Ocwen Financial Corp. (OCN) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

LendingTree, Inc.

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Guild Holdings Co.

Waterstone Financial, Inc.

SWK Holdings Corp.

Willis Lease Finance Corp.

Ocwen Financial Corp.

AFC Gamma, Inc.

Oportun Financial Corp.

CPI Card Group, Inc.

Why is Ocwen Financial Corp. ?

Poor long term growth as Net Sales has grown by an annual rate of -0.85% and Operating profit at 4.50%

Flat results in Jun 25

OPERATING CASH FLOW(Y) Lowest at USD -1,011 MM
INVENTORY TURNOVER RATIO(HY) Lowest at 1.62 times
CASH AND EQV(HY) Lowest at USD 493.5 MM

With ROE of 15.07%, it has a very attractive valuation with a 0.59 Price to Book Value

Over the past year, while the stock has generated a return of 30.59%, its profits have risen by 396.8% ; the PEG ratio of the company is 0

Market Beating Performance

The stock has generated a return of 30.59% in the last 1 year, much higher than market (S&P 500) returns of 14.11%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Ocwen Financial Corp. should be less than 10%
Overall Portfolio exposure to Finance should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Finance)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Ocwen Financial Corp. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Ocwen Financial Corp.

-4.84%

1.97

42.13%

S&P 500

22.24%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.38%

EBIT Growth (5y)

151.92%

EBIT to Interest (avg)

1.04

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

64.22%

ROCE (avg)

115.83%

ROE (avg)

5.82%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.47

EV to EBIT

0.14

EV to EBITDA

0.13

EV to Capital Employed

0.13

EV to Sales

0.05

PEG Ratio

0.01

Dividend Yield

ROCE (Latest)

98.57%

ROE (Latest)

27.97%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

16What is working for the Company

NET SALES(HY)

At USD 602.6 MM has Grown at 35.63%

NET PROFIT(HY)

Higher at USD 134.9 MM

ROCE(HY)

Highest at 29.45%

RAW MATERIAL COST(Y)

Fallen by 1.2% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 2,326.87 %

-17What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD -2,282.6 MM

PRE-TAX PROFIT(Q)

At USD 7.9 MM has Fallen at -49.6%

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.93 times

INTEREST COVERAGE RATIO(Q)

Lowest at 115.6

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.95 times

NET PROFIT(Q)

Lowest at USD 7.6 MM

EPS(Q)

Lowest at USD 0.73

Here's what is working for Ocwen Financial Corp.

Net Sales

At USD 602.6 MM has Grown at 35.63%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Debt-Equity Ratio

Lowest at 2,326.87 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by 1.2% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Ocwen Financial Corp.

Pre-Tax Profit

At USD 7.9 MM has Fallen at -49.6%

over average net sales of the previous four periods of USD 15.68 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 7.6 MM has Fallen at -83.97%

over average net sales of the previous four periods of USD 47.4 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD -2,282.6 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Interest Coverage Ratio

Lowest at 115.6

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Inventory Turnover Ratio

Lowest at 0.93 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Net Profit

Lowest at USD 7.6 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.73

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Debtors Turnover Ratio

Lowest at 3.95 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio