CORPORATE OFFICE PROPERTIES (OFC) Fundamental Analysis & Valuation

NYSE:OFC • US22002T1088

Current stock price

24.94 USD
+0.39 (+1.59%)
At close:
24.94 USD
0 (0%)
After Hours:

This OFC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. OFC Profitability Analysis

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

  • The Return On Assets of OFC (4.59%) is better than 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.
  • Looking at the Return On Invested Capital, with a value of 3.68%, OFC is in the better half of the industry, outperforming 79.55% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for OFC is in line with the industry average of 3.11%.
  • 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 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

  • OFC's Profit Margin of 26.97% is fine compared to the rest of the industry. OFC outperforms 78.03% of its industry peers.
  • OFC's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 25.84%, OFC is in the better half of 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.
  • With a Gross Margin value of 52.41%, OFC is not doing good in the industry: 81.06% of the companies in the same industry are doing better.
  • OFC's Gross Margin has been stable in the last couple of years.
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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ROAROEROICOperating and Profit MarginShow most profitable peers

1

2. OFC Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), OFC is destroying value.
  • Compared to 1 year ago, OFC has about the same amount of shares outstanding.
  • OFC has a better debt/assets ratio than last year.
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

  • 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.
  • 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.
  • With a Debt to Equity ratio value of 1.23, OFC perfoms like the industry average, outperforming 44.70% of the companies in the same 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 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.
  • 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.
  • Looking at the Quick ratio, with a value of 0.27, OFC is doing worse than 93.18% of the companies in the same industry.
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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. OFC Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 35.71% over the past year.
  • OFC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.04% yearly.
  • Looking at the last year, OFC shows a very negative growth in Revenue. The Revenue has decreased by -39.95% in the last year.
  • 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

  • Based on estimates for the next years, OFC will show a decrease in Earnings Per Share. The EPS will decrease by -6.71% on average per year.
  • 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

  • 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.
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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Find the best growth stocksShow best growing peers

3

4. OFC Valuation Analysis

4.1 Price/Earnings Ratio

  • OFC is valuated correctly with a Price/Earnings ratio of 14.58.
  • Based on the Price/Earnings ratio, OFC is valued cheaply inside the industry as 87.88% of the companies are valued more expensively.
  • OFC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.11.
  • The Price/Forward Earnings ratio is 21.47, which indicates a rather expensive current valuation of OFC.
  • 85.61% of the companies in the same industry are more expensive than OFC, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 24.12. OFC is around the same levels.
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

  • OFC has a very decent profitability rating, which 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

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. OFC Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 4.57%, OFC is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 7.30, OFC is paying slightly less dividend.
  • OFC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.91.
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 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.
  • 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%
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

More info and screens

Find the best dividend stocksShow peers with best dividend

OFC Fundamentals: All Metrics, Ratios and Statistics

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
Earnings (Next)10-25
Inst Owners104.34%
Inst Owner Change-1.07%
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 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
Graham NumberN/A
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%
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 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%

CORPORATE OFFICE PROPERTIES / OFC Fundamental Analysis 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.