OP Bancorp (OPBK)
NASDAQ:OPBK

OP Bancorp (OPBK) AI Stock Analysis

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OP Bancorp

(NASDAQ:OPBK)

65Neutral
OP Bancorp's overall stock score reflects strong financial health with efficient operations and attractive valuation metrics. However, challenges in revenue growth and weak technical indicators weigh down the overall score. The lack of consistent cash flow generation and bearish market momentum are significant concerns.

OP Bancorp (OPBK) vs. S&P 500 (SPY)

OP Bancorp Business Overview & Revenue Model

Company DescriptionOP Bancorp operates as the bank holding company for Open Bank that provides banking products and services in California. It offers demand, checking, savings, money market, and time deposit accounts, as well as certificates of deposit. The company also provides commercial real estate, small business administration, commercial and industrial business, single-family residential, term, consumer, and home mortgage loans; trade financing products; and letters of credit, and SWIFT and export advice. In addition, it offers debit and credit card, online transfer and bill payment, electronic delivery of customer statements, and mobile banking solutions for iPhone and Android phones, including remote check deposit with mobile bill pay; direct deposits, cashier's checks, person to person payments, wire transfers, and automated clearing house (ACH) services; and cash management services, including balance reporting, transfers between accounts, wire transfer initiation, ACH origination, and stop payment services, as well as remote deposit capture, positive pay, zero balance accounts, and sweep accounts. As of January 27, 2022, the company operated nine full branch offices in Downtown Los Angeles, Los Angeles Fashion District, Los Angeles Koreatown, Gardena, Buena Park, and Santa Clara in California; and Carrollton, Texas. It also had four loan production offices in Atlanta, Georgia; Aurora, Colorado; and Lynnwood and Seattle in Washington. The company was founded in 2005 and is headquartered in Los Angeles, California.
How the Company Makes MoneyOP Bancorp generates revenue primarily through its subsidiary, Open Bank, by offering a variety of financial products and services. The bank's primary revenue streams include interest income from loans and investment securities, as well as non-interest income from service charges, fees, and other banking services. Interest income is derived mainly from its loan portfolio, which consists of commercial real estate loans, SBA loans, and commercial and industrial loans. The bank also earns interest income from its investments in securities. Non-interest income is generated from service charges on deposit accounts, fees from merchant services, and gains from the sale of loans, particularly SBA loans. Additionally, OP Bancorp leverages its relationships within the Korean-American community to foster growth and build a loyal customer base, which contributes to its sustained earnings.

OP Bancorp Financial Statement Overview

Summary
OP Bancorp demonstrates efficient operations with strong margins, but faces revenue growth challenges. The balance sheet is stable with low leverage, suggesting solid financial health. Cash flow management shows improvement but needs consistent positive cash flow generation for enhanced stability.
Income Statement
75
Positive
OP Bancorp shows strong gross and EBIT margins consistently above 40% and 45% respectively, indicating efficient operations. However, the net profit margin has slightly decreased from 29.4% to 26.6% in the last year, and a notable revenue decline of approximately 15.5% from 2022 to 2023 suggests potential challenges in revenue growth.
Balance Sheet
70
Positive
The company maintains a low debt-to-equity ratio of 0.46, reflecting prudent financial leverage. The equity ratio has slightly increased, indicating a stable capital structure. However, stockholder's equity growth is modest, which may limit financial flexibility.
Cash Flow
60
Neutral
Free cash flow has fluctuated significantly, with negative values in prior years turning positive in 2023. The absence of recent operating cash flow data limits comprehensive analysis. While free cash flow to net income has improved, consistency remains a concern for sustainable cash flow generation.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
79.28M81.22M94.53M77.04M56.13M
Gross Profit
79.28M81.22M94.53M77.04M56.13M
EBIT
35.94M34.83M58.02M40.66M18.29M
EBITDA
0.0034.83M48.09M41.97M19.54M
Net Income Common Stockholders
21.07M23.92M33.31M28.84M13.13M
Balance SheetCash, Cash Equivalents and Short-Term Investments
134.94M91.22M292.78M265.90M198.20M
Total Assets
2.37B2.15B2.09B1.73B1.37B
Total Debt
95.00M114.34M10.26M10.31M13.43M
Net Debt
-39.94M23.13M-72.71M-105.15M-92.98M
Total Liabilities
2.16B1.96B1.92B1.56B1.22B
Stockholders Equity
204.99M192.63M176.92M165.24M143.41M
Cash FlowFree Cash Flow
0.0065.66M82.32M-29.40M-5.47M
Operating Cash Flow
0.0067.84M83.73M-28.28M-4.85M
Investing Cash Flow
0.00-75.97M-461.78M-286.04M-147.07M
Financing Cash Flow
0.0016.37M345.56M323.47M172.29M

OP Bancorp Technical Analysis

Technical Analysis Sentiment
Negative
Last Price11.05
Price Trends
50DMA
13.05
Negative
100DMA
14.63
Negative
200DMA
13.28
Negative
Market Momentum
MACD
-0.38
Negative
RSI
36.16
Neutral
STOCH
19.78
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OPBK, the sentiment is Negative. The current price of 11.05 is below the 20-day moving average (MA) of 12.13, below the 50-day MA of 13.05, and below the 200-day MA of 13.28, indicating a bearish trend. The MACD of -0.38 indicates Negative momentum. The RSI at 36.16 is Neutral, neither overbought nor oversold. The STOCH value of 19.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OPBK.

OP Bancorp Risk Analysis

OP Bancorp disclosed 73 risk factors in its most recent earnings report. OP Bancorp reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

OP Bancorp Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$10.25B8.8915.89%3.04%13.84%2.04%
71
Outperform
$617.37M9.968.60%5.00%8.33%-21.76%
69
Neutral
$1.20B11.384.68%5.98%-6.33%-25.89%
68
Neutral
$2.68B9.6410.25%3.57%8.05%-18.64%
66
Neutral
$1.90B11.995.34%6.68%26.76%455.85%
65
Neutral
$164.80M7.9410.41%4.34%13.46%-9.98%
63
Neutral
$12.86B9.179.14%4.78%16.41%-10.11%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
OPBK
OP Bancorp
11.05
1.80
19.46%
HOPE
Hope Bancorp
9.36
-1.14
-10.86%
CATY
Cathay General Bancorp
38.10
2.41
6.75%
EWBC
East West Bancorp
74.04
-0.48
-0.64%
HAFC
Hanmi Financial
20.42
5.75
39.20%
PPBI
Pacific Premier Bancorp
19.26
-2.18
-10.17%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.