OP Bancorp (OPBK) AI Stock Analysis

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OP Bancorp

(NASDAQ:OPBK)

64Neutral

OP Bancorp's stock score of 64 reflects strong operational efficiency and a stable balance sheet, but challenges in revenue growth and inconsistent cash flow generation present risks. The technical indicators show bearish trends, while the valuation metrics suggest the stock may be undervalued, offering a potentially attractive opportunity for dividend-focused investors.

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

Market Cap

$180.91M

Dividend Yield3.96%

Average Volume (3M)49.27K

Price to Earnings (P/E)8.4

Beta (1Y)0.65

Revenue Growth12.70%

EPS Growth1.31%

CountryUS

Employees231

SectorFinancial

Sector Strength83

IndustryBanks - Regional

Share Statistics

EPS (TTM)1.42

Shares Outstanding14,914,261

10 Day Avg. Volume61,899

30 Day Avg. Volume49,270

Financial Highlights & Ratios

PEG Ratio6.44

Price to Book (P/B)N/A

Price to Sales (P/S)2.26

Price to Cash Flow (P/CF)3.40

P/FCF Ratio1.70

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$15.00

Price Target Upside23.66% Upside

Rating ConsensusHold

Number of Analyst Covering1

OP Bancorp Business Overview & Revenue Model

Company DescriptionOP Bancorp (NASDAQ: OPBK) is a bank holding company headquartered in Los Angeles, California, primarily serving the Korean-American community. The company operates through its wholly-owned subsidiary, Open Bank, which provides a wide range of commercial banking services. Core services include deposit products, such as demand, savings, money market, and time deposits, as well as lending products, including commercial real estate loans, small business administration (SBA) loans, and commercial and industrial loans. OP Bancorp is dedicated to offering personalized financial solutions to its clients primarily in the Los Angeles metropolitan area, with a focus on businesses, professionals, and consumers in its community.

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

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

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

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
79.28M	81.22M	94.53M	77.04M	56.13M
	Gross Profit
79.28M	81.22M	94.53M	77.04M	56.13M
	EBIT
35.94M	34.83M	58.02M	40.66M	18.29M
	EBITDA
0.00	34.83M	48.09M	41.97M	19.54M
	Net Income Common Stockholders
21.07M	23.92M	33.31M	28.84M	13.13M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
134.94M	91.22M	292.78M	265.90M	198.20M
	Total Assets
2.37B	2.15B	2.09B	1.73B	1.37B
	Total Debt
95.00M	114.34M	10.26M	10.31M	13.43M
	Net Debt
-39.94M	23.13M	-72.71M	-105.15M	-92.98M
	Total Liabilities
2.16B	1.96B	1.92B	1.56B	1.22B
	Stockholders Equity
204.99M	192.63M	176.92M	165.24M	143.41M
Cash Flow		Free Cash Flow
0.00	65.66M	82.32M	-29.40M	-5.47M
	Operating Cash Flow
0.00	67.84M	83.73M	-28.28M	-4.85M
	Investing Cash Flow
0.00	-75.97M	-461.78M	-286.04M	-147.07M
	Financing Cash Flow
0.00	16.37M	345.56M	323.47M	172.29M

OP Bancorp Technical Analysis

Technical Analysis Sentiment

Negative

Last Price12.13

Price Trends

50DMA

12.28

Negative

100DMA

13.89

Negative

200DMA

13.42

Negative

Market Momentum

MACD

-0.16

Negative

RSI

55.29

Neutral

STOCH

82.09

Negative

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 12.13 is above the 20-day moving average (MA) of 11.39, below the 50-day MA of 12.28, and below the 200-day MA of 13.42, indicating a neutral trend. The MACD of -0.16 indicates Negative momentum. The RSI at 55.29 is Neutral, neither overbought nor oversold. The STOCH value of 82.09 is Negative, 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
ISTR	74 Outperform	$179.13M	9.07	8.65%	2.27%	11.56%	21.85%
FCCO	72 Outperform	$182.82M	12.12	27.79%	2.48%	19.34%	38.96%
BCBP	65 Neutral	$145.20M	55.95	1.40%	7.57%	-5.71%	-90.24%
OPBK	64 Neutral	$180.91M	8.43	10.44%	3.96%	12.70%	1.31%
Sector *	63 Neutral	$12.32B	9.52	7.89%	79.24%	12.74%	-4.55%
FSFG	59 Neutral	$178.88M	9.26	11.31%	2.36%	6.80%	161.37%
NKSH	59 Neutral	$161.89M	18.68	5.66%	5.93%	16.35%	-39.77%

* Financial Sector Average

Performance Comparison

OPBK

OP Bancorp

12.13

3.21

35.99%

BCBP

BCB Bancorp

8.46

-0.55

-6.10%

FCCO

First Community

23.80

7.30

44.24%

FSFG

First Savings Financial Group

25.87

10.38

67.01%

NKSH

National Bankshares

25.46

-0.39

-1.51%

ISTR

Investar Holding

18.24

1.93

11.83%

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.