Oconee Federal Financial (OFED) AI Stock Analysis

• Market Cap: $90.09M
• Dividend Yield: 2.35%
• Average Volume (3M): 175.00
• Price to Earnings (P/E): 21.2
• Beta (1Y): 0.30
• Revenue Growth: -4.10%
• EPS Growth: -32.34%
• Country: US
• Employees: 79
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): N/A
• Shares Outstanding: 5,838,410
• 10 Day Avg. Volume: 140
• 30 Day Avg. Volume: 175
• PEG Ratio: -0.49
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 2.39
• P/FCF Ratio: 19.21
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 5.28
• Enterprise Value/Gross Profit: 6.38
• Enterprise Value/Ebitda: 24.14
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $18.50 ▲(8.50% Upside)

Oconee Federal Financial's overall stock score is driven by a stable financial performance and strong technical indicators. The financial position is solid, though there are concerns about margin pressure and inconsistent revenue growth. Technical analysis shows bullish momentum, but caution is advised due to overbought signals. Valuation metrics indicate the stock is fairly valued, with a moderate dividend yield offering additional appeal.

Positive Factors

Strong balance sheet

Improved leverage and a healthy equity ratio provide lasting financial resilience for a regional bank. This strengthens capital adequacy, supports credit growth and regulatory buffers, and gives management flexibility to fund loans, absorb losses, and invest in operations over the next several quarters.

Deposit‑funded business model

A traditional deposit-funded model with fee income suits community banks and produces steady net interest margin over time. Stable local deposits reduce wholesale funding reliance, supporting predictable funding costs and enabling consistent lending and cross-sell opportunities in the bank's core markets.

Solid free cash flow

Sustained free cash flow relative to earnings indicates durable cash generation, which bolsters dividend capacity, loan loss provisioning and small capex or tech investments. Strong cash conversion over time supports solvency and strategic optionality during slower revenue periods.

Negative Factors

Inconsistent revenue growth

Recent negative revenue trends signal structural headwinds such as weaker loan demand or competitive pricing pressure in core markets. Persistent top-line contraction can limit the bank's ability to expand margins, invest in technology, and grow shareholder returns over the next several quarters.

Margin pressure

Declining gross and net margins point to sustained profitability erosion, lowering return on assets and equity. If margin compression persists, the bank will face tougher choices between raising loan rates, cutting costs, or accepting lower earnings, which can impair long‑term competitive positioning.

Low operating cash conversion

Weak conversion of reported earnings into operating cash can signal lower earnings quality or timing mismatches in cash receipts. Over months, this constrains liquidity available for lending, dividends, and reserve building, reducing financial flexibility during economic stress.

Oconee Federal Financial Business Overview & Revenue Model

Company Description

Oconee Federal Financial Corp. operates as a holding company for Oconee Federal Savings and Loan Association that provides various banking products and services in the Oconee County area of northwestern South Carolina and the northeast area of Georgia. It offers deposit products, including demand, NOW, money market, savings, certificates of deposit, and individual retirement accounts. The company's loan portfolio comprises one-to-four family and multi-family residential mortgage loans; home equity loans and lines of credit; nonresidential real estate loans; construction and land loans; commercial and industrial loans; agricultural loans; and consumer and other loans. It operates through its executive office and eight branch offices located in Oconee and Pickens Counties, South Carolina; and Stephens and Rabun Counties, Georgia. The company was founded in 1924 and is based in Seneca, South Carolina. Oconee Federal Financial Corp. operates as a subsidiary of Oconee Federal, MHC.

How the Company Makes Money

Oconee Federal Financial generates revenue through various streams, primarily by earning interest on loans and mortgage products that it issues to customers. The company collects interest on personal loans, home equity loans, and commercial loans, which constitutes a significant portion of its income. Additionally, OFED earns interest from its investment securities. Another key revenue source is the fees charged for account maintenance, transaction services, and other banking services. The institution may also engage in partnerships with local businesses and organizations to foster community development, which can lead to increased deposits and loan demand, further enhancing its earnings potential.

Oconee Federal Financial Financial Statement Overview

Summary

Oconee Federal Financial demonstrates a stable financial position with some areas of concern. The income statement shows pressure on margins and inconsistent revenue growth. The balance sheet is strong, with improved leverage and a solid equity base. Cash flow management shows resilience, though there are areas for improvement in cash conversion. The company should focus on enhancing revenue growth and maintaining profitability to strengthen its financial standing.

Income Statement

Oconee Federal Financial shows a mixed performance in its income statement. The gross profit margin has decreased over the years, indicating pressure on profitability. The net profit margin has also declined, reflecting reduced efficiency in converting revenue into profit. Revenue growth has been inconsistent, with recent negative growth. However, the company maintains a reasonable EBIT and EBITDA margin, suggesting operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a decreasing debt-to-equity ratio, indicating improved leverage management. The return on equity has been relatively stable, though slightly declining, suggesting consistent shareholder returns. The equity ratio remains healthy, indicating a strong capital structure with a significant portion of assets financed by equity.

Cash Flow

Cash flow analysis reveals a fluctuating free cash flow growth rate, with recent improvements. The operating cash flow to net income ratio is low, indicating potential challenges in converting income into cash. However, the free cash flow to net income ratio remains strong, suggesting effective cash management relative to profits.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	19.02M	29.59M	25.48M	20.58M	17.70M	18.36M
Gross Profit	15.75M	17.35M	13.49M	15.71M	16.61M	16.54M
EBITDA	4.16M	5.95M	7.43M	5.19M	6.72M	7.04M
Net Income	3.35M	4.24M	6.25M	3.35M	4.10M	4.07M
Balance Sheet
Total Assets	595.40M	668.19M	665.60M	595.40M	544.79M	543.72M
Cash, Cash Equivalents and Short-Term Investments	140.41M	122.83M	128.18M	140.41M	161.03M	169.66M
Total Debt	46.00M	35.75M	55.95M	46.00M	9.00M	15.00M
Total Liabilities	523.62M	583.91M	586.83M	523.62M	469.54M	455.62M
Stockholders Equity	71.79M	84.28M	78.77M	71.79M	75.26M	88.10M
Cash Flow
Free Cash Flow	5.96M	3.68M	926.00K	5.96M	5.49M	4.67M
Operating Cash Flow	6.33M	4.09M	1.02M	6.33M	5.71M	4.93M
Investing Cash Flow	-58.09M	4.23M	-11.95M	-58.09M	-37.51M	-34.27M
Financing Cash Flow	49.32M	-6.06M	21.71M	49.32M	10.88M	25.41M

Oconee Federal Financial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OFED, the sentiment is Negative. The current price of 17.05 is above the 20-day moving average (MA) of 16.28, above the 50-day MA of 15.82, and above the 200-day MA of 13.94, indicating a neutral trend. The MACD of -0.20 indicates Positive momentum. The RSI at 42.48 is Neutral, neither overbought nor oversold. The STOCH value of 27.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OFED.

Oconee Federal Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AUBN	69 Neutral	$86.85M	11.98	8.22%	4.16%	24.17%	739.42%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
OFED	68 Neutral	$90.09M	21.23	5.20%	2.35%	-4.10%	-32.34%
IROQ	59 Neutral	$90.89M	16.97	6.20%	1.48%	1.93%	157.35%
PBHC	54 Neutral	$84.47M	-14.62	2.26%	2.86%	0.84%	―
SSBI	45 Neutral	$91.34M	13.60	-1.41%	―	-0.81%	-129.22%