Oceanfirst Financial (OCFC) AI Stock Analysis

• Market Cap: $1.15B
• Dividend Yield: 3.98%
• Average Volume (3M): 329.98K
• Price to Earnings (P/E): 15.5
• Beta (1Y): 0.97
• Revenue Growth: -2.15%
• EPS Growth: -25.32%
• Country: US
• Employees: 975
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.36
• Shares Outstanding: 57,388,783
• 10 Day Avg. Volume: 457,239
• 30 Day Avg. Volume: 329,978
• PEG Ratio: -3.59
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 1.53
• P/FCF Ratio: 12.46
• Enterprise Value/Market Cap: 1.79
• Enterprise Value/Revenue: 3.06
• Enterprise Value/Gross Profit: 5.49
• Enterprise Value/Ebitda: 17.59
• 1Y Price Target: $21.33
• Price Target Upside: 6.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: $21.50 ▲(6.86% Upside)

Oceanfirst Financial's overall stock score reflects a stable financial foundation with strong profitability and positive cash flow trends. Technical indicators are favorable, supporting bullish momentum. Valuation is attractive with a reasonable P/E ratio and solid dividend yield. Earnings call insights and recent corporate events highlight growth initiatives, though challenges such as restructuring charges and increased leverage need attention.

Positive Factors

Loan Growth

Strong loan growth indicates effective market penetration and demand for the company's lending products, supporting future revenue expansion.

Capital Structure Strengthening

The successful notes offering strengthens the capital structure, providing funds for debt repayment and growth initiatives, enhancing financial stability.

Asset Quality Improvement

Improved asset quality reduces risk exposure and enhances financial health, positioning the company favorably within its peer group.

Negative Factors

Revenue Growth Decline

A decline in revenue growth can impact long-term profitability and market competitiveness, necessitating strategic adjustments to regain momentum.

Increased Leverage

Higher leverage can strain financial resources and limit operational flexibility, posing risks if not managed effectively.

Restructuring Charges

Restructuring charges increase costs and can impact short-term profitability, requiring careful management to ensure long-term benefits.

Oceanfirst Financial Business Overview & Revenue Model

Company Description

OceanFirst Financial (OCFC) is a financial holding company headquartered in Toms River, New Jersey, primarily focused on providing a wide range of banking and financial services through its wholly-owned subsidiary, OceanFirst Bank. The company operates in the banking sector and offers various products including personal and business banking solutions, mortgage lending, and investment management services. OceanFirst is committed to serving its local communities, emphasizing customer service and community involvement as core tenets of its operations.

How the Company Makes Money

OceanFirst Financial generates revenue primarily through net interest income, which is the difference between the interest earned on loans and the interest paid on deposits. Key revenue streams include residential and commercial mortgage loans, consumer loans, and business banking services. The bank also earns non-interest income from fees associated with deposit accounts, wealth management services, and transaction services. Additionally, OceanFirst has strategic partnerships with various financial service providers to enhance its offerings and increase customer engagement. The company may also benefit from economic factors such as interest rate changes and community growth, which can impact lending demand and deposit levels.

Oceanfirst Financial Financial Statement Overview

Summary

Oceanfirst Financial demonstrates a stable financial position with strong profitability margins and positive cash flow trends. However, the decline in revenue growth and increased leverage are areas of concern that need strategic focus. Overall, the company maintains a solid foundation but should address growth and leverage to enhance financial health.

Income Statement

Oceanfirst Financial's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate by 2.12%, which is a concern. However, the company maintains a strong gross profit margin of 81.96% and a decent net profit margin of 13.46%. The EBIT and EBITDA margins are stable, reflecting operational efficiency. The decline in revenue growth needs attention, but overall profitability remains solid.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio has increased to 1.19 in the TTM, indicating higher leverage, which could pose a risk if not managed properly. Return on equity is at 4.76%, showing a decrease from previous years, which suggests a need for improved profitability. The equity ratio remains healthy, indicating a stable asset base.

Cash Flow

Cash flow analysis shows positive trends with a significant free cash flow growth rate of 109.66% in the TTM. The free cash flow to net income ratio is strong at 0.91, indicating efficient cash generation relative to earnings. However, the operating cash flow to net income ratio is low, suggesting potential issues in converting earnings to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	673.23M	687.95M	636.96M	485.30M	388.84M	433.82M
Gross Profit	375.23M	372.12M	381.04M	423.83M	363.92M	307.76M
EBITDA	117.20M	145.20M	153.17M	210.40M	157.12M	95.77M
Net Income	79.79M	100.06M	104.03M	146.60M	110.08M	63.31M
Balance Sheet
Total Assets	14.32B	13.42B	13.54B	13.10B	11.74B	11.45B
Cash, Cash Equivalents and Short-Term Investments	1.54B	951.12M	907.61M	625.59M	773.20M	1.46B
Total Debt	1.97B	1.26B	1.05B	1.48B	349.81M	363.93M
Total Liabilities	12.67B	11.72B	11.88B	11.52B	10.22B	9.96B
Stockholders Equity	1.65B	1.70B	1.66B	1.58B	1.52B	1.48B
Cash Flow
Free Cash Flow	89.57M	84.68M	116.55M	229.55M	117.93M	117.93M
Operating Cash Flow	96.01M	92.24M	124.26M	250.45M	159.97M	132.66M
Investing Cash Flow	-796.86M	106.40M	-488.00M	-1.32B	-1.48B	-22.17M
Financing Cash Flow	760.80M	-228.75M	349.47M	1.01B	223.99M	1.07B

Oceanfirst Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.12
• 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 20.12 is above the 20-day moving average (MA) of 19.53, above the 50-day MA of 18.65, and above the 200-day MA of 17.34, indicating a bullish trend. The MACD of 0.54 indicates Negative momentum. The RSI at 63.67 is Neutral, neither overbought nor oversold. The STOCH value of 76.94 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	77 Outperform	$1.06B	11.35	11.72%	3.41%	9.93%	17.67%
PEBO	77 Outperform	$1.12B	10.94	8.75%	5.21%	0.11%	-18.63%
OSBC	77 Outperform	$1.08B	13.57	9.24%	1.22%	10.42%	-18.32%
FSUN	76 Outperform	$1.09B	12.35	8.28%	―	4.44%	3.19%
OCFC	75 Outperform	$1.15B	15.51	4.77%	3.98%	-2.15%	-25.32%
TMP	70 Outperform	$1.08B	12.74	11.20%	3.34%	9.55%	27.32%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Oceanfirst Financial Corporate Events

OceanFirst Financial Closes $185M Subordinated Notes Offering

On October 27, 2025, OceanFirst Financial Corp. announced the pricing of a public offering of $185 million in subordinated notes due 2035, with a fixed-to-floating interest rate structure. The offering, which closed on October 29, 2025, is expected to generate net proceeds of approximately $181.9 million, which the company plans to use to repay existing debt, support growth initiatives at its subsidiaries, and for general corporate purposes. This strategic financial move is intended to strengthen the company’s capital structure and support its expansion efforts.

OceanFirst Financial to Present Strategic Focus to Investors

OceanFirst Financial Corp. announced plans to present to investors on or after October 23, 2025, highlighting its strategic focus on expanding retail operations in high-growth markets and securing low-cost deposits to support future commercial lending. The company’s strong credit quality, disciplined underwriting, and experienced management team position it well for continued profitability and growth, with a total risk-based capital ratio of 13.1% and an ‘Outstanding’ CRA rating, reflecting its commitment to local communities.

OceanFirst Financial Reports Q3 2025 Income Decline

OceanFirst Financial Corp. announced a decrease in net income for the third quarter of 2025, reporting $17.3 million, or $0.30 per diluted share, compared to $24.1 million, or $0.42 per diluted share, in the same period last year. Despite the decline, the company experienced a significant increase in total loans, with a 14% annualized growth rate, driven by a 74% rise in commercial loan originations, indicating a strategic focus on expanding its commercial lending operations.