OP Bancorp (OPBK) stock analysis

P/E below its 5-year median

OP Bancorp's P/E of 7.5 is below its own 5-year median of 7.6.

P/E below the industry

OP Bancorp's P/E of 7.5 is below the Commercial Banks median of 12.1.

P/S above the industry

OP Bancorp's price-to-sales of 117.63 is above the Commercial Banks median of 3.60.

P/B below the industry

OP Bancorp's price-to-book of 0.94 is below the Commercial Banks median of 1.29.

Trading below fair value

The share price of $15.03 is below our fair value estimate of $18.79.

Margin of safety over 20%

The price is 20.0% below fair value, more than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 24.1% a year over the last three fiscal years.

EPS growing under 10% a year

Diluted EPS grew -7.0% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 27.4% over the last twelve months, against a 5-year average of 14.3% a year.

Growing slower than the industry

Revenue grew -48.6% 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 under 15%

Return on equity was 13.0% over the last twelve months and averaged 14.7% over five years; we look for 15% on both.

Return on assets over 1%

Return on assets was 1.1%; for a bank or insurer, 1% or more is considered good.

Return on equity above the industry

OP Bancorp's return on equity of 13.0% is above the Commercial Banks median of 11.5%.

Earnings grew over 5 years

Net income grew 14.3% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 1573% over the last twelve months, against a 5-year average of 1282%.

Net margin above the industry

OP Bancorp's net margin of 1573% is above the Commercial Banks median of 30.3%.

Well capitalized

Equity is 8.5% of total assets; 8% or more is a comfortable cushion.

Loans funded by deposits

Loans equal 92.9% of deposits, so lending is funded by customer deposits.

Adequate loan-loss reserve

The allowance for credit losses is 1.3% of loans; we look for at least 1%.

Efficient operations

Non-interest expense takes 57.7% of revenue; under 60% is efficient for a bank.

Deposits growing

Deposits grew 6.9% over the past year.

Borrowings

Needs debt and equity figures.

Pays a dividend

OP Bancorp paid dividends worth 3.6% of the share price over the last twelve months.

Yield below Treasuries

The 3.6% 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; OP Bancorp yields 3.6%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 7 fiscal years.

Covered by earnings

Dividends take 25.8% of net income.

Covered by free cash flow

Dividends take 26.9% of free cash flow.