OP Bancorp (OPBK) AI Stock Analysis

• Market Cap: $194.07M
• Dividend Yield: 3.67%
• Average Volume (3M): 52.44K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.64
• Revenue Growth: 12.70%
• EPS Growth: 1.31%
• Country: US
• Employees: 231
• Sector: Financial
• Sector Strength: 82
• Industry: Banks - Regional
• EPS (TTM): 0.37
• Shares Outstanding: 14,848,874
• 10 Day Avg. Volume: 37,861
• 30 Day Avg. Volume: 52,443
• PEG Ratio: 6.26
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.29
• Enterprise Value/Market Cap: 1.42
• Enterprise Value/Revenue: 0.56
• Enterprise Value/Gross Profit: 2.40
• Enterprise Value/Ebitda: 11.74
• 1Y Price Target: $15.75
• Price Target Upside: 23.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 69 Neutral
• Price Target: ―

OP Bancorp's stock score reflects strong financial health with efficient operations and stable balance sheet but faces revenue challenges. The technical analysis suggests potential short-term momentum countered by medium-term downtrends. Its valuation is appealing with a low P/E ratio and solid dividend yield, making it an attractive option despite some operational and market challenges.

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 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

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

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

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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
102.86M	114.34M	10.26M	10.31M	13.43M
	Net Debt
-32.19M	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
29.78M	65.66M	82.32M	-29.40M	-5.47M
	Operating Cash Flow
31.34M	67.84M	83.73M	-28.28M	-4.85M
	Investing Cash Flow
-187.42M	-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 Price: 12.76
• 50DMA: Positive
• 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 12.76 is below the 20-day moving average (MA) of 12.85, above the 50-day MA of 12.11, and below the 200-day MA of 13.46, indicating a neutral trend. The MACD of 0.28 indicates Positive momentum. The RSI at 52.80 is Neutral, neither overbought nor oversold. The STOCH value of 41.34 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
ISTR	74 Outperform	$190.50M	8.81	9.12%	2.14%	6.42%	24.08%
FCCO	72 Outperform	$185.05M	12.13	10.83%	2.49%	19.34%	38.80%
OPBK	69 Neutral	$194.07M	9.21	10.40%	3.67%	12.70%	1.31%
BCBP	65 Neutral	$143.99M	55.49	1.40%	7.63%	-5.71%	-90.24%
Sector *	64 Neutral	$12.78B	9.87	7.67%	17015.06%	12.34%	-5.99%
NKSH	60 Neutral	$168.57M	19.44	5.66%	5.70%	16.35%	-39.77%
FSFG	59 Neutral	$191.31M	9.83	11.31%	2.21%	6.80%	161.37%