Logo image of OFC

CORPORATE OFFICE PROPERTIES (OFC) Stock Fundamental Analysis

NYSE:OFC - New York Stock Exchange, Inc. - US22002T1088 - REIT - Currency: USD

24.94  +0.39 (+1.59%)

After market: 24.94 0 (0%)

Fundamental Rating

4

Taking everything into account, OFC scores 4 out of 10 in our fundamental rating. OFC was compared to 130 industry peers in the Diversified REITs industry. While OFC belongs to the best of the industry regarding profitability, there are concerns on its financial health. OFC is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

Quickly go to:

7

1. Profitability

1.1 Basic Checks

In the past year OFC was profitable.
In the past year OFC had a positive cash flow from operations.
In the past 5 years OFC has always been profitable.
OFC had a positive operating cash flow in each of the past 5 years.
OFC Yearly Net Income VS EBIT VS OCF VS FCFOFC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 0 100M -100M 200M -200M

1.2 Ratios

Looking at the Return On Assets, with a value of 4.59%, OFC belongs to the top of the industry, outperforming 94.70% of the companies in the same industry.
OFC has a Return On Equity of 11.11%. This is amongst the best in the industry. OFC outperforms 93.18% of its industry peers.
With a decent Return On Invested Capital value of 3.68%, OFC is doing good in the industry, outperforming 79.55% of the companies in the same industry.
OFC had an Average Return On Invested Capital over the past 3 years of 3.42%. This is in line with the industry average of 3.16%.
The 3 year average ROIC (3.42%) for OFC is below the current ROIC(3.68%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 4.59%
ROE 11.11%
ROIC 3.68%
ROA(3y)2.74%
ROA(5y)3.03%
ROE(3y)6.92%
ROE(5y)7.33%
ROIC(3y)3.42%
ROIC(5y)3.4%
OFC Yearly ROA, ROE, ROICOFC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 0 2 4 6 8 10

1.3 Margins

OFC has a better Profit Margin (26.97%) than 78.03% of its industry peers.
In the last couple of years the Profit Margin of OFC has grown nicely.
With a decent Operating Margin value of 25.84%, OFC is doing good in the industry, outperforming 61.36% of the companies in the same industry.
In the last couple of years the Operating Margin of OFC has remained more or less at the same level.
The Gross Margin of OFC (52.41%) is worse than 81.06% of its industry peers.
In the last couple of years the Gross Margin of OFC has remained more or less at the same level.
Industry RankSector Rank
OM 25.84%
PM (TTM) 26.97%
GM 52.41%
OM growth 3Y0.21%
OM growth 5Y-0.06%
PM growth 3Y-7.83%
PM growth 5Y20.96%
GM growth 3Y-1.77%
GM growth 5Y-1.2%
OFC Yearly Profit, Operating, Gross MarginsOFC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 0 10 20 30 40 50

More info and screens

1

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), OFC is destroying value.
OFC has about the same amout of shares outstanding than it did 1 year ago.
Compared to 1 year ago, OFC has an improved debt to assets ratio.
OFC Yearly Shares OutstandingOFC Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 20M 40M 60M 80M 100M
OFC Yearly Total Debt VS Total AssetsOFC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 1B 2B 3B 4B

2.2 Solvency

Based on the Altman-Z score of 0.70, we must say that OFC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of OFC (0.70) is better than 64.39% of its industry peers.
OFC has a Debt/Equity ratio of 1.23. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of OFC (1.23) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 1.23
Debt/FCF N/A
Altman-Z 0.7
ROIC/WACC0.58
WACC6.35%
OFC Yearly LT Debt VS Equity VS FCFOFC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 0 500M 1B 1.5B 2B

2.3 Liquidity

OFC has a Current Ratio of 0.27. This is a bad value and indicates that OFC is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of OFC (0.27) is worse than 93.94% of its industry peers.
A Quick Ratio of 0.27 indicates that OFC may have some problems paying its short term obligations.
With a Quick ratio value of 0.27, OFC is not doing good in the industry: 93.18% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.27
Quick Ratio 0.27
OFC Yearly Current Assets VS Current LiabilitesOFC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 100M 200M 300M

More info and screens

4

3. Growth

3.1 Past

OFC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.71%, which is quite impressive.
The Earnings Per Share has been growing by 19.04% on average over the past years. This is quite good.
OFC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -39.95%.
OFC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.82% yearly.
EPS 1Y (TTM)35.71%
EPS 3Y-3.64%
EPS 5Y19.04%
EPS Q2Q%34.62%
Revenue 1Y (TTM)-39.95%
Revenue growth 3Y4.85%
Revenue growth 5Y3.82%
Sales Q2Q%-14.31%

3.2 Future

OFC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -6.71% yearly.
Based on estimates for the next years, OFC will show a small growth in Revenue. The Revenue will grow by 7.76% on average per year.
EPS Next Y-0.32%
EPS Next 2Y-12.87%
EPS Next 3Y-6.71%
EPS Next 5YN/A
Revenue Next Year9.39%
Revenue Next 2Y7.67%
Revenue Next 3Y6.46%
Revenue Next 5Y7.76%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
OFC Yearly Revenue VS EstimatesOFC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 200M 400M 600M 800M
OFC Yearly EPS VS EstimatesOFC Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 0.5 1 1.5

More info and screens

3

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 14.58, the valuation of OFC can be described as correct.
Based on the Price/Earnings ratio, OFC is valued cheaply inside the industry as 87.88% of the companies are valued more expensively.
OFC is valuated rather cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 21.47, the valuation of OFC can be described as rather expensive.
OFC's Price/Forward Earnings ratio is rather cheap when compared to the industry. OFC is cheaper than 85.61% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of OFC to the average of the S&P500 Index (21.90), we can say OFC is valued inline with the index average.
Industry RankSector Rank
PE 14.58
Fwd PE 21.47
OFC Price Earnings VS Forward Price EarningsOFC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
OFC Per share dataOFC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

4.3 Compensation for Growth

The decent profitability rating of OFC may justify a higher PE ratio.
OFC's earnings are expected to decrease with -6.71% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.77
EPS Next 2Y-12.87%
EPS Next 3Y-6.71%

More info and screens

5

5. Dividend

5.1 Amount

OFC has a Yearly Dividend Yield of 4.57%, which is a nice return.
Compared to an average industry Dividend Yield of 6.64, OFC is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.42, OFC pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.57%

5.2 History

The dividend of OFC decreases each year by -1.49%.
OFC has paid a dividend for at least 10 years, which is a reliable track record.
OFC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-1.49%
Div Incr Years0
Div Non Decr Years10
OFC Yearly Dividends per shareOFC Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 0.2 0.4 0.6 0.8 1

5.3 Sustainability

64.50% of the earnings are spent on dividend by OFC. This is not a sustainable payout ratio.
The Dividend Rate of OFC has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP64.5%
EPS Next 2Y-12.87%
EPS Next 3Y-6.71%
OFC Yearly Income VS Free CF VS DividendOFC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 0 100M -100M -200M
OFC Dividend Payout.OFC Dividend Payout, showing the Payout Ratio.OFC Dividend Payout.PayoutRetained Earnings

More info and screens

CORPORATE OFFICE PROPERTIES

NYSE:OFC (9/14/2023, 9:45:33 PM)

After market: 24.94 0 (0%)

24.94

+0.39 (+1.59%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)07-27 2023-07-27/amc
Earnings (Next)10-25 2023-10-25/amc
Inst Owners104.34%
Inst Owner Change1.53%
Ins Owners0.74%
Ins Owner Change0%
Market Cap2.81B
Analysts80
Price Target29.47 (18.16%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 4.57%
Yearly Dividend1.1
Dividend Growth(5Y)-1.49%
DP64.5%
Div Incr Years0
Div Non Decr Years10
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)106.77%
Min EPS beat(2)53.64%
Max EPS beat(2)159.9%
EPS beat(4)2
Avg EPS beat(4)51.67%
Min EPS beat(4)-4.53%
Max EPS beat(4)159.9%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)112733%
Min Revenue beat(2)110361%
Max Revenue beat(2)115106%
Revenue beat(4)4
Avg Revenue beat(4)87603.1%
Min Revenue beat(4)27.88%
Max Revenue beat(4)124918%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.78%
PT rev (3m)2.36%
EPS NQ rev (1m)-4.07%
EPS NQ rev (3m)-3.51%
EPS NY rev (1m)4.32%
EPS NY rev (3m)25.83%
Revenue NQ rev (1m)-99.9%
Revenue NQ rev (3m)-99.9%
Revenue NY rev (1m)3%
Revenue NY rev (3m)4.18%
Valuation
Industry RankSector Rank
PE 14.58
Fwd PE 21.47
P/S 3.95
P/FCF N/A
P/OCF 10.32
P/B 1.63
P/tB 1.63
EV/EBITDA N/A
EPS(TTM)1.71
EY6.86%
EPS(NY)1.16
Fwd EY4.66%
FCF(TTM)-0.68
FCFYN/A
OCF(TTM)2.42
OCFY9.69%
SpS6.32
BVpS15.34
TBVpS15.34
PEG (NY)N/A
PEG (5Y)0.77
Profitability
Industry RankSector Rank
ROA 4.59%
ROE 11.11%
ROCE 4.66%
ROIC 3.68%
ROICexc 3.69%
ROICexgc 3.74%
OM 25.84%
PM (TTM) 26.97%
GM 52.41%
FCFM N/A
ROA(3y)2.74%
ROA(5y)3.03%
ROE(3y)6.92%
ROE(5y)7.33%
ROIC(3y)3.42%
ROIC(5y)3.4%
ROICexc(3y)3.43%
ROICexc(5y)3.41%
ROICexgc(3y)3.51%
ROICexgc(5y)3.49%
ROCE(3y)4.33%
ROCE(5y)4.3%
ROICexcg growth 3Y1.59%
ROICexcg growth 5Y0.48%
ROICexc growth 3Y1.56%
ROICexc growth 5Y0.57%
OM growth 3Y0.21%
OM growth 5Y-0.06%
PM growth 3Y-7.83%
PM growth 5Y20.96%
GM growth 3Y-1.77%
GM growth 5Y-1.2%
F-Score6
Asset Turnover0.17
Health
Industry RankSector Rank
Debt/Equity 1.23
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales 48.97%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.27
Quick Ratio 0.27
Altman-Z 0.7
F-Score6
WACC6.35%
ROIC/WACC0.58
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)54.61%
Cap/Sales(5y)54.16%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)35.71%
EPS 3Y-3.64%
EPS 5Y19.04%
EPS Q2Q%34.62%
EPS Next Y-0.32%
EPS Next 2Y-12.87%
EPS Next 3Y-6.71%
EPS Next 5YN/A
Revenue 1Y (TTM)-39.95%
Revenue growth 3Y4.85%
Revenue growth 5Y3.82%
Sales Q2Q%-14.31%
Revenue Next Year9.39%
Revenue Next 2Y7.67%
Revenue Next 3Y6.46%
Revenue Next 5Y7.76%
EBIT growth 1Y-38.03%
EBIT growth 3Y5.07%
EBIT growth 5Y3.75%
EBIT Next Year87.41%
EBIT Next 3Y26.81%
EBIT Next 5YN/A
FCF growth 1Y48.39%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y25.34%
OCF growth 3Y5.16%
OCF growth 5Y2.93%