Oceanfirst Financial (OCFC) AI Stock Analysis

• Market Cap: $1.02B
• Dividend Yield: 4.72%
• Average Volume (3M): 294.51K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 1.25
• Revenue Growth: 1.38%
• EPS Growth: -10.46%
• Country: US
• Employees: 975
• Sector: Financial
• Sector Strength: 81
• Industry: Banks - Regional
• EPS (TTM): 0.35
• Shares Outstanding: 58,383,526
• 10 Day Avg. Volume: 318,591
• 30 Day Avg. Volume: 294,507
• PEG Ratio: -1.40
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 26.35
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $20.00
• Price Target Upside: 19.12% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 72 Outperform
• Price Target: ―

Oceanfirst Financial shows strong financial health with a stable balance sheet and effective cash flow management, balanced by operational challenges. The stock is moderately valued with an attractive dividend yield. Despite positive earnings growth and strategic initiatives, caution is advised due to potential overbought conditions and operational cost concerns.

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 Corp. primarily generates revenue through interest income from its lending activities, including residential and commercial mortgages, consumer loans, and loans to small businesses. The bank earns interest by charging borrowers rates that are higher than what it pays on customer deposits. Additionally, OceanFirst generates non-interest income from fees and service charges associated with account maintenance, transaction fees, and other banking services. Wealth management and trust services also contribute to the company's revenue through management fees and commissions. Strategic acquisitions and partnerships enable OceanFirst to expand its market reach and diversify its financial offerings, further enhancing its revenue-generating capabilities.

Oceanfirst Financial Financial Statement Overview

Summary

Oceanfirst Financial exhibits strong profitability and a stable balance sheet with no leverage concerns. Despite some operational challenges reflected in negative EBIT, the company maintains a solid net income and strong cash flow management. The financial position is stable, though there is room for operational efficiency improvements.

Income Statement

Oceanfirst Financial's gross profit margin for the latest year was 96.1%, highlighting strong profitability. However, a negative EBIT and EBITDA margin in the latest period indicate challenges in operational efficiency. Despite this, the company maintains a positive net profit margin of 15.6%. Revenue growth showed volatility with a significant increase in 2024 compared to 2023, but the overall trajectory is uneven.

Balance Sheet

The company has a solid equity ratio of 12.7%, reflecting a stable financial structure. With zero debt in 2024, the debt-to-equity ratio is excellent, reducing financial risk. Return on equity stands at 5.9%, which is moderate but stable given the banking industry's standards. Overall, the balance sheet demonstrates strong financial health with no leverage risk.

Cash Flow

Cash flow from operations is positive, supporting strong free cash flow with a decent operating cash flow to net income ratio of 0.5. The free cash flow to net income ratio is robust, indicating efficient cash management despite fluctuations in free cash flow growth. Overall, cash flow remains stable, supporting liquidity and operational needs.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
523.10M	379.81M	385.68M	431.60M	352.09M	367.16M
	Gross Profit
492.77M	354.75M	640.86M	388.17M	310.65M	322.06M
	EBIT
160.15M	-453.36M	136.86M	246.87M	142.24M	81.04M
	EBITDA
37.71M	-20.00K	0.00	210.40M	157.12M	95.77M
	Net Income Common Stockholders
92.91M	100.06M	104.03M	146.60M	110.08M	63.31M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
130.42M	951.12M	153.72M	625.59M	773.20M	1.46B
	Total Assets
13.42B	13.42B	13.54B	13.10B	11.74B	11.45B
	Total Debt
1.17B	1.20B	1.14B	1.41B	229.14M	235.47M
	Net Debt
1.04B	1.08B	820.74M	1.24B	24.19M	-1.04B
	Total Liabilities
11.75B	11.72B	11.88B	11.52B	229.14M	235.47M
	Stockholders Equity
1.67B	1.70B	1.66B	1.58B	1.52B	1.48B
Cash Flow		Free Cash Flow
36.18M	84.68M	116.55M	229.55M	117.93M	117.93M
	Operating Cash Flow
43.07M	92.24M	124.26M	250.45M	159.97M	132.66M
	Investing Cash Flow
-31.61M	106.40M	-488.00M	-1.32B	-1.48B	-22.17M
	Financing Cash Flow
-120.45M	-228.75M	349.47M	1.01B	223.99M	1.07B

Oceanfirst Financial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.79
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OCFC, the sentiment is Negative. The current price of 16.79 is below the 20-day moving average (MA) of 16.95, above the 50-day MA of 16.46, and below the 200-day MA of 17.46, indicating a neutral trend. The MACD of 0.26 indicates Positive momentum. The RSI at 49.35 is Neutral, neither overbought nor oversold. The STOCH value of 32.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OCFC.

Oceanfirst Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTBI	78 Outperform	$953.54M	11.00	11.54%	3.55%	12.27%	10.88%
BRKL	76 Outperform	$932.03M	12.78	6.01%	5.11%	4.33%	-11.14%
SBSI	73 Outperform	$887.38M	10.09	11.03%	5.02%	9.34%	8.12%
CNOB	73 Outperform	$917.89M	13.01	6.21%	3.02%	2.27%	-2.41%
OCFC	72 Outperform	$1.02B	11.38	5.51%	4.72%	1.38%	-10.46%
Sector *	64 Neutral	$12.66B	9.79	7.67%	17015.07%	12.23%	-6.06%
TMP	56 Neutral	$879.35M	11.82	10.45%	3.96%	37.59%	969.87%

Oceanfirst Financial Corporate Events

OceanFirst Financial Reports Q1 2025 Financial Results

OceanFirst Financial Corp. announced its financial results for the first quarter ended March 31, 2025, reporting a net income of $20.5 million, a decrease from the previous year and the linked quarter. The company declared a regular quarterly cash dividend of $0.20 per share, payable on May 16, 2025. Key developments included a 21 basis point increase in net interest margin to 2.90%, a 6.1% rise in commercial and industrial loans, and a stable credit performance with a decrease in criticized and classified loans. The company highlighted strong asset quality metrics and capital accretion, including share repurchases.

Spark’s Take on OCFC Stock

According to Spark, TipRanks’ AI Analyst, OCFC is a Neutral.

Oceanfirst Financial’s overall score reflects a stable financial position with strong profitability and a solid balance sheet. The technical analysis indicates a bearish trend, which is a concern, but the valuation is attractive with a low P/E ratio and high dividend yield. The earnings call presents a stable outlook with strategic growth plans, despite some operational challenges. These factors collectively contribute to a balanced score, recognizing both strengths and areas requiring improvement.

To see Spark’s full report on OCFC stock, click here.

OceanFirst Financial Updates Executive Retirement Agreement

On March 28, 2025, OceanFirst Bank, a subsidiary of OceanFirst Financial, amended and restated the Supplemental Executive Retirement Account Agreement with Christopher D. Maher, the Chairman, President, and CEO. The updated agreement clarifies the terms regarding termination due to disability, ensuring Mr. Maher receives the account balance as of the termination date plus any credited amount for that plan year, with no other substantive changes made.