OP Bancorp (OPBK) AI Stock Analysis

• Market Cap: $187.92M
• Dividend Yield: 3.32%
• Average Volume (3M): 43.61K
• Price to Earnings (P/E): 7.4
• Beta (1Y): 0.79
• Revenue Growth: 9.10%
• EPS Growth: 12.36%
• Country: US
• Employees: 231
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.47
• Shares Outstanding: 14,890,702
• 10 Day Avg. Volume: 60,146
• 30 Day Avg. Volume: 43,607
• PEG Ratio: 0.33
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 1.26
• P/FCF Ratio: 8.99
• Enterprise Value/Market Cap: -0.66
• Enterprise Value/Revenue: -0.74
• Enterprise Value/Gross Profit: -1.35
• Enterprise Value/Ebitda: -3.01
• 1Y Price Target: $16.50
• Price Target Upside: 30.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 1.96
• Revenue Forecast (FY): $104.40M

• Rating: 69 Neutral
• Price Target: $14.00 ▲(10.94% Upside)
• Action: Downgraded Date: 03/14/26
• Date: Action: Downgraded 03/14/26

The score is driven primarily by solid fundamentals (strong revenue growth, good profitability, and improved cash conversion) and attractive valuation (low P/E and meaningful dividend yield). This is tempered by weak technical momentum, with the stock trading below major moving averages and negative MACD.

Positive Factors

Multi-year Revenue Growth

Sustained revenue growth over multiple years reflects successful loan origination and deposit expansion, indicating scalable core banking demand. This revenue base supports long-term earnings stability, funds reinvestment in the franchise, and reduces dependence on one-time items for profitability.

Strong Cash Generation

Free cash flow roughly matching net income indicates high cash conversion, enabling internal funding for loan growth, dividends, and capital buffers. Reliable cash generation strengthens strategic flexibility and resilience versus peers reliant on external funding for growth.

Solid 2025 Profitability

Healthy operating and net margins demonstrate effective pricing and cost control within the bank’s business model. Sustained margins support return on equity and the capacity to pay dividends, absorb credit shocks, and invest in customer-facing capabilities over a multi-quarter horizon.

Negative Factors

Margin Compression Since 2021–22

Compression from peak margin levels suggests structural pressure—competitive pricing, funding cost shifts, or mix effects—that can persist. If margins remain below prior highs, long-term earnings power and buffer for credit losses weaken and require higher volume or cost cuts to restore prior profitability.

Higher Leverage vs Prior Years

An elevated leverage profile increases balance-sheet risk, reducing loss-absorption capacity and financial flexibility. In a downturn or margin squeeze, higher leverage magnifies earnings volatility and could force constraint on lending, capital returns, or require external capital to maintain ratios.

Historically Volatile Cash Flow

Past negative cash flows and volatility signal execution and cycle sensitivity risks; inconsistent cash generation complicates capital planning and dividend reliability. Even with recent improvement, recurrence of volatility would pressure liquidity and elevate reliance on external funding.

OP Bancorp Business Overview & Revenue Model

Company Description

OP 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 Money

OP Bancorp generates revenue through multiple key streams, primarily by earning interest on loans and fees associated with its banking services. The company issues loans, including mortgages, business loans, and consumer loans, which yield interest income. Additionally, OP Bancorp collects fees from deposit accounts and various banking services, contributing to its non-interest income. The bank also benefits from service fees related to transactions and account maintenance. Strategic partnerships and community engagement help to enhance its customer base and drive loan origination, thereby increasing its overall revenue. Overall, the bank's revenue model is heavily reliant on interest income from loans, supplemented by fees from deposits and services.

OP Bancorp Financial Statement Overview

Summary

Strong multi-year revenue growth and solid 2025 profitability, supported by healthy cash conversion (FCF roughly matching net income). Offsetting factors are margin compression versus 2021–2022, higher leverage than earlier years, and historically volatile cash flow.

Income Statement

Revenue has expanded strongly over the last five annual periods (2020: $64.4M to 2025: $166.7M), including a sharp step-up in 2025. Profitability remains solid in 2025 with a ~15.4% net margin and ~21.2% operating margin, but margins are well below the exceptionally high levels seen in 2021–2022, indicating some normalization/pressure despite higher revenue.

Balance Sheet

The company maintains a moderate leverage profile in 2025 (debt-to-equity ~0.54) with equity of ~$227.9M supporting a larger asset base (~$2.65B). Returns are steady but not outstanding for the period (ROE ~11.3% in 2025), and leverage has moved up meaningfully versus 2020–2022 levels, which increases balance-sheet risk if profitability weakens.

Cash Flow

Cash generation is healthy in 2025 with operating cash flow and free cash flow both at ~$26.2M and free cash flow matching net income (conversion ~1.0x). Free cash flow growth rebounded strongly in 2025, but cash flow has been volatile historically (notably negative operating/free cash flow in 2020–2021), which is a key consistency risk even with improved recent performance.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	166.66M	154.05M	135.85M	105.83M	80.17M
Gross Profit	91.10M	79.28M	81.22M	91.55M	76.52M
EBITDA	35.33M	30.44M	34.83M	48.09M	41.97M
Net Income	25.66M	21.07M	23.92M	33.31M	28.84M
Balance Sheet
Total Assets	2.65B	2.37B	2.15B	2.09B	1.73B
Cash, Cash Equivalents and Short-Term Investments	434.00M	135.06M	285.56M	292.78M	265.90M
Total Debt	121.94M	102.86M	114.34M	10.21M	10.31M
Total Liabilities	2.42B	2.16B	1.96B	1.92B	1.56B
Stockholders Equity	227.89M	204.99M	192.63M	176.92M	165.22M
Cash Flow
Free Cash Flow	23.36M	29.78M	65.66M	82.32M	-29.40M
Operating Cash Flow	26.16M	31.34M	67.84M	83.73M	-28.28M
Investing Cash Flow	-243.01M	-187.42M	-75.97M	-461.78M	-286.04M
Financing Cash Flow	249.22M	199.80M	16.37M	345.56M	323.47M

OP Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.62
• 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 OPBK, the sentiment is Negative. The current price of 12.62 is below the 20-day moving average (MA) of 13.31, below the 50-day MA of 13.80, and below the 200-day MA of 13.43, indicating a bearish trend. The MACD of -0.29 indicates Positive momentum. The RSI at 35.21 is Neutral, neither overbought nor oversold. The STOCH value of 27.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OPBK.

OP Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FRAF	73 Outperform	$214.82M	10.64	9.91%	2.51%	12.06%	10.38%
OPBK	69 Neutral	$187.92M	7.44	11.75%	3.32%	9.10%	12.36%
HWBK	68 Neutral	$224.58M	9.85	14.66%	2.39%	0.16%	258.06%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BPRN	67 Neutral	$223.68M	9.65	6.98%	3.50%	12.92%	56.52%
LCNB	66 Neutral	$218.55M	10.22	8.97%	5.32%	5.07%	228.39%
INBK	48 Neutral	$171.89M	8.61	-9.44%	1.07%	2.49%	-248.43%

OP Bancorp Corporate Events

OP Bancorp Posts Strong Q4 2025 Earnings, Raises Dividend

On January 22, 2026, OP Bancorp reported fourth-quarter 2025 net income of $7.1 million, or diluted earnings per share of $0.47, up from $6.7 million, or $0.45, in the third quarter of 2025 and $5.0 million, or $0.33, in the year-earlier quarter, driven by a 3% increase in net interest income and a 61% reduction in provision for credit losses. The company also declared a quarterly cash dividend of $0.12 per share on its common stock, payable on February 19, 2026 to shareholders of record as of February 5, 2026, while highlighting modest growth in average loans and deposits, stable asset quality, and robust capital ratios, underscoring strengthened profitability and balance sheet resilience as it closed out 2025.

The most recent analyst rating on (OPBK) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on OP Bancorp stock, see the OPBK Stock Forecast page.