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. OFC has a medium profitability rating, but doesn't score so well on its financial health evaluation. OFC is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • In the past year OFC was profitable.
  • 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.
  • OFC has a better Return On Equity (11.11%) than 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.
  • The Average Return On Invested Capital over the past 3 years for OFC 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 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.
  • 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.
  • 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.
  • 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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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.
  • The debt/assets ratio for OFC has been reduced compared to a year ago.
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.
  • OFC's Altman-Z score of 0.70 is fine compared to the rest 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.
  • Looking at the Debt to Equity ratio, with a value of 1.23, OFC is in line with its industry, 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.
  • With a Current ratio value of 0.27, OFC is not doing good in the industry: 93.94% of the companies in the same industry are doing better.
  • A Quick Ratio of 0.27 indicates that OFC may have some problems paying its short term obligations.
  • The Quick ratio of OFC (0.27) is worse than 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
  • 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

  • The Earnings Per Share is expected to decrease by -6.71% on average over the next years.
  • 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.
  • 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

  • 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's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.32.
  • The Price/Forward Earnings ratio is 21.47, which indicates a rather expensive current valuation of OFC.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of OFC indicates a rather cheap valuation: OFC is cheaper than 85.61% of the companies listed 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

  • 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%

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5

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 6.98.
  • 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

  • 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 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.