OFG Bancorp (OFG) AI Stock Analysis

• Market Cap: $1.76B
• Dividend Yield: 2.9%
• Average Volume (3M): 228.44K
• Price to Earnings (P/E): 8.9
• Beta (1Y): 0.93
• Revenue Growth: 4.15%
• EPS Growth: 4.39%
• Country: US
• Employees: 2,223
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.16
• Shares Outstanding: 44,519,176
• 10 Day Avg. Volume: 213,470
• 30 Day Avg. Volume: 228,443
• 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: 1.04
• Enterprise Value/Revenue: 2.16
• Enterprise Value/Gross Profit: 3.14
• Enterprise Value/Ebitda: 7.06
• 1Y Price Target: $48.67
• Price Target Upside: 22.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 75 Outperform
• Price Target: $47.00 ▲(18.69% Upside)

OFG Bancorp's overall score is driven by strong earnings growth and a solid valuation, despite technical indicators suggesting limited momentum. The company's financial performance is robust, but attention to leverage and cash flow is necessary. The positive earnings call further supports the stock's potential.

Positive Factors

Digital Strategy Success

OFG's focus on digital banking enhances customer engagement and operational efficiency, positioning it well for future growth in a tech-driven market.

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability and shareholder value.

Strong Capital Position

A robust capital position provides financial resilience and flexibility, enabling OFG to invest in growth opportunities and weather economic downturns.

Negative Factors

Increased Provision for Credit Losses

Rising provisions for credit losses may indicate potential credit quality issues, which could impact profitability if not managed effectively.

Higher Interest Expense

Increased interest expenses can pressure net interest margins, affecting profitability and limiting the company's ability to invest in growth initiatives.

Declining Cash Flow

A decline in cash flow can constrain the company's ability to fund operations and investments, potentially impacting long-term growth and financial health.

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 several key streams. The primary source of income is net interest income, which comes from the interest earned on loans and other earning assets, minus the interest paid on deposits and borrowed funds. Additionally, the company earns non-interest income from fees and service charges related to deposit accounts, as well as revenue from wealth management and investment services. OFG also engages in mortgage banking and commercial lending, which contribute to its overall profitability. Strategic partnerships with financial institutions and a focus on expanding its digital banking capabilities further enhance its earnings potential. The company benefits from a strong local presence and understanding of the Puerto Rican market, allowing it to effectively cater to its customer base.

OFG Bancorp Financial Statement Overview

Summary

OFG Bancorp demonstrates strong financial performance with robust profit margins, stable revenue growth, and effective cost management. The balance sheet is well-managed with low leverage, and cash flow generation is strong. However, liquidity levels require attention, and there is a slight decrease in EBIT and net income in the TTM.

Income Statement

OFG Bancorp's income statement shows strong profitability with a consistent increase in total revenue, achieving a notable revenue growth from 2024 to TTM. The net profit margin is robust, reflecting effective cost management, and EBIT as well as EBITDA margins are healthy, demonstrating operational efficiency. However, the slight decrease in EBIT and net income in TTM compared to the previous annual results indicates potential pressure on future earnings.

Balance Sheet

The balance sheet of OFG Bancorp is characterized by a solid equity base, with a commendable equity ratio reflecting financial stability. The debt-to-equity ratio is low, indicating conservative leverage practices. Return on equity is strong, showcasing effective use of equity capital to generate profits. However, the decrease in cash and short-term investments suggests a potential need to monitor liquidity closely.

Cash Flow

OFG Bancorp's cash flow statement is positive with a strong operating cash flow to net income ratio, indicating efficient cash generation relative to earnings. Free cash flow has shown growth, providing flexibility for investments or debt reduction. However, the volatility in investing cash flows suggests significant capital expenditures or investments that need careful management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	846.53M	822.77M	728.15M	598.51M	540.58M	541.21M
Gross Profit	582.87M	578.69M	579.50M	540.89M	497.03M	383.62M
EBITDA	259.45M	280.54M	291.82M	268.53M	238.53M	118.58M
Net Income	194.72M	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	3.26B	2.93B	2.85B	1.96B	2.53B	2.60B
Total Debt	530.81M	422.56M	224.80M	54.40M	95.07M	134.92M
Total Liabilities	10.90B	10.25B	10.15B	8.78B	8.83B	8.74B
Stockholders Equity	1.33B	1.25B	1.19B	1.04B	1.07B	1.09B
Cash Flow
Free Cash Flow	176.12M	210.79M	277.80M	133.46M	76.99M	19.70M
Operating Cash Flow	215.43M	252.50M	295.66M	164.46M	100.04M	34.96M
Investing Cash Flow	-799.69M	-335.98M	-1.40B	-1.51B	-182.93M	757.50M
Financing Cash Flow	695.63M	-73.56M	1.31B	-124.70M	-49.04M	510.36M

OFG Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 39.60
• 50DMA: Negative
• 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 OFG, the sentiment is Negative. The current price of 39.6 is below the 20-day moving average (MA) of 42.28, below the 50-day MA of 43.20, and below the 200-day MA of 41.45, indicating a bearish trend. The MACD of -0.79 indicates Positive momentum. The RSI at 34.35 is Neutral, neither overbought nor oversold. The STOCH value of 22.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OFG.

OFG Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OFG	75 Outperform	$1.76B	8.90	14.82%	2.90%	4.15%	4.39%
CHCO	74 Outperform	$1.78B	14.09	16.42%	2.65%	6.32%	11.49%
NIC	74 Outperform	$1.94B	14.47	11.89%	0.92%	8.38%	26.81%
FCF	72 Outperform	$1.69B	12.33	9.31%	3.25%	4.57%	-15.68%
NWBI	71 Outperform	$1.81B	10.96	8.96%	6.48%	14.86%	40.09%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
VBTX	59 Neutral	$1.66B	14.37	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.