What are the odds of OFG Bancorp (NYSE:OFG) to dip in February?
 | By Vlad Skutelnik | Macroaxis Story |
30% of stocks are less volatile than OFG Bancorp, and above 92% of all equities are expected to generate higher returns over the next 90 days. Although many risk-takers are getting more into financial services space, some of us are not very happy with OFG Bancorp's current volatility. We will discuss why some shareholders are closely monitoring OFG Bancorp's volatility.
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Reviewed by Michael Smolkin
OFG Bancorp has 141.79 M in debt with debt to equity (D/E) ratio of 6.91, demonstrating that OFG Bancorp may be unable to create cash to meet all of its financial commitments. Volatility is a rate at which the price of OFG Bancorp or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of OFG Bancorp may increase or decrease. In other words, similar to OFG's beta indicator, it measures the risk of OFG Bancorp and helps estimate the fluctuations that may happen in a short period of time. So if prices of OFG Bancorp fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.
How important is OFG Bancorp's Liquidity
OFG Bancorp financial leverage refers to using borrowed capital as a funding source to finance OFG Bancorp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. OFG Bancorp financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to OFG Bancorp's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of OFG Bancorp's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between OFG Bancorp's total debt and its cash.
OFG Bancorp Gross Profit
OFG Bancorp Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing OFG Bancorp previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show OFG Bancorp Gross Profit growth over the last 10 years. Please check OFG Bancorp's gross profit and other fundamental indicators for more details.
OFG Bancorp Volatility Drivers
OFG Bancorp unsystematic risk is unique to OFG Bancorp and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in OFG Bancorp you can also buy The First Bancshares. You can also mitigate this risk by investing in the financials sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing OFG Bancorp important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in OFG Bancorp income statement and balance sheet. Here are more details about OFG volatility.Click cells to compare fundamentals
What is driving OFG Bancorp Investor Appetite?
The entity reported the last year's revenue of 389.39 M. Total Income to common stockholders was 43.52 M with profit before taxes, overhead, and interest of 308.19 M.
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