Oconee Federal Financial Corp. reports 3.9% Net Income growth in 2020
09/22/2020 • About Oconee Federal Financial Corp. (
$OFED) • By InTwits
Oconee Federal Financial Corp. reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- Oconee Federal Financial Corp. has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.7%. At the same time it's in pair with industry average of 5.1%
- CAPEX is quite volatile: $2m in FY2020, $2m in FY2019, $1m in FY2018, $0m in FY2017, $0m in FY2016
- The company has potentially unprofitable business model: ROIC is 5.3%
- It operates with high leverage: Net Debt/EBITDA is 10.0x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue increased slightly on 1.0%. Revenue growth showed slowdown in FY20Q4 - it was -6.6% YoY.
Net Income margin increased slightly on 0.51 pp from 18.1% to 18.6% in FY2020.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 8.9% in FY2020. CAPEX/Revenue increased on 7.9 pp from 1.0% in FY2017 to 8.9% in FY2020. Average CAPEX/Revenue for the last three years was 7.1%. CAPEX as a % of Revenue stuck to a growing trend at 2.4 pp per annum in FY2016-FY2020.
Return on investment
The company operates at low ROIC (5.3%) and ROE (4.4%). ROIC showed almost no change in FY2020. ROE showed almost no change in FY2020. ROIC followed a declining trend at -0.95 pp per annum in the last 5 years.
Leverage (Debt)
The company has no debt. Cash dropped on 17.7%.
Management team
Curtis T Evatt is a Oconee Federal Financial Corp.'s CEO. Curtis T Evatt has spent 4 years with the company. John W Hobbs is a Oconee Federal Financial Corp.'s CFO. John W Hobbs has spent 3 years at the company.
Financial and operational results
FY ended 06/30/2020
Oconee Federal Financial Corp. ($OFED) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 20.398 | 19.280 | 18.708 | 20.539 | 20.750 | 1.0% |
| Net Income | 5.246 | 5.525 | 3.035 | 3.720 | 3.864 | 3.9% |
Balance Sheet
|
|---|
| Cash | 4.874 | 3.526 | 3.681 | 5.678 | 4.673 | -17.7% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.204 | 0.195 | 0.669 | 1.811 | 1.848 | 2.0% |
Ratios
|
|---|
| Revenue growth | 15.9% | -5.5% | -3.0% | 9.8% | 1.0% | |
|
|---|
| Net Income Margin | 25.7% | 28.7% | 16.2% | 18.1% | 18.6% | 0.5% |
| CAPEX, % of revenue | 1.0% | 1.0% | 3.6% | 8.8% | 8.9% | 0.1% |
|
|---|
| ROIC | 8.6% | 8.1% | 5.5% | 5.2% | 5.3% | 0.1% |
| ROE | 6.3% | 6.4% | 3.6% | 4.3% | 4.4% | 0.1% |
Oconee Federal Financial Corp. ($OFED) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 5 | 5 | 5 | 5 | | 10.4% | 1.3% | 0.7% | -6.6% |
| Net Income | 1 | 1 | 1 | 1 | | 7.5% | 18.6% | -0.6% | -4.6% |
Balance Sheet
|
|---|
| Cash | 4 | 4 | 5 | 5 | | 17.6% | -9.3% | 54.5% | -17.7% |
| Long Term Debt | 0 | 0 | 0 | 0 | | - | - | - | - |
Ratios
|
|---|
| Net Income Margin | 17.6% | 21.2% | 17.7% | 18.1% | | -0.5% | 3.1% | -0.2% | 0.4% |
Peers in Thrifts & Mortgage Finance
Below you can find Oconee Federal Financial Corp. benchmarking vs. other companies in Thrifts & Mortgage Finance industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Kentucky First Federal Bancorp ($KFFB) | - | -2.9% | 7.7% | 2.9% | 2.2% |
| |
|---|
| Median (1 company) | - | -2.9% | 7.7% | 2.9% | 2.2% |
|---|
| Oconee Federal Financial Corp. ($OFED) | - | -5.5% | -3.0% | 9.8% | 1.0% |
Top companies by CAPEX/Revenue, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Kentucky First Federal Bancorp ($KFFB) | 9.2% | 1.1% | 1.2% | 1.1% | 1.2% |
| |
|---|
| Median (1 company) | 9.2% | 1.1% | 1.2% | 1.1% | 1.2% |
|---|
| Oconee Federal Financial Corp. ($OFED) | 1.0% | 1.0% | 3.6% | 8.8% | 8.9% |
Top companies by ROIC, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Kentucky First Federal Bancorp ($KFFB) | 2.1% | 1.3% | 1.0% | 0.7% | -10.1% |
| |
|---|
| Median (1 company) | 2.1% | 1.3% | 1.0% | 0.7% | -10.1% |
|---|
| Oconee Federal Financial Corp. ($OFED) | 8.6% | 8.1% | 5.5% | 5.2% | 5.3% |
