OFG Bancorp (OFG) AI Stock Analysis

• Market Cap: $1.76B
• Dividend Yield: 2.83%
• Average Volume (3M): 286.66K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.83
• Revenue Growth: 3.98%
• EPS Growth: 6.75%
• Country: US
• Employees: 2,223
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.16
• Shares Outstanding: 43,955,220
• 10 Day Avg. Volume: 240,147
• 30 Day Avg. Volume: 286,664
• PEG Ratio: 0.96
• Price to Book (P/B): 1.57
• Price to Sales (P/S): 2.40
• P/FCF Ratio: 9.36
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 2.12
• Enterprise Value/Gross Profit: 3.14
• Enterprise Value/Ebitda: 6.74
• 1Y Price Target: $47.00
• Price Target Upside: 15.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 4.49
• Revenue Forecast (FY): $729.90M

• Rating: 78 Outperform
• Price Target: $46.00 ▲(13.36% Upside)

OFG Bancorp's overall stock score reflects its strong financial performance and positive earnings call, which highlight robust growth and strategic innovation. The valuation is attractive with a low P/E ratio and solid dividend yield. However, technical indicators suggest neutral market sentiment, and attention is needed on increasing debt levels and credit loss provisions.

Positive Factors

Revenue Growth

OFG Bancorp's strong revenue growth highlights its ability to expand its market presence and enhance profitability, supporting long-term business sustainability.

Digital Strategy

The successful implementation of a digital-first strategy positions OFG Bancorp to capture a larger customer base and improve operational efficiency, driving future growth.

Capital Position

A strong capital position allows OFG Bancorp to invest in growth opportunities and return value to shareholders, enhancing its competitive edge in the regional banking sector.

Negative Factors

Increased Credit Loss Provisions

Rising credit loss provisions could indicate potential risk in loan portfolios, which may impact profitability and require careful risk management strategies.

Higher Interest Expenses

Increased interest expenses can pressure net interest margins, potentially affecting OFG Bancorp's profitability if not managed effectively.

Net Charge-Offs Increase

Rising net charge-offs suggest growing credit risk, which could impact financial stability and necessitate enhanced credit risk management practices.

OFG Bancorp Business Overview & Revenue Model

Company Description

OFG Bancorp, a financial holding company, provides a range of banking and financial services. It operates through three segments: Banking, Wealth Management, and Treasury. The company offers checking and savings accounts, as well as time deposit products; commercial, consumer, auto, and mortgage lending services; financial planning and insurance services; and corporate and individual trust, and retirement services. It also provides securities brokerage and investment advisory services, including various investment alternatives, such as tax-advantaged fixed income securities, mutual funds, stocks, and bonds to retail and institutional clients; and separately-managed accounts and mutual fund asset allocation programs. In addition, the company engages in the insurance agency and reinsurance businesses; administration and servicing of retirement plans; various treasury-related functions with an investment portfolio consisting of mortgage-backed securities, obligations of U.S. government sponsored agencies, and U.S. Treasury securities and money market instruments; and management and participation in public offerings and private placements of debt and equity securities. Further, it offers money management and investment banking services; and engages in the asset/liability management activities, such as purchases and sales of investment securities, interest rate risk management, derivatives, and borrowings. The company operates through a network of 50 branches in Puerto Rico and 2 branches in USVI. OFG Bancorp was founded in 1964 and is headquartered in San Juan, Puerto Rico.

How the Company Makes Money

OFG Bancorp generates revenue through multiple key streams, primarily interest income from loans and investments, as well as non-interest income from fees and services. The company earns interest income by providing various types of loans, including personal, mortgage, and commercial loans, and by investing in securities. Non-interest income is derived from service fees, asset management fees, and other financial services, including transaction-based fees. Additionally, partnerships with local businesses and government entities enhance OFG's revenue potential by expanding its customer base and offering tailored financial solutions. Economic conditions in Puerto Rico and the broader U.S. market also play a significant role in influencing OFG's financial performance.

OFG Bancorp Financial Statement Overview

Summary

OFG Bancorp demonstrates strong profitability with consistent revenue growth and effective equity utilization. However, increasing leverage and declining cash flow growth are concerns that need attention to sustain long-term financial health.

Income Statement

OFG Bancorp shows a solid revenue growth rate of 2.2% TTM, with consistent gross and net profit margins at 68.85% and 23.00% respectively. The EBIT and EBITDA margins are strong at 28.34% and 30.65%, indicating efficient operational management. However, there is a slight decline in margins compared to previous years, which could be a concern if the trend continues.

Balance Sheet

The company's debt-to-equity ratio has increased to 0.40 TTM, reflecting higher leverage, but it remains manageable. Return on equity is robust at 14.97%, showcasing effective use of equity to generate profits. The equity ratio stands at a healthy level, indicating a stable financial structure. However, the increasing debt levels could pose a risk if not managed properly.

Cash Flow

OFG Bancorp's free cash flow has decreased by 24.96% TTM, which is a concern. The operating cash flow to net income ratio is low at 0.02, suggesting potential cash flow challenges. However, the free cash flow to net income ratio is relatively strong at 81.75%, indicating that the company is still generating sufficient cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	843.88M	822.77M	728.15M	598.51M	539.08M	541.21M
Gross Profit	569.05M	578.69M	579.50M	540.89M	497.03M	383.62M
EBITDA	264.95M	280.54M	291.82M	268.53M	238.53M	118.58M
Net Income	199.56M	198.17M	181.87M	166.24M	146.15M	74.33M
Balance Sheet
Total Assets	12.23B	11.50B	11.34B	9.82B	9.90B	9.83B
Cash, Cash Equivalents and Short-Term Investments	2.83B	2.93B	2.85B	1.96B	2.53B	2.60B
Total Debt	582.00M	422.56M	224.80M	54.40M	95.07M	134.92M
Total Liabilities	10.85B	10.25B	10.15B	8.78B	8.83B	8.74B
Stockholders Equity	1.38B	1.25B	1.19B	1.04B	1.07B	1.09B
Cash Flow
Free Cash Flow	177.03M	210.79M	277.80M	133.46M	76.99M	19.70M
Operating Cash Flow	196.78M	252.50M	295.66M	164.46M	100.04M	34.96M
Investing Cash Flow	-673.06M	-335.98M	-1.40B	-1.51B	-182.93M	757.50M
Financing Cash Flow	536.03M	-73.56M	1.31B	-124.70M	-49.04M	510.36M

OFG Bancorp Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 40.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OFG, the sentiment is Neutral. The current price of 40.58 is above the 20-day moving average (MA) of 40.11, below the 50-day MA of 40.88, and below the 200-day MA of 41.13, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 53.01 is Neutral, neither overbought nor oversold. The STOCH value of 76.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OFG.

OFG Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OFG	78 Outperform	$1.76B	9.10	14.82%	2.83%	3.98%	6.75%
NIC	74 Outperform	$1.91B	13.80	12.25%	0.93%	6.21%	19.23%
FCF	72 Outperform	$1.72B	11.94	9.71%	3.22%	3.80%	-6.23%
NWBI	69 Neutral	$1.79B	13.93	6.55%	6.48%	15.86%	16.50%
CHCO	68 Neutral	$1.76B	14.12	16.42%	2.65%	6.09%	11.49%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
VBTX	59 Neutral	―	―	7.25%	3.50%	-1.28%	32.40%

OFG Bancorp Corporate Events

OFG Bancorp Reports Steady Growth in Q3 2025

OFG Bancorp is a diversified financial holding company operating primarily in Puerto Rico and the U.S. Virgin Islands, offering a wide range of retail and commercial banking, lending, and wealth management services through its subsidiaries.

OFG Bancorp’s Earnings Call Highlights Robust Growth

OFG Bancorp’s recent earnings call painted a picture of robust financial health, underscored by strong growth in digital banking solutions and a favorable economic climate in Puerto Rico. Despite these positive developments, the company faced challenges with increased provisions for credit losses and rising interest expenses.