CORPORATE OFFICE PROPERTIES (OFC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OFC - US22002T1088 - REIT
24.94 USD
+0.39 (+1.59%)
24.94 USD
0 (0%)
Overall OFC gets a fundamental rating of 4 out of 10. We evaluated OFC against 127 industry peers in the Diversified REITs industry. While OFC is still in line with the averages on profitability rating, there are concerns on its financial health. OFC is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year OFC was profitable.
OFC had a positive operating cash flow in the past year.
1.2 Ratios
OFC has a Return On Assets of 4.59%. This is amongst the best in the industry. OFC outperforms 94.70% of its industry peers.
Looking at the Return On Equity, with a value of 11.11%, OFC belongs to the top of the industry, outperforming 93.18% of the companies in the same industry.
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 3.06%.
The last Return On Invested Capital (3.68%) for OFC is above the 3 year average (3.42%), which is a sign of increasing profitability.
| Industry Rank | Sector 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%
1.3 Margins
OFC's Profit Margin of 26.97% is fine compared to the rest of the industry. OFC outperforms 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.
Looking at the Gross Margin, with a value of 52.41%, OFC is doing worse than 81.06% of the companies in the same industry.
In the last couple of years the Gross Margin of OFC has remained more or less at the same level.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
OFC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for OFC remains at a similar level compared to 1 year ago.
OFC has a better debt/assets ratio than last year.
2.2 Solvency
OFC has an Altman-Z score of 0.70. This is a bad value and indicates that OFC is not financially healthy and even has some risk of bankruptcy.
OFC has a Altman-Z score of 0.70. This is in the better half of the industry: OFC outperforms 64.39% of its industry peers.
A Debt/Equity ratio of 1.23 is on the high side and indicates that OFC has dependencies on debt financing.
OFC has a Debt to Equity ratio of 1.23. This is comparable to the rest of the industry: OFC outperforms 44.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.7 |
ROIC/WACC0.58
WACC6.35%
2.3 Liquidity
A Current Ratio of 0.27 indicates that OFC may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.27, OFC is doing worse than 93.94% of the companies in the same industry.
OFC has a Quick 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.
OFC has a worse Quick ratio (0.27) than 93.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.27 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 35.71% over the past year.
The Earnings Per Share has been growing by 19.04% on average over the past years. This is quite good.
The Revenue for OFC has decreased by -39.95% in the past year. This is quite bad
The Revenue has been growing slightly by 3.82% on average over the past years.
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
The Earnings Per Share is expected to decrease by -6.71% on average over the next years.
The Revenue is expected to grow by 7.76% on average over the next years.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.58 indicates a correct valuation of OFC.
OFC's Price/Earnings ratio is rather cheap when compared to the industry. OFC is cheaper than 87.88% of the companies in the same industry.
When comparing the Price/Earnings ratio of OFC to the average of the S&P500 Index (27.19), we can say OFC is valued slightly cheaper.
A Price/Forward Earnings ratio of 21.47 indicates a rather expensive valuation of OFC.
Based on the Price/Forward Earnings ratio, OFC is valued cheaper than 85.61% of the companies in the same industry.
OFC is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.58 | ||
| Fwd PE | 21.47 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
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%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.57%, OFC is a good candidate for dividend investing.
OFC's Dividend Yield is slightly below the industry average, which is at 6.83.
Compared to an average S&P500 Dividend Yield of 1.94, OFC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.57% |
5.2 History
The dividend of OFC decreases each year by -1.49%.
OFC has been paying a dividend for at least 10 years, so it has a reliable track record.
OFC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-1.49%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
64.50% of the earnings are spent on dividend by OFC. This is not a sustainable payout ratio.
OFC's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP64.5%
EPS Next 2Y-12.87%
EPS Next 3Y-6.71%
24.94
+0.39 (+1.59%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners104.34%
Inst Owner Change0%
Ins Owners0.74%
Ins Owner Change0%
Market Cap2.81B
Revenue(TTM)711.05M
Net Income(TTM)191.77M
Analysts80
Price Target29.47 (18.16%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector 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 Rank | Sector 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
Graham NumberN/A
Profitability
| Industry Rank | Sector 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%
ROICexgc growth 3Y1.59%
ROICexgc 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 Rank | Sector 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%
CORPORATE OFFICE PROPERTIES / OFC FAQ
Can you provide the ChartMill fundamental rating for CORPORATE OFFICE PROPERTIES?
ChartMill assigns a fundamental rating of 4 / 10 to OFC.
Can you provide the valuation status for CORPORATE OFFICE PROPERTIES?
ChartMill assigns a valuation rating of 3 / 10 to CORPORATE OFFICE PROPERTIES (OFC). This can be considered as Overvalued.
What is the profitability of OFC stock?
CORPORATE OFFICE PROPERTIES (OFC) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for OFC stock?
The Price/Earnings (PE) ratio for CORPORATE OFFICE PROPERTIES (OFC) is 14.58 and the Price/Book (PB) ratio is 1.63.
How financially healthy is CORPORATE OFFICE PROPERTIES?
The financial health rating of CORPORATE OFFICE PROPERTIES (OFC) is 1 / 10.