Oceanfirst Financial (OCFC) AI Stock Analysis

• Market Cap: $1.07B
• Dividend Yield: 4.28%
• Average Volume (3M): 293.87K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 1.22
• Revenue Growth: -0.91%
• EPS Growth: -14.86%
• Country: US
• Employees: 975
• Sector: Financial
• Sector Strength: 75
• Industry: Banks - Regional
• EPS (TTM): 0.31
• Shares Outstanding: 57,385,350
• 10 Day Avg. Volume: 280,921
• 30 Day Avg. Volume: 293,868
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.92
• Enterprise Value/Revenue: 3.15
• Enterprise Value/Gross Profit: 4.29
• Enterprise Value/Ebitda: 16.21
• 1Y Price Target: $19.83
• Price Target Upside: 6.21% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 72 Outperform
• Price Target: $20.50 ▲(9.80% Upside)

OceanFirst Financial's overall stock score of 72 reflects a stable financial foundation with strong technical indicators and a positive outlook from recent corporate events. While the company faces challenges with declining profitability margins and increased operating expenses, its strategic initiatives and attractive dividend yield provide a balanced investment opportunity.

Oceanfirst Financial Business Overview & Revenue Model

Company Description

OceanFirst Financial Corp. operates as the bank holding company for OceanFirst Bank N.A. that provides community banking services. It accepts money market accounts, savings accounts, interest-bearing checking accounts, non-interest-bearing demand deposits, and time deposits to retail, government, and business customers. The company also offers commercial real estate, multi-family, land loans, construction, and commercial and industrial loans; fixed-rate and adjustable-rate mortgage loans that are secured by one-to-four family residences; and consumer loans, such as home equity loans and lines of credit, student loans, overdraft line of credit, loans on savings accounts, and other consumer loans. In addition, it invests in mortgage-backed securities, securities issued by the U.S. Government and agencies, corporate securities, and other investments. Further, the company offers bankcard, wealth management, and trust and asset management services; and sells alternative investment products and life insurance products. As of December 31, 2021, it operated through its branch office in Toms River; administrative office located in Red Bank and Mount Laurel; 46 additional branch offices and four deposit production facilities located throughout central and southern New Jersey; and commercial loan production offices in New Jersey, New York City, the Philadelphia area, Baltimore, and Boston. The company was founded in 1902 and is based in Red Bank, New Jersey.

How the Company Makes Money

OceanFirst Financial generates revenue primarily through interest income from loans and investments, as well as non-interest income from service fees and wealth management services. The bank earns interest on loans made to individuals and businesses, which typically represents the largest portion of its revenue. Additionally, OceanFirst charges fees for account maintenance, ATM usage, and transaction services, contributing to its non-interest income. The company also engages in mortgage lending, which adds to its interest income. Strategic partnerships with local businesses and real estate developers further enhance its lending portfolio and client base, fostering growth and stability in its earnings.

Oceanfirst Financial Financial Statement Overview

Summary

OceanFirst Financial shows a mixed financial performance. Strong operational efficiency is evident with stable EBIT and EBITDA margins, but challenges in revenue growth and profitability are present. The balance sheet is solid with manageable debt levels, yet limited asset growth may constrain future expansion. Cash flow performance is concerning, with declining cash generation impacting long-term financial flexibility.

Income Statement

Oceanfirst Financial's income statement shows a solid gross profit margin of 53.98% for TTM (Trailing-Twelve-Months), reflecting strong cost management. However, there was a slight decline in net profit margin to 13.69% TTM from the previous year, indicating pressure on net profitability. The revenue growth rate was negative at -1.32%, suggesting a challenge in sustaining top-line growth. EBIT and EBITDA margins remained stable, indicating good operational efficiency.

Balance Sheet

The balance sheet indicates a moderate debt-to-equity ratio of 0.68, implying a conservative leverage position. ROE stood at 5.44% TTM, showing moderate return for shareholders. The equity ratio is stable at 12.84%, which is healthy for a regional bank, indicating a solid capital structure. However, total assets and stockholders’ equity showed minimal growth, pointing to limited expansion in asset base.

Cash Flow

The cash flow statement highlights a significant decrease in operating cash flow, down to $44.35 million TTM. Free cash flow showed a reduction, impacting the company's ability to reinvest and distribute cash to shareholders. The operating cash flow to net income ratio was 0.48, indicating less cash generation relative to reported net income. Overall, cash flow generation appears to be under pressure.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	654.30M	687.95M	636.96M	485.30M	388.84M	433.82M
Gross Profit	480.81M	372.12M	381.04M	423.83M	363.92M	307.76M
EBITDA	127.19M	145.20M	153.17M	210.40M	157.12M	95.77M
Net Income	87.58M	100.06M	104.03M	146.60M	110.08M	63.31M
Balance Sheet
Total Assets	13.33B	13.42B	13.54B	13.10B	11.74B	11.45B
Cash, Cash Equivalents and Short-Term Investments	906.16M	951.12M	907.61M	625.59M	773.20M	1.46B
Total Debt	1.20B	1.26B	1.05B	1.48B	349.81M	363.93M
Total Liabilities	11.68B	11.72B	11.88B	11.52B	10.22B	9.96B
Stockholders Equity	1.64B	1.70B	1.66B	1.58B	1.52B	1.48B
Cash Flow
Free Cash Flow	43.26M	84.68M	116.55M	229.55M	117.93M	117.93M
Operating Cash Flow	49.21M	92.24M	124.26M	250.45M	159.97M	132.66M
Investing Cash Flow	-62.26M	106.40M	-488.00M	-1.32B	-1.48B	-22.17M
Financing Cash Flow	2.45M	-228.75M	349.47M	1.01B	223.99M	1.07B

Oceanfirst Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OCFC, the sentiment is Positive. The current price of 18.67 is above the 20-day moving average (MA) of 17.63, above the 50-day MA of 17.67, and above the 200-day MA of 17.37, indicating a bullish trend. The MACD of 0.32 indicates Negative momentum. The RSI at 64.99 is Neutral, neither overbought nor oversold. The STOCH value of 74.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OCFC.

Oceanfirst Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTBI	79 Outperform	$1.07B	11.46	11.99%	3.20%	10.85%	17.66%
BRKL	74 Outperform	$975.70M	12.44	6.43%	4.93%	2.23%	2.59%
SBSI	74 Outperform	$931.88M	11.00	10.65%	4.65%	3.54%	4.47%
OCFC	72 Outperform	$1.07B	12.89	5.28%	4.28%	-0.91%	-14.86%
TMP	72 Outperform	$1.02B	12.60	11.06%	3.50%	31.82%	460.57%
CNOB	72 Outperform	$1.28B	29.51	2.75%	2.81%	3.58%	-52.78%
Sector *	68 Neutral	$18.05B	11.73	10.24%	3.73%	9.66%	1.70%

Oceanfirst Financial Corporate Events

OceanFirst Financial to Present Strategic Growth Initiatives

OceanFirst Financial Corp. is set to present to investors after September 2, 2025, highlighting its financial performance and strategic growth initiatives. The company has shown significant growth in its commercial loan portfolio and geographic diversification, with a focus on maintaining a conservative credit risk profile and balanced deposit growth, which positions it well in the competitive banking industry.

OceanFirst Financial Reports Q2 2025 Earnings Decline

OceanFirst Financial Corp. announced a decrease in net income for the second quarter of 2025, with earnings of $16.2 million, or $0.28 per diluted share, compared to $23.4 million, or $0.40 per diluted share, in the same period the previous year. The company also declared a quarterly cash dividend of $0.20 per share, payable on August 15, 2025. Despite the decline in earnings, OceanFirst reported a significant increase in its commercial loan pipeline and launched a new Premier Banking service, which has already attracted $115 million in new deposits.

OceanFirst Financial Announces New Stock Repurchase Program

On July 16, 2025, OceanFirst Financial Corp. announced a new 2025 Stock Repurchase Program, authorizing the repurchase of up to 3 million shares, approximately 5% of its outstanding common stock. This move is intended to enhance capital deployment flexibility and respond to market conditions, while supporting organic growth and strategic initiatives, reflecting the company’s confidence in its investment potential.