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%)
Taking everything into account, OFC scores 4 out of 10 in our fundamental rating. OFC was compared to 124 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
- OFC had positive earnings in the past year.
- In the past year OFC had a positive cash flow from operations.
1.2 Ratios
- With an excellent Return On Assets value of 4.59%, OFC belongs to the best of the industry, outperforming 94.70% of the companies in the same industry.
- OFC has a better Return On Equity (11.11%) than 93.18% of its industry peers.
- 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.
- 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 3.05%.
- 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.
- 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.
- The Gross Margin of OFC (52.41%) is worse than 81.06% of its industry peers.
- OFC's Gross Margin has been stable in the last couple of years.
| 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.
- OFC has a Debt/Equity ratio of 1.23. This is a high value indicating a heavy dependency on external financing.
- OFC has a Debt to Equity ratio (1.23) which is in line with 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
- 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.
- 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.27 | ||
| Quick Ratio | 0.27 |
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.
- 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.
- 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.
- OFC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.76% yearly.
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 (27.25), we can say OFC is valued slightly cheaper.
- The Price/Forward Earnings ratio is 21.47, which indicates a rather expensive current valuation of OFC.
- 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 (25.98), we can say OFC is valued inline with the index average.
| 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
- 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%
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 6.82.
- Compared to an average S&P500 Dividend Yield of 1.82, 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 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
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%
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.