OFG Bancorp (OFG) stock analysis

P/E above its 5-year median

OFG Bancorp's P/E of 9.7 is above its own 5-year median of 9.5.

P/E below the industry

OFG Bancorp's P/E of 9.7 is below the Commercial Banks median of 12.1.

P/S below the industry

OFG Bancorp's price-to-sales of 2.90 is below the Commercial Banks median of 3.60.

P/B above the industry

OFG Bancorp's price-to-book of 1.62 is above the Commercial Banks median of 1.29.

Trading above fair value

The share price of $51.17 is above our fair value estimate of $49.44.

Margin of safety under 20%

The price is 3.5% above fair value, so there is no margin of safety.

Revenue growth over 3 years

Needs three years of positive revenue.

EPS growing 10%+ a year

Diluted EPS grew 10.0% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 12.9% over the last twelve months, against a 5-year average of 22.5% a year.

Growing slower than the industry

Revenue grew 2.3% over the last twelve months; the Commercial Banks median is 11.3%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

Banks and insurers do not report gross profit.

Return on equity over 15%

Return on equity was 16.6% over the last twelve months and averaged 15.5% over five years.

Return on assets over 1%

Return on assets was 1.8%; for a bank or insurer, 1% or more is considered good.

Return on equity above the industry

OFG Bancorp's return on equity of 16.6% is above the Commercial Banks median of 11.5%.

Earnings grew over 5 years

Net income grew 22.5% a year on average over the last five fiscal years.

Net margin against its history

Needs five years of revenue and net income.

Net margin below the industry

OFG Bancorp's net margin of 30.2% is below the Commercial Banks median of 30.3%.

Well capitalized

Equity is 11.0% of total assets; 8% or more is a comfortable cushion.

Loans funded by deposits

Loans equal 82.7% of deposits, so lending is funded by customer deposits.

Adequate loan-loss reserve

The allowance for credit losses is 2.3% of loans; we look for at least 1%.

Efficient operations

Non-interest expense takes 53.4% of revenue; under 60% is efficient for a bank.

Deposits shrinking

Deposits fell 0.2% over the past year.

Borrowings

Needs debt and equity figures.

Pays a dividend

OFG Bancorp paid dividends worth 2.1% of the share price over the last twelve months.

Yield below Treasuries

The 2.1% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; OFG Bancorp yields 2.1%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 24.9% of net income.

Covered by free cash flow

Dividends take 22.4% of free cash flow.