OFG Bancorp Story

OFG -- USA Stock

USD 19.31 0.14 0.72%

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.

Published over a month ago

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What are the odds of OFG Bancorp (NYSE:OFG) to dip in February?

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 Bancorp'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. Please check the breakdown between OFG Bancorp's total debt and its cash.

How OFG Bancorp utilizes its cash?

To perform a cash flow analysis of OFG Bancorp, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash OFG Bancorp is receiving and how much cash it distributes out in a given period. The OFG Bancorp cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Breaking down OFG Bancorp Further

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.

OFG Bancorp showing appearance of lower volatility

The treynor ratio is down to 1.84 as of today. OFG Bancorp currently demonstrates below-verage downside deviation. It has Information Ratio of 0.1 and Jensen Alpha of 0.47. However, we do advice investors to further question OFG Bancorp expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Conclusion on OFG Bancorp

Although some other firms within the banks?regional industry are still a little expensive, even after the recent corrections, OFG Bancorp may offer a potential longer-term growth to shareholders. With a somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither pick up new shares of OFG Bancorp nor sell your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to OFG Bancorp.

About Contributor

Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of OFG Bancorp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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