Oppenheimer Holdings (OPY) AI Stock Analysis

• Market Cap: $688.42M
• Dividend Yield: 1.11%
• Average Volume (3M): 63.43K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 0.91
• Revenue Growth: 12.68%
• EPS Growth: 81.40%
• Country: US
• Employees: 2,974
• Sector: Financial
• Sector Strength: 79
• Industry: Financial - Capital Markets
• EPS (TTM): 6.76
• Shares Outstanding: 10,425,830
• 10 Day Avg. Volume: 99,336
• 30 Day Avg. Volume: 63,434
• PEG Ratio: 0.07
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.13
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: 0.17
• Enterprise Value/Gross Profit: 1.37
• Enterprise Value/Ebitda: 1.03
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: $72.00 ▲(9.49%Upside)

Oppenheimer Holdings is favorably positioned with strong technical indicators and attractive valuation metrics. The recent corporate events, including leadership changes and strong financial performance, enhance its outlook. However, concerns about profitability and negative cash flow weigh on the overall score.

Oppenheimer Holdings Business Overview & Revenue Model

Company Description

Oppenheimer Holdings Inc., through its subsidiaries, operates as a middle-market investment bank and full-service broker-dealer in the Americas, Europe, the Middle East, and Asia. The company offers brokerage services covering exchange-traded and over-the-counter corporate equity and debt securities, money market instruments, exchange-traded options and futures contracts, municipal bonds, mutual funds, exchange-traded funds, and unit investment trusts; financial and wealth planning services; and margin lending services. It also provides asset management services, including separately managed accounts, mutual fund managed accounts, discretionary portfolio management programs, non-discretionary investment advisory and consultation services, alternative investments, portfolio enhancement programs, and institutional taxable fixed income portfolio management strategies and solutions, as well as taxable and non-taxable fixed income portfolios and strategies. In addition, the company offers investment banking services, such as strategic advisory services and capital markets products; merger and acquisition, equities capital market, and debt capital market products and services; and institutional equity sales and trading, equity research, equity derivatives and index options, convertible bonds, and trading services. Further, it provides institutional fixed income sales and trading, fixed income research, public finance, and municipal trading services; repurchase agreements and securities lending services; and proprietary trading and investment activities. Additionally, the company offers underwritings, market-making, trust, and discount services. It serves high-net-worth individuals and families, corporate executives, public and private businesses, institutions and corporations, governments, financial sponsors, and domestic and international investors. Oppenheimer Holdings Inc. was founded in 1881 and is headquartered in New York, New York.

How the Company Makes Money

Oppenheimer Holdings generates revenue through several key streams. In its private client services segment, the company earns commissions and fees from advisory services, as well as from executing trades on behalf of clients. The asset management division generates income through management fees based on assets under management, providing investment solutions and strategies for clients. In the investment banking segment, Oppenheimer earns underwriting fees and advisory fees from assisting companies with mergers, acquisitions, and capital raising activities. The company also benefits from interest income from margin lending and other financial instruments. Strategic partnerships and institutional relationships enhance its capabilities and contribute to its revenue generation.

Oppenheimer Holdings Financial Statement Overview

Summary

Oppenheimer Holdings shows stable revenue growth and solid gross margins, but struggles with low net profit margins and declining EBITDA margins. The balance sheet is stable with improved leverage, yet cash flow issues are evident with negative free cash flow, indicating financial stress.

Income Statement

The income statement shows a mixed performance. The company experienced a modest revenue growth of 1.02% from 2024 to TTM, and a stronger 14.69% from 2023 to 2024. Gross profit margin improved to 63.7% in the TTM period, indicating better cost management. However, the net profit margin for TTM is relatively low at 5.26%, reflecting challenges in converting revenue to profit. EBITDA margin decreased compared to 2024, signaling potential profitability issues.

Balance Sheet

The balance sheet presents a stable financial position with an equity ratio of 24.42% for the TTM period, which suggests a moderate level of financial leverage. The debt-to-equity ratio improved significantly to 0.20 in the TTM period, reflecting decreased reliance on debt. Return on equity is modest at 8.73% for TTM, indicating average efficiency in generating returns from shareholders' equity.

Cash Flow

The cash flow statement exhibits some areas of concern. The free cash flow is negative, and there is a significant drop from 2024 to TTM. Operating cash flow to net income ratio is negative, suggesting potential cash flow issues despite reported profits. Additionally, the free cash flow to net income ratio is unfavorable, indicating challenges in converting earnings to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.45B	1.43B	1.25B	1.11B	1.39B	1.20B
Gross Profit	680.99M	468.04M	441.50M	344.55M	484.89M	404.69M
EBITDA	235.89M	231.03M	152.57M	103.81M	268.62M	217.97M
Net Income	76.16M	71.56M	30.18M	32.35M	158.96M	122.99M
Balance Sheet
Total Assets	3.57B	3.38B	2.87B	2.71B	3.04B	2.71B
Cash, Cash Equivalents and Short-Term Investments	36.70M	33.15M	28.84M	112.43M	213.76M	35.42M
Total Debt	891.89M	687.59M	593.57M	794.24M	918.12M	1.01B
Total Liabilities	2.70B	2.53B	2.09B	1.89B	2.09B	2.03B
Stockholders Equity	872.27M	850.39M	789.17M	794.23M	823.20M	685.67M
Cash Flow
Free Cash Flow	-321.23M	-113.32M	-35.87M	48.18M	219.52M	-58.59M
Operating Cash Flow	-251.73M	-108.17M	-18.81M	64.49M	227.79M	-54.06M
Investing Cash Flow	138.16M	-3.84M	-15.56M	-14.14M	-6.27M	-3.94M
Financing Cash Flow	122.60M	116.32M	-74.76M	-253.91M	84.58M	13.87M

Oppenheimer Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 65.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OPY, the sentiment is Positive. The current price of 65.76 is above the 20-day moving average (MA) of 63.70, above the 50-day MA of 61.96, and above the 200-day MA of 59.95, indicating a bullish trend. The MACD of 0.66 indicates Negative momentum. The RSI at 62.54 is Neutral, neither overbought nor oversold. The STOCH value of 83.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OPY.

Oppenheimer Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PIPR	74 Outperform	$4.87B	23.83	17.59%	0.95%	10.27%	88.77%
SF	72 Outperform	$10.52B	19.52	11.48%	1.80%	12.85%	20.21%
MC	72 Outperform	$4.99B	28.49	39.98%	4.21%	45.14%	―
OPY	69 Neutral	$688.42M	9.59	9.10%	1.11%	12.68%	81.40%
SNEX	69 Neutral	$4.30B	14.90	16.69%	―	67.71%	19.42%
JEF	67 Neutral	$11.53B	19.18	5.86%	2.86%	0.84%	46.98%
Sector *	67 Neutral	$16.51B	11.23	9.71%	3.96%	11.61%	-10.70%

Oppenheimer Holdings Corporate Events

Oppenheimer Holdings Appoints New CEO at Annual Meeting

On May 5, 2025, Oppenheimer Holdings held its Annual Meeting of Stockholders where all nine director nominees were elected, and Deloitte & Touche LLP was appointed as auditors for 2025. Additionally, Robert Lowenthal was appointed as the new CEO of Oppenheimer Holdings Inc., succeeding Albert Lowenthal who will become Executive Chairman. The company reported record revenue for 2024, driven by increased advisory fees, commissions, and investment banking revenue, with net income reaching $71.6 million. The first quarter of 2025 also saw increased revenue primarily due to higher advisory fees and transaction-based commissions.

Oppenheimer Holdings Reports Strong Q1 2025 Financials

On April 28, 2025, Oppenheimer Holdings Inc. released a presentation to investors highlighting its financial performance for the first quarter of 2025. The company reported a net income of $30.7 million and revenue of $367.8 million, driven by increased advisory fees and transaction-based commissions. Despite a decrease in assets under management, the company achieved record highs in stockholders’ equity and book value per share. The effective tax rate decreased to 25.9% from the previous year’s 31.3%, positively impacting earnings. Oppenheimer’s strategic focus on wealth management and capital markets continues to strengthen its industry positioning.