OFG Bancorp
OFG Bancorp Fundamental Analysis
OFG Bancorp (OFG) shows strong financial fundamentals with a PE ratio of 9.56, profit margin of 23.78%, and ROE of 15.21%. The company generates $0.8B in annual revenue with strong year-over-year growth of 13.00%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 66.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze OFG's fundamental strength across five key dimensions:
Efficiency Score
WeakOFG struggles to generate sufficient returns from assets.
Valuation Score
ModerateOFG shows balanced valuation metrics.
Growth Score
ExcellentOFG delivers strong and consistent growth momentum.
Financial Health Score
ModerateOFG shows balanced financial health with some risks.
Profitability Score
ExcellentOFG achieves industry-leading margins.
Key Financial Metrics
Is OFG Expensive or Cheap?
P/E Ratio
OFG trades at 9.56 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, OFG's PEG of 4.24 indicates potential overvaluation.
Price to Book
The market values OFG Bancorp at 1.41 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.97 times EBITDA. This is generally considered low.
How Well Does OFG Make Money?
Net Profit Margin
For every $100 in sales, OFG Bancorp keeps $23.78 as profit after all expenses.
Operating Margin
Core operations generate 30.84 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.21 in profit for every $100 of shareholder equity.
ROA
OFG Bancorp generates $1.65 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
OFG Bancorp generates strong operating cash flow of $201.29M, reflecting robust business health.
Free Cash Flow
OFG Bancorp generates strong free cash flow of $184.30M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.28 in free cash annually.
FCF Yield
OFG converts 11.02% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.56
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.24
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.41
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.10
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.42
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.12
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How OFG Stacks Against Its Sector Peers
| Metric | OFG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.56 | 18.97 | Better (Cheaper) |
| ROE | 15.21% | 814.00% | Weak |
| Net Margin | 23.78% | 1583.00% | Weak |
| Debt/Equity | 0.42 | 1.01 | Strong (Low Leverage) |
| Current Ratio | 0.12 | 657.65 | Weak Liquidity |
| ROA | 1.65% | -19347.00% (disorted) | Weak |
OFG outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews OFG Bancorp's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
110.68%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
302.54%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
153.55%
Industry Style: Value, Dividend, Cyclical
High Growth