OPPFI INC (OPFI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OPFI - US68386H1032 - Common Stock
9.91 USD
-0.06 (-0.6%)
10.02 USD
+0.11 (+1.11%)
OPFI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 53 industry peers in the Consumer Finance industry. OPFI has an average financial health and profitability rating. OPFI is growing strongly while it also seems undervalued. This is an interesting combination These ratings would make OPFI suitable for value and growth investing!
1. Profitability
1.1 Basic Checks
- OPFI had positive earnings in the past year.
- OPFI had a positive operating cash flow in the past year.
- OPFI had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years OPFI had a positive operating cash flow.
1.2 Ratios
- OPFI's Return On Assets of 0.54% is on the low side compared to the rest of the industry. OPFI is outperformed by 70.37% of its industry peers.
- Looking at the Return On Equity, with a value of 7.84%, OPFI is doing worse than 64.81% of the companies in the same industry.
- OPFI has a better Return On Invested Capital (23.43%) than 90.74% of its industry peers.
- OPFI had an Average Return On Invested Capital over the past 3 years of 12.63%. This is in line with the industry average of 12.42%.
- The 3 year average ROIC (12.63%) for OPFI is below the current ROIC(23.43%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.54% | ||
| ROE | 7.84% | ||
| ROIC | 23.43% |
ROA(3y)0.73%
ROA(5y)6.88%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)12.63%
ROIC(5y)19.21%
1.3 Margins
- OPFI's Profit Margin of 0.68% is on the low side compared to the rest of the industry. OPFI is outperformed by 77.78% of its industry peers.
- In the last couple of years the Profit Margin of OPFI has declined.
- Looking at the Operating Margin, with a value of 34.91%, OPFI belongs to the top of the industry, outperforming 87.04% of the companies in the same industry.
- OPFI's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 98.87%, OPFI belongs to the top of the industry, outperforming 96.30% of the companies in the same industry.
- In the last couple of years the Gross Margin of OPFI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.91% | ||
| PM (TTM) | 0.68% | ||
| GM | 98.87% |
OM growth 3Y-17.28%
OM growth 5Y2.26%
PM growth 3Y-42.61%
PM growth 5Y-37.44%
GM growth 3Y0.27%
GM growth 5Y-0.04%
2. Health
2.1 Basic Checks
- OPFI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, OPFI has less shares outstanding
- The number of shares outstanding for OPFI has been reduced compared to 5 years ago.
- The debt/assets ratio for OPFI has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.38 indicates that OPFI is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With an excellent Altman-Z score value of 2.38, OPFI belongs to the best of the industry, outperforming 81.48% of the companies in the same industry.
- The Debt to FCF ratio of OPFI is 0.89, which is an excellent value as it means it would take OPFI, only 0.89 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 0.89, OPFI belongs to the top of the industry, outperforming 92.59% of the companies in the same industry.
- OPFI has a Debt/Equity ratio of 6.49. This is a high value indicating a heavy dependency on external financing.
- OPFI's Debt to Equity ratio of 6.49 is on the low side compared to the rest of the industry. OPFI is outperformed by 72.22% of its industry peers.
- Although OPFI does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.49 | ||
| Debt/FCF | 0.89 | ||
| Altman-Z | 2.38 |
ROIC/WACC2.52
WACC9.31%
2.3 Liquidity
- OPFI has a Current Ratio of 1.00. This is a bad value and indicates that OPFI is not financially healthy enough and could expect problems in meeting its short term obligations.
- OPFI's Current ratio of 1.00 is in line compared to the rest of the industry. OPFI outperforms 46.30% of its industry peers.
- A Quick Ratio of 1.00 indicates that OPFI may have some problems paying its short term obligations.
- The Quick ratio of OPFI (1.00) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
- OPFI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 85.37%, which is quite impressive.
- Measured over the past 5 years, OPFI shows a small growth in Earnings Per Share. The EPS has been growing by 3.73% on average per year.
- The Revenue has grown by 9.63% in the past year. This is quite good.
- The Revenue has been growing by 18.08% on average over the past years. This is quite good.
EPS 1Y (TTM)85.37%
EPS 3Y-42.85%
EPS 5Y3.73%
EPS Q2Q%39.39%
Revenue 1Y (TTM)9.63%
Revenue growth 3Y14.48%
Revenue growth 5Y18.08%
Sales Q2Q%13.54%
3.2 Future
- The Earnings Per Share is expected to grow by 26.38% on average over the next years. This is a very strong growth
- OPFI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.81% yearly.
EPS Next Y68.93%
EPS Next 2Y35.89%
EPS Next 3Y26.38%
EPS Next 5YN/A
Revenue Next Year14.14%
Revenue Next 2Y12.49%
Revenue Next 3Y11.81%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 6.52, the valuation of OPFI can be described as very cheap.
- Based on the Price/Earnings ratio, OPFI is valued a bit cheaper than 70.37% of the companies in the same industry.
- When comparing the Price/Earnings ratio of OPFI to the average of the S&P500 Index (27.21), we can say OPFI is valued rather cheaply.
- A Price/Forward Earnings ratio of 5.65 indicates a rather cheap valuation of OPFI.
- OPFI's Price/Forward Earnings ratio is rather cheap when compared to the industry. OPFI is cheaper than 87.04% of the companies in the same industry.
- OPFI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.52 | ||
| Fwd PE | 5.65 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OPFI indicates a somewhat cheap valuation: OPFI is cheaper than 79.63% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, OPFI is valued a bit cheaper than 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.37 | ||
| EV/EBITDA | 5.33 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- OPFI has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as OPFI's earnings are expected to grow with 26.38% in the coming years.
PEG (NY)0.09
PEG (5Y)1.75
EPS Next 2Y35.89%
EPS Next 3Y26.38%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.52%, OPFI has a reasonable but not impressive dividend return.
- OPFI's Dividend Yield is a higher than the industry average which is at 2.63.
- OPFI's Dividend Yield is a higher than the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
5.2 History
- OPFI is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- 165.57% of the earnings are spent on dividend by OPFI. This is not a sustainable payout ratio.
DP165.57%
EPS Next 2Y35.89%
EPS Next 3Y26.38%
OPPFI INC / OPFI FAQ
What is the fundamental rating for OPFI stock?
ChartMill assigns a fundamental rating of 6 / 10 to OPFI.
What is the valuation status of OPPFI INC (OPFI) stock?
ChartMill assigns a valuation rating of 8 / 10 to OPPFI INC (OPFI). This can be considered as Undervalued.
How profitable is OPPFI INC (OPFI) stock?
OPPFI INC (OPFI) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for OPFI stock?
The Price/Earnings (PE) ratio for OPPFI INC (OPFI) is 6.52 and the Price/Book (PB) ratio is 17.32.
How sustainable is the dividend of OPPFI INC (OPFI) stock?
The dividend rating of OPPFI INC (OPFI) is 2 / 10 and the dividend payout ratio is 165.57%.