

Return vs Industry: OFG exceeded the US Banks industry which returned 54.9% over the past year.

Return vs Market: OFG exceeded the US Market which returned 36.5% over the past year.


Shareholder returns

OFGIndustryMarket
7 Day7.5%2.1%0.8%
30 Day4.6%-1.7%1.0%
90 Day-1.7%-3.2%3.8%
1 Year77.0%74.1%64.7%60.1%39.7%37.5%
3 Year43.1%36.2%19.2%8.8%64.4%54.1%
5 Year140.0%118.3%97.5%72.8%124.9%100.0%

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?

10.2x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: OFG ($23.29) is trading above our estimate of fair value ($16.5)

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


Price To Earnings Ratio

PE vs Industry: OFG is good value based on its PE Ratio (10.2x) compared to the US Banks industry average (10.9x).

PE vs Market: OFG is good value based on its PE Ratio (10.2x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: OFG is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: OFG's PB Ratio (1.1x) is in line with the US Banks industry average.


Future Growth

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

6.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OFG's forecast earnings growth (6.2% per year) is above the savings rate (2%).

Earnings vs Market: OFG's earnings (6.2% per year) are forecast to grow slower than the US market (15% per year).

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

Revenue vs Market: OFG's revenue (3% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: OFG's revenue (3% 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 OFG's Return on Equity is forecast to be high in 3 years time


Past Performance

How has OFG Bancorp performed over the past 5 years?

17.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OFG has high quality earnings.

Growing Profit Margin: OFG's current net profit margins (23.6%) are higher than last year (7%).


Past Earnings Growth Analysis

Earnings Trend: OFG's earnings have grown by 17% per year over the past 5 years.

Accelerating Growth: OFG's earnings growth over the past year (400.4%) exceeds its 5-year average (17% per year).

Earnings vs Industry: OFG earnings growth over the past year (400.4%) exceeded the Banks industry 32.1%.


Return on Equity

High ROE: OFG's Return on Equity (11.3%) is considered low.


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 (9.7x) is low.

Allowance for Bad Loans: OFG has a sufficient allowance for bad loans (140%).

Low Risk Liabilities: 97% 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 (60%).

Low Risk Deposits: OFG's Loans to Deposits ratio (69%) is appropriate.

Level of Bad Loans: OFG has a high level of bad loans (2.1%).


Dividend

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

1.37%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: OFG's dividend (1.37%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: OFG's dividend (1.37%) is low compared to the top 25% of dividend payers in the US market (3.52%).


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 low payout ratio (13.1%), OFG's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

8.9yrs

Average management tenure


CEO

Jos Fernandez (57 yo)

17.5yrs

Tenure

US$2,782,700

Compensation

Mr. Jose Rafael Fernandez, also known as Jos, has been the Chief Executive Officer of OFG Bancorp and Oriental Bank since 2004. Mr. Fernandez has been the Vice Chairman of OFG Bancorp and Oriental Bank sin...


CEO Compensation Analysis

Compensation vs Market: Jos's total compensation ($USD2.78M) is about average for companies of similar size in the US market ($USD3.69M).

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


Leadership Team

Experienced Management: OFG's management team is seasoned and experienced (8.9 years average tenure).


Board Members

Experienced Board: OFG's board of directors are considered experienced (7.2 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 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$1.203b
  • Shares outstanding: 51.66m
  • Website: https://www.ofgbancorp.com

Number of Employees


Location

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

Listings


Biography

OFG Bancorp, a financial holding company, provides a range of banking and financial services. It operates through three segments: Banking, Wealth Management, and Treasury. The company offers checking and s...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/30 01:02
End of Day Share Price2021/07/29 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.