Oppenheimer Holdings Inc (OPY) stock analysis

P/E above its 5-year median

Oppenheimer's P/E of 12.4 is above its own 5-year median of 9.9.

P/E below the industry

Oppenheimer's P/E of 12.4 is below the Security Brokers, Dealers, and Flotation median of 15.7.

EV/EBITDA above its 5-year median

Oppenheimer's EV/EBITDA of 7.5 is above its 5-year median of 6.3.

P/B below the industry

Oppenheimer's price-to-book of 0.99 is below the Security Brokers, Dealers, and Flotation median of 3.12.

Trading below fair value

The share price of $91.45 is below our fair value estimate of $114.16.

Margin of safety under 20%

The price is 19.9% below fair value, less than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 13.8% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 71.8% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 2.2% over the last twelve months, against a 5-year average of 3.8% a year.

Growing slower than the industry

Revenue grew 13.9% over the last twelve months; the Security Brokers, Dealers, and Flotation median is 16.2%.

Company guidance

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

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 9.1% over the last twelve months and averaged 10.8% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 9.4%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Oppenheimer's return on equity of 9.1% is below the Security Brokers, Dealers, and Flotation median of 17.9%.

Earnings grew over 5 years

Net income grew 3.8% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 4.9% over the last twelve months, against a 5-year average of 6.2%.

Net margin below the industry

Oppenheimer's net margin of 4.9% is below the Security Brokers, Dealers, and Flotation median of 14.4%.

No debt

Oppenheimer has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term liquidity

The balance sheet is not split into current and non-current items.

Elevated bankruptcy risk

The Altman Z-score is 1.05; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Oppenheimer paid dividends worth 0.8% of the share price over the last twelve months.

Yield below Treasuries

The 0.8% 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; Oppenheimer yields 0.8%.

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 21.5% of net income.

Covered by free cash flow

Dividends take 32.4% of free cash flow.