OP Bancorp (OPBK) AI Stock Analysis

• Market Cap: $207.95M
• Dividend Yield: 3.45%
• Average Volume (3M): 40.58K
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.76
• Revenue Growth: 11.05%
• EPS Growth: 8.18%
• Country: US
• Employees: 231
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.42
• Shares Outstanding: 14,885,614
• 10 Day Avg. Volume: 48,759
• 30 Day Avg. Volume: 40,579
• PEG Ratio: -1.08
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 1.53
• P/FCF Ratio: 7.89
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 1.52
• Enterprise Value/Gross Profit: 2.93
• Enterprise Value/Ebitda: 7.74
• 1Y Price Target: $16.00
• Price Target Upside: 14.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 76 Outperform
• Price Target: $14.50 ▲(4.17% Upside)

OP Bancorp's overall stock score is driven by strong financial performance and favorable valuation. The company's solid financial health and strategic expansion efforts are significant strengths. Technical analysis presents mixed signals, but the stock's attractive valuation and positive corporate events bolster its investment appeal.

OP Bancorp Business Overview & Revenue Model

Company Description

OP Bancorp (OPBK) is a financial holding company headquartered in Los Angeles, California, primarily focused on providing a range of banking services through its wholly-owned subsidiary, Open Bank. The company operates in the commercial banking sector, offering products such as personal and business loans, deposit accounts, and mortgage services. OP Bancorp serves a diverse clientele, including individuals and small to medium-sized businesses, with a commitment to meeting the financial needs of its community, particularly within the Asian American market.

How the Company Makes Money

OP Bancorp generates revenue primarily through interest income from its loan portfolio, which includes commercial loans, residential mortgages, and consumer loans. The bank earns interest on the money it lends out to borrowers, and this interest is a significant source of revenue. Additionally, the company derives income from various fees associated with banking services, such as account maintenance fees, transaction fees, and mortgage origination fees. OP Bancorp also invests in securities, contributing to its interest income. The bank's strategic focus on the Asian American community and its partnerships with local businesses enhance its customer base and revenue potential, as it fosters relationships that drive loan growth and increase deposits.

OP Bancorp Financial Statement Overview

Summary

OP Bancorp exhibits strong financial health with consistent revenue and profit growth, efficient cost management, and stable cash flows. The balance sheet is solid with a healthy equity position and manageable debt levels. Vigilance on debt levels and cash flow stability is crucial for sustained growth.

Income Statement

OP Bancorp has demonstrated strong revenue growth, with a consistent increase in total revenue over the past years, achieving a 48.3% growth from 2020 to 2024. The gross profit margin and net profit margin are healthy, with the latest TTM figures at 51.76% and 13.61%, respectively, indicating efficient cost management and profitability. The EBIT and EBITDA margins are robust, reflecting effective operational performance. However, there was a slight decrease in EBIT margin in the latest period compared to 2023, which is a point to monitor.

Balance Sheet

The company maintains a strong equity position with an improving equity ratio of 8.36% in TTM. The debt-to-equity ratio is manageable at 0.40, indicating relatively low leverage compared to industry norms. Return on Equity (ROE) is also positive, showcasing a good return to shareholders. However, the increase in total liabilities over time suggests a need to manage debt levels carefully to avoid future risk.

Cash Flow

OP Bancorp's cash flow statements show a positive trajectory, with the operating cash flow covering net income adequately, resulting in a strong Operating Cash Flow to Net Income Ratio of 1.87 in TTM. Free Cash Flow is also growing, with a significant year-over-year increase, indicating solid cash generation capabilities. The Free Cash Flow to Net Income Ratio is healthy, suggesting efficient capital expenditure management. However, fluctuations in investing and financing cash flows need monitoring for long-term stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	157.22M	154.05M	135.85M	105.83M	80.17M	64.43M
Gross Profit	81.36M	79.28M	81.22M	91.55M	76.52M	50.17M
EBITDA	30.84M	30.44M	34.83M	48.09M	41.97M	19.54M
Net Income	21.40M	21.07M	23.92M	33.31M	28.84M	13.13M
Balance Sheet
Total Assets	2.51B	2.37B	2.15B	2.09B	1.73B	1.37B
Cash, Cash Equivalents and Short-Term Investments	199.02M	135.06M	285.56M	292.78M	265.90M	198.10M
Total Debt	84.19M	102.86M	114.34M	10.21M	10.31M	13.43M
Total Liabilities	2.30B	2.16B	1.96B	1.92B	1.56B	1.22B
Stockholders Equity	210.09M	204.99M	192.63M	176.92M	165.24M	143.41M
Cash Flow
Free Cash Flow	37.25M	29.78M	65.66M	82.32M	-29.40M	-5.47M
Operating Cash Flow	40.14M	31.34M	67.84M	83.73M	-28.28M	-4.85M
Investing Cash Flow	-234.72M	-187.42M	-75.97M	-461.78M	-286.04M	-147.07M
Financing Cash Flow	254.19M	199.80M	16.37M	345.56M	323.47M	172.29M

OP Bancorp Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 13.92
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OPBK, the sentiment is Neutral. The current price of 13.92 is below the 20-day moving average (MA) of 14.34, above the 50-day MA of 13.84, and above the 200-day MA of 13.25, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 39.13 is Neutral, neither overbought nor oversold. The STOCH value of 7.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OPBK.

OP Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FCCO	78 Outperform	$211.42M	12.67	9.66%	2.22%	16.07%	57.29%
ISTR	77 Outperform	$226.09M	10.37	8.39%	1.87%	3.25%	47.03%
OPBK	76 Outperform	$207.95M	9.42	10.74%	3.45%	11.05%	8.18%
FSFG	68 Neutral	$219.72M	10.14	7.67%	2.00%	7.93%	134.03%
BCBP	62 Neutral	$148.73M	45.37	5.75%	7.40%	-5.18%	-83.93%
NKSH	60 Neutral	$186.84M	16.60	―	5.14%	15.17%	14.41%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

OP Bancorp Corporate Events

OP Bancorp Announces Stock Repurchase Program Approval

On August 28, 2025, OP Bancorp announced that its Board of Directors approved a stock repurchase program authorizing the buyback of up to 700,000 shares of its common stock. The repurchase program will be conducted in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, allowing purchases in open market transactions or privately negotiated deals. The company, however, is not obligated to repurchase shares, with the timing and amount subject to management’s discretion based on market conditions. This move could potentially impact the company’s stock price and market perception, offering flexibility in capital management.

OP Bancorp Declares Quarterly Dividend Amid Strong Q2

On July 24, 2025, OP Bancorp announced a quarterly cash dividend of $0.12 per share, payable on August 21, 2025. The company reported strong financial results for the second quarter of 2025, with a net income of $6.3 million and a diluted EPS of $0.42, reflecting growth in loan and deposit portfolios, an expanded net interest margin, and improved credit quality. The announcement highlights OP Bancorp’s solid performance and strategic expansion efforts, including the opening of a new branch in Garden Grove, California.

OP Bancorp Holds Annual Shareholder Meeting

On June 26, 2025, OP Bancorp held its annual meeting of shareholders, where four proposals were considered and voted upon. The shareholders elected seven directors, approved executive compensation, decided on the frequency of future compensation votes, and ratified the appointment of Crowe LLP as the independent registered public accounting firm for 2025.