CORPORATE OFFICE PROPERTIES (OFC) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:OFC • US22002T1088

24.94 USD
+0.39 (+1.59%)
At close: Sep 14, 2023
24.94 USD
0 (0%)
After Hours: 9/14/2023, 9:45:33 PM
Fundamental Rating

4

OFC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 124 industry peers in the Diversified REITs industry. There are concerns on the financial health of OFC while its profitability can be described as average. While showing a medium growth rate, OFC is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • OFC had positive earnings in the past year.
  • OFC had a positive operating cash flow in the past year.
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 2016 2017 2018 2019 2020 2021 2022 0 100M -100M 200M -200M

1.2 Ratios

  • OFC has a better Return On Assets (4.59%) than 94.70% of its industry peers.
  • The Return On Equity of OFC (11.11%) is better than 93.18% of its industry peers.
  • OFC has a better Return On Invested Capital (3.68%) than 79.55% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for OFC is in line with the industry average of 3.05%.
  • 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 2016 2017 2018 2019 2020 2021 2022 0 2 4 6 8 10

1.3 Margins

  • Looking at the Profit Margin, with a value of 26.97%, OFC is in the better half of the industry, outperforming 78.03% of the companies in the same industry.
  • In the last couple of years the Profit Margin of OFC has grown nicely.
  • OFC has a Operating Margin of 25.84%. This is in the better half of the industry: OFC outperforms 61.36% of its industry peers.
  • OFC's Operating Margin has been stable in the last couple of years.
  • 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 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 2016 2017 2018 2019 2020 2021 2022 0 10 20 30 40 50

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1

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.
  • 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 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 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.
  • Looking at the Altman-Z score, with a value of 0.70, OFC is in the better half of the industry, outperforming 64.39% of the companies in the same industry.
  • 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 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 2016 2017 2018 2019 2020 2021 2022 0 500M 1B 1.5B 2B

2.3 Liquidity

  • A Current Ratio of 0.27 indicates that OFC may have some problems paying 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.
  • OFC's Quick ratio of 0.27 is on the low side compared to the rest of the industry. OFC is outperformed by 93.18% of its industry peers.
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 2016 2017 2018 2019 2020 2021 2022 100M 200M 300M

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4

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 35.71% over the past year.
  • Measured over the past years, OFC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.04% on average per year.
  • The Revenue for OFC has decreased by -39.95% in the past year. This is quite bad
  • Measured over the past years, OFC shows a small growth in Revenue. The Revenue has been growing by 3.82% on average per year.
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.
  • 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

  • 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 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 0.5 1 1.5

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3

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 14.58 indicates a correct valuation of OFC.
  • 87.88% of the companies in the same industry are more expensive than OFC, based on the Price/Earnings ratio.
  • OFC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.32.
  • 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.
  • When comparing the Price/Forward Earnings ratio of OFC to the average of the S&P500 Index (25.57), 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.
  • A cheap valuation may be justified as OFC's earnings are expected to decrease with -6.71% in the coming years.
PEG (NY)N/A
PEG (5Y)0.77
EPS Next 2Y-12.87%
EPS Next 3Y-6.71%

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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 6.98, OFC is paying slightly less dividend.
  • Compared to an average S&P500 Dividend Yield of 1.83, 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 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
OFC Yearly Dividends per shareOFC Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • OFC pays out 64.50% of its income as dividend. 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 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

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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.