OFG Bancorp (OFG) 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

Axos Financial, Inc.

Associated Banc-Corp

Community Bank System, Inc.

OFG Bancorp

NBT Bancorp, Inc.

Texas Capital Bancshares, Inc.

Fulton Financial Corp.

WaFd, Inc.

First Merchants Corp. (Indiana)

Simmons First National Corp.

Park National Corp.

Why is OFG Bancorp ?

High Profitability with a Net Interest Margin of 8.61%

The Bank has a high Capital Adequacy Ratio of 28.88% signifying high buffers against its risk based assets

Healthy long term growth as Net profit has grown by an annual rate of 27.96%

Flat results in Jun 25

GROSS NPA (%)(Q) Highest at 1.19%

With ROA of 1.02%, it has a fair valuation with a 1.77 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -5.56%, its profits have risen by 4.7% ; the PEG ratio of the company is 1.6

Below par performance in long term as well as near term

Along with generating -5.56% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to OFG Bancorp should be less than 10%
Overall Portfolio exposure to Major Banks should be less than 30%

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

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

Is OFG Bancorp for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

OFG Bancorp

25.48%

0.59

27.31%

S&P 500

22.36%

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)

10.53%

EBIT Growth (5y)

9.41%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

26.19%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

ROE (avg)

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

1.53

EV to EBIT

7.83

EV to EBITDA

6.98

EV to Capital Employed

1.82

EV to Sales

2.09

PEG Ratio

1.28

Dividend Yield

2.66%

ROCE (Latest)

23.22%

ROE (Latest)

14.76%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Sideways

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly Bullish

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

15What is working for the Company

ROCE(HY)

Highest at 1.81%

DIVIDEND PER SHARE(HY)

Highest at USD 0

GROSS NPA (%)

NII(Q)

Highest at USD 157.3 MM

CREDIT DEPOSIT RATIO(HY)

Highest at 83.11%

OPERATING PROFIT(Q)

Highest at USD 74.48 MM

OPERATING PROFIT MARGIN(Q)

Highest at 37.78 %

PRE-TAX PROFIT(Q)

Highest at USD 74.48 MM

NET PROFIT(Q)

Highest at USD 58.78 MM

EPS(Q)

Highest at USD 1.39

-6What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 171.83 MM

ROCE(HY)

Lowest at 1.81%

CASH AND EQV(HY)

Lowest at USD 1,377.38 MM

Here's what is working for OFG Bancorp

Non Performing Loans (%)

Lowest at 0.81%

in the last four Semi-Annual periods

MOJO Watch

Proportion of stressed loans given by the bank are falling

Non Performing Loans (%)

NII

Highest at USD 157.3 MM

in the last five periods

MOJO Watch

The bank's income from core business is increasing

NII (USD MM)

Dividend per share

Highest at USD 0 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Operating Profit

Highest at USD 74.48 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 37.78 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at USD 74.48 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 58.78 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 1.39

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Credit Deposit Ratio

Highest at 83.11%

in the last four Semi-Annual periods

MOJO Watch

Bank has been creating proportionately higher loans against its deposits, thereby creating higher revenue generating assets

Credit Deposit Ratio (%)

Here's what is not working for OFG Bancorp

Operating Cash Flow

Lowest at USD 171.83 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)

Cash and Eqv

Lowest at USD 1,377.38 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents