NYSE:OPY

Stock Analysis Report

Executive Summary

Oppenheimer Holdings Inc., through its subsidiaries, provides middle-market investment bank and full service broker-dealer products and services.

Rewards

PE ratio (9.9x) is below the US market (18.9x)

Pays a reliable dividend of 1.77%

Risk Analysis

No risks detected for OPY from our risk checks.


Snowflake Analysis

Average dividend payer and fair value.


Similar Companies

Share Price & News

How has Oppenheimer Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: OPY has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.9%

OPY

1.9%

US Capital Markets

0.6%

US Market


1 Year Return

1.5%

OPY

19.9%

US Capital Markets

24.6%

US Market

Return vs Industry: OPY underperformed the US Capital Markets industry which returned 21.7% over the past year.

Return vs Market: OPY underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

OPYIndustryMarket
7 Day0.9%1.9%0.6%
30 Day-2.4%4.3%3.0%
90 Day-2.3%13.5%10.6%
1 Year3.2%1.5%22.4%19.9%27.3%24.6%
3 Year53.0%44.6%44.8%36.7%50.5%40.8%
5 Year52.1%36.5%100.6%82.1%78.9%59.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Oppenheimer Holdings undervalued compared to its fair value and its price relative to the market?

9.89x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: OPY ($27.15) is trading above our estimate of fair value ($17.35)

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


Price To Earnings Ratio

PE vs Industry: OPY is good value based on its PE Ratio (9.9x) compared to the Capital Markets industry average (36.1x).

PE vs Market: OPY is good value based on its PE Ratio (9.9x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: OPY is good value based on its PB Ratio (0.6x) compared to the US Capital Markets industry average (6.6x).


Next Steps

Future Growth

How is Oppenheimer Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

8.4%

Forecasted Diversified Financials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Oppenheimer Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Oppenheimer Holdings performed over the past 5 years?

43.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OPY has high quality earnings.

Growing Profit Margin: OPY's current net profit margins (3.8%) are lower than last year (4.5%).


Past Earnings Growth Analysis

Earnings Trend: OPY's earnings have grown significantly by 43.1% per year over the past 5 years.

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

Earnings vs Industry: OPY had negative earnings growth (-14.4%) over the past year, making it difficult to compare to the Capital Markets industry average (20.6%).


Return on Equity

High ROE: OPY's Return on Equity (6.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Oppenheimer Holdings'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: OPY has a low level of unsold assets or inventory.

Debt Coverage by Assets: OPY's debt is covered by short term assets (assets are 4.3x debt).


Financial Institutions Analysis

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

Allowance for Bad Loans: Insufficient data to determine if OPY has a sufficient allowance for bad loans.

Low Risk Liabilities: OPY reports no customer deposits, loans are made up entirely of externally borrowed funds.

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

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

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


Next Steps

Dividend

What is Oppenheimer Holdings's current dividend yield, its reliability and sustainability?

1.77%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%1.4%markettop25%3.7%industryaverage1.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: OPY's dividend (1.77%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: OPY's dividend (1.77%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: OPY's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (16.4%), OPY's dividend payments are well 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

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

3.6yrs

Average management tenure


CEO

Bud Lowenthal (73yo)

35yrs

Tenure

US$4,965,640

Compensation

Mr. Albert Grinsfelder Lowenthal, also known as Bud, is the Chairman at Oppenheimer Investment Management LLC. He has been Chairman of the Board and Chief Executive Officer of Oppenheimer Holdings Inc. sin ...


CEO Compensation Analysis

Compensation vs Market: Bud's total compensation ($USD4.97M) is above average for companies of similar size in the US market ($USD1.70M).

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


Management Age and Tenure

3.6yrs

Average Tenure

60yo

Average Age

Experienced Management: OPY's management team is considered experienced (3.6 years average tenure).


Board Age and Tenure

4.0yrs

Average Tenure

61yo

Average Age

Experienced Board: OPY's board of directors are considered experienced (4 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.


Recent Insider Transactions

SellUS$310,20019 Sep 19
A. Oughtred
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$31.02

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Bud Lowenthal (73yo)

    Chairman & CEO

    • Tenure: 35yrs
    • Compensation: US$4.97m
  • Bryan McKigney (60yo)

    President of Oppenheimer Asset Management Inc

    • Compensation: US$1.25m
  • Robin Graham

    MD & Head of Technology in North America

    • Jeff Alfano (49yo)

      Chief Financial Officer

      • Compensation: US$1.30m
    • Doug Siegel

      MD & Chief Compliance Officer

      • Tenure: 3.6yrs
    • Max Lami

      MD, Chief Executive & Head of Investment Banking for EMEA

      • John Benedetto

        Executive VP & COO

        • Tenure: 5.8yrs
      • Ramon De Paz

        MD of Global Technology

        • Tenure: 1.8yrs
      • Angie Pham

        Managing Director of Internet & Digital Media

        • Ed Harrington

          Executive Vice President of the Private Client Division

          • Tenure: 0.9yrs

        Board Members

        • Bud Lowenthal (73yo)

          Chairman & CEO

          • Tenure: 35yrs
          • Compensation: US$4.97m
        • A. Oughtred (76yo)

          Independent Director

          • Tenure: 41yrs
          • Compensation: US$203.11k
        • Evan Behrens (50yo)

          Independent Director

          • Tenure: 3.7yrs
          • Compensation: US$181.11k
        • William Ehrhardt (75yo)

          Lead Independent Director

          • Tenure: 4yrs
          • Compensation: US$209.11k
        • Rob Lowenthal (43yo)

          Inside Director

          • Tenure: 6.7yrs
          • Compensation: US$3.33m
        • Timothy Dwyer (57yo)

          Independent Director

          • Tenure: 3.7yrs
          • Compensation: US$193.49k
        • Paul Friedman (63yo)

          Independent Director

          • Tenure: 4.5yrs
          • Compensation: US$227.74k
        • Dessa Glasser (59yo)

          Independent Director

          • Tenure: 1.7yrs
          • Compensation: US$63.25k
        • R. Roth (61yo)

          Director

          • Tenure: 1.5yrs
          • Compensation: US$211.00k

        Company Information

        Oppenheimer Holdings Inc.'s company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: Oppenheimer Holdings Inc.
        • Ticker: OPY
        • Exchange: NYSE
        • Founded: 1881
        • Industry: Investment Banking and Brokerage
        • Sector: Diversified Financials
        • Market Cap: US$347.860m
        • Shares outstanding: 12.80m
        • Website: https://www.oppenheimer.com

        Number of Employees


        Location

        • Oppenheimer Holdings Inc.
        • 85 Broad Street
        • 22nd Floor
        • New York
        • New York
        • 10004
        • United States

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        OPYNYSE (New York Stock Exchange)YesClass A Non-Voting SharesUSUSDJan 1975

        Biography

        Oppenheimer Holdings Inc., through its subsidiaries, provides middle-market investment bank and full service broker-dealer products and services. The company offers full-service brokerage services covering exchange-traded and over-the-counter corporate equity and debt securities, money market instruments, exchange-traded options and futures contracts, municipal bonds, mutual funds, and unit investment trusts; financial and wealth planning services; and margin lending services. It also provides asset management services, including separately managed accounts, mutual fund managed accounts, discretionary portfolio management programs, fee-based non-discretionary investment advisory services, alternative investments, portfolio enhancement programs, investment advisory services, and institutional taxable fixed income portfolio management services, as well as taxable and non-taxable fixed income portfolios and strategies. In addition, the company offers investment banking services, such as strategic advisory services and capital markets products; merger and acquisition, equities capital market, and debt capital market products and services; and institutional equity sales and trading, equity research, equity derivatives and index options, convertible bonds, and event driven sales and trading services. Further, it provides institutional fixed income sales and trading, fixed income research, public finance, and municipal trading services; repurchase agreements and securities lending services; and proprietary trading and investment activities. Additionally, the company offers underwritings, market-making, trust, and discount services. It serves high-net-worth individuals and families, corporate executives, public and private businesses, institutions and investment advisers, financial sponsors, and domestic and international investors in the Americas, Europe, the Middle East, and Asia. The company was founded in 1881 and is headquartered in New York, New York. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/22 23:37
        End of Day Share Price2020/01/22 00:00
        Earnings2019/09/30
        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.